Govt Can Impose Conditions on Land Allotments to Charitable Trusts : Supreme Court on Land Allotment vs. Sale
The Supreme Court ruled that government land allotments to charitable trusts under statutory schemes are not absolute sales, allowing the State to impose usage conditions. It held that Section 10 of the Transfer of Property Act (restricting alienation conditions) does not apply to such allotments, as public interest overrides private contractual principles. The Court emphasized that violation of allotment terms (e.g., unauthorized commercial use) justifies land resumption without compensation, branding such breaches as "fraud on statute". The judgment reaffirmed the State’s authority to enforce conditional grants for charitable purposes under revenue laws.
Facts Of The Case:
The case involved a dispute over 3.01 acres of government land in Telangana allotted to Dr. Pasupuleti Nirmala Han...