In a big setback to the Telangana government, the state High Court has cancelled the allotment of prime land in the city for establishment of International Arbitration and Mediation Centre (IAMC). A division bench comprising Justice K Lakshman and Justice K Sujana struck down the Government Order (GO) that had allotted 3.5 acres in Raidurgam, in the city’s IT corridor, to IAMC. The ruling came in response to two Public Interest Litigations (PILs) challenging the legality of the allotment.
One of the petitioners, advocate K Raghunath Rao, argued that the land allotment violated existing rules and Supreme Court judgements. He submitted that land valued at nearly ₹350 crore was granted to IAMC, a private trust, without following due process.
The petitioners also questioned the rationale of providing government land and financial assistance to a private institution. However, the state government defended its decision, stating that IAMC would help resolve disputes between international companies, thereby enhancing Hyderabad’s position as an arbitration hub.
Also read: Telugu news anchor found dead at home, suicide suspected
Advocate General A Sudarshan Reddy said the amended Arbitration Act encourages the establishment of institutional arbitration centres and cited the Sri Krishna Committee recommendations supporting government backing for such initiatives.
He also highlighted that IAMC’s governance structure, which includes the Chief Justice of Telangana High Court and the State law minister as trustees, would instil confidence among businesses opting for arbitration.
During hearings, the bench questioned why the government chose to allot prime land and release funds when vacant government buildings were available.
It pointed out that the additional solicitor general’s office operates from a very small space within the High Court, while many departments function from leased or private premises.
After reserving its judgement earlier, the court delivered its order on Friday, setting aside the GO related to both land allotment and building construction for IAMC.
India’s first International Arbitration and Mediation Centre was inaugurated in December 2021 by then CJI NV Ramana and then chief minister K Chandrasekhar Rao.
The CJI had also laid the foundation stone for its permanent building in March 2022, thanking the government for allocating land and Rs 50 crore for construction.
Justice Ramana described IAMC as a significant step to promote arbitration and mediation in India and hoped it would evolve into an institution comparable to centres in London, Dubai and Singapore.
Currently, IAMC operates from a temporary facility at VK Towers in Gachibowli, with a panel comprising renowned international arbitrators and mediators.
Follow us
