Lease, Sublease and Encroachment of Temple Land
Sri Kalyana Venkateswara Swamy Temple, a registered institution under the A.P. Charitable and Hindu Religious Institutions and Endowments Act, 1987, owns 2.40 acres in Survey No. 112/2 at Peddapuram. In 2001 the trust board leased the land for 25 years to a society running a school at Rs. 1,500 per acre per year. The lease deed was signed by the chairman and the executive officer but was never placed before the Commissioner. The society has built permanent classrooms, sublet 0.60 acre to a private shop, and is in possession of an adjoining 0.70 acre in Survey No. 112/3, which the temple records show as a cattle shed. The lease expired on 31 March 2024. The society applied for renewal for 33 years at Rs. 12,000 per acre per year. The board passed a resolution recommending renewal, citing the school's public utility. The tahsildar's records show the 0.70 acre as 'assigned land' in the society's name in 2012. The Executive Officer seeks your advice.
1. Is the board's recommendation to renew the lease for 33 years legally sustainable? Explain the statutory controls over lease and alienation of temple land.
Read the worked answer
No. A trust board cannot, by resolution, renew a lease of temple land for 33 years. Sections 42 and 43 of the A.P. Charitable and Hindu Religious Institutions and Endowments Act, 1987 deal with alienation and lease of immovable property. Temple land is held in trust; a lease requires the prior sanction of the Commissioner and must follow the prescribed mode-normally public auction or transparent bidding-and the permitted period. The 2001 lease itself is suspect because it was never placed before the Commissioner.
Public utility of a school is relevant to the institution's charitable objects, but it does not cure lack of sanction or convert a long lease into a valid one. The board's role is recommendatory; the competent authority must apply its mind to market rent, the institution's interest, and the lease rules. The correct course is to refer the proposal to the Commissioner with a valuation, not to act on the board resolution. If the lease is unauthorised, possession after expiry is unauthorised and must be regularised only by a fresh auction or sanctioned lease.
2. What steps should be taken to recover the 0.70 acre in Survey No. 112/3 and to deal with the unauthorised sublease?
Read the worked answer
First, get a joint survey by the temple surveyor and the tahsildar; the 'assigned land' entry is not conclusive because assignment of temple land without sanction is void. Issue notice to the society to show cause why it should not be evicted from the 0.70 acre and why the sublease should not be terminated. Under the Act, unauthorised sublease or transfer is a ground for cancellation; the sub-lessee is not a protected tenant merely because the society inducted him. Give a personal hearing, record the evidence, and pass a reasoned order.
If possession is not surrendered, apply for eviction through the competent authority and police assistance. Do not accept rent for the encroached area or the sublet portion, as acceptance may create a tenancy claim. Simultaneously, fence and demarcate the land and report the encroachment to the Commissioner.
3. How should lease arrears, unauthorised sublease income and current market rent be accounted for and audited?
Read the worked answer
Compute arrears at the contractual rate only for the period the lease was valid; after expiry, claim damages or market rent, not contractual rent. The unauthorised sublease income is recoverable from the society as mesne profits. Keep the amounts in separate ledger heads-lease rent, damages, interest-and do not adjust them against any renewal premium. The auditor should raise an objection for the 2001 lease without sanction and for non-recovery; the Executive Officer should not sign a 'no-dues' certificate.
Any fresh lease must be by public auction with an upset price fixed by the Commissioner; the school can participate, but it cannot claim preference. Deposit all recoveries in the temple account and report compliance to the Assistant Commissioner.