Summary: The Madras High Court decided against the special allocation of shops in Chennai's Koyambedu Market, ordering public auctions instead. This decision affects several shop owners who bought their properties from the original recipients.
Back in 2009, the Chennai Metropolitan Development Authority (CMDA) set aside 15% of its shop allocations for a special category. This decision was challenged in court for not being open and fair. Judge V. Lakshminarayanan handled the case.
On December 15, 2014, the main judges of the Madras High Court, led by Judge Sanjay Kishan Kaul, declared the special allocations illegal. They ordered that all such shops be auctioned publicly to ensure fairness. The court stressed the importance of an open process.
After the first ruling, some original recipients, including Tmt. Shanthi and Tmt. Jayanthi, asked for a review. However, on April 10, 2025, the court rejected these review requests, sticking to their original decision.
Shop owners like M. Baskar, who bought properties from the original recipients, found themselves in a difficult situation. The court ruled that their purchases, made while the case was still ongoing, were subject to the final decision.
The court used the rule of lis pendens, which means any property transfer during an ongoing case is subject to the case's outcome. This rule ensures that ongoing legal cases aren't affected by property transfers.
On January 22, 2026, the court dismissed the petitions, giving shop owners three months to leave. The CMDA was told to refund the amounts paid by the original recipients.
The court's decision requires the CMDA to hold public auctions for the affected shops, giving everyone a fair chance to participate. This move aims to ensure openness and fairness in how public properties are allocated.
