Land reform that protects corporates? 'Extreme' socialism in Kerala, quips SC; rules against Indian Oil Corporation

NEW DELHI: The Supreme Court has criticized the protection given to big corporates under the Land Reforms Act in Kerala. "It is understandable that agricultural land is protected, but what kind of land reform is it that land for commercial and industrial purposes is also protected. Therefore, socialism in Kerala must be called 'extreme'," the court quipped.

The bench of Justices B.V. Nagaratna and Alok Aradhe criticised Section 106 of the Kerala Land Reforms Act. Section 106 provides protection from eviction if buildings were constructed before May 20, 1967, on leased land for commercial and industrial purposes. The court made the reference in a case related to Indian Oil Corporation.

The Supreme Court was hearing a dispute between the owner and Indian Oil Corporation regarding 20 cents of land in Elamkulam village in Ernakulam. The land was leased to the company through a dealer to run a petrol pump. After the lease agreement expired, the owner filed a civil case in 1994 to get the land back.

Although the Civil Court in Ernakulam accepted the oil company's argument that the building was built before 1967 and was entitled to the protection of Section 106 of the Kerala Land Reforms Act, the High Court ruled in favour of the owner. With this, the company approached the Supreme Court.

The Supreme Court ruled that the company is not entitled to the protection of Section 106. In the event of the death of the owner, the land must be handed over to the heirs within six months. It also ordered that any rent arrears must be paid.