Date:13/03/2007 URL: http://www.thehindu.com/2007/03/13/stories/2007031317370300.htm

Tamil Nadu - Chennai

LIC restrained from allotting houses to non-policy holders

Special Correspondent

144-flat project proposed in Anna Nagar Western Extension

CHENNAI : The Madras High Court on Monday restrained the Life Insurance Corporation of India from allotting houses to non-policy holders in its proposed 144-flat project at Padi Eri in Anna Nagar Western Extension.

Justice D. Murugesan granted the interim injunction on the advertisement for the project only insofar as it related to non-policy holders, on a petition filed by the Jeevan Bhima Nagar Flat Owners Welfare Association, represented by its secretary I. Periyasamy.

According to the petitioner-association, the Government allotted 225 grounds of land at the site to the LIC on a representation from the latter for a housing scheme — Public Housing Scheme for Life Insurance Corporation Policy-holders.

In return, the LIC Chairman agreed to consider the Government's request that Government employees, who were policy-holders also, would be eligible for allotment.

In 1993, the LIC built 800 flats and sold them to those having policies for a minimum of Rs. 50,000 for prices ranging from Rs. 3.3 lakh to Rs. 6.6 lakh.

In November 2006, it issued advertisements inviting applications for 144 more flats.

Taking exception to the omission of a precondition that an applicant should be a policy-holder, the petitioner-association assailed a clause which entitled "individuals, who are Indian nationals, including non-resident Indians/institutions/corporate bodies." It also specifically stated that they need not be policy-holders.

The project was also rechristened as "Housing Scheme of LIC" instead of the original "Public Housing Scheme for LIC Policy-holders."

Pointing out that the Government had allotted the lands specifically to benefit policy-holders, the petition said the LIC could not use the site for constructing flats to sell them to non-policy holders as part of a commercial venture.

It sought to restrain the LIC from allotting the proposed flats to non-policy holders and without improving the amenities at the site.