State as Trustee of Land Must Balance Development and Villagers' Needs: Rajasthan High Court in Solar Project

The Rajasthan High Court, Jodhpur, in a recent judgment, addressed the conflict between renewable energy development and the preservation of village resources. The court partially allowed a writ petition by Gram Panchayat, Kalyan Singh Ki Sidd, challenging the allotment of 3128 bighas of land to S.B.E. Renewables Fifteen Projects Private Limited for a solar power project. The court emphasized the importance of considering the village's present and future needs, directing the state to withhold 10 bighas of land from the project for essential village amenities.

The case arose when the Gram Panchayat of Kalyan Singh Ki Sidd village filed a writ petition challenging the allotment of 3128 bighas of village land to S.B.E. Renewables for establishing a 300 MW solar power project. The Panchayat argued that the allocation left insufficient land for the village’s future development, grazing needs, and essential facilities such as schools, health centers, and playgrounds. They contended that the State Government's decision ignored the village's present and future needs, and that critical areas of the land, including catchment areas and uncultivable hillocks (Gair Mumkin Magra), were improperly allocated.

The High Court recognized that while the development of renewable energy projects is vital, it should not come at the expense of the village’s development. Justice Dinesh Mehta, delivering the judgment, emphasized that the State, as a trustee of public land, has a fiduciary duty to balance the interests of industrial development with the needs of the village community. The court observed that "the representations of the Gram Panchayat, if not the villagers, have not been heeded to," and stressed that the rights of the residents under Article 21 of the Constitution should not be overlooked.

The court examined the legality of the allotment under the Rajasthan Land Revenue (Allotment of Land for Setting Up of Power Plant Based on Renewable Energy Sources) Rules, 2007. The court clarified that land classified as ‘Gair Mumkin Magra’ (uncultivable hillock) is not automatically restricted from being allotted for non-agricultural purposes, such as a solar power project. However, it underscored the necessity of leaving sufficient land for public use and future village expansion.

Pasture Land and Catchment Area Concerns: The court addressed concerns about the potential impact on pasture land and water bodies. It noted that the village had 36 bighas of designated pasture land and that the solar project did not encroach upon areas classified as water bodies in the revenue records. However, it acknowledged the need for careful management of natural resources and directed that additional land be kept aside to meet the village's requirements.

Balancing Development with Rights of Villagers: The court’s reasoning hinged on the principle that the state, while facilitating economic development, must ensure that the basic needs of the village community are not compromised. "The State is a trustee of all the natural resources, including the land, and it has a fiduciary duty to use, allot, or distribute the same in accordance with law," the court stated. The judgment highlighted the importance of equitable distribution of natural resources, considering both present and future needs.

Obligation to Consider Panchayat's Representations: The court criticized the State Government and district authorities for not properly considering the Panchayat’s representations before finalizing the land allotment. It directed that in future allotments under the 2007 Rules, the concerned Gram Panchayat must be consulted, and their inputs must be factored into the decision-making process.

The Rajasthan High Court’s judgment strikes a balance between the need for renewable energy development and the preservation of village resources. By directing the exclusion of 10 bighas of land from the solar project for village development, the court has underscored the importance of ensuring that industrial projects do not compromise the basic amenities and future needs of rural communities. This ruling is expected to guide future land allotments for industrial projects in the state, reinforcing the role of local bodies in safeguarding community interests.

Date of Decision: August 21, 2024