HC Slams Kerala Govt for withholding Rs 46 Crore Compensation for Covid Facility Use

The petitioner was directed to hand over the petitioner's Medical College with all existing human and material resources to the DMO, Thiruvananthapuram. An order was issued under Sections 26, 30 and 34 of the Disaster Management Act, 2005. The Secretary to Cherunniyoor Grama Panchayat required the petitioner to hand over keys of the rooms on the 6th floor and to provide three cleaning staff maintaining Covid protocol, and the petitioner was also required to repair the lift. The DMO required the petitioner to hand over the entire facility of the College. The petitioner co-operated.

The petitioner pointed out that no rent or compensation was paid to the petitioner. The petitioner, therefore, computed the compensation/rent based on and submitted a representation dated 10.08.2021. About Rs. 46 Crores is due to the petitioner. Thereafter, the District Collector directed to close down the Covid First Line and Second Line Treatment Centres. Authorities conducted fumigation in the Hospital, and the Hospital was handed over to the petitioner. However, an order was issued rejecting the claims of the petitioner and holding that the petitioner is not entitled to any compensation as the building constructed for the Medical College is unauthorised.

A joint inspection was conducted. The Panchayat authorities reported that the Women's Hostel building of the Dental College was constructed in violation of CRZ Regulations. The Rent Committee fixed the rent for the portion of the building which was taken over for Covid response activities at Rs. 1,06,19,881.44, and hence, the petitioner is not entitled to any relief. As regards rent for the floor area and rent for rooms, the District Collector has concluded that as the portion of the building used by the respondents was unauthorised construction, rent for the floor area and rooms cannot be sanctioned.

After considering the arguments, the bench observed that though Section 66 of the Disaster Management Act provides the manner in which compensation has to be computed and the rent for the building has been declined, alleging that the building is unauthorised, the buildings were constructed after obtaining NOC from the Grama Panchayat.

“Assuming that the building requires certain statutory clearances, even then, the respondents who have taken over the building and used the same, invoking the provisions of the Disaster Management Act, 2005, cannot decline rent/compensation, holding that the building construction was unauthorised. If there are any statutory violations in the construction of the building, the authorities will be free to take such action as is permissible. But, the respondents are legally bound to pay rent/compensation to the petitioner if the building is used by them, failure of which would offend the constitutional right of the petitioner under Article 300A of the Constitution of India,” the bench stated.