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5.The learned Senior Counsel, Mr.B.Saravanan, appearing for the petitioners submitted that, the AIBEA Nagar consisting of two residential blocks is a duly approved layout as sanctioned by the 8th respondent way back in the year 1985/1986. 10 percent of the land in the aforesaid layout, namely, AIBEA Nagar, was allocated for the Open Space Reservation by the https://www.mhc.tn.gov.in/judis ( Uploaded on: 28/05/2025 03:07:31 pm ) promoters of the said layout and the same is comprised in a total number of 27 plots. Madurai Ramanathapuram District Bank Employees Union is the promoter of the AIBEA Nagar layout. While being so, the promoter in collusion with the 8th respondent, that is, the Executive Officer of Paravai Town Panchayat, sold away few properties allotted for Open Space Reservation.
II.However, 10% of properties allocated for Open Space Reservation (OSR) purposes should be directly handed over to the Paravai Town Panchayat by executing appropriate gift deed by the applicant AIBEA Nagar residential association with immediate effect.
III.One such properties which were allocated for Open Space Reservation purposes are duly handed over to the Paravai Town Panchayat by execution of proper gift deeds, thereafter those layout plan of house sites and buildings built therein could not be considered as unapproved house sites and the same may be extended with appropriate house site and building permissions.
42.Even after such direction, neither the petitioner association nor the https://www.mhc.tn.gov.in/judis ( Uploaded on: 28/05/2025 03:07:31 pm ) promoter of AIBEA Nagar came forward to hand over all the properties allocated for Open Space Reservation purposes in AIBEA Nagar layout.

Hence, after a span of 11 years, the 8th respondent Panchayat vide proceedings in Na.Ka.No.25/2011 dated 09.11.2012, required the Secretary of the petitioner association to forthwith hand over 10 items of properties comprising 72,296 square feet area comprised in 10 plots allocated for Open Space Reservation purposes by executing necessary gift deeds in favour of the 8th respondent Town Panchayat. The said proceeding in Na.Ka.No. 25/2011 dated 09.11.2012, was challenged by the promoter of AIBEA Nagar layout by filing W.P.(MD)No.7245 of 2013 before this Court. During the pendency of the same, the petitioner association represented by its Secretary, Thiru.K.Alagarsamy, filed another Writ Petition in W.P.(MD)No. 24757 of 2015, challenging the resolution of the 8th respondent resolution No.105 dated 15.07.1988, passed by the Paravai Town Panchayat. The petitioner association also impleaded itself as respondent in W.P.(MD)No. 7245 of 2013. Both the Writ Petitions were taken up together by the Hon'ble Division Bench of this Court and on 11.12.2018, passed an order directing the District Collector, Madurai, to file a comprehensive counter affidavit before 08.01.2019.

Despite the Government issuing a Government Order in G.O.(2Pa)No.141 dated 30.11.2000, facilitating the approval of the AIBEA Nagar layout subject to the condition of handing over all the properties, which has been allocated for the Open Space Reservation purposes forthwith. Since the promoter of the AIBEA Nagar failed to hand over the entire area allocated for Open Space Reservation purposes, the 8th respondent panchayat by proceedings in Na.Ka.No.25/2011 dated 09.11.2012, required the promoters of the AIBEA Nagar layout to immediately hand over 10 items of property comprised in a total area of 72,296 square feet, that is, an area of 1 acre and https://www.mhc.tn.gov.in/judis ( Uploaded on: 28/05/2025 03:07:31 pm ) 65 cents. This proceeding passed by the 8th respondent Town Panchayat was challenged by the promoter of AIBEA Nagar layout in W.P.(MD)No.7245 of 2013 and for better clarity, the said proceedings is extracted here under:-