Chennai Corporation to purchase temple land for ₹18.85 crore to run a school after Madras High Court intervention

The Greater Chennai Corporation (GCC) is all set to purchase a piece of private temple land, spread over 10 grounds (24,000 square feet) on School Road at Mettupalayam in West Mambalam, for a consideration of ₹18.85 crore fixed by the Madras High Court.

Justice N. Anand Venkatesh had fixed the quantum and persuaded the temple and the corporation to agree for the settlement in the interest of 2,500 students studying in a corporation school functioning on the land since 1937.

In 2021, the Shri Prasanna Venkatesa Perumal Devasthanam had filed a writ petition seeking a direction to the GCC Commissioner to pay monthly rent. The institution accused the civic body of not having paid a single rupee since 1969.

Initially, the GCC questioned the title of the Devasthanam over the property and said the necessity to pay rent to it would not arise at all. However, the Devasthanam produced voluminous documents, including a civil court decree, to prove its title.

The Town Survey Land Register, along with a sketch, a lease deed entered between the Devasthanam and the Corporation in 1937, and details of the rent paid between 1938 and 1969 were produced before the court to establish land ownership.

After going through the documents, the High Court was satisfied that the corporation was only a tenant but it was now questioning the title of the landlord by taking advantage of a sub-division of the property carried out in later years.

Mediation failed

In 2023, the High Court referred the issue to the Tamil Nadu Mediation and Conciliation Centre for fixing the rent but the mediation failed and a negative report was submitted to the court, stating that the parties were not agreeing for an amicable amount.

Thereafter, Justice Venkatesh suggested that the Corporation could instead purchase the property in the interest of the students pursuing free education. The Board of Trustees of the Devasthanam readily agreed to sell the land to the corporation.

Hence, the judge suo motu impleaded the T. Nagar Sub Registrar and called for details regarding the guideline and market values of the land. However, the corporation went on appeal against the single judge’s 2024 interim order.

Cost imposed on GCC

A Division Bench of the High Court dismissed the writ appeal on January 24, 2025, and imposed costs of ₹5 lakh, to be paid to the temple, on the corporation for attempting to wriggle out of its obligation by yet again questioning the land ownership.

Thereafter, Justice Venkatesh took up the writ petition for final hearing when he was told the revenue officials had found the guideline value of the land to be ₹5,500 per square foot and its market value to be ₹10,701 per square foot.

After finding that the corporation would have to pay a huge amount of ₹25.68 crore from its tax revenues if the property had to be purchased as per market value, the judge fixed the sale consideration at ₹7,800 per square foot and directed it to pay ₹18.85 crore.

Govt. accorded administrative sanction

On June 19, 2025, the GCC wrote to the Tamil Nadu government seeking administrative sanction for purchasing the temple property for ₹18.85 crore, and also seeking exemption from payment of stamp duty and registration charges.

Accepting the request, a Government Order was issued on July 23, 2025, according sanction for the proposed acquisition, being made in the interest of the students studying in the corporation school, and also granting the exemptions as sought for.

On being told now that the registration of the sale deed would take place in a couple of days after the issuance of the necessary cheques to the Devasthanam, Justice Venkatesh adjourned the writ petition to September 4, 2025, for reporting compliance.