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The Bombay High Court has ruled in favor of two prominent developers, Godrej Properties and Shelton Infrastructure, allowing them to retain plots in Sanpada, Navi Mumbai. Their allotment was initially revoked by the City and Industrial Development Corporation (CIDCO).
The controversy began when Godrej Properties and Shelton Infrastructure successfully secured bids for two plots out of the 13 offered by CIDCO in Navi Mumbai for residential and commercial development in February 2021. However, CIDCO later sought to cancel the allotments and initiate fresh bidding, citing concerns over potential loss to the public exchequer due to "artificial depression" in prices.
The High Court disapproved of CIDCO's actions and described the cancellation order as "irrational," "clearly arbitrary," and driven by "irrelevant and external considerations." Justice Gautam Patel and Kamal Khata highlighted that CIDCO had ignored previous court orders and acted discriminatorily by not canceling allotments for other bidders who agreed to pay delayed payment charges.
Represented by senior counsels Milind Sathe, Samit Shukla, Bindi Dave, and others, the developers argued vehemently against the cancellation, asserting their fundamental right to equality before the law. The High Court sided with them, emphasizing the need for CIDCO to operate within the boundaries of the law and exercise diligence, especially as a custodian of public funds.
The legal battle surrounding the plot allotments had seen earlier skirmishes, with concerns raised over conflicting claims between CIDCO and the Navi Mumbai Municipal Corporation (NMMC) regarding land usage. Despite attempts by CIDCO's legal counsel to defend the cancellation, the High Court found no merit in their arguments, dismissing claims of artificial price suppression and refusing to grant a stay on its judgment.
Overall, the High Court's ruling represents a significant victory for Godrej Properties and Shelton Infrastructure, reaffirming the importance of due process and equality under the law in matters concerning public land allocation and development.
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