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There Has to Be Transparency In Matters of Land Allotment By Government: SC Quashes Allotment Letter Issued in Favor of Co-Op Housing Society
Supreme Court

There Has to Be Transparency In Matters of Land Allotment By Government: SC Quashes Allotment Letter Issued in Favor of Co-Op Housing Society

Tulip Kanth
|
13 Dec 2024 1:15 PM IST

The Supreme Court quashed a land allotment letter issued in the year 2008 by the Maharashtra Government in favor of Medinova Regal Cooperative Housing Society and observed that the entire history of how the plot came to be allotted showed nepotism and favoritism for a society.

The Apex Court further highlighted that land is a precious material resource of the community and therefore the least which is required from the State is transparency in its distribution.

The appellant had filed the appeal challenging the judgement whereby a Division Bench of the Bombay High Court dismissed the appellant’s writ petition and declined to interfere in the allotment of land by the Respondent­-State to Medinova Regal Co­operative Housing Society (MRCHS or Respondent No. 5).

The Division Bench comprising Justice Sudhanshu Dhulia and Justice Ahsanuddin Amanullah asserted, “Since there has to be transparency in matters of allotment of land by the government, adherence to the above rules and regulations becomes important in the cases of allotment, but unfortunately, all this is completely missing in the present case where allotment was made in favor of MRCHS in total violation of the prescribed procedure.”

MRCHS, a proposed housing society, had applied, through its Chief Promoter for allotment of a plot at Bandra in 2000. It was mentioned in their application that the members of applicant society work in Tata Memorial Centre, a leading hospital and research institute for cancer, and these members do not own any house, despite living in Maharashtra for the last twenty years or so. Three years later, the Revenue &Forest Department issued a Letter of Intent in favour of MRCHS for sanction of one plot of land. Meanwhile , the present appellant also applied for allotment of the subject plot in its favour.

In the year 2005, the Principal Secy. (Revenue) recommended cancellation of the LoI noting that after scrutiny of all 29 members, i.e., original and additional members, only 8 of them could be considered prima facie eligible while the condition of admitting 20% of MRCHS’ members from the backward classes had still not been complied with.

In the year 2006, the the Chief Minister sent the file back with the remarks “Last opportunity be provided to the society and concerned Collector should complete the action.” Once this direction was given by the Chief Minister, things started moving smoothly for MRCHS as the Joint Secy. found 13 members out of their 29 members to be eligible for granting final membership. Consequently, Letter of Allotment was issued in favor of MRCHS in 2008.

After a perusal of the factual aspects, the Bench said, “The entire history of how the plot came to be allotted to MRCHS shows nepotism and favoritism for a society which was not even eligible in the first place for this allotment. A perusal of the records shows that not a single member of the society, is a doctor at Tata Memorial Hospital. Leave aside a doctor, not one member is an employee of Tata Memorial Hospital which was the projection earlier and for which the plot was sought to be allotted. The composition of this society has also now completely changed from its original composition.”

The Bench also took into consideration the office noting of MRCHS’ file which clearly suggested that the concerned authorities were not favourably inclined to allot the plot to MRCHS and the matter kept lingering since the year 2000, on one pretext or the other and thereafter as late as in 2006 one last opportunity was given to MRCHS and after 8 years and countless changes in the membership of the society the land was allotted to them, that too a different plot than the one they applied for.

“Land is a precious material resource of the community and therefore the least which is required from the State is transparency in its distribution. In our opinion, therefore there has been a complete arbitrariness in the allotment in favor of MRCHS”, it said.

Nothing was brought on record which would even remotely indicate that the plot actually allotted to MRCHS was ever sought by them. “This by itself vitiates the entire allotment”, it added.Moreover a perusal of the Letter of Intent as well as the Letter of Allotment did not disclose any reasons why MRCHS was allotted land under the discretionary quota, as provided for under Clause 12(8) GR 1999, where it specifically provides that reasons have to be disclosed as to why discretion is being exercised. Non­disclosure of reasons showed that such an allotment was arbitrary.

It was also noticed by the Bench that the MRCHS’ proposed members in their initial application were subsequently changed thrice, in order to somehow meet the eligibility criteria.The Bench further observed that the present appellant’s case for allotment of a plot is a matter which is yet to be decided by the authorities, but the allotment of the plot in favor of MRCHS is not proper, as it is violative of the procedure as well as eligibility criteria.

Thus, allowing the appeal and setting aside the order of the Bombay High Court, the Bench quashed the Letter of Allotment issued in favor of MRCHS.

Cause Title: Proposed Vaibhav Cooperative Housing Society Limited v. State of Maharashtra & Ors.[Neutral Citation: 2024 INSC 971]

Click here to read/download Order




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