Supreme Court of India Sets Aside Arbitrary Allotment of Government Land to Housing Society
In Proposed Vaibhav Cooperative Housing Society Limited v. State of Maharashtra & Ors., the Supreme Court quashed the allotment of a plot to Medinova Regal Cooperative Housing Society (MRCHS) due to violations of prescribed procedures and eligibility criteria. The Court emphasized transparency and adherence to rules in public land allotment.

Background and Appeal (Paras 1–2)

• Facts: Proposed Vaibhav Cooperative Housing Society Limited (Appellant) challenged the Bombay High Court’s decision dismissing its writ petition regarding land allotment to MRCHS.
• Allotment to MRCHS: MRCHS initially applied for a plot at Bandra for its members, primarily doctors from Tata Memorial Centre. However, it was later found that none of its members were associated with the hospital.

Change in Membership and Issues with MRCHS (Paras 3–5)

• Composition Changes: MRCHS’s membership underwent multiple changes, raising eligibility concerns. The Chief Minister intervened repeatedly, granting extensions to MRCHS despite findings of ineligibility.
• Procedural Irregularities: MRCHS was allotted a plot different from its original request, bypassing prescribed transparency norms.

Non-Compliance with Land Allotment Rules (Paras 6–9)

• Violation of Land Revenue Rules and GRs:
  • Rule 27 of Maharashtra Land Revenue Rules, 1971: Allotment criteria, such as income limits and member eligibility, were not adhered to.
  • Clause 12(8) of GR 1999: Reasons for discretionary allotment were not disclosed.
• Eligibility Concerns: Changes in membership rendered MRCHS ineligible.

Precedents and Transparency in Allotment (Paras 10–12)

• Judicial Precedents: Cited cases like Angarki Coop. Housing Society Ltd. v. State of Maharashtra and S.V. Asgaonkar v. MMRDA, highlighting the need for transparency and adherence to eligibility criteria.
• Arbitrariness in Allotment: The Court found MRCHS’s allotment arbitrary, emphasizing that public land must be allocated transparently.

Conclusion and Directions (Paras 13–15)

• Decision: The Court quashed the allotment in favor of MRCHS and vacated interim orders. It left the appellant’s application for allotment to be decided by authorities.

Acts and Sections Discussed:

1. Maharashtra Land Revenue (Disposal of Government Land) Rules, 1971
   • Rule 27: Criteria for allotment to cooperative housing societies.
2. Government Resolutions (GR) 1999 and 2007
   • Clause 12(8): Requirement to disclose reasons for discretionary allotments.

Ratio Decidendi:

• Land allotments by the State must adhere to transparency, procedural fairness, and compliance with eligibility norms. Arbitrary decisions violate public trust and established legal standards.

Subjects:

Public Land Allotment, Cooperative Housing Societies, Administrative Law.

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