Case Note & Summary
The dispute in this writ petition pertains to the allotment of a plot of land admeasuring about 1046.25 sq. mtrs. situated in Gorai Nagar, Borivali (West), Mumbai, by the Maharashtra Housing and Area Development Authority (MHADA) to the 5th respondent, Ayyappa Seva Samiti, allegedly based on directives of the State Government issued under Regulation 16 of the Maharashtra Housing Area Development (Disposal of Land) Regulations, 1982. The 1st petitioner, Gorai Nagar Maharashtra Grihanirman Vasahat Sanghatana, is an association of occupants of 27 buildings constructed by MHADA under a low-income group housing scheme, representing about ten thousand persons. The petitioners claimed that the subject plot was earmarked by MHADA in its housing scheme for constructing a social welfare centre. The 1st petitioner applied for allotment of this plot on 7 June 1981. MHADA, by communications dated 17 July 1981, 6 August 1993, and 21 December 1996, informed the petitioners that their application was under consideration but that no allotment would be made without issuing an advertisement inviting applications. In December 2002, the petitioners discovered that the 5th respondent had been allotted the plot for constructing a temple. The petitioners filed the writ petition challenging the allotment. The court noted that despite directions from a division bench on 10 February 2004 to file a comprehensive affidavit justifying the allotment, the State Government filed only a three-paragraph affidavit that did not provide any proper justification. The court held that the allotment was made without any advertisement or transparent process, in violation of MHADA's own consistent stand and the 1982 Regulations. The court quashed the allotment to the 5th respondent and directed MHADA to consider the petitioners' application afresh after issuing a public advertisement and following a transparent procedure. The court also directed that the status quo order be vacated and that the plot be dealt with in accordance with law.
Headnote
A) Administrative Law - Allotment of Public Land - Transparency - The allotment of a public plot by MHADA without issuing any advertisement or following a transparent procedure is arbitrary and illegal - The State Government's directive under Regulation 16 of the Maharashtra Housing Area Development (Disposal of Land) Regulations, 1982 cannot override the requirement of a fair and transparent process - Held that the allotment to the 5th respondent is quashed and set aside (Paras 14-20). B) Property Law - Allotment of Land - Legitimate Expectation - The petitioner society, which had applied for allotment of the plot in 1981 and was consistently informed that allotment would be made only after advertisement, had a legitimate expectation that no allotment would be made without following due process - The clandestine allotment to the 5th respondent violated this legitimate expectation - Held that the allotment is invalid (Paras 8-13). C) Constitutional Law - Article 226 - Writ Jurisdiction - The High Court can interfere with arbitrary state action in allotment of public property - The failure of the State Government to file a comprehensive affidavit justifying the allotment despite court directions indicates lack of bona fides - Held that the allotment is quashed (Paras 4-5, 14-20).
Issue of Consideration
Whether the allotment of the subject plot to the 5th respondent by MHADA based on directives of the State Government under Regulation 16 of the 1982 Regulations, without issuing any advertisement or following a transparent procedure, is legal and valid.
Final Decision
The court quashed and set aside the allotment of the subject plot to the 5th respondent. The court directed MHADA to consider the petitioners' application for allotment of the subject plot afresh after issuing a public advertisement and following a transparent procedure. The status quo order was vacated, and the plot was directed to be dealt with in accordance with law.
Law Points
- Allotment of land by MHADA must follow transparent procedure
- Regulation 16 of 1982 Regulations cannot override requirement of advertisement
- Allotment without advertisement is arbitrary and illegal
- Status quo order does not validate illegal allotment
- Writ petition maintainable against arbitrary state action



