Case Note & Summary
The writ petition under Article 226 of the Constitution of India challenges the allotment of Plot No. T22, admeasuring 4950 square meters, in the Chikalthana Industrial Area Software Technology Park by the Maharashtra Industrial Development Corporation (MIDC) in favour of Respondent No.5. The petitioner is an information technology company incorporated in 2005, operating in Navi Mumbai and Aurangabad, and engaged in providing information services to global investors. It established a unit in the Chikalthana Industrial Area in 2008 and, due to business growth, sought additional space for expansion. On 3 June 2009, the petitioner applied to the regional office of MIDC for allotment of the said plot, pointing out its existing operations and readiness to pay charges as per norms. MIDC informed the petitioner that the plot would be auctioned and directed it to apply when the auction was announced. The petitioner consistently followed up with letters dated 7 July 2009, 9 October 2009, 5 November 2009, 8 February 2010, 9 July 2010, 20 July 2010, and 26 July 2010. It was repeatedly assured that preference would be given when the plot was auctioned or otherwise allotted. However, the petitioner later discovered that the plot had been allotted directly to Respondent No.5 without any tender or auction, and while its own application remained pending. The petitioner contends that the allotment is contrary to the MIDC Disposal of Land Regulations, 1975, which mandate a transparent process, and that MIDC’s action amounted to arbitrary favouritism. Documents obtained under the Right to Information Act revealed that Respondent No.5 had initially applied for the plot for manufacturing Ayurvedic medicines, for which the plot was not reserved. The Minister for Industries directed processing on priority. An endorsement by a MIDC officer noted that the plot was reserved for IT and must be allotted through tender, making the allotment impermissible. Subsequently, the application was changed to IT purpose. A meeting on 30 November 2011 resolved to allot the plot to Respondent No.5 as a women entrepreneur under a circular dated 29 January 2008, which the petitioner claims is not applicable to Chikalthana. The petitioner further alleges that Respondent No.5 later advertised 24-carat bungalows in violation of the circular’s conditions. The petition seeks quashing of the allotment. The High Court admitted the petition and, by consent, made the rule returnable forthwith, reserving judgment after hearing on 18 January 2014. The extract of the judgment does not include the court's reasoning or final decision.
Issue of Consideration
Whether the allotment of Plot No. T22 in Chikalthana MIDC Software Technology Park to Respondent No.5 without following the prescribed tender process and in violation of the MIDC Disposal of Land Regulations, 1975 is arbitrary and liable to be quashed
Case Details
2014 LawText (BOM) (02) 15
Writ Petition No. 9279 of 2012
S.C. Dharmadhikari, Ravindra V. Ghuge
A.G. Talhar (Petitioner), G.K. Thigale (State), P.M. Shah (Senior Counsel for MIDC), R.R. Mantri (Respondent No.5)
Real Team Systems Pvt. Ltd.
State of Maharashtra, Maharashtra Industrial Development Corporation through its Chief Executive Officer, Joint Chief Executive Officer, Regional Officer, M/s Akshada InfoTech, Minister for Industries
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India challenging the allotment of an industrial plot in a government-developed software technology park
Remedy Sought
Quashing of the allotment of Plot No. T22 made in favour of Respondent No.5
Filing Reason
MIDC allotted the plot without following its own regulations, without conducting a public auction or tender, and ignored the petitioner's longstanding pending application, constituting arbitrary and illegal action
Previous Decisions
The petition was admitted earlier, rule was issued, and by consent of parties the rule was made returnable forthwith; the matter was heard and reserved for judgment
Issues
Whether the allotment of Plot No. T22 by MIDC to Respondent No.5 without conducting an auction or tender, and in violation of the MIDC Disposal of Land Regulations, 1975, is arbitrary and liable to be quashed
Submissions/Arguments
Petitioner consistently applied for the plot since 2009, was assured of preference in auction or direct allotment, but MIDC allotted it to Respondent No.5 on a 'first come first serve' basis without any publicity or tender
The allotment was contrary to MIDC's own regulations which require transparent disposal through public auction or tender
Respondent No.5 initially applied for manufacturing Ayurvedic medicines, which is not permitted in the IT park, and the Minister for Industries directed priority processing, indicating favoritism
The circular of 29 January 2008 under which the allotment was made to Respondent No.5 as a women entrepreneur does not apply to the Chikalthana area, and Respondent No.5 later violated its conditions by advertising bungalows
Judgment Excerpts
the petitioner was shocked and surprised to note that this plot was allotted to Respondent NO.5. It was done without any tender or auction and by keeping the petitioner's request pending.
the respondent MIDC ought to have followed their own policy because at the time when the plot No.T22 was allotted at that time there was a specific ban regarding fresh applications
On the same application the Hon'ble Industries Minister directed to the concern officer to process the said application on priority basis
it has been pointed out that the application for the respondent No.5 is for manufacturing of the Ayurvedic Medicine and whereas the subject matter of the plot is reserved for the Information Technology. Moreover it has been also endorsed that the plot is requires to be allotted through tender only.
Procedural History
Writ petition filed; earlier orders passed admitting the petition and issuing rule; by consent rule made returnable forthwith; matter heard on 18 January 2014 and judgment pronounced on 20 February 2014.
Acts & Sections
- Constitution of India: Article 226
- Maharashtra Industrial Development Act, 1961:
- Maharashtra Industrial Development Corporation Disposal of Land Regulations, 1975:
- Right to Information Act, 2005:
- Indian Companies Act, 1946:
