Godrej Properties and Shelton Infrastructure, two developers involved in the Cidco plot allotment controversy in Sanpada, Navi Mumbai, have finally been granted the right to retain their plots. This comes after their allotments were initially canceled by Cidco, a decision deemed ‘irrational’ and ‘clearly arbitrary’ by the Bombay High Court. The court stated that Cidco’s cancellation order last October was influenced by irrelevant and external factors and noted that Cidco deliberately disregarded its binding orders.”
“The disputed plots were part of 13 plots in Navi Mumbai for residential and commercial use, for which Cidco had floated tenders in February 2021. Subsequently, Cidco attempted to cancel the allotments and issue fresh bids, but their interim plea was rejected by the High Court. However, in October, Cidco issued an order canceling the allotments to prevent a loss to the public exchequer due to ‘artificial depression.'”
“Godrej Properties and Shelton Infrastructure challenged the cancellation before the High Court, arguing that it was discriminatory and violated their fundamental right to equality. Represented by senior counsel Milind Sathe, Samit Shukla, Bindi Dave, and Wadia Ghandy, the developers contended that Cidco did not cancel allotments for other bidders who agreed to pay ‘delayed payment charges,’ as demanded by the corporation.”
“The High Court, comprising Justices Gautam Patel and Kamal Khata, agreed with the developers, stating that Cidco’s actions were discriminatory. The court emphasized that as an entity dealing with public funds, Cidco must adhere to the law and not attempt to circumvent court orders.”
“The Cidco plot allotment controversy has been contentious, with concerns raised by the Navi Mumbai Municipal Corporation (NMMC) regarding development permissions for plots reserved for public purposes. In 2021, Godrej, Shelton, and other successful bidders sought relief from the High Court, which directed an extension of the payment schedule in their allotment letters without imposing interest, penalty, or delayed payment charges.”
“Several PILs were also filed challenging the plot allotments, which were contested by Godrej and Shelton. The High Court dismissed these PILs in August 2022. CIDCO argued that the termination of contracts could not be decided through a writ petition, but the High Court found no merit in CIDCO’s claim of artificially suppressed prices. The court also criticized CIDCO’s stance on cancellation, stating that there was no delay in payment and refusing to stay its judgment.”
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