HC orders CIDCO to hand over Sanpada plots to Godrej Properties, Shelton Infra | Mumbai news - Hindustan Times

HC orders CIDCO to hand over Sanpada plots to Godrej Properties, Shelton Infra

Feb 25, 2024 07:22 AM IST

Bombay High Court nullifies CIDCO's cancellation of plots allotted to Godrej Properties and Shelton Infrastructure, directs acceptance of payment and possession.

MUMBAI: The Bombay High Court recently nullified CIDCO’s orders cancelling the allotment of four plots in the Sanpada node to Godrej Properties Ltd and Shelton Infrastructure Pvt Ltd. The division bench of justice Gautam Patel and justice Kamal Khata directed CIDCO to accept payments for the respective plots from the companies, execute lease deeds, and hand over possession of the allotted plots.

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“The cancellation orders are unsustainable. They are irrational. They are actuated by irrelevant and external considerations, and they deliberately ignore binding orders of this Court,” said the court while striking down CIDCO’s orders issued on October 11, 2023, cancelling the allotment of plots to Godrej Properties and Shelton Infrastructure.

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The companies had submitted bids for purchasing two plots each in the Sanpada node following tenders floated by CIDCO on February 2, 2021, and were declared successful bidders. CIDCO issued allotment letters to the companies. Subsequently, the companies and other successful bidders moved to the high court after learning about restrictions imposed by the Navi Mumbai Municipal Corporation (NMMC) on the development of the plots leased out by CIDCO.

While deciding the petitions on May 7, 2021, the high court ordered the corporation to extend or suspend the schedule of payments in the allotment letters without imposing any interest, charges, penalty, or delayed payment charges.

However, at least five bidders paid additional amounts ranging from 5 to 8 crore, as delayed payment charges to CIDCO and the companies refused to pay the charges, the corporation cancelled the allotment made to them, prompting them to approach the high court again.

The court last week accepted their argument that the cancellation was nothing but an attempt to overreach the high court. “The orders are clearly arbitrary,” said the bench. “All that CIDCO is really saying is that no matter what the orders of the High Court are, it will nonetheless proceed with cancellation unless its demand for delayed payment charges is met (even though this was not permitted by the High Court),” it added.

The bench added that a public authority cannot profit in the name of the public exchequer by demanding amounts that are not legitimately due to it or which the High Court on a consideration has said are not due to it.

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