S.A.BOBDE, J.

1. The petitioners have approached this Court against the order dated 17.3.2011 passed by the Vice Chairman and Managing Director, CIDCO revoking the permission granted to the petitioners for change of user of Plot No. 1 in Sector 1, Kharghar from commercial to commercial cum residential and directing restoration of the user of the plot for commercial purposes. The only question that arises is whether the respondents CIDCO is entitled to cancel the permission granted earlier for change of user of Plot no. 1 at Kharghar from commercial to commercial cum residential use after the CIDCO having granted such permission and the petitioners having acted on it.

2. Respondents – CIDCO allotted plot no.1 to the petitioners for commercial use in pursuance of a tender in which the petitioners were the highest bidders. The petitioners were allotted plot after their bid of Rs. 40,00,00,000/- (Rupees Forty Crores) was accepted. The petitioners having obtained the allotment duly applied for and was granted a change of user of the plot from commercial use to commercial cum residential use by the respondents – CIDCO on payment of necessary charges. The petitioners acted upon allotment and permission for change of user by making construction upto the plinth level and by entering into agreements to sell residential flats. The respondents – CIDCO issued a stop work notice to the petitioners on 14.9.2010. CIDCO issued show cause notice and after considering reply filed by the petitioners cancelled the permission and directed restoration of the user for commercial purposes interalia on the ground that the permission granted earlier was illegal and CIDCO had no power to grant such permission. The said revocation order has been challenged by the petitioners.

3. Intending to develop the property, the petitioners on 20.11.2009 applied for plot of land held by CIDCO in pursuance of a tender for allotment of plots floated by CIDCO in respect of plots at Navi Mumbai. They invited sealed offers for acquisition of commercial plots on lease under the General Terms and Conditions prescribed for Disposal of Plots. The offerers were to make offer in the prescribed form. The said Terms and Conditions for commercial plots stipulated that the building shall be constructed for the business, Mercantile / Commercial use only. Clause 17 of the General Terms and Conditions inviting offers however clearly contemplated that any change in the use of the land shall not be made automatically but the intending lessee, if he so desires, may apply for the application to be modified and that the Corporation may at its sole discretion, apply the modification of such regulation on payment of development charges, additional premium and other charges as may be decided from time to time.

4. On 20.11.2009 the petitioners submitted its bid for allotment of plot No. 1 in Sector 1 admeasuring 5296.92 square meters at the rate of Rs. 75,515.61 per square meter and paid an amount of Rs.1,35,16,000/- by way of earnest money deposit. The petitioners bid at Rs.40,00,00,000/- was the highest bid and CIDCO allotted the plot to the petitioners by a Letter of Allotment dated 15.12.2009. Clause 18 of the Letter of Allotment reads as follows:

“18. LAND USE:

The plot of land will be used for commercial purpose only and for no other purpose.”

The above clause restricted the user of the land for commercial purpose only. However clause 20 contained the power to relax and make modification of various aspects including the change of user of land. Clause 20 provided that the allotment of land would be governed by the General Development Control Regulation for Navi Mumbai 1975, however, permitting the Corporation to exercise its own discretion and apply the modification of such Regulations on payment of certain charges or recovery of such additional lease premium as may be prescribed. Clause 20 reads as follows:

“20. Application of General Development Control Regulations for Nav