IMPORTANT POINT
The State Government's communication was deemed a binding directive under Section 154 of the MRTP Act, mandating compliance by CIDCO.

JUDGMENT :

Devendra Kumar Upadhyaya, C.J.

1. Heard Mr. Navroj Seervai, learned Senior Advocate appearing for the petitioner, Mr. Janak Dwarkadas, learned Senior Advocate representing respondent No.1 – CIDCO and Mr. P. P. Kakade, learned State Counsel. We have also perused the records available before us on this petition.

(A) Challenge:

2. Initially, the instant writ petition was filed seeking a direction to respondent No.1 for issuing necessary demand letter with respect to second installment of lease premium in respect of the plots in question, viz. Plot No.23 situated at Sector 7, Plot No.7, situated at Sector 8 and Plot No.6 situated at Sector 8, Ghansoli, Navi Mumbai along with late payment charges (LPC) in accordance with the directives issued by the Department of Urban Development, Government of Maharashtra, in its letter dated 1st August 2018 addressed to respondent No.1.

3. During pendency of the writ petition, respondent No.2 took a decision cancelling the allotment of the subject plots made in favour of the petitioner and further forfeiting the earnest money deposit and 25% of the paid lease premium, which was communicated to the petitioner by means of the impugned letter/order dated 30th January 2024.

(B) Background Facts:

4. Pursuant to a tender process for acquiring plots of land at Ghansoli, Navi Mumbai conducted by respondent No.1, the petitioner was issued letter of allotment by respondent No.1 by accepting its offer, on 18th December 2007 in respect of Plot No.23, Sector 7. Similarly, by means of two separate allotment letters, dated 19th December 2007, the petitioner was also allotted Plot Nos.6 and 7, Sector 8 at Ghansoli, Navi Mumbai. The said allotment letters contain certain condition and also prescribe the payment schedule according to which in respect of Plot No.23 the first installment was to be deposited by the petitioner by 24th January 2008 and the second installment was to be deposited by 25th February 2008. Similarly, in respect of Plot Nos.6 and 7, Sector 8, the petitioner was required to make deposit of the first installment by 25th January 2008 and second installment was to be deposited in respect of these two plots by 25th February 2008. The petitioner was also required to pay certain miscellaneous charges.

5. The petitioner is said to have requested for extension of time for making payment of the first installment of the lease premium for the subject plots, in response to which extension till 23rd March 2008 was granted by respondent No.1 vide letter dated 18th January 2008 to make deposit of the first installment of the lease premium and accordingly in March 2008 the payment of the first installment of the lease premium in relation to the subject plots was deposited.

6. The second installment of the lease premium could not be deposited in time and according to a request made by the petitioner, respondent No.1 granted extension of time vide its letter dated 30th April 2008 for making payment of the second installment of lease premium till 24th August 2008. It has been stated in the writ petition by the petitioner that on account of global recession and economic meltdown in 2008, the petitioner could not make payment of the second installment and requested respondent No.1 to refund the payment already made by the petitioner, however, the refund was not made. In the meantime, respondent No.2 resolved to request the State Government to relax the provisions of the New Bombay Disposal Land Regulations, 1975 (hereinafter referred to as the 1975 Regulations) on 14th July 2009 so as to give time extension to the allottees on account of downfall in the real estate market and also realizing that because of the downfall in the real estate, marketing rates of respondent No.1 were not satisfactory since 2008. Said resolution was made on the request made by several allottees. Regulation 15 of the 1975 Regulations provides that respondent No.1 may, with previous approval of the Government, relax any or all of these