IMPORTANT POINT
The main legal point established in the judgment is that the decision to dispose of the industrial plots should have been taken collectively by the Board of Directors of the GIDC, and not by the Vice Chairman and Managing Director. The court also found inherent flaws in the decision-making process and suspected collusion between the respondent No.5 and the GIDC officers.

JUDGMENT :

Sunita Agarwal, J.

The instant petition, in the nature of Public Interest Litigation, has been filed by a public welfare spirited person, who claims to be a responsible member of the society. The issue raised in the writ petition is about the action of the Gujarat Industrial Development Corporation (in short referred to as ‘the GIDC’ hereinafter) in allotment of the developed lands in favour of the respondent Nos. 5 and 6 without holding public auction. It is stated that because of illegal and unauthorised allotment, a huge loss to the tune of Rs. 90,00,00,000/- has been caused to the public exchequer. The GIDC being the Government of Gujarat undertaking, entrusted with the industrial development in the State of Gujarat, has acted in contravention of its own policy dated 19.10.2006 in the matter of allotment of lands-in-question except by way of public auction.

2. The attention of the Court is invited to the exchange deed executed in favour of the respondent No.5, appended at page No. ‘206’ of the paper book. A perusal of the said document indicates that the exchange deed was executed in respect of Survey No. 2165 (old S.No. 61/paiki 1); Survey No. 2147 (old S.No. 51/2); Survey No. 2148 (old S.No. 51/3); all agricultural lands of village : Sarigam, Taluka : Umbergaon, District : Valsad admeasuring 34,743.00 sq.mtrs., which was exchanged as against the industrial plots bearing Nos. 741 to 746, plot No. 3303, 3305, 3307, 3309, 3311, 3313, Plot No. 3117, Plot No.1304, 1305, 1309, 1310, 1311, 1312 and plot No. 3523 of village Sarigam, Taluka Umbergaon, District Valsad admeasuring 30,000.00 sq.mtrs.

3. At the outset, it may be noted that the industrial plots admeasuring 30,000.00 sq.mtrs. were given in exchange as against the agricultural lands admeasuring 34,743.00 sq.mtrs. by way of the exchange deed with the statement that area and value of both the lands are same and the GIDC has agreed to allot a piece of land which is industrial plot comprising of the aforesaid plots and by virtue of the agreement, the first party, i.e. the respondent No.5 herein will become the allottee of the aforesaid industrial plots and the said lands have been leased out to the first party (the respondent No.5) for a period of 99 years. The exchange deed opens with the assertion that the first party namely the respondent No.5 has requested the GIDC vide letter (un-dated) to allot it the aforesaid industrial plots in exchange of the agricultural lands noted hereinbefore. The exchange deed further records that the first party (Respondent No.5) has assured that the agricultural lands given in exchange were of his exclusive ownership and that there was no charge or encumbrance on the same and no mortgage has been created. The said lands have also not been leased or licensed or rented to anybody else. It further states that the GIDC will become the absolute owner of the said plots and will be legally entitled to allot such lands to any other allottee, which it deems fit. Further that no amount is required to be paid by the first party/allottee (Respondent No.5) to the GIDC and further the GIDC is also not required to pay any amount to the first party namely respondent No.5. The statement in the exchange deed is that for acquiring the land of the first party namely the respondent No.5 whatever compensation is to be paid, is being paid in the form of exchange of land given in Schedule-A, which are industrial plots, in lieu of the agricultural lands in Schedule-B. Thus, in total 20 industrial plots (fully developed for industrial purposes) in a full saturated industrial estate have been given in exchange by the GIDC in lieu of all agricultural plots, to which the GIDC got ownership.

4. It is brought on record by means of the additional affidavit of the petitioner that in an auction conducted in the year 2021, for two plots in Sarigam estate, one being plot No. 1318 admeasuring 1623.10 sq.mtrs., the GIDC got a price of Rs. 2,33,50,300/- in an auction, by p