JUDGMENT

Abhay Manohar Sapre, J.

1. This appeal is directed against the final judgment and order dated 26.03.2008 passed by the High Court of Bombay in Writ Petition No.2017 of 2003 whereby the High Court dismissed the Writ Petition filed by the appellants.

2. In order to appreciate the issues involved in this appeal, it is necessary to set out the facts in detail hereinbelow.

3. The appellants herein were the writ petitioners whereas the respondents herein were the respondents in the writ petition out of which this appeal arises.

4. Respondent no.1 is a statutory authority created under the Maharashtra Housing & Area Development Authority Act, 1976 (for short called “MHADA Act”). It is known as Maharashtra Housing and Area Development Board (for short “Board”). One of the objects of the Board is to make housing schemes for the benefit of different sections of the people and provide them the houses at reasonable costs. The Board is, therefore, a State within the meaning of Article 12 of the Constitution of India.

5. On 26.6.1995, the Board issued an advertisement for sale of 1924 flats (1673 non-deluxe and 251 deluxe) at the rate of Rs.2,995/- per square feet at Powai (Mumbai)called (Po