The Supreme Court has slammed the Maharashtra government and its industry promotion arm MIDC for showing “undue haste” and “favouritism” in allotment of land to Mahindra for its Logan car project.
Instead of making application to MIDC, Mahindras “started negotiation with the government directly for allotment of land merely by writing letters in June, 2005 and an understanding was arrived at between the government of Maharashtra and Mahindras of commissioning of the project at Nashik,” the court said.
Hearing a petition by Zenith Metaplast, whose request for land was rejected by MIDC without assigning any reason, a Bench comprising Justice Altamas Kabir and Justice B S Chauhan directed that there be no development of the two-acre land in question till the Bombay High Court decides the petition.
“The Corporation changed the land user and made the allotment of the land to the extent of 17 acres (to Mahindra) and the possession had been handed over immediately,” it said, pointing that the “allotment in favour of Mahindras was passed in undue haste, showing favouritism being a big industrial unit.”
“Every action of the state or its instrumentalities should not only be fair, legitimate and above-board but should be without any affection or aversion,” the court said.
