Godrej Properties and Shelton Infrastructure Win Legal Battle against City and Industrial Development Corporation (CIDCO)

Posted On - 9 March, 2024 • By - Akhila Nair

Facts:

  • Godrej Properties and Shelton Infrastructure won bids for two valuable plots in Sanpada, Navi Mumbai, in February 2021, through tenders issued by CIDCO.
  • CIDCO attempted to revoke the allotments and relaunch the bidding process, prompting a legal battle initiated by Godrej and Shelton in the Hon’ble Bombay High Court.
  • The Hon’ble High Court criticized CIDCO’s actions as irrational, arbitrary, and motivated by irrelevant considerations, emphasizing the corporation’s duty to act responsibly.
  • CIDCO’s selective cancellation attempt, despite other bidders agreeing to delayed payment charges, drew sharp criticism from the Hon’ble High Court for its double standards.
  • Legal proceedings were marked by prior rulings, extensions of payment deed.
  • Lines, and successful defense against two PILs challenging the plot allotments.

Held:

  • The Hon’ble Bombay High Court ruled in favor of Godrej Properties and Shelton Infrastructure, declaring CIDCO’s cancellation of the allotments as discriminatory, irrational, and arbitrary.
  • The Hon’ble Court emphasized CIDCO’s duty to act responsibly as a steward of public resources and condemned its selective policy enforcement.
  • Despite CIDCO’s attempts to justify its actions, including citing low plot prices and challenges posed by the pandemic, the Hon’ble High Court remained unconvinced.
  • The court rebuked CIDCO’s insistence on delayed payment charges, affirming that Godrej and Shelton had adhered to payment timelines.

Conclusion:

  • The decision of the Hon’ble Bombay High Court represents a significant victory for Godrej Properties and Shelton Infrastructure in the debate over openness and fairness in real estate law.[1]
  • It sets a robust precedent for upholding legal principles and safeguarding stakeholders’ rights in land distribution processes, emphasizing the importance of justice, openness, and adherence to legal norms.
  • This ruling of the Hon’ble Court sends a clear message to authorities, including CIDCO, that even powerful entities are bound by the law and must ensure fairness in real estate transactions and governance.[2]

[1] https://indiankanoon.org/doc/132508103/

[2] https://indiankanoon.org/doc/24293798/