The proposal had led to a controversy in August 2008, following the state government's approval to allot 100 hectares of land to Videocon in the city reportedly for just Rs300 crore. The company had proposed to set up a film transistor liquid crystal display (TFT-LCD) plant on the three plots to be allotted to it by CIDCO. The group chairman Venugopal Dhoot had claimed the group would be paying Rs950 crore to CIDCO for the project in which it was to partner with IBM. An investment of Rs8,000 crore was proposed for the project that was expected to provide direct and indirect employment to 10,000 people.
The then revenue minister Narayan Rane had even threatened to resign from the cabinet claiming the plot worth Rs3,500 crore was being given away for peanuts. There was opposition from CIDCO Employees' Union and Navi Mumbai Chamber of Housing as well apart from other sections, over the pricing of the land.
Giving details of the proposal, CIDCO managing director Tanaji Satre said, "We had given details of the present status of the project to our board which discussed it. Nothing has happened on the project front."
Satre said, "The CIDCO board has decided to send details to the state government for further action as it is the state government that had proposed the allotment of the plot."
Ajit Pawar confirmed cancellation and said, "For some reason Videocon has not used the plot for the project that it was allotted. Under the circumstances, CIDCO is well within its rights to cancel the process."