The Bombay High Court on Friday reversed three separate orders of the City and Industrial Development Corporation (CIDCO) that cancelled allotment of three prime plots.
The CIDCO order based on the DK Shankaran committee’s report, cancelled plot allotments for two multiplexes and for a country club.
Based on the committee’s report that CIDCO had suffered losses due to these allotments, CIDCO cancelled them.
CIDCO allotted a plot each to Popcorn Entertainment and Platinum entertainment in Sector 11 in Airoli and near Kharghar railway station, respectively, while Platinum Square Trust was allotted a plot at Kharghar hill.
The entertainment companies moved high court, challenging CIDCO’s decision to cancel their allotments. They contended that they were singled out as no other allotments, where Shankaran Committee had reported massive losses, were cancelled.
CIDCO defended its order saying that allotments were made without inviting tenders and testing markets. “The plots would have fetched five times the rate, at which they were allotted to the petitioner companies, had tenders been invited,” said CIDCO counsel before the high court.