In a significant ruling, the Bombay High Court has set aside the cancellation of a hospital plot allotment in Navi Mumbai by the City and Industrial Development Corporation of Maharashtra (CIDCO). The court directed CIDCO to issue an allotment letter in favour of Renuka Maternity Child Care and Fertility Clinic, a partnership firm, for Plot No. 25 at Dronagiri Node.
Background of the Dispute
The case arose when CIDCO cancelled its tender process for hospital plots in October 2024, citing the absence of state government approval and changing land valuations. The petitioner clinic, which had emerged as the highest bidder for Plot No. 25 at a rate of ₹40,211 per sq. metre, challenged the decision, arguing that it was arbitrary and unjustified.
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CIDCO had earlier expanded eligibility norms for hospital plot allotments in 2021 to include partnership firms. Although the Chief Minister approved this expansion on 8 February 2024, CIDCO claimed it only received the formal communication in October. In the meantime, it scrapped the tender citing “administrative reasons.”
Court’s Observations
The division bench of Chief Justice Alok Aradhe and Justice Sandeep V. Marne found CIDCO’s decision unsustainable. The judges noted that the Chief Minister’s approval had already been granted months before the cancellation and criticised CIDCO’s inaction in verifying the status of approval.
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“It was the duty of CIDCO to keep track of the approval granted by the State Government… for these mistakes committed by CIDCO, the petitioner cannot be made to suffer,” the bench observed.
The court also rejected CIDCO’s argument that land prices had increased significantly in the intervening years, pointing out that the petitioner’s quoted rate remained higher than the revised reserve price fixed in 2025.
Social Significance of the Verdict
Emphasising that the allotment was for a hospital and not commercial exploitation, the judges underlined the need for public amenities in planned cities like Navi Mumbai. The court remarked that delays caused by CIDCO’s errors deprived residents of essential healthcare facilities.
Highlighting the importance of fairness in government actions, the judgment stated: “Beyond citing the pretext of ‘administrative reasons’, CIDCO had not communicated the exact reason why the auction process was being cancelled.”
The court ultimately directed CIDCO to allot Plot No. 25 to the petitioner clinic.
Case Title: M/s. Renuka Maternity Child Care and Fertility Clinic, through its Authorised Representative, Surekha Vilas Nagargoje vs. Managing Director, CIDCO & Ors.
Case Number: Writ Petition No. 4849 of 2025
