COLLECTOR Vs. REDSTONE REALTORS

JUDGEMENT

(1.) Leave granted.

(2.) The challenge in this appeal is limited to the adverse remarks recorded against the Collector, Mumbai, city in the Writ Petition (L) No. 3086 of 2016 where the appellant was the respondent no. 2 before the High Court of Judicature at Bombay. The writ petition filed by the respondent M/s. Redstone Realtors challenged the Collector's letter dated 10.5.2016 (Annexure P-4) restraining registration of documents of certain Government land in Mumbai city and also the demand letter dated 15.10.2016 (P-5) seeking to recover alleged unearned income, by M/s. Redstone Realtors through assignment of land leased out by the Government. The property at survey no. 412 in Mazagaon area, Mumbai was leased out for 99 years with effect from 01.09.1903 to Shri Aga Shamsuddin Shah and. The original lease expired on 31.08.2002. At that stage, the property was in possession of M/s. Steelage Industries Ltd. (formerly M/s. Gunnebo India Ltd.). After lease had expired M/s. Gunnebo India Limited executed a deed of assignment in favour of M/s. Redstone Realtors and registered the assignment deed on 13.09.2006, for consideration of Rs.22.00 crores. The transaction of assignment and registration of the assignment deed was concluded, without the necessary approval from the Government.

(3.) During audit scrutiny of the file (No. LND 2647) relating to the above transaction, it was noticed that the deed of assignment in favour of M/s. Redstone Realtors was registered on 13.9.2006 after lease had expired on 31.8.2002. In the process, the assignee had secured unearned income. Considering the transaction value of Rs.22.00 crores, recovery of Rs.16.50 crore (75% of Rs.22 crore) was found justified in the audit report (P-3).