A bench of Supreme court of India comprising Justices
M.Y.Eqbal and P.C.Ghosh in its judgment dated 26th September 2014 in the case
of ‘CIDCO vs Platinum Entertainment’ Civil Appeal no. 9264/2014 upheld the CIDCO’s
action  of cancelling the land allotted
to the respondents allottees by undue favour at the instance of the Minister.
The court held “State and its agencies and instrumentalities
cannot give  largesse  to any person at sweet will and whims of the
political entities or officers  of the
State.  However, decisions and action of
the State must be founded on  a sound,
transparent and well defined policy which shall be made known to  the public. 
The disposal of Government land by adopting  a 
discriminatory  and arbitrary
method shall always be avoided and it should be 
done  in  a  fair
and equitable manner as the allotment on favoritism or  nepotism 
influences the exercises of discretion. 
Even assuming that if the Rule 
or  Regulation prescribes the mode
of allotment by entertaining individual 
application  or by tenders or
competitive bidding, the Rule of Law requires publicity to  be given before such allotment is made”. 
The court further observed “we  observe, 
that  notwithstanding Regulation
4, as contained in the Regulations, the appellant CIDCO may  take all endeavour to make allotments of
plots by open tender or  competing  bids and shall not take any decision for
allotment  of  Government 
land  at  the instance of the Ministers and High
Dignitaries for any purposes whatsoever”. 
Click below for the Full Judgment.