The Bombay High Court recently stayed the effect of a government resolution that empowered the Maharashtra government to cancel punitive proceedings against contractors.
These contractors were involved in the Samrudhhi Mahamarg project over alleged illegal excavation of minor minerals.
A division bench of Justice Rohit B Deo and Justice Anil L Pansare granted the stay after a construction company, Cozy Properties, approached the Court. The petitioner company had its land acquired by the national highway authorities as part of the Samruddhi project.
It alleged that Afcons Infrastructures Limited, a contractor engaged for the Nagpur-Mumbai Samruddhi Expressway construction, unlawfully trespassed into their property and excavated ‘murrum’ (mineral-rich soil) from over 100 acres of land.
Advocate Firdos Mirza, representing Cozy Properties, argued that the government resolution violates the Maharashtra Land Revenue Code and was malicious. He informed the Court that the resolution was issued solely to benefit certain influential business entities who were facing penalties worth several hundreds of crores.
In response, the bench issued a notice in the matter and stayed the government resolution until the final hearing of the petition.
“Prima facie, we find formidable substance in the submission by Mirza. In view of the exceptional prima facie case made out, we stay the effect and operation of January 2023 GR”, the bench stated.
In 2019, Cozy Properties filed a complaint against the same contractor, alleging illegal excavation of minerals. A chargesheet was also filed in this case.
Around the same time, a local Tahsildar took action against the contractor and issued a show-cause notice to its proprietors. Subsequently, the Tahsildar imposed a fine of ₹226,89,60,900 and additional royalty of ₹238,99,72,148. However, the High Court stayed this decision in a petition filed by the contractor in 2020.
Later, in 2023, the State government issued a government resolution. Following this, the contractor filed a plea to quash the 2019 criminal case against them, citing the 2023 government resolution.
In light of these developments, Cozy Properties approached the High Court, challenging the validity of the January 2023 government resolution.
