"Fraud On Court": Bombay HC Sets Aside Consent Decree Granting Development Rights For 6K Acres Land In Kanjurmarg Village To Private Firm

Sharmeen Hakim

15 Jun 2022 2:06 PM IST

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Fraud On Court: Bombay HC Sets Aside Consent Decree Granting Development Rights For 6K Acres Land In Kanjurmarg Village To Private Firm

The Bombay High Court on Wednesday granted relief to the Maharashtra government and set aside a consent decree by which a private firm obtained development rights, in October 2020, for over 6,000 acre of land in Kanjurmarg village, including the 102-acre land designated for a Metro car shed.In an interim application filed earlier this year, the State claimed that the private firm, Adarsh...

In an interim application filed earlier this year, the State claimed that the private firm, Adarsh Water Parks and Resorts Private Limited, and other private individuals had entered into consent terms and obtained a decree by fraud and misrepresentation.

"I have no doubt in my minds that the fraud was a fraud on the court itself," the court ruled on Wednesday.

Justice AK Menon said the manner in which the consent terms were circulated, and pending claims of other private parties suppressed from the court hearing the case back then, a huge fraud was played.

The judge added that it wouldn't have been difficult for the developer to check official government records to ascertain the true owner of the various land parcels.

Justice Menon further observed that neither the Maharashtra government nor the Union was made party to earlier proceedings despite obvious knowledge of their stakes in the land. Especially since the consent terms acknowledge land parcels were acquired by the state.

"Given the obvious difficulties, the court was prevailed upon to accept statements of the advocates, that the matter had been settled. There was a larger responsibility cast on the advocates to disclosed all the facts...Suppression of all these facts has led the court pass the order. Thus, undeniably fraud of a huge proportion has been played by suppressing the claims of various other parties. The consent decree is a product of the fraud."

The Court clarified that it has not dealt with the independent rights of the State, Union and other parties in the land.

"The parties were well aware of the claims of the government," Justice AK Menon said referring to point 3 of the consent terms.

The state represented by AGP Himanshu Takke argued that over 1,800 acre of the 6,000 acres belonged to it and central government, and Adarsh Water Parks did not have any right in it.

Justifying the delay in approaching the court, the State contended that it learnt of the decree only earlier this year.

It claimed that nearly 1695 acres belonged to the State, 153 acres to the central government and 32 acres to the BMC. As per records, the state had reserved this land for the metro car shed, school, public well, cemetery, a temple, lake, mine etc.

The BMC supported the state's claim in its affidavit. The civic body said that certain parcels of the disputed land were in its possession.

Apart from them, the Union has filed three affidavits on behalf of the salt commissioner, railways and defence, claiming their share. All authorities have supported the State's contention to the extent that it seeks setting side of the consent terms.

It may be noted that the State and Centre have filed separate proceedings claiming ownership of the land earmarked for the Metro car shed, as well.

The Defence Estates officer of the UOI said in the affidavit, "The Union government denies that the applicant (Maharashtra government) or any other party has any right, title and interest or possession of the land."

Railways claimed ownership to 0.9 hectares of land. "The said consent terms being a fraud upon this hon'ble court amount to an abuse of the process of this court and the parties to the said suit should be dealt with the strictest manner including issuance of proceedings of contempt of court and exemplary cost should be imposed upon the parties to the suit."

Consent Terms

On October 28, 2020, Justice BP Colabawalla decreed a 2006 suit filed by Adarsh against few persons. The suit sought specific performance or compliance of an agreement of August 2005, according to which, it claimed, that it was granted development rights of the entire Kanjur village.

Consent terms were entered between Adarsh Water Parks and Resorts Pvt Ltd and six private individuals.

According to the consent terms, one Farouq Abdul Rehman Yusuf claiming to be the only surviving and continuing trustee of a Will from 1960, agreed to transfer the land for a part consideration of Rs. 1 crore, in October 2020.

Adarsh was authorised to deal with all public bodies through these consent terms. Interestingly the terms acknowledge that certain land parcels were acquired by the Government.

Citation: 2022 LiveLaw (Bom) 215

"Fraud On Court": Bombay HC Sets Aside Consent Decree Granting Development Rights For 6K Acres Land In Kanjurmarg Village To Private Firm

Sharmeen Hakim

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