LexPATHAN MOHAMMED SULEMAN REHMATKHAN versus STATE OF GUJARAT & ORS.
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A B [2013] 12 S.C.R. 446 PATHAN MOHAMMED SULEMAN REHMATKHAN v. STATE OF GUJARAT & ORS. (Special Leave Petition (C) No.32507 of 2013) NOVEMBER 22, 2013 [K.S. RADHAKRISHNAN AND A.K. SIKRI, JJ.] Administrative Law: c Policy decision - Setting up of International Financial Services Centre - Joint venture company with 50:50 public private participation - Approval by Central Government - Allotment of land to Company - Challenged on the basis of report of CAG that State Government did not adopt a uniform 0 policy in alienation and allotment of land -· Held: A decision taken In good faith, with good intentions, without any extraneous considerations, cannot be belittled, even if that decision was ultimately proved to be wrong - Non-floating of tenders or absence of public auction or invitation alone is not a sufficient reason to characterize the action of a public E authority as either arbitrary or unreasonab/,9 or amounting to ma/a fide or improper exercise of power - Keeping in view the various orders passed by State Government and resolutions allotting lands to fourth respondent and also the notification issued under Special Economic Zones Act, 2005, F High Court has rightly held that it cannot be said that State Government has acted against public interest - Government has noticed development and employment opportunities that the project would bring into the State - Decision taken by Government was also transparent - Further. these are purely G policy decisions taken by State Government and, while so, it has examined the benefits the project would bring into the State and to its people - It is open to tl1e State and the authorities to take economic and management decision H 446 PATHAN MOHAMMED SULEMAN REHMATKHAN v. 447 STATE OF GUJARAT depending upon the exigencies of a situation guided by A appropriate financial policy notified in public interest - That is what has been done in the instant case - Public Interest Litigation. Comptroller and Auditor General of India: Power of CAG - Explained. Arun Kumar Agrawal v. Union of India & others (2013) 7 SCC 1; Centre for Public Interest Litigation & Ors. v. Union B of India & Ors. 2012 (3) SCR 147 =AIR 2012 SC 3725 - c referred to. Case Law Reference: (2013) 7 sec 1 2012 (3) SCR 147 referred to referred to para 6 para 10 CIVIL APPELLATE JURISDICTION : Special Leave Petition (Civil) No. 32507 of 2013. D From the Judgment & Order dated 04.10.2013 of the High E Court of Gujarat at Ahmedabad in WPPIL NO. 97 of 2013. Y.N. Oza, D.N. Ray, Srushti Thula, Lokesh K. Choudhary, Sumita Ray for the Appellant. Kabir H., Jesal (for Hemantika Wahi), for the Respondents. F The following Order of the Court was delivered ORDER K.S. RADHAKRISHNAN, J. 1. The State of Gujarat, it is G seen, in the year 2005 thought of developing an International Financial Services City at Ahmedabad at par with the globally benchmarked financial centres such as Sinjuku-Tokyo, Lujiazui- Shanghai, La Defense Paris, London Dockyard, having H 448 SUPREME COURT REPORTS (2013] 12 S.C.R. A offshore banking facilities. The State conducted detailed study through its wholly owned company called Gujarat State Financial Services Limited (GSFSL). Th,e study report was prepared in February 2006 which strongly recommended for execution of the project after undertaking a feasibility study. 8 Since the project was first of its kind in the country and involved commercial risk, the State Government thought of undertaking the project of a public-private partnership so that the responsibility and the risk, if any, could be! shared. 2. The State organized the "Vibrant Gujarat Urban Summit" C in the year 2007. The third respondent, Infrastructure Leasing & Financial Services Ltd. (ILFS) showed its commitment for development of the national financial services centre and a Memorandum of Understanding was signed with the State Government on 16.2.2007. On 15.5.2007, a joint venture D agreement was executed between the State represented by the Gujarat Urban Development Company Limited (GUDC) and the third respondent for forming a 50:50 joint venture company in the name of Gujarat International Financial Tech City Limited i.e. GIFT Company Ltd. on 22.3.2011 and 7.6.2011 the State E Government issued and allotted 412 acres of land to the fourth respondent i.e. GIFT Company Ltd. and 250 acres of land to its wholly owned subsidiary i.e. GIFT SEZ Limite
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