LexRAVI DEVELOPMENT versus SHREE KRISHNA PRATHISTHAN & ORS.
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[2009] 8 S.C.R. 654 f A RAVI DEVELOPMENT v. SHREE KRISHNA PRATHISTHAN & ORS. (Civil Appeal No. 3459 of 2009) B MAY 11, 2009 [K.G. BALAKRISHNAN, CJI. AND P. SATHASIVAM, J.] ,~. Urban Development - Housing - Maharashtra Housing and Area Development Authority - Joint venture - Public c Private participation - Swiss Challenge Method - Award of contract to the initiator of the proposal - Held: Not arbitrary since the procedure has been followed - Sending proposal to Chief Minister, who was holding the portfolio of Housing - Not improper - Constitution of India, 1950, Article 14. ,I • D Government contracts - Scope of Judicial Review is very limited - Judicial Review. Public - Private parlicipation schemes - In order to E encourage the concept it should be duly published first so that private entities are aware of such schemes_- To avoid the ill· effects of unfairness, arbitrariness or ambiguity ce.rlain suggestions made to the State Government - Suggestions. _. .. In the present appeals, the common issue involved F was validity of Swiss Challenge Method adopted by the Maharashtra Housing and Area Development A!Jthority (MHADA) on a pilot basis with respect to a proposal received from a private entrepreneur Mis. Ravi Developments for development of undeveloped land G owned by MHADA. ~ ·- Allowing the appeals, the Court HELD: 1. It is also seen from the approved order of the Government of Maharashtra dated 17.05.2007 ttiat H 654 f ' ; ~ . RAVI DEVELOPMENT v. SHREE KRISHNA 655 PRATHISTHAN & ORS. Swiss Challenge Method has to be applied in the area of A Mira Road land, Kavesar land, Chitalsar Manpada land on Pilot Project basis and MHADA has to evolve its own policy for taking decision in future in identical cases. In those circumstances, requirement of innovativeness is not there in Swiss Challenge Method, even otherwise, the B facts of the case clearly show that the proposal of Ravi Development under the Swiss Challenge Method was a new innovative venture for MHADA and for State of Maharashtra. [Para 17] [672-8-E] 2.1. MHADA and the State of Maharashtra placed C relevant materials which show that at first Ravi Development submitted their proposal to the Chief Executive Officer, MHADA on 25.08.2006 and thereafter, to the Chief Minister of Maharashtra on 11.10.2006. It is clear from the provisions of MHADA Act, 1976, that D MHADA is an undertaking working under the control and in coordination with the Housing Department of Government of Maharashtra. It was explained that Ravi Development on 25.08.2006 submitted the proposal to the CEO, MHADA and since no immediate decision was taken E by MHADA level as the same was new proposal, therefore, on 11.10.2006 similar proposal was submitted by them to the Chief Minister of Government of Maharashtra. The Chief Minister had portfolio of Housing Department and as per Rules 3 and 12 of Maharashtra F Government Rules for Conduct of Business, 1975 - business of the concerned Department of the Government are transacted by the Cabinet Minister of the said Department. In those circumstances, there was nothing wrong in submitting the same proposal to the G Chief Minister of Maharashtra on 11.10.2006. If there was no decision by MHADA in respe~t of their proposal dated 25.08.2006, naturally the party concerned viz., Ravi Development in the normal circumstances could approach to the higher authorities, in the case on hand, H 656 SUPREME COURT REPORTS [2009] 8 S.C.R. A Cabinet Minister of Housing Department (i.e. Chief Minister of Maharashtra), hence rightly approached the Chief Minister by submitting the same proposal on 11.10.2006 which cannot be motivated or deemed as contrary to any of the Government orders. It was pointed B out that the Chief Minister or Government has not at all favoured Ravi Development and no order or endorsement to that effect was either made or reflected anywhere in the record. On the other hand, the Desk Officer of Housing Department of Government of Maharashtra, by C letter dated 20.10.2006, simply forwarded the proposal submitted by Ravi Development to MHADA thereby calling upon a detailed report. Pursuant to the said communication, CEO, MHADA recommended the proposal of Ravi Development on 04.12.2006 and also 0 submitted a detailed study report on 24.04.2007 to Principal Secretary, Housing Department, Government of Maharashtra after examining the merits and
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