Court Dismisses Petition Against MIDC's Online Application System, Reinforces Transparency and Industrial Development
In a landmark judgment dated December 8, 2025, the Bombay High Court, Aurangabad Bench, upheld the constitutionality of the Maharashtra Industrial Development Corporation's (MIDC) priority allotment policy and online application system. The court dismissed a writ petition filed by Santosh, who challenged the allotment of plots in the Chikalthana MIDC Industrial Area without public advertisement or auction.
The petitioner, Santosh, argued that his offline applications for allotment were disregarded by MIDC, which prioritized online applications from later applicants. He claimed discrimination and favoritism in favor of respondents whose proposals were processed through the online system.
The court, comprising Justices Vibha Kankanwadi and Hiten S. Venegavkar, addressed the broader constitutional challenge to MIDC's policies, emphasizing their alignment with Article 14 of the Constitution, which mandates equal opportunity and non-arbitrariness in government actions. The bench noted that MIDC's policy fosters transparency and supports regional industrial growth by rational classification of applicants based on investment thresholds, thrust sector classification, and location in backward regions.
The judgment highlighted that economic and industrial policies are entitled to judicial deference unless proven arbitrary, discriminatory, or mala fide. The court observed that MIDC's online application system enhances transparency, reduces discretion, and ensures uniform application of norms, aligning with the State's commitment to promoting industrial development as per the Directive Principles of State Policy.
Furthermore, the court dismissed the petitioner's allegations of arbitrariness, finding no evidence of bias or mala fides in the allotment process. The rejection of Santosh's offline applications was deemed valid due to non-compliance with mandatory requirements, while the online applications of respondent No. 9 were processed correctly under the priority category.
The court concluded that MIDC's policy does not violate constitutional principles, affirming its legitimacy in promoting industrial growth and regional development. The petition was dismissed, reinforcing the constitutional validity of MIDC's allotment mechanisms.
Bottom Line:
MIDC's policy of allotment of plots on priority basis and via online applications is constitutionally valid, fostering transparency and promoting industrial development in line with Article 14 of the Constitution.
Statutory provision(s): Articles 14, 226 of the Constitution of India, Maharashtra Industrial Development Corporation Act, 1961, MIDC Disposal of Land Regulations, 1975
Santosh v. State of Maharashtra, (Bombay)(DB)(Aurangabad Bench) : Law Finder Doc Id # 2824463
