HC blows the whistle on Vilasrao Deshmukh, Subhash Ghai

The Bombay high court (HC) on Thursday raised serious questions about the role played by former chief minister (CM) Vilasrao Deshmukh in setting up Whistling Woods International, a film training institute by Mukta Arts, and observed that the highest executive of the state misused the power of his office.

A division bench of chief justice Mohit Shah and justice Girish Godbole directed Subhash Ghai’s Whistling Woods to surrender the open space of 14.5 acres in Goregaon (East) immediately and the remaining 5.5 acres where the studio and building stand by July 31, 2014.

The court also asked Mukta Arts to pay rent to the government at the market rate of Rs5.3 crore per annum from the date of the joint venture.

A joint venture agreement was signed between Maharashtra Film, Stage And Cultural Development Corporation Limited (MFSCDC) and Mukta Arts on October 24, 2000, whereby 20 acres of land was handed over at a concessional rate to the latter for starting a film training institute. Deshmukh signed the agreement as a witness.

“Deshmukh extended undue favours to Whistling Woods. The CM clearly misused his official position. It is certainly not acceptable that the CM signs an agreement as a witness though such an agreement is illegal,” the HC observed. 

Deshmukh said he signed the agreement on the spur of the moment as a goodwill gesture. The court wondered how a CM can sign an agreement on the spur of a moment when it concerns land measuring 20 acres in prime locality. It said the land was given without making any valuation and without following rules or procedures.

The HC said “it was more shocking” to see that an agreement was signed without any formal resolution passed by the MFSCDC.

“Can the court accept Deshmukh’s explanation that he was present while signing the agreement only to make a goodwill gesture when it is mired in illegality?” the bench observed. “These are very uneasy and disturbing questions.”

The 53-page judgment came in response to a public interest litigation filed by Rajendra Sontakke and four other agriculturists from Latur and Osmanabad, alleging “gross abuse of power” by Deshmukh in allotting land.

The HC even questioned the decision of granting land at a concessional rate to Mukta Arts. As per provisions, land can be allotted at a concessional rate to an educational institute which is a registered trust under the Bombay Public Trust Act. The condition is not met by Mukta Arts, the court observed.

The comptroller and auditor general (CAG), too, raised objections regarding the very low valuation of land - Rs3 crore. According to the CAG, the valuation should have been approximately Rs31.2 crore. 

Simil Purohit, advocate for Mukta Arts, requested the court to stay the order for 16 weeks to allow them to approach the Supreme Court. The court, however, granted them stay for only eight weeks.