Overview
- The government, which ordered the cancellations on Wednesday, directed MUDA/MDA and local bodies to annul about 1,100 alternative‑site allotments worth roughly Rs 2,000 crore that violated the March 14, 2023 directive.
- Authorities were told to stop issuing khatas for these sites, cancel any khatas already created under municipal and panchayat laws, and file civil suits to annul registered sale deeds where those deeds exist.
- The decision follows recommendations from the Justice P.N. Desai single‑member judicial commission and a high‑level technical committee that documented large‑scale irregularities, including cases of dozens of sites allotted to single individuals.
- Officials must submit immediate compliance reports and face legal action for non‑compliance, while the government has launched a two‑phase process that will next examine allotments made before March 14, 2023 for further irregularities.
- Buyers and homeowners who purchased these plots face legal uncertainty and potential heavy losses, political leaders are pressing for cancellations back to 2019, and authorities warn the enforcement process may trigger prolonged court fights and local law‑and‑order strains.