The PIL, filed by former journalist Ketan Tirodkar, is slated to come up for hearing in due course.
It alleged there have been a series of judgements of the High Court and the Supreme Court stating that public property cannot be allotted by the state without issuing advertisement inviting applications from the needy people.
The petition said that Hema Malini Dance Academy vide its letter dated July 6, 2007, had urged the government to allot alternative land against the Coastal Regulation Zone (CRZ) land in Versova.
The Academy had asked the government to allot 2,000 sq metres of the reserved land for the Dance Academy and proposed to develop a garden on the remaining land by its own trust. This was accepted by the government on July 30, 2010, the PIL said.
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The PIL further alleged that the decision was taken after a meeting chaired by the Principal Secretary (Revenue) on December 19, 2015, leading to allotment of land for a pittance amount of Rs 70,000 for a plot worth crores of rupees restored for the Hema Malini Dance Academy.
The petitioner also alleged that another PIL filed by him in the the High Court earlier had opposed illegal allotments of houses from the Chief Minister's discretionary quota.
High Court had struck down government resolutions conferring powers of the Chief Minister to use discretion for allotment of public property and has directed the state to issue a fresh housing policy for disbursing public-owned plots of land.
"Despite this, the state went to the extent of gifting the public property to the ruling party MP for the sake of Bharat Natyam promotion when many poor and needy are deprived from houses under CM quota for want of a policy that is yet to be framed," it added.