Staff quarters are "public properties" and "no court can allow any public property to be usurped by private citizens who then will use it for profiteering", the court said.
"Government officers have no authority over the state's properties or assets," the court said.
The high court was hearing petitions filed by over 1,500 retired employees of Brihanmumbai Municipal Corporation against eviction notices issued by the civic body. These employees had refused to vacate the quarters after retirement.
BMC lawyer Anil Sakhre said as per the corporation's earlier policy, it granted ownership rights or extended lease to the former employees in some cases. However, in the 1990s, owing to space crunch, BMC decided against granting permanent tenancy or ownership rights.
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In a city like Mumbai which is starved of space, official accommodation are often short in supply and many employees, even those employed in emergency services, are forced to forgo quarters or wait endlessly for allotment, he said.
HC however held that petitioners were wrongly retaining the quarters and granting them relief would suggest that court was "validating illegal retention of public property.
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