Hearing a petition filed by Thomas Benjamin, the then Urban Development Department Secretary, for quashing of the complaint, Justices A S Oka and S S Jadhav, on Tuesday, said "by granting ad-interim relief, the writ court cannot interfere with the process of investigation. Hence we decline to continue the relief granted earlier".
The judges ordered that Benjamin's petition be placed before them on October 5 for admission.
On July 10, the High Court had stayed the special Court's order asking ACB to probe the complaint against Benjamin, currently Health Secretary, who has been accused of conniving with a well-known builder in the scam related to a realty project at suburban Powai.
The Special Court, on July 2, had asked ACB to probe the complaint against real estate baron Niranjan Hiranandani, who had developed the project, as well as against Benjamin.
An aggrieved Benjamin moved the HC, saying nowhere in the complaint there are allegations he had misappropriated any money.
"Then how can corruption charges be levelled against him?" he asked.
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Of the two, only Benjamin moved the HC which granted interim stay on portion of the order concerning him.
According to the complaint, in 1977, the state had announced Powai Housing Development Scheme for economically weaker sections (EWS), to be implemented over 140 hectares.
In 1986, the State Government signed an agreement with Hiranandani and handed over 230 acres on an 80-year lease at the rate of 40 paise per acre.
The builder was asked to build flats for EWS and sell them at the rate of Rs 150 per square feet. However, a probe conducted in 2009 revealed that out of government-sanctioned built-up area, the developer had used only a part of it, while the rest was converted into luxury apartments, which were sold at a premium price, the complaint alleged.