A bench of Justices BR Gavai and MS Karnik said that if it finds that the state has taken required steps, then it might not continue hearing the PIL, but if it failed to do so, the court "cannot remain a silent spectator".
It was hearing an application by BJP leader Khadse seeking that a Public Interest Litigation (PIL) filed by Damania and five others against him and his family members be dismissed as they were associated with political parties.
It had alleged that "Khadse and his relatives had purchased several land parcels through benami transactions and that the assets owned by him and his family were disproportionate to their incomes."
The PIL had sought that a "Special Investigation Team be constituted, or a judicial inquiry be initiated" to look into the allegations.
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Besides, he argued, the petitioners had failed to disclose their political associations to the court at the time of filing the PIL.
"The rules of filing a PIL mandate that the petitioner must make full disclosure of his identity, motives, and also of any pending litigation against him or her. In the present case, not only are the members associated with rival political parties, but, they chose to suppress this fact before the court.
"There is no public interest in this plea and it is merely an act of political vendetta," he said.
The petitioners' counsel Mihir Desai however, argued that Damania and the others had resigned from their political posts in AAP much before filing of the PIL.
He also said that Sena member Gajanan Malpure had approached HC merely as a "concerned citizen."
He also said that of the 27 cases of defamation pointed out by Khadse, Damania had "received notices in only three of the cases".
The bench noted that since the state government had acknowledged receiving the above complaints on November 10, 2016, the court was "expected to find out what the state had done so far in response to the complaints".
It said that while the rules mandated that the courts verify the bona fide of petitioners in PILs, it was also the court's "constitutional duty to ensure that justice was done in all cases."
"However, if we realise that the state has failed to take appropriate steps based on the complaints made by the petitioners, this court cannot remain a silent spectator," Justice Gavai said.
HC has granted the state three weeks to file an affidavit listing down the action it has taken since receiving Damania's complaints in November 2016.
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