Indira Jadhav (72), whose husband died in the 1965 Indo-Pak war, had moved the court over delay in allotment of a plot of land to her.
On August 5, the court had imposed a cost of Rs 75,000 on the officials concerned of the state government for the delay.
Today, the government lawyer told the division bench headed by Justice Abhay Oka that formalities for allotment had been started and Jadhav would not be charged either the cost of the land or the survey fees.
The court was peeved earlier when it learnt that Jadhav had not been handed over the possession of a 10-acre plot in coastal Ratnagiri, though she had produced letters from the then Prime Minister Lal Bahadur Shastri and the Army Chief.
Also Read
According to Jadhav's petition, she was forced to take voluntary retirement as a primary school teacher in Ratnagiri as she could not afford the house rent in the city.
Before his death Babaji had applied for land to the Collector of Ratnagiri under a provision that gave armymen priority in allotment of land for cultivation.