In the wake of a Supreme Court order upholding the cancellation of the 20-acre allocation in 2000 to Subhash Ghai’s ‘Whistling Woods’ film institute, Maharashtra government has begun the exercise of revaluing the land.
The state-run Maharashtra Film, Stage and Cultural Development Corporation (MFSCDCL) has asked the suburban district collector to value both, the vacant 14.5 acres and the 5.5 acres housing the film institute building. It has also written to the Whistling Woods CEO for immediate transfer of the 14.5 acres.
Chief minister Prithviraj Chavan told Business Standard: "The Supreme Court order will be implemented in toto. Initially, 14.5 acres will be transferred to MFSCDCL."
First, the high court here had quashed the entire allotment. Now, the SC has upheld the HC verdict. The vacant 14.5 acres is to be taken back right away by the government. The remaining 5.5 acres where the institute is functioning is to be taken over by the government on July 31, 2014, when all the ongoing courses shall be completed. The SC also directed Ghai to pay rent of Rs 5.3 crore annually with effect from the year 2000, when the film director entered into a joint venture with the government to start a film institute.
A state government official said the land in question was probably worth Rs 350-400 crore.
Ghai had initially invested Rs 20 crore. The investment has now risen to approximately Rs 75 crore. Ghai told Business Standard: "The court has dismissed our appeal on the grounds that the Maharashtra government should have followed the proper governance to enter into a joint venture before running a school in the Film City. I suppose one must be cautious while dealing with the state government, rather than being penalised after 10 years when heavy investment and losses are involved.”
Ghai said he’d discuss what to do with his lawyers and wait for the government’s reaction. Meanwhile, he says, Whistling Woods would go on. “We are opening branches in many states. My production house, Mukta Arts, is also carrying on the movie production business full-steam," he said.
Court raps Vilasrao Deshmukh
Former Maharashtra chief minister Vilasrao Deshmukh was today pulled up by the Supreme Court for giving the 20 acres of land to Ghai in 2004 for his film institute, saying he cannot treat anyone as a "blue-eyed boy" and bend or bypass rules.
The observations came from a bench of justices H L Dattu and C K Prasad while upholding the Bombay High Court order quashing the 20-acre land allotted to Ghai's film institute in Filmcity in 2004 when Deshmukh, now a Union minister, was the chief minister.
