The division bench of Justice A A Desai and Justice P S Patankar were hearing arguments over the state government's permission to the controversial Amby Valley project challenged by three groups including Bombay Environmental Action Group (BEAG). The public interest petitions had alleged that the Sahara group had grabbed adivasi land for the proposed project.

While BEAG counsel Iqbal Chagla stood to sum up his arguments, the judges asked for the modus operandi of floating the lake city scheme. The company counsel stated that Sahara had obtained the power of attorney from the original 69 landlords to develop farm houses. Since the state government's permission could not be obtained the farm house scheme was replaced by the lake city project. Chagla argued that such power was revocable and therefore the company did not have the right to develop the plots.

The arguments on the controversial project spread over eight days was nearing conclusion.