The Chief Minister had cleared Kanitkar despite the inquiry report submitted by the Divisional Commissioner of Pune, Arun Bhatia and the principal secretary of the State, K Nandlal, indicting Kanitkar.

The division bench comprising the acting Chief Justice, Justice Ashok Agrawal and Justice A P Shah, also allowed the interim prayer of staying Joshi's order and have restrained Kanitkar from carrying out his functions as the Development Authority chairman during the pendency of the petition.

The Divisional Commissioner's inquiry was held under the High Court order in an earlier petition by Deshmukhe. Bhatia's inquiry found Kanitkar guilty of seven charges. According toBhatia's report submitted in June 1998, Kanitkar allotted lands to the Shikshan Prasarak Mandal at the rate of Rs 20 per sq ft when the approved DA rate was Rs 500. The DA thus lost Rs 62.40 lakh. By another such allotment to the Pimpri Chinchwad Education Trust, he caused another loss of Rs 35.35 lakh.

Bhatia's report further stated that some lands allotted in Sector 29 had caused a loss of Rs 16 lakh to the DA. Further, the chairman allegedly illegally allotted contracts worth Rs 19.53 crore to M/s Shirke and Company in the Authority's meeting number 181 by bringing in a resolution at the eleventh hour, that he illegally awarded contracts worth Rs 9.27 crore to the same company for the Software Technology Park at Chikhali, he gave contracts to a Delhi-based firm, M/s Abhijit De and Associates without calling for tenders, and also allegedly promoted some officers to `buy their cooperation' in his illegal acts.

Before the HC, the government sought to give Kanitkar one more hearing before removing himunder the MRTP Act. He was then heard again by the Principal Secretary, K Nandlal, who found him guilty of six charges, but gave him the benefit of doubt on the seventh. The Principal Secretary, however, found proof of fabrication of evidence, including Kanitkar having obtained an antedated letter for allegedly covering up his illegal acts.

Despite the chairman (Kanitkar) being found guilty of five charges, he made a representation to the CM and was granted a personal hearing on December 7, 1998. On December 11, the Chief Minister completely exonerated him, stating that the allegations amounted to technical mistakes. Deshmukhe then challenged this order of the CM by way of another petition.

Deshmukhe has now urged that the CM cannot pass such an order once the Principal Secretary has initiated proceedings against Kanitkar under Section 5(2) of the Maharashtra Regional Town Planning Act.

While the petitioner was represented by Shrihari Aney, A K Barthakur and Nitin Jamdar, Kanitkar was represented by S MKelkar.