Following a Public Interest Litigation filed by the Bombay Environmental Action Group (BEAG), a division bench of the High Court comprising justices Ashok A Desai and P S Patankar had quashed the letter of intent granted to SIHL.

In its SLP, the SIHL has urged the Supreme Court to set aside the direction of the High Court to quash the letter of intent and also its order for a high level probe into the land deals of Sahara.

SIHL has also challenged the observations of the High Court. In its order, the High Court had observed, ``The letter of intent granted to Sahara on January 7, 1997 is illegal and void. This is nothing but an attempt to regularise the illegal development carried out by Sahara''.

Secondly, onthe land transactions of Sahara, the court had observed that prima facie, it seems that those individual purchasers are only ostensible owners and purchases are benami in nature. The Additional Collector on February 26, 1997 lodged a complaint about the illegality in the purchase of land. The Warty Commission was also directed to investigate into the Sahara project. The High Court stated that it was necessary for the government to make a thorough probe first into the land deals in question to find the real nature of transactions before granting letter of intent to Sahara.

Thirdly, the court had observed that the Sahara started construction since March 1995 without any permission but with an ardent belief of its regularisation. This clearly conveys that it expected government blessings and hence the government has undertaken the exercise of issuing the letter of intent to suit the mission of Sahara.

On the developments made by Sahara, the HC had observed that if they were not legally done, it could not besaid to be in public interest or to promote public policy.

SIHL has urged the Apex Court to set aside these observations of the High Court. In addition, Sahara has raised question of law on whether the Public Interest Litigation filed by the Bombay Environmental Action Group was maintainable and also the locus standi of the office bearers of BEAG to file the petition. It has also pointed out that while the court has upheld the hill station regulations on the one hand, it quashed the letter of intent granted to Sahara on the other.