A bench comprising Chief Justice of India Sanjiv Khanna and Justice Dipankar Datta dismissed the state's contention that these groups formed a distinct class deserving preferential treatment, describing the policy as an "abuse of power," and ordering the cancellation of several government orders, starting 2005, that enabled such allotments at discounted rates in Hyderabad's satellite towns.
The bench underscored that such allocations perpetuate inequality and erode public trust in democratic institutions. "The benefits granted to these privileged and well-off classes come at a cost, as they effectively deprive and deny the essentials to the marginalized and socially vulnerable populations," it held.
It further stated that land—a finite and valuable resource in urban areas—should be distributed equitably and not used to confer undue benefits on elite sections. "This preferential treatment conveys the message that certain individuals are entitled to more, not due to the necessities of their public office or the public good, but simply because of their status. Such practices foster resentment and disillusionment among ordinary citizens," the court noted.
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