The government also informed a bench headed by Justice Abhay Oak about rescinding its decision to withdraw prosecution against double allottees if they surrendered one of the houses or, in case the flats had been sold, return the proceeds to the government equivalent to market value of the property.
The government's decisions were communicated to the court through an affidavit filed by S K Salimath, Deputy Secretary of the Urban Development Department.
The court was hearing a PIL filed by former journalist Ketan Tirodkar challenging double or multiple allotment of houses from the CM's quota.
The bench asked the government to file by June 23 a report confirming compliance of its order passed on March 20 by which it had struck down the policy for allotment of houses to the beneficiaries under CM's quota.
Describing the policy as "illegal, irrational and unfair", the court had asked the state to frame a new policy which should be transparent and fair.
Government pleader J P Yagnik today informed the bench that the state had stopped making further allotments under the CM's discretionary quota as directed by the court.
