"The land was allotted as per the government policy. The land has not been sold. It is on lease," Maharashtra Revenue Minister Eknath Khadse told reporters here.
"The allotment of land to Hema Malini was not a mistake," he said.
He argued that if Malini's land has to be returned, then all such allotments to artists, educationists - including some former ministers - clubs, hospitals, and even to police gymkhana would have to be taken back.
The Opposition had criticised the BJP-led government for the allotment of land to Malini's Natyavihar Kalakendra Charity Trust.
The actor-turned politician had said she struggled for 20 years to get the land.
Malini has been alloted 2,000 square metres land for building her dance institute. Besides, she has to develop a garden on the remaining 27,000 square metres.
The land allotment to Malini ran into controversy after RTI activist Anil Galgali brought the issue to the fore and demanded Chief Minister Devendra Fadnavis either cancel the allotment or give it at the market rate.
Malini was also facing an allegation of violating CRZ rules by destroying mangroves on a plot earlier alloted to her at Versova.
