The government can change its policies, toppling prior agreements with private parties, provided the policy change is in public interest and guided by reason, the Supreme Court has held in a judgment.
The recent judgment authored by Justice B.R. Gavai said that “in the case of conflict between public interest and personal interest, public interest should prevail… A change in policy by the Government can have an overriding effect over private treaties between the government and a private party, if the same was in the general public interest and provided such change in policy was guided by reason”.
The case concerned the recovery of an additional 64.7% in payment from persons allotted plots by the Yamuna Expressway Industrial Development Authority (YEIDA).
