Supreme Court Affirms State's Right to Amend Policies for Public Interest

The Supreme Court has ruled that prior executive decisions do not prevent the state from enacting new laws or policies in the larger public interest. This ruling was made in a case involving M/S Rewa Tollway Ltd, which challenged a decision to charge stamp duty that contradicted earlier agreements. The court emphasized that doctrines like legitimate expectation and promissory estoppel do not hinder governmental flexibility in policy-making when public interest is at stake.

The Supreme Court ruled on Friday that prior executive decisions do not prevent the state from enacting new laws or taking fresh policy decisions in the larger public interest.

A bench of Justices Vikram Nath and Ahsanuddin Amanullah upheld a 2010 Madhya Pradesh High Court decision regarding a dispute over charging stamp duty to M/S Rewa Tollway Ltd, tasked with widening a section of the Satna-Maihar-Parasimod-Umaria road.

Despite the firm's challenge citing earlier agreements, the court stated that doctrines like legitimate expectation and promissory estoppel do not constrain the state from altering policies in the public interest.