The Supreme Court on Monday dismissed the petition filed by Maharashtra government against Bombay High Court that had in July permitted Subhash Ghai's film school Whistling Woods to continue operating in Film City.
The filmmaker had filed a review petition in the Bombay High Court and had got interim relief to continue with the school.
The Maharashtra Government challenged the order in Supreme Court.
Whistling Woods has a sprawling 15,300 sq m campus in Film City.
The 20-acre land had been allotted for Subhash Ghai's film academy Whistling Woods by the erstwhile Vilasrao Deshmukh government in 2000.
In 2003, questions were raised in certain quarters on alleged undervaluation of land at Rs 3 crore as against the market rate of Rs 31 crore.
In 2004, the High Court had noted that the government was desirous of shifting from a joint venture to a lease model.
The state then asked the Whistling Wood not to develop the remaining 14.5 acres of land (out of the total 20 acres allotted) where the hostel and studio were to come up.
Meanwhile, the High Court in 2011 ruled against the Whistling Wood and directed it to return the unused 14.5-acre land and vacate the rest by July 31, 2014.
The decision was upheld by the Supreme Court in 2012.