The PIL, filed by an NGO, alleges that the donation was illegal, as the minister had no authority to allocate funds from the state budget, as he was a trustee of the same school.
The bench headed by Justice Dhananjay Chandrachud asked the state and Brihanmumbai Municipal Corporation to file their replies within a month, adjourning the hearing to February 17.
The Minister, without any rights, powers or authority, had illegally donated Rs 2 crore from the state government coffers to an unaided private school in suburban Oshiwara, run by Raigad trust, where he himself is a trustee, NGO Lok Adhikar has alleged in the PIL.
The petition prays that the Trust be dissolved and a committee headed by retired judge of the High Court be formed to probe the alleged irregularities.
Further, the PIL alleges, 1999-2000, the 11,000 square metres plot, on which the school stands, was first allotted to Raj Purohit Trust, but later a cabinet sub-committee granted 60 per cent of the land to Raigad Military Trust school at a 50 per cent discounted price of Rs 74.82 lakh.Maharashtra Housing and Area Development Authority (MHADA) had no authority to allot this land to Raigad Military Trust, it says.