The Government order assumes significance in view of the demolition of unauthorised structure at the five star hotel Holiday Inn last month.

Bhatia's action against Holiday Inn had created a controversy since the State had stayed its demolition till "further hearing". Bhatia justified the demolition of Holiday Inn by saying that action had not violated government order since the stay was till the "further hearing" and that the hearing of the case was already over.

Alarmed by Bhatia's inference in this case, the State Government faxed its order to Bhatia on Tuesday in an obvious move to prevent him from taking any possible action against Sagar Plaza before the hearing was over. The order, signed by Rajkan Kop, additional secretary, Urban Development, said Sagar Plaza'slawyer, through a fax, had expressed fear that the Corporation might demolish the structure before the decision on the appeal.

The order has stated that the final hearing was scheduled on April 28 at 3 pm at the office of Urban Development secretary in Mantralaya. The fax also says that he was issuing the order in view of two letters sent by city engineer. City engineer Madhav Harihar's letter on September 18 last year had sought advice from the Government on the demolition of illegal structure at Sagar Plaza while another letter dated October 29 had requested the Government to reject the appeal.

Sources said the Municipal Commissioner has sent copies of the Government order to the city engineer and legal advisor.

The Corporation had issued a notice to Sagar Plaza for using its basement for commercial purposes. According to the development control rules, the basement of a hotel should be used for ancillary purpose. However, Sagar Plaza had constructed a banquet hall and a kitchen in thebasement.

Bhatia also had sent a letter to the then municipal commissioner Ramanath Jha in March 1998 asking him to initiate action against Sagar Plaza and Hotel Shantai when he was the divisional commissioner. Bhatia's letter had stated that parking spaces of both the hotels were being misused for providing accommodation to hotel employees and purposes other than parking.

Bhatia had received several complaints against both hotels and he had written a letter to Jha in the capacity of the president of divisional committee for eradication of corruption. Bhatia had also recommended that the Corporation should cancel licences of both hotels for violation of development control rules.

Hotel Meridious Pvt Ltd, which runs Sagar Plaza, had filed an appeal with the State Government when the Corporation issued the notice. The appeal was heard by then Minister of State for Urban Development Ravindra Mane, who resigned from the ministry after the Bombay High Court passed strictures against him in the Girish Vyascase.

Scheduled for April 28, the hearing will now be heard by secretary of the Urban Development. The Government may also give its ruling on the same day.