The Supreme Court today called the Narendra Modi government's decision to sell land to a private refinery in Gujarat "bad in law and arbitrary", in a major blow to the Chief Minister's number two, Anandi Ben Patel.Setting aside the Gujarat government's decision to allow the sale of land in Bhuj to Alumina Refinery, the court said the company should pay Rs 3.15 crore to the government if it wants to proceed with the project.Anandi Ben Patel, who is the state Revenue minister, cleared the sale of this 36 acre-land. She is widely seen as Mr Modi's successor, with the BJP's presumptive Prime Minister focused on the national stage.The land had originally been allotted by the Gujarat government to Indigold refinery. But the refinery could not set up its project within the three-year deadline and was allowed by the Revenue Minister to sell the land to Alumina Refinery in 2009, despite objections by the Chief Secretary.Indigold sold the land to Alumina Refinery for Rs 1.20 crore.Deepak Babaria, a Congress leader, challenged it in court, saying the government should have taken the land back and auctioned it, instead of allowing the sale from company to company.

Alumina Refinery had argued that it had spent huge money in setting up the plant .