Screw Panama Papers, this is the real problem right here. Property rates in Mumbai are sky high, builders are gouging ordinary Government or private sector employees for multiple crores, meanwhile this hugely rich actress gets away with basically property theft. 

Charity for a dance school? my ass, only people who are going to afford to send their kids to the school are going to be rich themselves.

I don't know see any reason why the govt. needs to donate such expensive and scarce resources to private parties.

The govt. should only lease out the land for a limited period with specific allowed uses and there should be a pre-determined annual evaluation system which if the organisation fails to meet for X successive years, they should hand over back to the government or buy it at the prevailing market value.

Same rules should apply for industries too. The govt. can give them land for cheap to start their business but once they are successful, they should pay fair value. (or return it if they fail.)

Also in this case, Hema Malini's capabilities 20 years ago are not the same as they are today. If the govt. had allotted the land 20 years ago, she could have setup the school and run it for 20 years by now. But now she's old and past retirement age (and average life expectancy in India) and there's no way she'll be involved full time in this project or contribute as much as she could have if the project was started in the 90s.

That alone should be grounds for the govt. to cancel the allocation and either scrap the project or find other qualified dancers who are interested in such a project and have them run it.