could be corruption, that's true. But with Modi's track record of demagoguery (Dangs etc.), I wonder.
You have a point. But remember land prices/ rentals have sky-rocketed in those parts of Gujarat, in recent times. There's money to be made (plenty) by leasing it out.
In Bangalore, the Church which holds huge amounts of British-handed city-centre prime real estate, leases land to commercial organisations on regular, renewable long-term basis. I don't know about Gujarat. I think it is similar there too.
The a-holes in the government should have allocated land to the relief centre elsewhere, at the minimum, in the interest of those whom it serves.
The local government has eminent domain provisions in Gujarat. The compensation issue is tricky considering the fact that most of such land was not confiscated post-Independence, contrary to other pre-Independence public properties.