Bombay HC: BMC Must Use 2013 Land Acquisition Law for Building Compensation
UPSC / SSC current affairs note · Polity
Why in news
The Bombay High Court ruled that the Brihanmumbai Municipal Corporation (BMC) cannot use provisions meant for open land to compensate buildings acquired for the Goregaon flyover project. The court quashed a 2018 compensation order and directed fresh acquisition under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, ensuring fair compensation.
Background
The case involves properties in Goregaon, Mumbai, acquired for a road and flyover project. The BMC informed lessees in October 2013 about the acquisition and offered compensation options. However, in February 2016, municipal officials allegedly began demolishing structures without prior compensation, leading to petitions before the High Court.
Key facts
Bombay HC bench of Justices Manish Pitale and Shriram Shirsat ruled on July 18, 2026.
The court quashed a June 11, 2018 order of the Deputy Municipal Commissioner fixing compensation at Rs 2,17,97,650 for lessee-petitioners.
BMC had relied on Sections 298 to 301 of the Mumbai Municipal Corporation (MMC) Act, which apply to open land or external structures.
Petitioners argued that permanent buildings require acquisition under Section 296 of MMC Act read with the 2013 Land Acquisition Act.
The court held that once a building exists on land within the regular line of a public street, Section 299 of MMC Act does not apply.
BMC demolished buildings without following proper procedure under MMC Act.
The compensation order violated principles of natural justice as landowners were not heard.
Court directed BMC to initiate fresh acquisition under the 2013 Act within one year.
Disputes between landowners and lessees over compensation shares to be decided separately after fresh award.
Prelims pointers
- Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
- Mumbai Municipal Corporation (MMC) Act, Sections 296, 298-301
- Bombay High Court
- Transferable Development Rights (TDR)
- Goregaon, Mumbai
Mains angles
- GS2 Polity: Judicial review of administrative actions and compensation determination.
- GS2 Polity: Principles of natural justice in land acquisition.
- GS3 Economy: Land acquisition for infrastructure projects and fair compensation.
- GS2 Polity: Role of High Courts in ensuring compliance with statutory procedures.