Bombay High Court directs MMRDA to pay monetary compensation for land acquired for the Santacruz–Chembur Link Road project | File Photo
Mumbai, Jan 31: In a significant ruling on land acquisition and property rights, the Bombay High Court has held that the Mumbai Metropolitan Region Development Authority (MMRDA) cannot unilaterally impose Transferable Development Rights (TDR) as compensation in place of money. The court has set aside a 2012 award granting such compensation for land acquired for the Santacruz–Chembur Link Road project.
Petition by Kurla landowners allowed
A bench of Justices Manish Pitale and Shreeram Shirsat, on January 30, allowed a petition filed by Jyoti Baliram Thorat and others, legal heirs of landowners whose property at Kurla was acquired for road widening.
The court held that the action of the competent authority under the Mumbai Metropolitan Region Development Authority Act, 1974, was “wholly arbitrary, illegal and unsustainable”.
TDR awarded instead of cash
In 2011, the MMRDA acquired 629.37 sq metres of land in Kurla for the Santacruz–Chembur Link Road (SCLR) project. Instead of determining a cash value for the land, the authorities issued an award in December 2012 offering compensation solely in the form of TDR.
Statutory procedure bypassed
The petitioners argued that the law requires authorities to first attempt an agreement on a monetary “amount”. If no agreement is reached, the compensation must still be determined in monetary terms under Sections 33 to 35 of the MMRDA Act.
The court found that the authorities had overstepped their statutory bounds. The bench observed, “Compensation in the form of TDR can never be unilaterally foisted by the State Government on the landowner… It is absolutely clear that such an award is wholly arbitrary, illegal and hence, unsustainable.”
Right to appeal valuation denied
The judges clarified that while TDR could be an option if both parties mutually agree, the default statutory requirement is the payment of a “monetary amount”. By denying this, the MMRDA effectively stripped the owners of their right to appeal the valuation before a tribunal.
Delay argument rejected
The MMRDA argued that the petition should be dismissed due to “delay and laches”, as the award was passed over a decade ago. However, the court rejected this, noting that the petitioners had been consistently raising grievances and only received a final rejection in April 2024.
Violation of right to property
The bench held that failing to pay proper compensation violated Article 300A of the Constitution, which protects the right to property.
“It would be a travesty to deprive relief to the petitioners on the ground of delay and laches, when the petitioners had everything to lose by delaying approaching the court,” the bench remarked.
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MMRDA directed to pay monetary compensation
The High Court has directed the MMRDA to determine and pay “just and fair” monetary compensation to the petitioners within six months, strictly following the procedures laid down in the Act.
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