The Bombay High Court has enhanced compensation for a property near Mumbai’s Siddhivinayak Temple from ₹2.01 crore to ₹10.94 crore and directed that the land compensation be shared equally between the owners and M/s. Sadanand Garage, which had established substantial tenancy and occupation rights.
Justice Amit Borkar decided three connected land acquisition references concerning a 642.98-square-metre property, Final Plot No. 901, at Prabhadevi, Mumbai. The property was acquired for a public purpose connected with the Shree Siddhivinayak Ganapati Temple Trust.
Background
The Special Land Acquisition Officer had awarded ₹2,01,37,662 in February 2004. Disputes later arose over the market value and the respective shares of the owners, Sadanand Garage and other claimants.
After examining comparable sale transactions and valuation evidence, the Court fixed the market value at ₹1,70,200 per square metre as of September 19, 2002. It calculated land compensation at ₹10,94,35,196, with another ₹3,85,300 for structures and trees.
The Court found that Sadanand Garage had established substantial occupation and tenancy rights but had not proved exclusive tenancy or ownership of the entire property. It therefore rejected both the owners’ claim to the entire compensation and the garage’s demand for 75%.
The Court observed:
"The entire amount cannot be given to the owners by ignoring the occupation of the Garage. But, merely because the Garage was occupying and using the property, it cannot be treated as the owner of the entire land."
It further clarified:
"The interest of the Garage was more than a temporary occupation for carrying on business. However, it was less than ownership or a proved perpetual lease over the entire plot."
The Court also rejected Century Developers’ claim for ₹20 lakh and the proposed flat purchasers’ claims, as they failed to establish an entitlement to the acquisition compensation. On the purchasers’ claims, it observed:
"The purchasers have to establish that they had some right in the acquired property or some legally enforceable interest in that property which came to an end because of the acquisition."
The High Court directed that the land compensation be divided equally, with ₹5,47,17,598 each payable to the owners and Sadanand Garage. The amount for structures and trees was directed to be paid to the owners according to their respective shares and title.
Applicable statutory benefits, including solatium and interest, will follow the respective shares. The authority was directed to calculate and release the amounts within eight weeks.
The references were disposed of without any order as to costs.
