The Bombay High Court has quashed Maharashtra Government notifications seeking to acquire 84 hectares of land belonging to Tata Power Company Limited near Thokarwadi Dam in Pune district for a project proposed by Maharishi Vedoddharak Foundation. The Division Bench held that the acquisition proceedings amounted to a colourable exercise of power, as the land was being acquired primarily to benefit a private entity despite its continued use for hydroelectric power generation.
Background
Tata Power challenged notifications issued under the Maharashtra Industrial Development Act, 1961 (MID Act), which declared approximately 84 hectares of its land in Kiwale, Inglun and Vahangaon villages as an industrial area.
The land had originally been acquired between 1911 and 1940 for establishing hydroelectric projects, including the Bhivpuri Hydro Station, which generates 75 MW of electricity. Tata Power also had plans for a 1,000 MW Bhivpuri Pumped Storage Project under an MoU signed with the Maharashtra Government in August 2023.
The proposed acquisition was intended to benefit Maharishi Vedoddharak Foundation, which already had approximately 126 hectares of land near the reservoir. The Foundation sought additional land for its proposed integrated project involving Ayurvedic manufacturing, wellness centres, an Ayurvedic college, healthcare facilities and other infrastructure.
Tata Power argued that the acquisition bypassed the legal safeguards applicable to land acquired for private companies and would interfere with its existing and proposed hydroelectric operations.
The Bench of Justice Manish Pitale and Justice Shreeram V. Shirsat examined the history of the land, government decisions, statutory provisions and the circumstances leading to the acquisition notifications.
The Court noted that the State's High Power Committee had earlier rejected the proposal to purchase Tata Power's land and make it available for another project. However, subsequent decisions by higher authorities led to the acquisition through the MIDC.
The Bench observed:
"The power of eminent domain, which applies when a person is deprived of his property, postulates that the purpose must be primarily public and not primarily of private interest and merely incidentally beneficial to the public."
The Court also found that the respondents had relied on Section 39 of the MID Act to justify the so-called 'pass-through' acquisition. However, the statutory conditions governing the disposal of acquired land had not been properly followed.
In another significant observation, the Bench stated:
"Hence, this Court finds substance in the contention of the petitioner-TPCL that the impugned actions undertaken by the respondent-State and the respondent-MIDC, amount to colourable exercise of power."
The Court further noted that there was no sufficient material demonstrating why the additional 84 hectares were essential for the Foundation's project, particularly when it already possessed 126 hectares.
Allowing Tata Power's writ petition, the High Court held that the proposed acquisition could not be sustained because the land continued to serve the public purpose of hydroelectric power generation.
The Bench quashed the Maharashtra Government's notification dated March 3, 2025, the subsequent notification dated March 4, 2025, and the show-cause notices dated March 7, 2025.
Consequently, the proposed acquisition proceedings concerning the 84 hectares were quashed, and the proceedings pending before the Sub-Divisional Officer were disposed of.
Case Details
Case Title: The Tata Power Company Ltd. & Anr. v. The State of Maharashtra & Ors.
Case Number: Writ Petition No. 6215 of 2025
Judges: Justice Manish Pitale and Justice Shreeram V. Shirsat
Decision Date: November 5, 2026
