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The Chhattisgarh High Court has held that land acquisition for railway connectivity to a Gati Shakti Multi-Modal Cargo Terminal constitutes a public purpose, even if a private company operating the terminal derives incidental or consequential benefit from the project. The Court observed that Section 20-D of the Railways Act, 1989, gives landowners the right to raise objections and have them considered, but does not confer a veto over a duly sanctioned railway project.

Justice Amitendra Kishore Prasad was hearing a batch of writ petitions filed by landowners challenging the order whereby their objections preferred under Section 20-D of the Railways Act, 1989 against the acquisition of their lands for the Gati Multi-Modal Cargo Terminal Project were rejected in a summary and non-speaking manner.

The matter arose out of the acquisition of agricultural lands for a railway corridor connecting Hathbandh Railway Station (East Cabin) to Khaparadih village in Chhattisgarh, in connection with the Gati Shakti Multi-Modal Cargo Terminal.

The petitioners argued that the acquisition was ostensibly being undertaken for a public purpose but was, in substance, intended to benefit Shree Cement, a private commercial entity. They contended that existing railway infrastructure serving UltraTech Cement could be used instead and that sufficient land was available alongside the existing railway corridor. The petitioners further submitted that their objections had been rejected without proper enquiry or meaningful consideration of the grounds raised by them.

The Court noted that the acquisition in question is not an isolated acquisition of land for the benefit of a private individual but is a part of a Special Railway Project for providing linear railway connectivity.

The Court observed that the mere fact that Shree Cement would derive an incidental benefit from the railway infrastructure could not lead to the conclusion that the acquisition ceased to be for a public purpose. It noted that the relevant consideration was the nature and character of the project and the manner in which the acquired land and railway infrastructure would be owned, controlled and utilised.

“… Shree Cement Limited is the proposed terminal operator… the proposed railway connectivity would facilitate transportation of cement... However, the mere fact that a private commercial entity would also derive an incidental or consequential benefit from the railway infrastructure cannot, by itself, lead to the conclusion that the acquisition ceases to be for a public purpose,” the Court remarked.

Since the land would vest in the Central Government/Railways and the petitioners had not demonstrated that the acquisition was merely an instrument to transfer the property to a private company, the Court rejected the argument that the project was essentially private in nature.

Relying on the Supreme Court's decision in Sooraram Pratap Reddy v. District Collector, Ranga Reddy District, the Court reiterated that a project may involve an element of private benefit without losing its essential character as a public-purpose project, provided its dominant purpose and nature are genuinely public.

On the scope of Section 20-D, the Court noted that the earlier defect complained of by the petitioners was addressed by the Court. It further held that a statutory right to object to the acquisition cannot be reduced to an empty formality. However, it clarified:

“At the same time, the existence of such a right does not mean that every objection raised by a landowner must necessarily be accepted or that the competent authority is required to agree with the landowner's assessment… The provision does not confer upon the landowners a veto over a duly sanctioned railway project.”

Finding that the petitioners failed to make out a case for grant of any relief under Article 226 of the Constitution of India, the Court dismissed all the writ petitions.

Case Title: Bedram Verma v. Union of India [W.P.(C) No. 785 of 2026 and connected matters]

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