Mumbai-Ahmedabad Bullet Train Project : Bombay High Court Upholds Acquisition Of Godrej & Boyce's Plot At Vikhroli

"There are no irregularities in the acquisition...Project is of paramount importance...Public interest would prevail over private interest," a division bench of Justices RD Dhanuka and MM Sathaye observed. The court has also refused to stay the project.

Godrej had challenged the award and compensation of Rs 264 crore by the deputy collector on September 15, 2022 for acquiring 39,252 sqm (9.69 acre) of company land for the Mumbai - Ahmedabad bullet train project. The company claimed the amount was a fraction of the initial offering of Rs. 572 crores.

However, the core challenge in the petition was to a  notification dated 20th August 2019 exempting the project from social impact assessment issued under Section 10A of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. It also challenged the constitutional validity of a proviso to section 25 of the Fair Compensation Act which permits the State to grant extensions for issuance of the award.

The Court said at such stage of the project, it cannot exercise the discretion under Article 226 of the Constitution to interfere with the acquisition of a small portion of the land as compared to 97% of the land which is already acquired and used substantially.

"The Government has already spent huge amount on completing the activities so far. The Bullet Train Project is funded by Japan International Corporation Agency (JICA) and thus any interference in the acquisition of the writ property at this stage would be totally against the public interest. In our view, any interference with the acquisition of the writ property at this stage would be also contrary to the principles of no interference with the public project under Section 20(A) and 42 (ha) of the Specific Relief Act, 1963. There are no procedural irregularities in this matter on the part of the respondents. Even if there is any irregularity, no interference is warranted in view of the project being the Infrastructural Project of national importance and being a project in public interest."

Godrej and the government have been at loggerheads over acquisition of the company-owned land since 2019. Of the total 508.17 kilometres of rail track between Mumbai and Ahmedabad, 21 km is planned to be underground. One of the entry points to the underground tunnel falls on the land at Vikhroli (owned by Godrej).

While the State blamed Godrej for cost escalation of Rs. 1000 crore due to delay in the project, Godrej claimed there were patent illegalities in the land acquisition proceedings.

The ASG Anil Singh and AG Ashutosh Kumbhakoni assisted by Advocate Akshay Shinde and Akshaya Puthran, Sargam Agrawal, advocates (S.K.SINGHI & Partners LLP) argued there were no irregularities in the acquisition. While Rs. 500 crore was the initial offer, the plot was compulsorily acquired at a lower price.

Explaining the requirement for extentions in the acquisition, the AG submitted that the Commissioner of the Konkan division had raised certain objections to the draft acquisition. It included changing the reservation of certain lands, which took time.  

In its order the High Court said the petitioners were not affected by lack of social impact assessment  and the state had powers to exempt a particular project under Sections 10A and 25 of the Right of Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013. 

The company had in its petition filed in October sought that the High Court direct the state government to not proceed towards the award passed and initiation of possession proceedings.

According to Godrej, the authorities failed to fulfil the mandatory statutory requirements of the Fair Compensation Act. The company claimed that instead of dealing with this challenge the government has treated it as an academic exercise.

The company said that the Union failed to produce the material placed before the President of India for his assent in terms of Article 254(1) of the Constitution of India. They produced this document only at a belated stage, the company added.

"It is a corporation that has historically acted fairly, reasonably, with responsibility, and has consistently extended its full co-operation to relevant government authorities in respect of land acquisition proceedings," the rejoinder read adding, "In fact, on and from October, 1961 till date the Petitioner (Godrej & Boyce) has faced eight acquisition proceedings pursuant to which in excess of 500 acres of lands at Vikhroli have been acquired."

The company's lands already acquired include 89 sq yards land for laying additional tracks in connection with the Ghatkopar – Mulund Arterial Railway Sidings and 56 acres for the Eastern Express Highway.

Godrej & Boyce Manufacturing Co. Ltd Vs State of Maharashtra [WRIT PETITION NO.3537 OF 2019] 

Citation: 2023 LiveLaw (Bom) 78

Click Here To Read/Download Judgment