Bombay High Court Quashes Maha Govt's Move To Acquire 84 Hectares Of Tata Power Land Near Pune's Thokarwadi Dam

Mumbai: The Bombay High Court has quashed the Maharashtra Government’s decision to acquire 84 hectares of land belonging to Tata Power Company Limited (TPCL) near Thokarwadi Dam in Pune and hand it over to a private foundation, holding that the acquisition was intended to benefit a private entity at the cost of existing hydroelectric projects.

A bench of Justices Manish Pitale and Shreeram Shirsat held that the State had improperly invoked the Maharashtra Industrial Development Act (MID Act), bypassing the procedure prescribed under the general land acquisition law.

Land Linked To Hydroelectric Projects

The dispute concerns 84 hectares of land, including two land outcrops in the Thokarwadi Dam reservoir. The land was transferred to TPCL’s predecessor between 1911 and 1930 for hydroelectric projects. TPCL operates the 75 MW Bhivpuri Hydro Station and is developing a proposed 1,000 MW pumped storage project under an agreement with the State Government.

The Maharishi Vedoddharak Foundation (MVF) had already been allotted around 126 hectares of adjoining land for its proposed ‘Centre for Perfect Health’ project, which includes an Ayurvedic manufacturing facility, wellness centre and college. It sought an additional 84 hectares for the project.

State Initiates Acquisition Proceedings

The State declared the land an industrial area on March 3, 2025, and issued a Government Resolution the next day to initiate acquisition proceedings. The Maharashtra Industrial Development Corporation subsequently issued show-cause notices to TPCL, which challenged the action before the High Court.

Court Questions Land Acquisition Process

The bench observed that the acquisition notifications did not record any finding that the land was unutilised. It also said the authorities had failed to conduct an inquiry into whether the land was genuinely unutilised, particularly when it continued to serve the purpose for which it had originally been acquired and was required for TPCL’s proposed pumped storage project.

The court also noted that a High Power Committee had rejected MVF’s request for the land in November 2023, but the Cabinet Sub Committee subsequently decided to pursue its acquisition through the MID Act.

Bench Questions Public Purpose

Questioning the public purpose of the proposed activities, the bench observed that MVF wanted the land for aesthetic development, Vedic chanting and bridges connecting the two land outcrops.

“Can this be at the expense of the hydro-electric projects of the petitioner-TPCL and its catchment area?” the court asked.

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High Court Quashes Acquisition Notifications

Allowing TPCL’s petition, the bench said the company had made out a strong case against the acquisition.

It quashed the State Government’s notifications dated March 3 and 4, 2025, the show-cause notices issued on March 7 and the consequential acquisition proceedings pending before the Sub-Divisional Officer.

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