Mumbai: The Bombay High Court has directed the Municipal Corporation of Greater Mumbai (MCGM) to pay a net enhanced compensation of Rs 1,061.92 crore to S.N. Desai Hospitalities & Developers LLP for land acquired in Oshiwara and Ambivali villages in Mumbai.
A bench of Justices Manish Pitale and Shreeram Shirsat delivered the judgment, modifying a previous order by the Land Acquisition, Rehabilitation and Resettlement (LARR) Authority.
Land Reserved For Public Amenities
The case involves 48,897.60 square meters of land in Mumbai's Oshiwara and Ambivali villages, which was originally reserved under the city's development plan for a garden, recreation ground, and a wide road. After the developer issued a purchase notice under the Maharashtra Regional and Town Planning (MRTP) Act, the state initiated acquisition proceedings.
While the Deputy Collector initially fixed compensation at approximately Rs 511.48 crore in May 2017, the LARR Authority substantially increased the payout in March 2021. Both the developer and the civic body filed cross-appeals challenging the order.
Court Rejects BMC's Jurisdiction Objection
The High Court rejected BMC's argument challenging the LARR Authority's jurisdiction under the 2013 land acquisition law, affirming that the developer's legal remedies remained fully protected.
While recalculating the valuation, the bench fixed the weighted average market rate at Rs 72,817 per square meter, factoring in location, potential development, and statutory additions. These included a 40 percent addition for Transferable Development Rights (TDR), 25.2 percent for fungible FSI, and 25 percent for plot size, alongside standard deductions.
After adjusting for Rs 510.07 crore previously paid and Rs 250 crore withdrawn by the developer during the litigation, the final net enhanced compensation was pinned at Rs 1,061,92,48,897.23.
The court granted BMC 12 weeks to clear the remaining balance. Additionally, the developer will receive interest at 9 percent per annum for the first year from the date of possession, and 15 percent per annum thereafter until full realization.
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