Bombay HC Directs State to Expedite Decision on Godrej & Boyce’s Bullet Train Compensation

The Bombay High Court has directed the Maharashtra government to make a decision on Godrej & Boyce’s application for increased compensation related to the acquisition of their land in suburban Vikhroli for the Mumbai-Ahmedabad bullet train project within one month.

A division bench of Justice B P Colabawala and Justice M M Sathaye considered the company’s petition, which sought a directive to the Mumbai suburban district collector and the deputy collector (land acquisition) to refer the company’s compensation enhancement request to the Land Acquisition, Rehabilitation, and Resettlement (LARR) Authority.

The bench has directed the relevant state government authorities to make a decision on the company’s application within 30 days. Godrej & Boyce has been involved in a legal dispute with the government over the acquisition of their land in Mumbai’s Vikhroli area for the bullet train project since 2019. The company’s argument is that the compensation was initially set at Rs 572 crore, but the final award reduced it to Rs 264 crore. Now, the company seeks an increase in compensation to Rs 993 crore.

In February of this year, the high court dismissed the company’s petition challenging the acquisition proceedings, suggesting that the company could seek an enhancement of the compensation awarded to them. The company then contested the high court’s order in the Supreme Court, which upheld the high court’s decision but stipulated that the compensation enhancement issue must be resolved within six months. Godrej filed an application in February 2023 before the collector and deputy collector (land acquisition), requesting them to refer the matter to the LARR Authority for compensation enhancement. However, the collector took no action.

In April 2023, the company submitted an application to the LARR Authority requesting that the collector be directed to make a reference. However, the LARR Authority rejected the application, stating that it could not compel the collector to make a reference. Godrej then filed a petition in the high court, claiming that the inaction of the collector and deputy collector was arbitrary, unreasonable, and violated Article 14 of the Indian Constitution. The company alleged that the state authorities were intentionally delaying the matter and defying the Supreme Court’s order.

“The inaction of the respondent authorities represents a clear case of abdication of powers and functions vested in them. The inaction is entirely arbitrary, unreasonable, and capricious,” the petition stated. Of the total 508.17 kilometers of railway track for the bullet train project connecting Mumbai and Ahmedabad, approximately 21 kilometers will be underground, with one of the entry points falling on Godrej’s land in Vikhroli.