Bombay HC Directs MHADA and Solapur Corporation to Pay ₹1.5 Lakh for Unlawful Land Retention

The Bombay High Court has imposed a cost of ₹1.5 lakh on the Maharashtra Housing and Area Development Authority (MHADA) and the Solapur Municipal Corporation for retaining land without proper acquisition for 37 years. The bench emphasized the importance o

Bombay High CourtMhadaSolapur Municipal CorporationLand AcquisitionRequisitionReal Estate MaharashtraJan 07, 2025

Bombay HC Directs MHADA and Solapur Corporation to Pay ₹1.5 Lakh for Unlawful Land Retention
Real Estate Maharashtra:The Bombay High Court has directed the Maharashtra Housing and Area Development Authority (MHADA) and the Solapur Municipal Corporation to pay ₹50,000 each to three landowners whose properties were unlawfully retained for 37 years.
This sum totals ₹1.5 lakh.
The lands were initially requisitioned in 1987 under the Bombay Land Requisition Act, 1948 by MHADA, which was acting as a special planning authority for the area at the time, under the Maharashtra Housing and Area Development Act, 1976 (MHADA Act).

A bench of Justices MS Sonak and Jitendra Jain clarified that the authorities are free to initiate proceedings to acquire the petitioners' properties under the relevant laws governing compulsory acquisition.
The High Court was hearing three petitions filed by landowners – the late Dnyaneshwar Bhosale, Tukaram Bhosale, 66, and the late Vithal Bhosale – who contended that the State Government failed to issue the necessary notification to acquire their lands after issuing a requisition order in 1987.

On August 24, 1987, the State published a notice under the MHADA Act proposing to acquire the lands for constructing a road and widening a nalla (drain).
However, the State did not issue any notification as required under Section 41(1) of the MHADA Act to finalize the acquisition.
The landowners had agreed to receive ₹1 lakh per hectare as compensation for the requisition.
However, they argued that under Section 9(1A) of the Requisition Act, requisition could not continue beyond 24 years, making the possession unlawful after July 2011.

The State contended that since it had taken possession of the properties under the Bombay Land Requisition Act, there was no further requirement to issue a final notification under the MHADA Act.
The Court, however, emphasized the distinction between a 'notice' and a 'notification' under Section 41(1) of the MHADA Act.
It observed that the 1987 notice merely proposed acquisition and sought objections but did not decide to acquire the land.
Without a notification under Section 41(1), the Court held that the State's claim of acquisition could not stand.

The Court also reiterated that requisition is a temporary measure and cannot be extended indefinitely.
Noting the expiry of the requisition period in July 2011, it declared the continued possession of the land 'illegal'.
The bench stated, 'Because the petitioners' properties are now used as a road and for the widening of a nalla, the interests of justice would require that the respondents be granted one year to initiate and complete the acquisition proceedings and acquire the petitioners' properties if they do not wish to restore the properties to the petitioners.'

The Court imposed costs on MHADA and the Solapur Municipal Corporation for failing to adhere to the law.
This decision underscores the requirement for authorities to follow due process and protect the rights of landowners, emphasizing the importance of transparency and accountability in administrative actions.

Frequently Asked Questions

Why did the Bombay High Court impose costs on MHADA and the Solapur Municipal Corporation?

The Bombay High Court imposed costs on MHADA and the Solapur Municipal Corporation for retaining land without proper acquisition for 37 years, which was deemed unlawful after July 2011.

What was the initial purpose of the land requisition in 1987?

The land was requisitioned in 1987 to construct a road and widen a nalla (drain).

What is the difference between a 'notice' and a 'notification' under the MHADA Act?

A 'notice' under the MHADA Act proposes acquisition and seeks objections, while a 'notification' finalizes the acquisition and is required to complete the process.

What did the landowners agree to as compensation for the requisition?

The landowners agreed to receive ₹1 lakh per hectare as compensation for the requisition.

What is the significance of the Court's decision in protecting landowners' rights?

The Court's decision underscores the importance of authorities following due process and protecting the rights of landowners, emphasizing transparency and accountability in administrative actions.

Related News Articles

Rising to the Top: Max Estate's Strategic Play in Delhi-NCR's Booming Real Estate Market
Real Estate

Rising to the Top: Max Estate's Strategic Play in Delhi-NCR's Booming Real Estate Market

Explore how Max Estate is leveraging its unique strengths to tap into the vast potential of Delhi-NCR's thriving real estate sector.

July 31, 2024
Read Article
Newly Listed Firms on Dalal Street Witness Surge in Market Capitalization
Real Estate

Newly Listed Firms on Dalal Street Witness Surge in Market Capitalization

At least five newly-listed firms on Dalal Street have seen their market capitalization exceed Rs 20,000 crore in the past year, benefiting from the ongoing rally in the domestic equity markets.

August 1, 2024
Read Article
IT Stocks Face Profit Booking Ahead of US Fed Rate Decision: Here's Why
real estate news

IT Stocks Face Profit Booking Ahead of US Fed Rate Decision: Here's Why

The IT sector witnessed a sharp sell-off on Wednesday, with the Nifty IT index declining by 3.05%. MphasiS led the decline, dropping 5.6%, followed by other major players like L&T Technology Services, Persistent Systems, and Tata Consultancy Services.

September 18, 2024
Read Article
Which Crypto Presales Are Still Worth Considering in 2025? Rexas Finance (RXS), BlockDAG (BDAG), and Remittix (RTX)
Real Estate Maharashtra

Which Crypto Presales Are Still Worth Considering in 2025? Rexas Finance (RXS), BlockDAG (BDAG), and Remittix (RTX)

Investing in crypto presales offers a unique opportunity to acquire tokens at lower prices. Among the notable projects in 2025, Rexas Finance (RXS), BlockDAG (BDAG), and Remittix (RTX) stand out. Here’s a closer look at these projects and what experts are

January 2, 2025
Read Article
A Boost for Auto and Real Estate Sectors: What Lies Ahead
real estate news

A Boost for Auto and Real Estate Sectors: What Lies Ahead

The recent rate cut is expected to provide a significant boost to the real estate sector, particularly in the affordable housing segment. For the auto industry, this move is anticipated to spark a resurgence in sales and investments.

February 7, 2025
Read Article
Maia Estates Secures Rs 1000 Cr from CapitaLand for The Beacon Project
Real Estate Pune

Maia Estates Secures Rs 1000 Cr from CapitaLand for The Beacon Project

Maia Estates, in collaboration with CapitaLand, is set to transform the commercial real estate landscape in India with the ambitious The Beacon project, which aims to set new standards in sustainability and innovation.

February 22, 2025
Read Article