Case Note & Summary
The petitioners, residents of Taluka Alibag, District Raigad, challenged the acquisition of their agricultural lands for a 1600 MW Coastal Power Plant to be set up by respondent No.7, Tata Power Company Ltd., along with Reliance Industries. The acquisition was initiated under Sections 32 and 33 of the Maharashtra Industrial Development Act, 1961 (MID Act) and Sections 11, 13, and 14 of the Maharashtra Project Affected Persons Rehabilitation Act, 1986 (Rehab Act). The petitioners claimed that 906 landholders and 500 landless labourers were affected and that they represented 70% of the affected persons. They challenged various notifications issued between 2006 and 2009. The court examined whether the acquisition was for a public purpose, whether the procedural requirements were complied with, and whether the rehabilitation package was adequate. The court noted that the project aimed to augment power supply to Mumbai, which is a public purpose. The court held that the MID Act does not require individual hearing before issuance of notification; the composite scheme of hearing through declaration and award is sufficient. The environmental clearance was obtained from the Ministry of Environment and Forests on 22.12.2008 and was upheld by the National Green Tribunal. The rehabilitation package under the Rehab Act was found to be adequate. The court dismissed the petition, upholding the acquisition.
Headnote
A) Land Acquisition - Public Purpose - Power Project - Acquisition of agricultural land for setting up a 1600 MW coastal power plant by Tata Power Company Ltd. held to be for a public purpose of augmenting power supply to Mumbai - Court upheld the notifications under Sections 32 and 33 of the Maharashtra Industrial Development Act, 1961 and Sections 11, 13, 14 of the Maharashtra Project Affected Persons Rehabilitation Act, 1986 - Held that the acquisition is valid and not vitiated by any procedural irregularity (Paras 1-5, 10-15). B) Land Acquisition - Procedure - Individual Hearing - No requirement of individual hearing before issuance of notification under MID Act - The Act provides for a composite scheme of hearing through the process of declaration and award - Held that the petitioners' contention of denial of opportunity of hearing is without merit (Paras 10-12). C) Environmental Law - Environmental Clearance - Compliance - The project obtained environmental clearance from the Ministry of Environment and Forests on 22.12.2008 - The clearance was challenged but upheld by the National Green Tribunal - Held that the acquisition cannot be faulted on ground of lack of environmental clearance (Para 13). D) Rehabilitation - Project Affected Persons - Rehabilitation Package - The State has formulated a rehabilitation package under the Maharashtra Project Affected Persons Rehabilitation Act, 1986 - The petitioners' grievance regarding inadequacy of compensation or rehabilitation is not a ground to quash acquisition - Held that the rehabilitation package is adequate and in accordance with law (Paras 14-15).
Issue of Consideration
Whether the acquisition of agricultural land for a 1600 MW coastal power plant under the Maharashtra Industrial Development Act, 1961 and the Maharashtra Project Affected Persons Rehabilitation Act, 1986 is valid and for a public purpose, and whether the procedural requirements including environmental clearance and rehabilitation were complied with.
Final Decision
The petition is dismissed. The acquisition notifications are upheld. No order as to costs.
Law Points
- Land acquisition for public purpose
- Public purpose includes power generation
- MID Act Sections 32 and 33
- Rehabilitation Act Sections 11
- 13
- 14
- No requirement of individual hearing before notification
- Compliance with environmental clearance
- No violation of Article 14 or 300A




