Bombay High Court Dismisses Challenge to Land Acquisition for Power Project Under MID Act and Rehabilitation Act — Acquisition Held Valid for Public Purpose of Augmenting Power Supply. The 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 for acquisition of agricultural land for a 1600 MW coastal power plant.

High Court: Bombay High Court Bench: BOMBAY
  • 78
Judgement Image
Font size:
Print

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).

Subscribe to unlock Headnote Subscribe Now

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.

Subscribe to unlock Issue of Consideration Subscribe Now

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
Subscribe to unlock Law Points Subscribe Now

Case Details

2012 LawText (BOM) (04) 27

WRIT PETITION NO. 8515 OF 2010

2012-04-04

MOHIT S. SHAH, C.J., MRS. ROSHAN DALVI, J.

Ms. Gayatri Singh with Ms. Bhavana Mhatre for Petitioners, Mr. A.B. Vagyani, AGP for Respondent Nos.1,3,4 & 6, Mr. Prashant Chavan with Ms. Shyamali Gadre i/b. Little & Co., for Respondent No.2, Mr. S.G. Aney, Sr. Advocate a/w. C.S. Balsara & B.H. Antia & H.N. Vakil & Sunil Chavan i/b. M/s Mulla & Mulla & CBC for Respondent No.7

Pravin Kashinath Bhagat, Atmaram Goma Patil, Vinayak Haribhau Patil, Shankar Vasant Patil, Kashinath Pundalik Patil

The Collector, District Raigad; The Chief Executive Officer, Maharashtra Industrial Development Corporation; The Special Land Acquisition Officer, Raigad-I; Divisional Commissioner, Konkan Region; Maharashtra Pollution Control Board; State of Maharashtra; The Tata Power Company Ltd.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging land acquisition notifications for a power project.

Remedy Sought

Petitioners sought quashing of notifications dated 9/11/2006, 4/4/2008, 5/4/2008, 5/8/2008, 28/7/2009, 25/9/2009, 26/9/2009 and 18/12/2009 under Sections 32 and 33 of the MID Act and Sections 11 & 13 of the Rehab Act.

Filing Reason

Petitioners claimed that the acquisition of their agricultural lands for a 1600 MW coastal power plant was not for a public purpose and that procedural requirements including environmental clearance and rehabilitation were not complied with.

Issues

Whether the acquisition of agricultural land for a 1600 MW coastal power plant is for a public purpose. Whether the notifications under Sections 32 and 33 of the MID Act and Sections 11, 13, 14 of the Rehab Act are valid. Whether the petitioners were denied opportunity of hearing before issuance of notifications. Whether environmental clearance was obtained and is valid. Whether the rehabilitation package is adequate.

Submissions/Arguments

Petitioners argued that the acquisition is not for a public purpose and that the procedure under the MID Act was not followed, including lack of individual hearing. Petitioners contended that environmental clearance was not obtained and that the rehabilitation package is inadequate. Respondents argued that the acquisition is for a public purpose of augmenting power supply, that the MID Act does not require individual hearing, that environmental clearance was obtained on 22.12.2008 and upheld by NGT, and that the rehabilitation package is in accordance with the Rehab Act.

Ratio Decidendi

The acquisition of land for a power project to augment power supply to Mumbai is for a public purpose. The MID Act does not require individual hearing before issuance of notification; the composite scheme of hearing through declaration and award is sufficient. Environmental clearance was obtained and upheld. The rehabilitation package under the Rehab Act is adequate.

Judgment Excerpts

The petitioners are residents of Taluka Alibag, District Raigad and are stated to be carrying on cultivation of agricultural land... Tata Power Company Ltd., respondent No.7 is to set up a 1600 MW Coastal Power Plant for which 1200 acres of land is sought to be acquired by the Government as it is a project to be undertaken for public purpose of augmenting the power supply for the city of Mumbai.

Procedural History

The petitioners filed Writ Petition No. 8515 of 2010 in the Bombay High Court challenging various notifications under the MID Act and Rehab Act. The court reserved judgment on 08 February 2012 and pronounced on 04 April 2012.

Acts & Sections

  • Maharashtra Industrial Development Act, 1961: 32, 33
  • Maharashtra Project Affected Persons Rehabilitation Act, 1986: 11, 13, 14
  • Maharashtra State Resettlement and Rehabilitation Act, 1999: 11, 13
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Dismisses Challenge to Land Acquisition for Power Project Under MID Act and Rehabilitation Act — Acquisition Held Valid for Public Purpose of Augmenting Power Supply. The court upheld the notifications under Sections 32 and 33 of ...
Related Judgement
High Court Madras High Court Allows Appeal in Cooperative Society Property Dispute — Unilateral Cancellation of Registered Sale Deed by Society Held Void. The court held that a cooperative society cannot unilaterally cancel a registered sale deed without the ...