The Bombay High Court has ruled that the Mumbai Metropolitan Region Development Authority (MMRDA) cannot compel landowners to accept Transferable Development Rights (TDR) in place of monetary compensation when acquiring land for public infrastructure projects. The court directed the authority to assess and pay cash compensation in accordance with the law.
The decision came on a petition filed by a Kurla resident whose 630 sq metre land parcel was acquired for the Santacruz-Chembur Link Road (SCLR) project. While the land was taken over in the early part of the previous decade, the final award issued in December 2012 granted compensation only in the form of TDR. The landowner challenged this, arguing that monetary compensation was mandated under the governing statute.
A division bench of Justices Manish Pitale and Shreeram Shirsath examined the provisions of the Mumbai Metropolitan Region Development Authority Act, 1974, particularly Section 35, and held that the legislation clearly envisages payment of monetary compensation based on a prescribed formula. The bench observed that offering TDR without the consent of the landowner goes beyond the authority conferred under the Act and falls outside its statutory framework.
The court rejected MMRDA’s contention that TDR could substitute cash compensation under the Act, noting that unlike other laws where such alternatives are explicitly provided, the MMRDA Act does not permit unilateral imposition of TDR. It also dismissed the argument that the petition was barred due to delay, stating that a continuing violation of statutory rights cannot be justified merely because time has elapsed.
Referring to Article 300A of the Constitution, which protects the right to property, the bench held that acquisition without lawful monetary compensation is legally deficient. The court further noted that the petitioner had sought cash compensation immediately after the award, but the authority failed to address the request and reiterated its position as recently as 2024.
Accordingly, the High Court directed MMRDA to reassess the compensation and pay just monetary compensation to the landowner within six months, reinforcing that statutory land acquisition must strictly comply with legislative provisions.
Source: Prop News Time
