HC slams govt circular in land case

However, following pleas of special counsel for the state S C Dharmadhikari, the bench kept the matter for final hearing on December 17.

The challenge to the circular of the Land and Revenue department has come from the BMC, which had in this case been directed to pay compensation of Rs five crore to Colaba Land and Mills Co Ltd for acquiring a 765 sq metres piece of land at Colaba, in front of Radio Club.

The BMC’s petition was heard along with another petition filed by Colaba Land and Mills Co, where senior counsel E P Bharucha argued the civic body should either give them the money or declare it does not need the land which is reserved for a recreational playground. However, BMC contended it would not be possible for it to pay Rs five crore — the final award declared by the SLAO — since it has challenged the validity of the basis of the award. The money, though, on an earlier HC order, has been deposited in court by BMC.

The BMC has challenged the October ’94 circular claiming that under the Land Acquisition Act, 1894, the acquiring body has to pay only the plot’s market value. But according to the circular, the SLAO has been given powers to determine the value based on sale deeds of the land surrounding the area, the registered documents of such sales and also consider the ready reckoner prepared by the state for the area. The SLAO has been directed that the award should be on the amount that is higher.

It is this “higher” clause that is being challenged. In the Colaba case, the draft award was of Rs 1.57 crore and the final award of Rs five crore was declared in February this year. The BMC counsel showed maps to the bench arguing the city had been carved into sections under the ready reckoner where the same rates apply. “It does not matter that the place may be abutting the road or is in some corner. The rates are same. This is not the first time we have been asked to pay such a huge sum, a number of awards declared recently have been on the higher side. In one case even Rs 10 crore,” he argued.

However, Dharmadhikari submitted the BMC is barred through a Supreme Court judgement from challenging a state government award in a land acquisition case. “The circular has been in operation for five years. None of the state’s local bodies have complained, except for this one. And in this case, they have challenged it only because of the draft award of Rs 1.57 crore and the final award of Rs five crore,” he argued. He showed two opinions obtained from the Law and Judiciary department to the bench claiming the circular does not restrict itself to the ready reckoner. But the SLAO has been asked to make a comparative analysis and then decide rates.

He argued the ready reckoner itself was prepared scientifically by the joint director of town planning after considering established principles of valuation and other details. “In any case, land owners are right to ask the government give them the same rates it charges from them for stamp duty,” he said.

Admitting the pleas, the bench in an interim order said the Colaba Land and Mills Co could withdraw the draft award amount of Rs 1.57 crore from the money deposited in court and give possession of the land to BMC. For any further withdrawal, the petitioners would have to give a bank guarantee.