Bombay High Court

Bombay HC: Landowners in Nashik Win Double Compensation in Highway Project

Updated
Feb 10, 2026 7:54 PM
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In a recent decision by the Bombay High Court, the court ruled that landowners should receive double the compensation for land taken for the national highway project in Nashik. The case focused on the factor used to calculate how much money the landowners should get. Here's a breakdown of what happened.

The Dispute Over Multiplier Factor

Vikrant Happy Homes Private Limited, along with others, disagreed with the State Government's decision to use a multiplier factor of 1.00, instead of 2.00, when calculating compensation for land in Nashik. The land was needed for the Surat-Nashik-Ahmednagar Greenfield Section of the national highway.

"The Central Government had specifically notified the multiplier factor to be 2.00," the petitioners argued.

Key Dates and Events

  • November 1, 2021: The Central Government announced it would take land for the highway.
  • December 2, 2021: The petitioners disagreed with the multiplier factor of 1.00.
  • January 13, 2023: A decision was made using the 1.00 multiplier, which the petitioners received on October 5, 2023.

The Legal Battle

Justice Manish Pitale and Justice Shreeram V. Shirsat heard the case. The petitioners argued that the Central Government's announcement from February 9, 2016, which set the multiplier at 2.00, should be followed.

The State Government had issued announcements in 2021 and 2022 using a 1.00 multiplier, arguing it would save money. However, the court found that only the Central Government had the authority to set this multiplier for national highways.

Court's Decision

The court canceled the State's announcements and the decision using the 1.00 multiplier. It ordered a new decision using the 2.00 multiplier, emphasizing the Central Government's exclusive control over such matters.

"The State Government has no power to specify the multiplier factor for lands acquired for national highways," the court stated.

What's Next?

The court instructed that a new decision be made within six weeks. If the petitioners are unhappy with the compensation, they can challenge it further under the National Highways Act.

This ruling highlights the importance of following federal rules in land acquisition processes, especially in projects involving national highways.