Godrej & Boyce loses petition in bullet train land dispute

NEW DELHI: The Supreme Court on Thursday dismissed Godrej & Boyce Manufacturing Co. Ltd’s appeal against the Maharashtra government’s acquisition of its Vikhroli land for the MumbaiAhmedabad bullet train project. The apex court observed that the project is of national importance and should not be delayed on account of a dispute concerning the compensation given to a party for the acquisition of their land.

“We will give you the liberty to file a claim for additional compensation, and we will set a deadline to determine that application...this is all about money...But this is a national project we are talking about,” a bench headed by Chief Justice Dhananjaya Y. Chandrachud told senior counsel Mukul Rohatgi who appeared for the company.

Rohatgi, on his part, complained that the state government had initially offered ₹572 crore for the land acquisition, whereas what they finally paid up was only ₹264 crore.

However, the bench, which also comprised justices PS Narasimha and JB Pardiwala, said Godrej & Boyce should pursue its remedies under the law for the enhancement of compensation instead of fighting the acquisition. “Much water has flown; possession has already been taken over; the project is being constructed...you are also a responsible company. Giving [₹572 crore] at gunpoint by the Supreme Court will have adverse effects...we cannot do that now,” added the bench.

Solicitor general Tushar Mehta, appearing for the Maharashtra government and National High Speed Rail Corp. Ltd, submitted that the delay has significantly raised the project cost, and a spat over compensation should not let a project of national importance get impacted. He added that the company was responsible for the project’s delay, resulting in an additional cost of ₹1,000 crore.

The SC order said: “We are not inclined to intervene. If any application for enhancement of compensation is submitted, then let it be decided within six weeks.”

The state government and the company have been embroiled in a legal dispute since 2019 over acquiring the company’s land in Vikhroli for the bullet train project. Of the total 508.17 km of rail track between Mumbai and Ahmedabad, about 21 km is to be underground. One of the entry points to the underground tunnel falls on the land at Vikhroli, owned by the company. In September, the state government acquired the land for a compensation of ₹264 crore in lieu of it.