Synopsis

The petitioner’s land was taken over by the Pimpri Chinchwad Municipal Corporation (PCMC) in August 2003 for establishing an octroi post, even before any acquisition proceedings were initiated. An agreement for advance possession was executed on 24.02.2006. The land acquisition award was passed only on 22.01.2015. The petitioner claimed rental compensation for the period from August 2003 till the date of payment of compensation, relying on a series of Government Resolutions (GRs) issued by the State of Maharashtra. The PCMC paid a meagre amount of Rs. 3,22,308/- for the period August 2003 to 24.02.2006, but the petitioner challenged this as not being in accordance with the State’s policy. The High Court allowed the writ petition, holding that: (i) rental compensation is payable as per the GRs even though not statutorily provided; (ii) the GRs apply to all acquisitions, not just irrigation projects; (iii) the basis of calculation is governed by GR dated 26.12.2003 (on the value of open land at 8% per annum); and (iv) interest at 6% per annum is payable on delayed rental compensation.

Court: High Court of Judicature at Bombay (Civil Appellate Jurisdiction)
Coram: Manish Pitale & Shreeram V. Shirsat, JJ.
Date: April 6, 2026
Citation: Not provided (internal citation: 2026:BHC:xxxx)
Core Law: Land Acquisition – Rental Compensation; Government Resolutions; Articles 14 and 226 of the Constitution of India.

2. Legal Framework

• Land Acquisition Act, 1894 (repealed): No provision for “rental compensation” – the concept is derived from executive policy.

• Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Not directly applicable; the acquisition was under the old LA Act.

• Government Resolutions (GRs) of Maharashtra:
  GR dated 01.12.1972 – rental compensation at 6.5% p.a. on award value.
  GR dated 02.04.1979 – increased rate to 8% p.a.
  GR dated 24.03.1988 – directions for expeditious acquisition.
  GR dated 17.04.2003 – cancelled earlier GRs (prospective effect), but saved cases where possession taken prior to that date.
  GR dated 17.10.2003 – allowed continued application of 1972 GR for certain urgent projects.<br

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