HC upholds higher compensation for farmers who lost land for Mumbai-Delhi freight corridor

Initially, in 2018, the compensation offered in exchange for land was ₹2,362 per square meter, which was challenged by the land owners in a lower court. In 2021, the court raised the compensation to ₹6,300 per square meter, an appeal against which was dismissed by the court on Wednesday

MUMBAI: The Bombay High Court dismissed an appeal filed by the central government, challenging a substantial hike in compensation for acquired lands in Palghar for the Mumbai–Delhi dedicated freight corridor. Initially, in 2018, the compensation offered in exchange for land was ₹2,362 per square meter, which was challenged by the land owners in a lower court. In 2021, the court raised the compensation to ₹6,300 per square meter, an appeal against which was dismissed by the court on Wednesday.

Bombay High Court (Anshuman Poyrekar/HT PHOTO)

The dispute dates back to 2018 to the acquisition of land in Saphale, Palghar, for the construction of a dedicated freight corridor of 1483 km from JNPT (Jawaharlal Nehru Port Trust) in Maharashtra to Dadri in Haryana. Dedicated Freight Corridor Corporation of India Ltd. (DFCCI), a corporation established by the Ministry of Railways, was appointed to undertake the planning and development, mobilisation of financial resources and construction, maintenance and operation of dedicated freight corridors (special railway projects). For the project, DFCCI acquired the land of five farmers in the village at a fixed compensation of ₹2,362 per square meter.

Dissatisfied with the offered compensation, the five land owners invoked the provisions of the Railways Amendment Act, 2008, and approached the Thane Arbitral Tribunal in 2018, seeking a rise in the compensation amount. Following this, the tribunal on January 18, 2021, passed a judgement, raising the amount to ₹6,300 per square meter.

DFCCI, in turn, challenged the award in the arbitral tribunal in 2021, which was dismissed in March 2024.

Following this, DFCCI moved the Bombay High Court in 2025, requesting to set aside the arbitral tribunal’s March 2024 order, claiming that the court grossly erred in fixing the market value at the rate of ₹6,300 per square meter by taking into account the rates of land in neighbouring villages.

Noting that the facts and legal issues were ‘squarely covered’ by that earlier ruling by the lower court, the division bench of chief justice Alok Aradhe and justice Sandeep Marne dismissed the appeal.

The high court stated that after the 2015 amendment to the Arbitration and Conciliation Act, under which the DFCCI appealed to set aside the raised compensation, the parliament incorporated the clarification to ensure that the phrase ‘fundamental policy of Indian law’ is narrowly construed so as not to entail a review on merits of a dispute, unless there is fraud, corruption, or a contravention of the fundamental policy of Indian law.

The bench noted that DFCCI had not challenged the award on grounds of fraud or corruption or in contravention of the fundamental policy but the only contention which has been urged is that the tribunal erred in taking into account the rate of land in neighbouring villages for ascertaining the market value of the subject land.