Thane Court Upholds ₹1,120 Per Sq Metre Compensation For Palghar Farmers

The Thane District and Additional Sessions Court has dismissed an appeal filed by the National Highways Authority of India (NHAI) against the enhanced compensation awarded to farmers whose land was acquired for the Mumbai-Vadodara Expressway project.

On August 7, 2026, Judge P.V. Ghule presided over the court and observed that the NHAI had failed to produce any evidence to rebut the genuineness of the sale deed dated September 14, 2014. This sale deed was relied upon by the Sole Arbitrator while determining the market value of the acquired land.

The court cited Supreme Court principles, reiterating that an arbitral award can be interfered with only if it suffers from patent illegality or is contrary to public policy. It observed that the Sole Arbitrator had considered all relevant documents while arriving at a fair market value and that NHAI had failed to produce any material to discredit the sale transaction relied upon for determining compensation.

The dispute pertained to 650 square metres of land acquired from Gat No. 56/1 at Bhatane village in Palghar district for the expressway project. The Competent Authority for Land Acquisition (CALA) had initially awarded compensation at the rate of Rs 765 per sq. metre in August 2018. However, in February 2025, the Sole Arbitrator enhanced the compensation to Rs 1,120 per sq. metre, increasing it by Rs 355 per sq. metre.

NHAI contended that the enhancement was contrary to the provisions of the National Highways Act and the Arbitration and Conciliation Act, 1996. It sought to have the arbitral award set aside and the matter remanded for fresh consideration. The landowners opposed the plea, arguing that the Sole Arbitrator had considered the highest-value sale transactions from the relevant period preceding the acquisition notification and had correctly determined the market value by averaging the top three sale instances.

The landowners also submitted that the scope of judicial review under Section 34 of the Arbitration and Conciliation Act is limited and does not permit courts to reappreciate evidence. The court agreed with the landowners and dismissed NHAI's application, upholding the enhanced compensation of Rs 1,120 per sq. metre.

The decision is a significant victory for the seven villagers, most of whom are farmers, who were the respondents in the matter. The court's ruling sets a precedent for similar land acquisition cases in the future.

The Mumbai-Vadodara Expressway project is a major infrastructure development initiative aimed at improving connectivity between Mumbai and Vadodara. The project involves the acquisition of large tracts of land, and the compensation awarded to farmers is a critical aspect of the project's implementation.

In conclusion, the Thane court's decision to uphold the enhanced compensation for Palghar farmers is a significant development in the context of land acquisition for infrastructure projects. The decision highlights the importance of fair compensation for landowners and the need for transparency and accountability in the land acquisition process.