Bombay High Court scraps State's attempt to acquire Tata Power's dam land for 'vedic chanting'

The Bombay High Court on Thursday struck down notifications and show-cause notices issued by the Maharashtra government seeking to acquire 84 hectares of land belonging to Tata Power Company Limited (TPCL) in Pune for a private Ayurvedic wellness project. [The Tata Power Company Ltd & Anr v. The State of Maharashtra & Ors.] 

A Bench of Justices Manish Pitale and Shreeram Shirsat held that invoking the Maharashtra Industrial Development Act, 1961 (MID Act) to acquire operational land already utilised for a public utility project amounted to a colourable exercise of power.

"The facts of the present case indicate that recourse to the provisions of the MID Act and the aforesaid manner in which the higher authorities of respondent-State and respondent-MIDC have sought to acquire the subject piece of land of 84 hectares, is more for benefiting the private entity, respondent No.6-MVF, for its private enterprise at the expense of the aforesaid activity for public purpose i.e. generating hydro electric power of the petitioner-TPCL."

The dispute centers on 84 hectares of land situated near the Thokarwadi Dam and Reservoir in Pune district, which forms the catchment area for Tata Power's existing 75 MW Bhivpuri Hydro Station and its proposed 1,000 MW Bhivpuri Pumped Storage Project. 

The State government had issued notifications in March 2025 declaring the subject land an industrial area. 

The administration intended to transfer this parcel to Maharishi Vedoddharak Foundation (MVF) for a ₹1,500 crore ‘Ultra Mega Project’ featuring a wellness centre and ayurvedic college via a ‘pass-through’ acquisition method. 

Tata Power challenged the move, contending that the land had been conveyed to its predecessors over a century ago for generating hydroelectricity and remained fully utilised for that public purpose. 

It argued that the State circumvented the stringent safeguards of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (2013 Act) solely to enrich a private company.

The State defended its notifications by citing the sovereign doctrine of eminent domain, asserting an inalienable, superior title to acquire property for industrial and economic development.

The High Court firmly rejected the State’s defense ruling that the power of eminent domain is not unbridled and must strictly serve a primary public purpose.

The Court also noted that in June 2018, the then Chief Minister of Maharashtra wrote to the late Ratan Tata to pitch the foundation’s project. The correspondence suggested that the reservoirs’ vacant island outcrops “could be ideal for allowing vedic pandits to take up vedic chanting.”

The Court criticised the acquisition of an operational dam’s catchment area for spiritual and leisure activities. 

“Can this be at the expense of the hydro-electric projects of TPCL and its catchment area? We find that in such a situation, the TPCL has made out a case to successfully challenge the impugned action of the respondents."

It noted that the State authorities pushed the acquisition despite an initial rejection by the State’s High Power Committee. 

The Court concluded that the primary purpose of MVF’s project seemed to be “private interest and only incidentally beneficial to the public”. 

It quashed the acquisition notifications and closed all pending proceedings before the Land Acquisition Officer. 

Senior Advocates Darius Khambata and Prateek Seksaria with advocates Bhushan Deshmukh, Venkatesh, Karan Rukhana, Rohit Agarwal, HN Vakil, Samkit Shah, Farad Vakil, Ashutosh Srivastava, Syresth Sharma, Siddharth Nigotia, Ashirwad Sapre and Megha Chandu, briefed by Mulla and Mulla and Craigie Blunt & Caroe, appeared for Tata Power.

Senior Advocate Shrihari G Aney with government pleaders Shruti D Vyas and GR Raghuwanshi appeared for State of Maharashtra. 

Senior Advocate Chetan Kapadia with advocates Yuvraj Singh and Shraddha Dube Patil briefed by Jay & Co appeared for MIDC.

Senior Advocate Anil Anturkar and advocates Abhishek Salian, Srushti Thorat, Mayuresh Ingale, Kinnari Raut and Ayesha Dhorajiwala briefed by Vidhi Partners appeared for MVF.

[Read judgment]