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2026 Supreme(Online)(Bom) 237

HIGH COURT OF BOMBAY
Manish Pitale, Shreeram V. Shirsat, JJ
Vikrant Happy Homes Private Limited – Appellant
Versus
Union of India – Respondent
WRIT PETITION NO. 8122 OF 2022



Advocates:
For the Appellants/Petitioners: Pralhad Paranjape, Rahul Punjabi, Shweta More, Ishan Shroff
For the Respondents: Shehnaz V. Bharucha, Ashutosh Mishra, A. A. Ansari, M. S. Bane, Rakesh Singh

The Central Government holds exclusive jurisdiction under the National Highways Act and the 2013 Land Acquisition Act to determine compensation multiplier factors for national highway land acquisitions, rendering contradictory State Government notifications and resolutions inapplicable to such projects.

Headnote:(A) National Highways Act, 1956 - Section 3-A(1) - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 30(2) - Acquisition for National Highways - Multiplier factor - Exclusive jurisdiction of Central Government to notify multiplier factor - State Government notifications and GRs specifying lower multiplier factor (1.00) held invalid to the extent they apply to national highway projects. (Paras 18, 23, 29)

(B) Writ Petition - Maintainability - Alternative remedy under Section 3-G(5) of National Highways Act - Principle where statutory functionary cannot decide conflict between Central and State notification - High Court held entitled to intervene. (Para 28)

Facts of the case:
Petitioners challenged the application of a multiplier factor of 1.00 for land acquisition under the National Highways Act in Nashik district, based on State Government notifications and GRs, asserting that the Central Government had already fixed the multiplier at 2.00 under the 2013 Act. The award was passed during petition pendency, prompting an amended challenge to the award.

Findings of Court:
State authorities lack the power to regulate compensation factors for national highway acquisitions. The Central Government's notification prevails. Consequently, the State's notifications and the impugned award were quashed, with directions issued for a fresh award using the 2.00 multiplier.

Issues: Whether the State Government or Central Government is the appropriate authority to determine the multiplier factor for land acquisition under the National Highways Act, and whether the multiplier of 2.00 applies.

Ratio Decidendi: The Central Government is the 'appropriate Government' for national highway acquisitions under the Act of 2013 and Article 246 of the Constitution; thus, state-level notifications interfering with Central parameters are unenforceable.

Result: Petition allowed.

Table of Content
1. conflict between central and state multiplier factor notifications. (Para 2 , 3 , 4 , 5 , 6 , 7)
2. parties' arguments regarding the appropriate jurisdiction for land acquisition. (Para 9 , 10 , 11 , 12 , 13 , 14)
3. central government's exclusive authority over national highway land acquisition. (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23)
4. quashing of award and mandate for fresh award determination. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30)

JUDGMENT: (Per Justice Manish Pitale):

. Rule. Rule made returnable forthwith and with the consent of the learned counsel for parties, heard finally.

2. The question that arises for consideration in this petition is, as to whether the notification and Government Resolutions (hereinafter referred to as the GRs), issued by the respondent No.3-State Government, pertaining to applicability of multiplier factor of 1.00, can apply to acquisition proceedings undertaken in pursuance of notification issued by the respondent No.1-Union of India (hereinafter referred to as the Central Government), under Section 3-A(1) of the National Highways Act, 1956 (hereinafter referred to as the National Highways Act), for national highway project implemented by the respondent No.5-National Highways Authority of India (hereinafter referred to as NHAI). Particularly when the Central Government, by notification issued under Section 30(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as the Act of 2013), had specifically notified the multiplier factor to be 2.00. In other words, the petitioners object to respondent No.3-State Government effectively reducing the multiplier factor from 2.00 to 1.00, although the acquisition of the subject lands is at the instance of respondent No.1-Central Government for the NHAI to construct/widen the national highway. In this judgment, the expression ‘multiplier’ is being used in respect of the factor by which the market value of the acquired property, is to be multiplied.

3. The petitioners are the owners of land situated in Gat No.138 and 143 pt. in Village Odha, District Nashik. On 01.11.2021, by exercising power under Section 3-A(1) of the National Highways Act, the respondent No.1-Central Government issued notifications for acquisition of lands, including the land belonging to the petitioners, for public purpose of Surat-Nashik-Ahmednagar Greenfield Section of the national highway in Nashik district. The said notification specifically invited objections from interested persons under Section 3-C of the National Highways Act.

4. On 02.12.2021, the petitioners submitted a detailed representation/objection under Section 3-C of the National Highways Act, raising a specific contention with regard to the applicability of the multiplier factor concerning the said acquisition. The said representation/objection was submitted in the backdrop of the fact that despite notification dated 09.02.2016 issued by the respondent No.1-Central Government exercising power under Section 30(2) of the Act of 2013, specifying the multiplier factor as 2.00, the respondent No.3-State Government had issued notification purportedly exercising power under the very same Act, specifying the multiplier factor as 1.00 for land being acquired for national or State highways and for Development Plan area and Regional Plan area.

5. The respondent No.3-State Government had also issued GR dated 06.10.2021, again specifying the multiplier factor as 1.00, even with regard to acquisition pertaining to national highways. This was reiterated by subsequent GR dated 14.01.2022, in which the said respondent had specifically referred to acquisitions undertaken in pursuance of notification issued under Section 3-A(1) of the National Highways Act. According to the petitioners, the said respondent could not have issued the said notification and GRs, which are in the teeth of the power already exercised by the responde

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