The court also held that the Maharashtra Industrial Development Act (MID Act) had been wrongly invoked to bypass the prescribed procedures under the general land acquisition law. A division bench comprising Justice Manish Pitale and Justice Shriram Shirsat allowed Tata Power’s petition and cancelled the state government’s notifications dated March 3 and 4, the Maharashtra Industrial Development Corporation’s (MIDC) notice dated March 7, and the entire land acquisition process initiated in connection with the matter.
The 84 hectares of land, comprising two plots in the reservoir area of Thokarwadi Dam, had been transferred to Tata Power’s predecessor company between 1911 and 1930 for hydroelectric projects.
Tata Power currently operates the 75 MW Bhivpuri hydroelectric project in the area. Under an agreement with the state government, the company has also proposed a 1,000 MW pumped storage project, for which the land is required.
Meanwhile, the state government had already allotted approximately 126 hectares of land to the Maharshi Vedoddharak Foundation. The foundation plans to establish a 'Centre for Perfect Health' project on the land, comprising an Ayurvedic medicine manufacturing centre, a wellness centre and a college.
For this project, the foundation had sought an additional 84 hectares of land. On March 3, 2025, the state government declared the land an industrial area and initiated the acquisition process the following day. Subsequently, MIDC issued a show-cause notice to Tata Power.
No Record of Land Being Unused
In its order, the High Court noted that the government notifications did not record any finding that the land was lying unused. On the contrary, the land continued to be used for its original purpose and was also required for the proposed hydroelectric project.
The court further observed that the concerned authorities had proceeded with the acquisition without conducting an inquiry into these aspects.
The bench also questioned why the cabinet sub-committee had proceeded with the acquisition despite a high-level committee rejecting the Maharshi Vedoddharak Foundation's demand in November 2023.
By setting aside the government notifications, the MIDC notice and the subsequent acquisition proceedings, the High Court reaffirmed that land required for existing and proposed hydroelectric projects cannot be diverted through an improper use of industrial land acquisition provisions to benefit a private institution.
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