In its appeal, the Project Authority argued that compensation should be determined based on the average sale price of comparable land in the nearest village.
Published: July 12, 2026, 9:11 AM IST
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Will Mumbai-Ahmedabad Bullet Train project be halted?
New Delhi: In a major development, a petition has been filed in the Gujarat High Court by the chief project manager of the Mumbai-Ahmedabad High-Speed Rail Project. In the petition, the CPM expressed concern that the Rs 1.1 lakh crore bullet train project could become significantly more expensive following orders by the Land Acquisition, Rehabilitation, and Resettlement Authority (LARRA) to increase compensation for acquired land.
Advocate General Kamal Trivedi has informed the High Court that the Bullet Train Authority estimates the enhanced compensation ordered by LARRA in January and February could impose an additional financial burden of around ₹40,000 crore, potentially jeopardizing the continuation of the project.
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The High Court has admitted three appeals challenging LARRA’s compensation orders related to land acquired in Surat and Bharuch districts. The cases concern parcels of land in Ochhan village, located in Amod taluka of Bharuch district, which were acquired following a 2018 notification under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act.
Here are some of the key details:
- In 2020, the Land Acquisition Authority fixed the compensation at Rs 50 per square metre based on the prevailing market value.
- In one case, this resulted in a compensation amount of ₹85.86 lakh.
- Following which LARRA ordered compensation of ₹8.46 crore, valuing the same parcel of land at ₹660 per square metre, the landowner sought enhanced compensation
What the Advocate General Told the Gujarat High Court
Challenging the nearly tenfold increase in compensation, Advocate General Kamal Trivedi told the Gujarat High Court that LARRA ignored land sale transactions from villages located near Ochhan. Instead, it relied on data from Simartha village, situated about 14 km away.
He argued that LARRA used Simartha’s Jantri (government-assessed) value of ₹450 per square metre along with land acquisition data from a 2013 Vadodara–Mumbai Expressway project. It then applied a 10% annual escalation for four years and eight months, arriving at a revised compensation rate of ₹660 per square metre.
What the Appeal Claims
- In its appeal, the Project Authority argued that compensation should be determined based on the average sale price of comparable land in the nearest village.
- It contended that LARRA committed a serious error by relying on an award based on the Jantri (government-assessed) value of land in Simartha village, which is located about 14 km away from the land acquired in the present case.
- The appeal states that Simartha’s valuation should not have been used because sale deeds of comparable nearby land from 2015 to 2017 were available, as required under Section 26(1)(b) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act.
- It further argues that LARRA also erred by relying on an earlier award relating to a different village, Simartha, which is not permissible under Explanation 3 to Section 26(1) of the Act.
A bench comprising Justice Ilesh Vora and Justice R.T. Vachhani admitted all three appeals, issued notices, and scheduled the next hearing for August 5. During the hearing, the High Court may consider whether to stay LARRA’s compensation orders. The bench also asked the Project Authority to submit an appropriate proposal specifying how much of the awarded compensation it is willing to deposit.
Advocate General Kamal Trivedi informed the court that 85 similar appeals are in the pipeline, as enhanced compensation orders have been passed for several land parcels in central and southern Gujarat. Including interest, the additional compensation liability is estimated to reach around ₹40,000 crore.
Emphasising the gravity of the matter, Trivedi told the court, “If this additional burden is imposed on us, we may not be able to build the bullet train. I am making a very serious statement.”
