Railways Risks Rs 1 Crore Loss Over Red Sandalwood Tree Valuation Delay, Bombay HC Orders Interim Compensation

The Bombay High Court has put the railways at risk of losing Rs 1 crore due to delays in valuing a century-old red sandalwood tree on a plot acquired for a railway project in Yavatmal, Maharashtra. The court has mandated that Rs 50 lakh be paid immediately to the farmer from whom the land was taken.

In 2018, Keshav Shinde’s land in Kharshi village of Pusad was acquired for constructing the Yavatmal-Pusad-Nanded railway line. However, the compensation process stalled because the railways failed to appraise the red sandalwood tree on the property, prompting Shinde to seek legal recourse.

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The High Court, presided over by Justices Avinash Gharote and Abhay Mantri, criticized the continuous delay in the valuation process during the hearing on April 9. They emphasized that Shinde is entitled to compensation since the authorities had already taken possession of the land and the tree.

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“Since the possession of the land as well as the tree has been taken by the respondent authorities long back, the petitioner would be entitled to compensation. Any delay is only increasing the costs and nothing else,” the court observed.

To mitigate the financial impact on Shinde caused by the protracted delay, the court ordered the railways to deposit Rs 1 crore with the court registry. Out of this amount, Rs 50 lakh is to be paid immediately to the petitioner as partial compensation.

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Furthermore, the High Court has set a deadline for the authorities to finalize the tree’s valuation. They are required to complete the assessment by June and report back to the court by July 7. Failure to comply will compel the court to release the remaining Rs 50 lakh to Shinde.

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