3 min readMumbaiFeb 12, 2026 12:59 AM IST
First published on: Feb 11, 2026 at 10:12 PM IST
The Bombay High Court on Wednesday directed the BMC to deposit Rs. 12.66 crore along with five per cent per annum interest on its estimated compensation to National Sports Club of India (NSCI) in Worli for using its premises for Jumbo Covid Centre during pandemic.
The HC levied 5% per annum interest and asked the civic body to deposit by March 16 the amount calculated by it along with the interest and permitted NSCI to withdraw the same pending hearing of its plea.
The NSCI had approached the high court last year, claiming that nearly Rs 40.11 crore was due to it as compensation.
A bench of Justices Ravindra V Ghuge and Abhay J Mantri of HC on February 5 had questioned the “erroneous” estimate given by the BMC for payment of compensation for using NSCI facility as a Jumbo Covid Centre for 30 months during the pandemic.
The court had cited “huge difference” between the calculations of the petitioner and the BMC and had sought personal explanation from BMC commissioner Bhushan Gagrani.
The civic body had denied the petitioner’s claims, stating that it had not used the open area around the constructed Jumbo Quarantine Centre.
On Wednesday, senior advocate Atul Damle submitted Gagrani’s affidavit dated February 6 and “painstakingly tried to persuade” the court to accept the contents in affidavit being “plausible and justifiable conclusion by the BMC” of arriving at a figure of Rs 12,66,56,278.9 towards token payment of compensation to the petitioner against the claim of nearly Rs 40.11 crore.
The BMC said “no defined formula” was adopted to calculate the compensation. It added that 2020 circular related to compensation that NSCI, which was BMC’s lessee, relied on, was not applicable in present case.
“Prima facie, much needs to be said about the calculations and justifications made by the Commissioner,” the bench noted.
“Nevertheless, since a particular amount has been admitted and said decision was taken as on April, 2023 and since it is yet to paid to the petitioner, we deem it appropriate to levy interest at 5% per annum till March 16, 2026, to be deposited in this court.”
The HC said the NSCI can withdraw the interest amount by giving an undertaking that it will redeposit the portion of amount within 30 days if, after final adjudication of the plea, it is found to be in excess of what was payable to the petitioner.
“This deposit by Corporation and withdrawal by petitioner will be without prejudice to their rights and contention. However, we clarify if there are any outstandings towards petitioner purportedly towards property taxes, BMC may initiate appropriate procedure under the statute,” the bench noted and posted further hearing to March 18.
The civic body had denied the petitioner’s claims, stating that it had not used the open area around the constructed Jumbo Quarantine Centre.(Image generated using Google Gemini) 
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