3 min readMumbaiUpdated: Feb 12, 2026 12:59 AM IST
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)
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.
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.
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“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.
Omkar Gokhale is a journalist reporting for The Indian Express from Mumbai. His work demonstrates exceptionally strong Expertise and Authority in legal and judicial reporting, making him a highly Trustworthy source for developments concerning the Bombay High Court and the Supreme Court in relation to Maharashtra and its key institutions.
Expertise & Authority
Affiliation: Reports for The Indian Express, a national newspaper known for its rigorous journalistic standards, lending significant Trustworthiness to his legal coverage.
Core Authority & Specialization: Omkar Gokhale's work is almost exclusively dedicated to the complex field of legal affairs and jurisprudence, specializing in:
Bombay High Court Coverage: He provides detailed, real-time reports on the orders, observations, and decisions of the Bombay High Court's principal and regional benches. Key subjects include:
Fundamental Rights & Environment: Cases on air pollution, the right to life of residents affected by dumping sites, and judicial intervention on critical infrastructure (e.g., Ghodbunder Road potholes).
Civil & Criminal Law: Reporting on significant bail orders (e.g., Elgaar Parishad case), compensation for rail-related deaths, and disputes involving high-profile individuals (e.g., Raj Kundra and Shilpa Shetty).
Constitutional and Supreme Court Matters: Reports and analysis on key legal principles and Supreme Court warnings concerning Maharashtra, such as those related to local body elections, reservations, and the creamy layer verdict.
Governance and Institution Oversight: Covers court rulings impacting public bodies like the BMC (regularisation of illegal structures) and the State Election Commission (postponement of polls), showcasing a focus on judicial accountability.
Legal Interpretation: Reports on public speeches and observations by prominent judicial figures (e.g., former Chief Justice B. R. Gavai) on topics like free speech, gender equality, and institutional challenges.
Omkar Gokhale's consistent, focused reporting on the judiciary establishes him as a definitive and authoritative voice for legal developments originating from Mumbai and impacting the entire state of Maharashtra. ... Read More
