BMC Deposits ₹12.66 Crore in Court Amid NSCI Compensation Dispute

A provisional payment of ₹12.66 crore, along with an annual interest of 5%, has been deposited by the Brihanmumbai Municipal Corporation (BMC) before the Bombay High Court in connection with an ongoing compensation dispute involving the National Sports Club of India (NSCI). The deposit was made in compliance with judicial directions issued during earlier hearings related to the use of NSCI premises as a jumbo Covid quarantine centre during the pandemic.

The submission made by the civic body was taken on record by a division bench, and permission was granted for the respondent to file an affidavit within a two-week period to withdraw the deposited amount. At the same time, it was clarified that the issue concerning compensation for an additional parcel of open land would be examined separately at a later stage, with the matter scheduled to be heard after six weeks.

The dispute had originated from a claim submitted by NSCI, in which compensation of nearly ₹40 crore was sought for the use of its facilities over a period extending from April 2020 to September 2022. The claim had been supported by reference to a civic circular issued during the early phase of the pandemic, under which compensation for private premises requisitioned for emergency purposes had been assured.

It had earlier been indicated by the civic authority that calculations of dues would be undertaken and formally presented. While acknowledgment had initially been made regarding the use of built-up spaces, including major structures within the premises, it was later asserted that surrounding open land had not been utilised and therefore had been excluded from compensation assessments.

Questions had been raised by the court regarding the method used to arrive at the compensation figure. In response, it had been explained that the amount was determined using a stamp duty ready reckoner rate of 1% applied to the total constructed area. The calculation approach had subsequently been defended during proceedings, following which the deposit directive had been issued. The matter remains partially unresolved, with further hearings expected to address outstanding concerns, particularly those related to the disputed open land area and the final determination of compensation.