3 minutes of readingBombayUpdated: February 12, 2026 12:59 am IST
On Wednesday, the Bombay High Court directed the BMC to deposit Rs. 12.66 crore along with five per cent interest per annum on his estimated compensation to the National Sports Club of India (NSCI) at Worli for the use of its facilities. Jumbo Covid Center during the pandemic.
The HC charged interest at the rate of 5% per annum and asked the civic body to deposit by March 16 the amount calculated by it along with interest and allowed NSCI to withdraw the same pending hearing of its plea.
He NSCI had approached the high court last year, claiming that he was owed nearly Rs 40.11 million as compensation.
On February 5, a bench of HC Justices Ravindra V Ghuge and Abhay J Mantri questioned the “erroneous” estimate given by the BMC for payment of compensation for use of NSCI facilities as Jumbo Covid Center for 30 months during the pandemic.
The court had cited a “huge difference” between the calculations of the petitioner and the BMC and had sought a personal explanation from BMC Commissioner Bhushan Gagrani.
The civic body had denied the petitioner’s claims, stating that he had not utilized the open area around the built 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 of the affidavit as a “plausible and justifiable conclusion on the part of the BMC” to arrive at a figure of Rs 12,66,56,278.9 for symbolic payment of compensation to the petitioner for the claim of nearly Rs 40.11 crore.
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The BMC said “no definite formula” was adopted to calculate the compensation. He added that the 2020 circular relating to compensation relied upon by NSCI, which was the tenant of BMC, was not applicable in the present case.
“First facie, there is much to be said about the calculations and justifications made by the Commissioner,” the court noted.
“However, as it has been admitted and stated a certain amount The decision was made in April 2023. and since it has not yet been paid to the petitioner, we declare it appropriate to charge interest at 5% annually until March 16, 2026, to be deposited in this court.”
The HC said that the NSCI can withdraw the interest amount by undertaking to redeposit the portion of the amount within 30 days if, after final adjudication of the return, it is found to exceed what was due to be paid to the petitioner.
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“This deposit by the Corporation and withdrawal by the petitioner shall be without prejudice to his rights and disputes. However, we clarify that if there is any outstanding debt owed to the petitioner purportedly related to the property, BMC may initiate appropriate procedure under the statute,” the court noted and posted further tax hearings for March 18.
