The Maharashtra government has approved an additional compensation payout of ₹7.21 crore to landowners whose land was acquired for the Shirdi Airport project, in compliance with orders issued by the Aurangabad bench of the Bombay High Court. The decision has been formalised through a Government Resolution (GR) issued by the General Administration Department on January 29, 2026.
The compensation relates to land acquired during 2009–10 for the development of the greenfield Shirdi Airport at village Kakdi in Ahmednagar district (now Ahilyanagar). The land acquisition was undertaken by the Maharashtra Airport Development Company (MADC), which was designated as the Special Planning Authority for the project.
Originally, administrative approval for the airport was granted in July 2008, with financial sanctions revised multiple times over the years as the project expanded. The most recent approvals include significant allocations for remaining works, terminal building construction, apron expansion and allied infrastructure, taking the overall project cost well beyond earlier estimates.
Following the land acquisition, several landowners approached the civil court under Section 18 of the Land Acquisition Act, 1894, seeking enhanced compensation. While the civil court ordered an increase in compensation based on land classification along with statutory benefits, the landowners challenged the ruling and filed appeals before the Aurangabad bench of the Bombay High Court.
After hearing the appeals, the High Court directed further enhancement in land valuation along with applicable benefits such as solatium and interest. Acting on the court’s order, the Land Acquisition Officer and Sub-Divisional Officer, Shirdi, recalculated the payable amount up to July 31, 2025, at ₹7.10 crore. Since the payment was delayed beyond this date, additional interest at 15% was applied for the period between August 1, 2025, and November 30, 2025, taking the total payable amount to ₹7,21,14,753.
The breakup of the approved compensation includes enhanced land value, additional compensation at 12%, 30% solatium, interest at 9% for the first year, and interest at 15% for subsequent years, in line with statutory provisions and court directives.
The state government has granted administrative approval for this expenditure and clarified that the amount will be met from the existing budgetary provision under the Civil Aviation head, specifically earmarked for grants to Maharashtra Airport Development Company. The expenditure will be adjusted against earlier administrative and financial approvals granted for the Shirdi Airport project.
The government has also designated the Directorate of Civil Aviation, Mumbai, as the controlling authority, with the Deputy Director acting as the drawing and disbursing officer for the transaction.
This decision brings long-pending compensation disputes closer to closure and reinforces the government’s obligation to comply with judicial orders in infrastructure-led land acquisition cases. It also highlights the financial impact of prolonged litigation and delayed settlements on large public infrastructure projects.
