Shahapur Road Compensation Dispute Reaches High Court

19 Dec 2025 CW Team

The High Court has directed that compensation of Rs 21.8 million be paid to the Gargatti family, whose land was used for construction of the road. However, the Smart City Department has stated that it does not have the funds to settle the compensation amount.

Complicating matters further, although a decision to transfer the road to the Belagavi City Corporation was reportedly taken at a meeting of the Smart City Mission’s Administrative Board, the proposal is still pending approval from the state government. As a result, the road has not been formally handed over to the City Corporation.

With punitive action initiated against the Managing Director of the Smart City Department, the central issue remains unresolved: which authority is responsible for paying the Rs 21.8 million compensation. Earlier, when a proposal to pay compensation of Rs 200 million for the same road was discussed, it triggered intense debate in the City Corporation’s general body meeting. At the time, the Corporation held the Smart City Department accountable, while the then Smart City Managing Director stated that the road had been constructed only after obtaining a no-objection certificate from the Corporation and that compensation did not fall within the department’s jurisdiction.

At present, the City Corporation is being informed that it may have to bear the compensation liability of Rs 21.8 million. While most roads developed under the Smart City Mission have already been transferred to the City Corporation, the proposal to transfer this particular road in Shahapur is still awaiting government clearance. Further action will now depend on directions issued by the state government.

Meanwhile, the current Smart City Managing Director, Kavita Warangal, is expected to appear before the court and submit all relevant details related to the road. With the Smart City Department reiterating that it will not pay the compensation, the responsibility appears to be shifting towards the city administration, setting the stage for the next phase of accountability.

The ownership and compensation liability of the road in front of Shiv Srushti in Shahapur has come under renewed scrutiny after the Dharwad Bench of the High Court imposed a fine of Rs 25,000 and issued a bailable warrant in the case. The High Court has directed that compensation of Rs 21.8 million be paid to the Gargatti family, whose land was used for construction of the road. However, the Smart City Department has stated that it does not have the funds to settle the compensation amount. Complicating matters further, although a decision to transfer the road to the Belagavi City Corporation was reportedly taken at a meeting of the Smart City Mission’s Administrative Board, the proposal is still pending approval from the state government. As a result, the road has not been formally handed over to the City Corporation. With punitive action initiated against the Managing Director of the Smart City Department, the central issue remains unresolved: which authority is responsible for paying the Rs 21.8 million compensation. Earlier, when a proposal to pay compensation of Rs 200 million for the same road was discussed, it triggered intense debate in the City Corporation’s general body meeting. At the time, the Corporation held the Smart City Department accountable, while the then Smart City Managing Director stated that the road had been constructed only after obtaining a no-objection certificate from the Corporation and that compensation did not fall within the department’s jurisdiction. At present, the City Corporation is being informed that it may have to bear the compensation liability of Rs 21.8 million. While most roads developed under the Smart City Mission have already been transferred to the City Corporation, the proposal to transfer this particular road in Shahapur is still awaiting government clearance. Further action will now depend on directions issued by the state government. Meanwhile, the current Smart City Managing Director, Kavita Warangal, is expected to appear before the court and submit all relevant details related to the road. With the Smart City Department reiterating that it will not pay the compensation, the responsibility appears to be shifting towards the city administration, setting the stage for the next phase of accountability.

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