Bombay High Court Rules Officials Must Pay for Abrupt Project Cancellations
The Bombay High Court has ruled that government and civic officials must pay from their own pockets when they abruptly cancel public projects midway, shifting the financial burden from taxpayers to those responsible for the decision.
Hearing a petition filed by M/s SMS Limited concerning the stoppage of a parking project near the Mumbadevi Temple in South Mumbai, the court on July 17 observed that such sudden halts often cause substantial losses to the public exchequer.
The Brihanmumbai Municipal Corporation (BMC) had initiated a 17-storey robotic parking facility project worth Rs 122 crore but halted work last year. The petitioner challenged the cancellation, arguing it was arbitrary and financially detrimental.
A division bench of Justices S. J. Kathawalla and S. P. Tavade noted that taxpayers should not suffer due to administrative indecision or mismanagement. The court emphasised that officials who take the decision to stop a project mid-way should be held personally liable for the resulting losses.
The ruling underscores the judiciary's commitment to fiscal accountability and adherence to constitutional principles preventing wastage of public funds. Legal experts say this could set a precedent, deterring arbitrary cancellations in the future.
