Court Warns of Heavy Costs in ₹107-Crore Revenue Loss Case

Panaji, July 8: The Bombay High Court at Goa has expressed serious displeasure over the failure of the Town and Country Planning (TCP) Department to file its affidavit in a writ petition alleging that the State exchequer suffered a revenue loss of over ₹107.36 crore due to the grant of additional FAR (Floor Area Ratio) and height permissions to four- and five-star hotels without recovering the prescribed charges.

While hearing two separate writ petitions filed by social activists Swapnesh Sherlekar and Uday Chari, the Division Bench comprising Justice Valmiki Menezes and Justice Hiten S. Venegavkar, in two distinct orders, granted the State a final opportunity to submit its reply. The Court cautioned that failure to file the affidavit within two weeks would require Respondent No. 3 – Chief Town Planner Vertika Dagor – to appear personally before the Bench. It further signaled its intention to levy substantial costs for continued non-compliance with its earlier directions.

During the hearing on July 7, the Additional Government Advocate sought more time to file the State’s affidavit. However, the Court noted that similar extensions had already been granted on April 6 and June 8, 2026, yet no affidavit had been filed.

More significantly, the Additional Government Advocate informed the Court that despite repeated reminders, Respondent No. 3 had not provided the necessary instructions required for preparing and filing the affidavit. Taking serious note of this submission, the Bench observed that enough opportunities had already been granted and directed that failure to comply within two weeks would require the Chief Town Planner’s personal appearance before the Court.

The writ petition raises serious allegations against senior TCP officials. According to the petition, although a Government Notification dated 22 December 2016 mandated the collection of ₹20,000 per square metre for granting additional FAR and height permissions to commercial premises of four- and five-star hotels, the approvals were allegedly granted without recovering the prescribed charges.

The petitioner has alleged that this resulted in a loss of ₹107.36 crore to the TCP Department, and has sought recovery of the amount with 11% penal interest from the concerned officials. The petition also seeks disciplinary proceedings against the concerned respondents and, alternatively, recovery of the amount from the beneficiaries who received the approvals.

The High Court has now listed the matter on August 18, 2026, describing it as a last chance for the State to comply with its directions. If the affidavit is still not filed, the Court is expected to consider coercive action, including the personal appearance of the Chief Town Planner and the imposition of heavy costs for continued non-compliance.