Rental compensation requires complete deprivation of property: Supreme Court denies ₹238 crore claim against Nashik Corporation

The Supreme Court held that compensation for deprivation of property can be granted only when the owner suffers complete loss of possession or enjoyment of the property. The Court dismissed a claim of ₹238 crore made against Nashik Municipal Corporation, ruling that mere temporary or restricted use of property during public works does not constitute complete deprivation warranting rental compensation. The judgment clarified the distinction between limited interference due to development projects and total loss of possession.

It emphasized that public bodies performing statutory functions in public interest cannot be subjected to exaggerated financial claims without clear evidence of deprivation. The ruling provides clarity on the interpretation of property rights and compensation principles, ensuring a balance between private ownership rights and larger public utility obligations. It reinforces the idea that property-related claims must demonstrate tangible and absolute loss to attract monetary relief.