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Informist, Tuesday, Aug. 19, 2025

 

NEW DELHI – The Bombay High Court on Tuesday directed Maharashtra Airport Development Co. Ltd., a special-purpose company under the Maharashtra government, to refund the advance money of INR 102.96 million to Wipro Ltd. for cancellation of a letter of acceptance for a land leased to the information technology company. 

 

In 2007, Maharashtra Airport Development Co. leased land to Wipro in a special economic zone near Nagpur airport for the development of an information technology park. However, the special-purpose company terminated the contract in 2015, accusing Wipro of not complying with the terms and conditions and forfeiting the advance payment.

If the Maharashtra Airport Development Co. were permitted to retain the advance amount of INR 102.96 million, it would amount to unjust enrichment, as the body has already allotted 33 acres of land to other entities at a much higher rate, the high court said. If the state body were to suffer any financial losses, the court said, it would have been loath to order a refund of the advance payment. However, since it has been able to dispose of some part of the allotted land at a much higher rate, the refund of the advance amount would balance the equities between the parties, the high court said.

 

The case has its genesis from the Maharashtra government deciding to develop a composite project named the Multi-Modal International Passenger and Cargo Hub Airport at Nagpur. As part of the project, Maharashtra Airport Development Co. proposed the establishment of a state-of-the-art software technology park in the special economic zone. In 2004, Wipro was approached to acquire 117 acres of land on lease for a 99-year period. The consideration was agreed at INR 514.8 million, out of which 20% was to be paid in advance and the remaining 80% to be paid at the time of handing over possession of the land. In 2007, Wipro paid the advance.

 

Wipro said that the site lacked essential facilities, including approach roads, water supply, telecommunication network, power supply layout, transportation, and efficient and reliable air connectivity and was unwilling to proceed with the development on the allotted land.  Wipro in 2013 asked the company to limit allotment of land to 23 acres, proposing to commence operations within 36-48 months. However, in 2015, the Maharashtra airport body terminated the contract and Wipro moved the high court seeking a refund.

 

On Tuesday, shares of Wipro ended 0.7% higher at INR 246.96 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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