Central Railway Faces Rs 4.2 Crore Ex Gratia Payout for 3,500 Kurla-Trombay Squatters

Central Railway faces a Rs 4.2 crore payout in ex gratia assistance to 3,500 hutment dwellers facing eviction from railway land along the Kurla-Trombay siding, following a Bombay High Court order directing removal of unauthorised structures from the railway safety zone, The Times of India reported. The proposal, awaiting formal approval, provides Rs 2,000 a month for each hutment dweller for six months, amounting to Rs 12,000 per beneficiary.

Bombay High Court's October 7 Eviction Order

The court's final order dated October 7, 2026, in a writ petition of 2023, directed that eviction notices be displayed at the site within a week, giving the encroachers one month to vacate. Notices were displayed on Friday in compliance with the order. The court also permitted Central Railway to initiate action to remove the structures with police assistance if occupants failed to vacate within the stipulated period.

The case arose from a petition filed by seven residents of Rajiv Gandhi Nagar in Kurla East challenging eviction notices issued in 2022 under the Public Premises (Eviction of Unauthorised Occupants) Act. They secured an interim stay on demolition in January 2023. The court directed the Mumbai Suburban Collector to record occupant details and assess eligibility for residential rehabilitation before eviction and demolition. In consultation with the Slum Rehabilitation Authority, the collector must try to rehabilitate eligible occupants under existing schemes, including Pradhan Mantri Awas Yojana, within six months.

Residents facing displacement have expressed concern over the impact on families, particularly children attending schools in the vicinity. "We have been staying here for decades, and this sudden displacement will lead to huge losses. Many school-going children are going to suffer. Relocating at short notice will disrupt their education and affect their families," said resident Riyaz Khan.

Residents' associations have backed the removal of the structures, citing the potential danger to people living near railway tracks used by goods trains carrying hazardous consignments. "Any fire incident, whether due to a short circuit or a gas cylinder blast in the slum, while a goods train loaded with inflammable or explosive material is passing could have catastrophic consequences. It will endanger the lives of thousands of people in the surrounding area," said Abhijeet Kulkarni, president of the Jaago Nehru Nagar Residents Association. "We are not against rehabilitation, but these slums need to go," he added.

Central Railway's Recent Freight and Revenue Moves

Central Railway's Bhusawal division is evaluating Chalisgaon as a regional logistics hub, constructing a new goods shed on the loop line, The Times of India reported in October 2026. The facility aims to ease congestion at existing sheds and streamline freight from industrial centers like Pune and Nashik.

Central Railway collected a record Rs 159.3 crore in penalties from 20.5 lakh ticketless passengers between April and September 2026, a 37% increase over the same period last year, The Times of India reported. The average daily penalty collection exceeded Rs 87 lakh, with Mumbai leading at Rs 66.9 crore.

Central Railway's Zero Scrap Mission generated Rs 323.50 crore in scrap sales during the first half of 2026-27, making it the top earner among zonal railways, The Times of India reported.

Collector's Six-Month Rehabilitation Deadline

The Mumbai Suburban Collector must record occupant details and assess eligibility for residential rehabilitation before eviction and demolition, and in consultation with the Slum Rehabilitation Authority try to rehabilitate eligible occupants under existing schemes, including Pradhan Mantri Awas Yojana, within six months.