The Brihanmumbai Municipal Corporation (BMC) has initiated a compensation framework for families affected by the Gargai Dam project, which has received clearance from the Standing Committee. Under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013, compensation will be set at five times the market value of land, currently estimated at ₹5.91 lakh per hectare. A total of 619 families have been identified for rehabilitation, although this number may increase as the project progresses. The compensation package includes various financial provisions, such as an annuity of ₹2,000 per month for 20 years, indexed to inflation, totaling ₹36,000 annually. Families will also receive funds for shifting and building materials, along with additional support for Scheduled Caste and Scheduled Tribe families. Housing will be constructed under the Pradhan Mantri Awas Yojana (PMAY) at a cost of ₹2 lakh per unit. The BMC is adopting a direct negotiation model for land acquisition, aiming to engage affected families similarly to previous projects. A temporary land acquisition cell has been established to facilitate this process.