Supreme Court reiterated again that landowners to be given highest possible value in Compulsory Land Acquisition, in a case reference to Tauru (Mewat) Land owners vs HUDA under the Land Acquisition Act, 1894. Here, SC reverted the Punjab & Haryana high court ruling which found compensation of ₹45 Lakhs per acre, but SC ruled for higher compensation of around ₹93 Lakhs per acre.
Higher compensation was based on sale exemplars of nearby lands, considering the high development potential of the area due to its proximity to key infrastructure such as highways, industrial townships, and urban amenities. Supreme Court stated that while determining compensation, Section 23 of the Land Acquisition Act, 1894 mandates that the market value must be assessed as of the date of the Section 4 notification. The Court also noted that when multiple sale exemplars are available, the highest bona fide transaction should be considered to ensure fair compensation.
In such cases, following are the main points:
a) Pre-notification sale deeds should be preferred while calculating compensation, as it truly reflects the market value before acquisition-related price fluctuations.
b) Highest bona fide sale exemplars must be used to calculate compensation so that landowners get the highest market value.
c) Land potential to be taken like its strategic location and future development prospects in determining fair compensation.
d) Deductions for development charges may be applied when comparing smaller parcels of land with larger tracts, but such deductions should be reasonable and based on the circumstances of the cases.
Advocate Pritam Saini, Hisar Court