Supreme Court Enhances Compensation for Land Acquisition in Karnataka
The Supreme Court of India, in its judgment dated 18 November 2021, ruled in favor of landowners by increasing compensation for lands acquired in Karnataka. The case, involving multiple appeals, focused on determining fair compensation for lands acquired from villages Shaikh Roza, Jafrabad, and Taj Sultanpur. The Court, in its decision, ensured parity in compensation among similarly situated landowners and upheld the principle of fair valuation in land acquisition cases.
Background of the Case
The case involved two sets of appeals—one arising from Civil Appeal Nos. 6957-6958 of 2021 (originally SLP (Civil) Nos. 19179-19180 of 2021) and another from Civil Appeal Nos. 6959-6960 of 2021 (originally SLP (Civil) Nos. 21-22 of 2021). The dispute pertained to land acquired for railway construction in villages in Karnataka. The appellants contested the compensation awarded by the Land Acquisition Officer and the lower courts, seeking parity with similarly placed landowners.
Compensation Determination by Lower Courts
The Land Acquisition Officer initially determined compensation for the villages as follows:
- Shaikh Roza: ₹1,25,500 per acre
- Jafrabad: ₹71,500 per acre
- Taj Sultanpur: ₹63,500 per acre
Upon reference, the Reference Court significantly enhanced the compensation, awarding:
- Shaikh Roza: ₹187.5 per sq. ft.
- Jafrabad: ₹142 per sq. ft.
Arguments by the Petitioners
The petitioners, represented by senior advocate Ms. Kiran Suri, contended that:
- Compensation for land in Taj Sultanpur should be at the same level as that awarded for Jafrabad.
- Previous Supreme Court rulings in similar cases ensured uniform compensation for landowners in the same region.
- The principles of natural justice and equity required that similarly situated landowners receive equal treatment.
Arguments by the Respondents
The respondents, represented by Additional Solicitor General Mr. Vikramjit Banerjee, opposed the demand for uniform compensation, arguing:
- The lands in different villages had varying market values.
- Compensation had already been enhanced through multiple rounds of litigation.
- Further enhancement would place an undue financial burden on the government.
Supreme Court’s Observations
The Supreme Court bench, comprising Uday Umesh Lalit and S. Ravindra Bhat, noted that the lands in Jafrabad and Taj Sultanpur were treated similarly in previous proceedings. The Court held:
“Considering the entirety of the matter and the extent of land under acquisition, in our view, the ends of justice would be met if the compensation in respect of lands from Taj Sultanpur is put at the same level as was awarded in respect of lands of the village Jafrabad.”
Read also: https://judgmentlibrary.com/correction-in-revenue-authority-judgment-supreme-court-modifies-order/
Accordingly, the Court increased the compensation for Taj Sultanpur to ₹129.95 per sq. ft., ensuring parity with Jafrabad.
Compensation Enhancement for Delayed Acquisition
In the second set of appeals (SLP (Civil) Nos. 21-22 of 2021), the Supreme Court addressed the issue of a five-year delay in the notification for land acquisition in Taj Sultanpur. The Court adopted a methodology used by the High Court, which involved:
- Taking the base value of compensation awarded in earlier acquisitions.
- Granting a 10% per annum increase to account for appreciation in land value.
Applying this approach, the Court enhanced the compensation for lands acquired later from Taj Sultanpur to ₹195 per sq. ft.
Final Verdict
The Supreme Court’s decision provided significant relief to the landowners. The key directives were:
- Compensation for lands in Taj Sultanpur was increased to ₹129.95 per sq. ft., matching Jafrabad.
- For lands acquired five years later in Taj Sultanpur, compensation was further enhanced to ₹195 per sq. ft.
- The appeals were allowed, ensuring that landowners received fair and just compensation.
Implications of the Judgment
The Supreme Court’s ruling reinforces key principles in land acquisition law:
- Fair Compensation: Ensuring parity among similarly situated landowners.
- Recognition of Land Value Appreciation: Adopting a 10% per annum increase acknowledges real estate market trends.
- Judicial Review of Acquisition Proceedings: Courts play a crucial role in rectifying injustices in compensation awards.
This judgment sets a precedent for future land acquisition cases, emphasizing that compensation should reflect market realities and ensure fairness for landowners.
Petitioner Name: Chitrabai & Anr. etc..Respondent Name: Deputy Chief Engineer (Constructions), South Central Railways-III, Secunderabad & Another.Judgment By: Justice Uday Umesh Lalit, Justice S. Ravindra Bhat.Place Of Incident: Karnataka.Judgment Date: 18-11-2021.
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