Supreme Court Upholds Delhi Land Acquisition for DDA, Overturns High Court Ruling

The Supreme Court of India recently ruled in the case of Delhi Development Authority vs. Raj Singh & Anr., reversing the Delhi High Court’s decision that had declared the land acquisition proceedings as lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Court reaffirmed that if compensation was deposited and possession was taken, land acquisition proceedings cannot be deemed to have lapsed.

The ruling clarifies the interpretation of Section 24(2) and reinforces the legal principle that once possession is taken and compensation is deposited, the acquisition remains valid, even if landowners do not receive the payment.

Background of the Case

The dispute arose when Raj Singh & Anr. challenged the land acquisition for the Delhi Development Authority (DDA), arguing that compensation had not been paid to them, leading to the lapsing of acquisition under Section 24(2) of the 2013 Act.

The key timeline of events was as follows:

January 19, 2006: Possession of the acquired land was taken by the authorities.
August 28, 1990: The DDA deposited Rs. 10 crores with the Land and Building Department for compensation.
November 27, 2018: The Delhi High Court ruled that since compensation was not paid directly to the landowners, the acquisition had lapsed under Section 24(2).
December 9, 2022: The Supreme Court overturned the High Court’s decision.

Arguments by the Appellant (DDA)

The DDA contended:

The High Court erroneously ruled in favor of the landowners despite the compensation being deposited.
Under the Indore Development Authority vs. Manoharlal (2020) judgment, compensation is considered paid if deposited with the concerned authority.
The land acquisition proceedings had been completed as possession was taken and compensation had been released.

Arguments by the Respondents (Landowners)

The landowners countered:

Compensation was not paid to them personally, making the acquisition invalid under Section 24(2).
Under the 2013 Act, if compensation is not received by the landowners, acquisition proceedings lapse.
The High Court correctly ruled in their favor, applying the principles of fairness and transparency.

Supreme Court’s Judgment

The Supreme Court ruled in favor of the DDA, holding:

Possession was taken and compensation was deposited, so the acquisition did not lapse.
“Once possession has been taken, there is no lapse under Section 24(2) of the 2013 Act.”
The High Court misinterpreted the law by treating non-payment to landowners as a reason for lapsing acquisition.
The ruling in Indore Development Authority vs. Manoharlal (2020) clearly established that deposit with the relevant authority suffices.

Key Precedents Cited

The Supreme Court referred to multiple landmark cases, including:

Indore Development Authority vs. Manoharlal (2020): Established that compensation deposit with the concerned department is valid.
Pune Municipal Corporation vs. Harakchand Misirimal Solanki (2014): Overruled, stating that non-payment to landowners does not lapse acquisition.
Sree Balaji Nagar Residential Assn. vs. State of Tamil Nadu (2015): Clarified that authorities must ensure transparency in land acquisitions.

Impact of the Judgment

This Supreme Court ruling has significant implications:

Ensures land acquisition stability: Prevents projects from being derailed due to procedural delays in compensation disbursement.
Clarifies compensation rules: Confirms that payment to the Land and Building Department meets legal requirements.
Protects urban development: Supports infrastructure projects by securing acquired lands against retroactive claims.

Conclusion

The Supreme Court’s ruling in Delhi Development Authority vs. Raj Singh & Anr. strengthens land acquisition laws by ensuring that once possession is taken and compensation is deposited, acquisition remains valid. The judgment prevents landowners from exploiting procedural delays to reclaim acquired lands.

The verdict sets an important precedent for future land acquisition cases, providing clarity on Section 24(2) of the 2013 Act and upholding the integrity of large-scale development projects.

Petitioner Name: Delhi Development Authority.
Respondent Name: Raj Singh & Anr..
Judgment By: Justice M.R. Shah, Justice C.T. Ravikumar.
Place Of Incident: Delhi.
Judgment Date: 09-12-2022.

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