The court determined that compensation for acquired land must be based on realistic market value assessments, rejecting excessive valuations unsupported by evidence.

JUDGMENT :

Ninala Jayasurya, J.

Aggrieved by the Common Order dated 18.11.2011 passed in LAOP Nos. 273, 274, 275, 276, 277, 278, 279, 280, 281, 282, 283, 284 and 285 of 2009 on the file of the Court of II Additional Senior Civil Judge, Nandyal, the present appeals are preferred.

2. Heard Smt.A.Jayanthi, learned Government Pleader appearing for the appellants. Also heard Mr.K.Rathanga Pani Reddy, learned counsel appearing for the respondents.

3. Pursuant to the Notification dated 24.03.2007 issued under Section 4 (1) of the Land Acquisition Act, 1894 (for short ‘the Act’), land of an extent of Ac.8.12 cents situated in various survey numbers of Udumalpuram Village of Nandyal Mandal belonging to the respondents was acquired for the purpose of laying Nandyal-Dhone Railway Line Diversion near River Kundu. The Land Acquisition Officer, after conducting Award Enquiry, fixed the market value @ Rs.2,63,000/- per acre.

4. Dissatisfied with the said fixation, the respondents received the compensation under protest, sought reference under Section 18 of the Act and requested to fix the compensation @ Rs.1,00,00,000/- per acre with all statutory benefits.

5. Before the Reference Court, the respondents / claimants examined R.Ws.1 to 4 and got marked Exs.B1 to B4. The Referring Officer was examined as P.W.1 and Exs.A1 to A7 were marked. The Advocate Commissioner’s Report and Plan were marked as Ex.C1.

6. The learned Reference Court, while formulating the point as to whether the market value fixed by the Land Acquisition Officer under Ex.A1 i.e., Award No.4/2008 dated 04.03.2008 in respect of the subject matter lands is just and reasonable or needs any enhancement, if so, what is the proper estimate of the market value of the acquired lands, fixed the market value of the acquired lands @ Rs.15,00,000/- per acre.

7. Smt.A.Jayanthi, learned Government Pleader, assailing the said fixation contended that the same is highly excessive, abnormal and without any valid basis. In elaboration, she submits that the Land Acquisition Officer had examined as many as 85 sale transactions that took place in Udumalpuram Village during the three years period prior to the Notification dated 24.03.2007 issued under Section 4(1) of the Act and fixed the market value @ Rs.2,63,000/- per acre by taking into account the sale transactions in respect of lands, which are nearer to the subject matter lands. She submits that the said fixation is just and valid, but the Reference Court went wrong in enhancing the same to Rs.15,00,000/- per acre, though no cogent material is filed by the respondents / claimants to substantiate their claim for enhancement, much less @ Rs.1,00,00,000/- per acre, yet, the compensation was fixed @ Rs.15,00,000/- per acre, which is wholly unsustainable. She submits that the learned Reference Court misread the evidence adduced by the Referring Officer and grossly erred in discarding Exs.A2 to A7.

8. The learned Government Pleader strenuously submits that the subject matter lands are situated in a village, far away from the municipal limits of Nandyal Town, however, the learned Reference Court went wrong in opining that the same are situated very nearer to the Nandyal Municipality and that there is every possibility of future developments. The learned counsel further submits that assuming, without admitting, the sale transactions vide Exs.B1 and B2 are in respect of very small extents of lands and the same cannot be taken into consideration as large extents of lands were acquired for the purpose of laying a railway line. Further that the learned Reference Court, grossly erred in not deducting development charges, though observed that the acquired lands are having house site potentiality, that in fact, the acquired lands are not useful for construction of residential houses, as the lands are situated in low lying area, prone for inundation with flood water of river Kundu. Making the said submissions, the learned counsel seeks to allow the Appeals.

9. On the