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2026 Supreme(Guj) 920

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SUNITA AGARWAL, CJ., D.N.RAY, J.
Dayalbhai Govindbhai Mangukiya (patel) Throgh His L.H. Janak Dayalbhai Mangukiya & Ors. – Appellant
Versus
Competent Authority And Special Land Acquisition Officer & Ors. – Respondent 
SPECIAL CIVIL APPLICATION NO. 5871 of 2026
Decided on : 24-04-2026

Advocates Appeared:
For the Appellant : MR AJ YAGNIK(1372) MR TUSHAR L CHAUHAN(12449)
For the Respondent: MR SANJAY UDHWANI, AGP MR PRADIP D BHATE(1523) NANAVATI & CO.(7105)

Additional compensation at 12% per annum under the relevant land acquisition statute must be computed on the total market value of the land, which includes the multiplication factor applied as per statutory provisions, rather than being restricted to the base market value alone.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 30(3) - Land acquisition compensation - Additional compensation - Computation - Whether additional compensation of 12% is to be calculated on market value determined under Section 26(1) or includes the multiplication factor under Section 26(2). Held: Additional compensation must be computed on the total market value, including the multiplication factor, as the multiplication factor is a component of the market value provided under Section 26. (Paras 101, 108)

(B) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 80 - Interest on unpaid compensation - Entitlement - Interest is payable on the additional compensation amount determined under Section 30(3) for the period specified by the Court, due to delay in payment. (Para 15)

Facts of the case:
Petitioners challenged the denial of 12% additional compensation under the relevant Act on the multiplication factor applied to the base market value. The authorities had restricted the 12% calculation to the base market value, excluding the multiplication factor from the computation of additional compensation.

Findings of Court:
The 12% additional compensation is designed to mitigate hardship caused by rising land prices during the pendency of proceedings. The term "market value" as used in the statute encompasses the full value determined under relevant provisions, which includes the multiplication factor. Therefore, calculating additional compensation solely on the base value is erroneous as it fails to satisfy the intent of the statutory scheme.

Issues: Whether the phrase "such market value" in Section 30(3) of the Act implies only the base value determined under the initial sub-section or the total market value inclusive of the multiplication factor provided in the subsequent sub-section.

Ratio Decidendi: "Market value" defined in the statute includes the multiplication factor applied under Section 26(2). Consequently, the interpretation that additional compensation under Section 30(3) applies only to the base value is rejected as it causes inconsistency and misinterprets the legislative intent to provide a comprehensive compensation package.

Result: Petitions partly allowed.

Table of Content
1. grievance regarding denial of additional compensation benefits under section 30(3) of the 2013 act. (Para 1 , 2 , 3)
2. reliance on established judicial precedents validating additional compensation calculation on base market value including multiplication factor. (Para 4 , 5 , 6 , 7 , 8)
3. directive for passing awards including statutory interest and ensuring disbursement transparency for co-owners. (Para 9 , 10 , 11)

ORDER :

SUNITA AGARWAL, J.

1. The petitioners herein are aggrieved by non-award of benefit of Section 30 sub-section (3) of the the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short, the Act’ 2013”), on the market value computed by application of the multiplication factor 2, which was granted vide award dated 01.06.2020.

2. It is pointed out by Mr. Maulik G. Nanavati, learned advocate for the respondent NHAI that apart from petitioner no.2,3, and 6, there are other co-owners of the lands in question, who are not impleaded herein and petitioners no.4 and 5 are the sole owners of a different piece of land.

3. The contention is that the award dated 01.06.2020 with respect to the lands in question though determined market value by application of multiplication market value under Section 26(2) of the Act’ 2013 and other statutory benefits, but while granting benefits of additional compensation @12% under Section 30(3) of the Act’ 2013, the market value computed under Section 26(1) has only been taken into consideration, terming the same as the base market value.

4. The issue pertaining to the grant of benefit of additional compensation @ 12% on multiplication factor 2, i.e. the market value computed under Section 26(2) of the Act’ 2013 has been set at rest with the decision of this Court in Special Civil Application No.7561 of 2023 and other cognate matters decided on 23.12.2025.

5. Taking note of the said decision dated 23.12.2025, in a latter judgment and order dated 26.02.2026 in a bunch of writ petition leading being Special Civil Application No.2324 of 2026, the following order was passed:-

“ Heard Mr. A.J.Yagnik, the learned advocate for the petitioners, Ms. Maithili Mehta, the learned AGP appearing for the State respondent No.1, Mr. Maulik G. Nanavati, the learned advocate for the respondent No.2 and Mr. Ankit Shah, the learned advocate for the respondent No.3, in all the petitions.

2. In the present set of writ petitions, the petitioners are seeking for the benefits of statutory benefits of additional compensation @ 12% on the market value of the land provided under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (in short as ‘the 2013 Act’) for the period commending from the date of the preliminary notification published under Section 3A of the National Highways Act, 1956, till the date of the award or the date of taking possession of the land, whichever is earlier, as per the scheme of the said provision.

3. The petitioners would submit that though while making determination of the market value in accordance with Section 26 of the 2013 Act, multiplication Factor-2 was applied with respect to the land-in-question under the award, however, the benefits of the additional compensation as payable under Section 30(3) of the Act, 2013 on the total amount of the market value (including multiplication Factor-2) has not been awarded to the petitioners. The further prayer made in the writ petition is to award interest under Section 80 of the Act, 2013 on the unpaid amount, which was required to be included in the impugned award.

4. The petitioners would also pray for issuance of writ of mandamus directing the respondent authorities to grant the benefit of Schedule-II with regard to re-habilitation and re-settlement under the 2013 Act in light of the directives and guidelines issued by the Government of India, Ministry of Road Transport and Highways, appended as Anne

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