The Notification restricting the multiplier factor for land compensation to one in rural areas is ultra vires the Right to Fair Compensation and Transparency in Land Acquisition Act, mandating a minimum multiplier of two based on distance from urban areas.

JUDGMENT :

Tarlok Singh Chauhan, J.

Both these petitions under Article 226 of the Constitution of India lay challenge to the Notification dated 01.04.2015 (Annexure P-1) being ultra vires to the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short ‘Act’) with a further direction to notify the multiplier factor as two in terms of the provisions of the Act with respect to the rural areas of Himachal Pradesh.

2. The factual scenario giving rise to these petitions, in brief, is that on 19.01.2021, the land of the petitioners was utilized for the construction of road and the same was acquired by the respondent department vide its Notification dated 11.10.2018 issued under the provisions of the Act.

3. On 07.01.2022, the department issued Notification under Section 19 of the Act for acquisition of land as well as payment of compensation to the petitioners and other interested persons. Thereafter, the Collector passed the award on 20.06.2024. According to the petitioners, it is then they learnt that the multiplier of one had been given to the petitioners and other similar situated persons. This made the petitioners to inquire as to why the multiplier of one had been applied and it is thereafter they came to know that the State Government had issued impugned Notification dated 01.04.2015, notifying the multiplier as one with respect to the rural areas of Himachal Pradesh, hence these petitions.

4. The State has failed to file reply despite repeated opportunities and, therefore, in terms of order dated 15.05.2025, the right to file same is deemed to be closed.

5. As regards respondents No.4 and 5 i.e. the Land Acquisition Collector, Sunni Dam Hydro Electric Project and the Satluj Jal Vidyut Nigam Limited, they have filed joint reply, wherein, it has been stated that the acquisition was carried out by the Land Acquisition Collector (LAC), Sunni, who was duly appointed by the State Government. The proceedings were conducted in a transparent, just and lawful manner under the provisions of the Act. The land owners including the petitioners were awarded the most suitable and fair compensation for their land along-with other benefits under the Act. The valuation of land was undertaken using a multiplier factor of 1, in consonance with the Notification dated 01.04.2015 issued by the State Government.

6. Since respondents No.4 and 5 have only adopted and chosen to follow the Notification, this Court is now required to decide the validity of such Notification. While doing so, it would be necessary to refer to impugned Notification dated01.04.2015, which reads as under:-

NOTIFICATION

In exercise of the powers conferred by sub-section (2) of section 30 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 read with the FIRST SCHEDULE appended to the said Act, the Governor, Himachal Pradesh, for the purpose by which the market value of the land is to be multiplied in the case of rural areas, is pleased to notify the factor as 1.00 (One) under serial No. 2 of the said SCHEDULE.

By Order

(Tarun Shridhar)

Addl. Chief Secy. (Revenue) to the Government of Himachal Pradesh.

Endst. No. Rev.B.Α(3)-3/2014-1, Dated Shimla-171002, the 01-04-2015 Copy forwarded for information and necessary action to:-

1. All the Administrative Secretaries to the Government of Himachal Pradesh, Shimla-2.

2. All the Heads of Department in Himachal Pradesh.

3. All the Divisional Commissioners, Himachal Pradesh.

4. All the Deputy Commissioners, in Himachal Pradesh.

5. The Settlement Officers, Shimla and Kangra.

6. The D.L.R-cum-Under Secretary (Law) to the Government of Himachal Pradesh, Shimla-2.

7. COC to the Financial Commissioner (Appeals) Himachal Pradesh, Shimla-2.

8. The Controller, Printing and Stationery, Himachal Pradesh, Shimla-5 for favour of publication in extra ordinary Rajpatra with the request to supply five copies of the publication.

9. Guard