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2026 Supreme(All) 743

HIGH COURT OF JUDICATURE AT ALLAHABAD
Arindam Sinha, Prashant Kumar, JJ.
Bhullan Singh And Others – Petitioners
Versus
State Of U.P. And Others - Respondents
WRIT - C No. - 12447 of 2026
Decided On : 17-04-2026

Advocates Appeared:
For the Petitioner: Manoj Kumar Singh, Rajesh Kumar Singh
For the Respondent: C.S.C., Pankaj Kumar Shukla

Landowners are entitled to fair compensation for the permanent diminution of land value caused by the installation of high-tension transmission lines. The state must strictly adhere to governing compensation guidelines and cannot act arbitrarily or selectively when impacting the property rights of citizens.

Headnote:(A) Electricity Act, 2003 - Sections 67, 68 and 164 - Telegraph Act, 1885 - Right of Way (RoW) - Compensation for loss of land value due to transmission lines - The Court held that the state must provide just and adequate compensation to landowners for the loss of value and usage restrictions imposed by overhead transmission lines - The state cannot selectively apply or ignore guidelines issued by the central authority regarding such compensation. (Paras 24, 30, 31, 35)

(B) Property Rights - Compensation for diminution of land value - When infrastructure projects impact private lands by imposing restrictions on construction, tree plantation, or land usage, such actions necessitate fair financial compensation proportional to the diminished utility and market value of the property. (Paras 25, 29, 32)

Facts of the case:
Petitioners owned land where high-tension electricity lines were installed. Compensation provided for the tower base was insufficient, and no compensation was awarded for the corridor area, which permanently restricted land use and reduced its market value. Despite prior judicial directions to reconsider grievances under existing circulars, administrative authorities rejected the claims, leading to this petition.

Findings of Court:
The Court determined that while public infrastructure is essential, it does not exempt the state from compensating individuals for the loss of substantive property rights. The authority's refusal to implement standardized compensation guidelines while using police force to execute projects was found to be arbitrary and contrary to the principles of fair dealing.

Issues: The primary issue was whether the state is legally obligated to compensate landowners for the Right of Way corridor area of high-tension electricity lines, even when the land has not been formally acquired under traditional land acquisition procedures.

Ratio Decidendi: The installation of transmission lines over private property imposes significant usage limitations, directly resulting in the diminution of land value. Consequently, the state is mandated to adhere to established guidelines for calculating and paying compensation, as the selective implementation of these guidelines to the detriment of landowners violates constitutional protection of property rights.

Result: Petition allowed; the order of rejection is quashed; and the authorities are directed to provide compensation in accordance with the prescribed guidelines within four weeks.

Table of Content
1. historical factual background and procedural history of the compensation dispute. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
2. parties' contentions regarding the admissibility and applicability of government compensation guidelines. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
3. statutory framework and regulatory context for electricity infrastructure and land compensation. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
4. the state cannot selectively implement central government guidelines for determining land compensation. (Para 32 , 33 , 34 , 35)
5. quashing of the impugned rejection order and mandating compensation disbursement. (Para 36 , 37 , 38)

JUDGMENT :

Prashant Kumar, J.

Factual Matrix

1. The instant writ petition has been preferred by four petitioners who all are owners of a land situated in District Shamli where they have the crops and trees planted on the land. Over this land, the respondent Nos.2 and 3 are setting up a High Tension Electricity Transmission Line and because of which the petitioners suffer from the loss of crops, trees and devaluation of the land. As far as trees are concerned, certain compensation has been awarded but no compensation has been awarded for the corridor area over which the high tension wire passes through (known as Right of Way, 'RoW'). The Government of India through Ministry of Power had issued certain guidelines by means of a Government Order ( in short, 'G.O.') dated 15.10.2015 which provides for payment of compensation towards damages with regard to RoW for transmission lines as well as for the tower base area.

2. As per G.O. dated 15.10.2015, 85% of the land value has to be paid by the District Magistrate on the tower base area on which the heavy metallic tower is set up. Further, a compensation towards diminution of land value (in the width of RoW corridor due to laying of transmission line) was to be awarded which was subject to the maximum 15% of the land value as determined on circle rate/ guideline value/ Stamp Act rate.

3. The Government of India through Ministry of Power issued another guideline vide G.O. dated 14.06.2024 for payment with regard to RoW for transmission lines wherein the compensation for the tower base area was increased to 200 % and the land value for RoW corridor area was increased to 30% of the land value.

4. Again the Government of India through Ministry of Power issued another circular on 21.03.2025 providing a supplementary guideline for payment of compensation with regard to RoW for transmission line of inter-state high voltage electricity lines.

5. The respondent authorities while determining the compensation of trees and crops coming under the transmission line area failed to follow the guidelines and provided no compensation for the RoW of corridor area. The petitioners made several representations to the respondents but no heed was paid to it.

6. Aggrieved by this situation, the petitioners preferred a writ petition being Writ-C No.20077 of 2025 ( Pradeep Kumar and others vs. State of U.P. and others ) which was disposed of by a Division Bench of this Court vide order dated 04.11.2025 with the following directions:-

"5. Considering the facts and circumstances of the case and without going into the merits of the case, we dispose off the writ petition permitting each petitioners to file separate representation under Rule 3 (2) of the Works of Licensees Rules, 2006 ventilating their grievances before the respondent nos. 5-District Magistrate, Shamli & respondent no.6-District Magistrate, Saharanpur along with a certified copy of this order within a period of one month from today. In case any such representation is filed by the petitioners, concerned respondent authority shall pass separate orders on the representation of each petitioners strictly in accordance with law after giving due notice and opportunity of hearing to each petitioners within a period of two months thereafter."

7. As per the directions given by

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