The market value of acquired land can be determined using the comparable sales method, where the potential for the land to be used for house sites and the nature of surrounding developments justify an enhancement in compensation over the initial valuation by the Land Acquisition Officer.

The Court made the following:

JUDGMENT:

(Per Hon’ble Sri Justice A. Hari Haranadha Sarma)

Introductory :-

[i] This appeal is filed under Section 54 of the Land Acquisition Act, 1894 [for short ‘the Act’ ] and directed against the orders dated 28.02.2013 passed in LAOP No.17 of 2005 by the learned Senior Civil Judge, Nuzvid.

[ii] The Special Deputy Collector (L.A.) and Land Acquisition Officer, Vijayawada, who made reference under Section 18 (1) of the Land Acquisition Act, 1894 filed the present appeal, questioning the compensation fixed as excessive.

2. For the sake of convenience, parties will be referred to as the claimants and referring officer.

Facto matrix:-

[i] For the construction of Booster Station by the Gas Authority of India Ltd., Vijayawada, land measuring Ac.23.36 cents in G. Konduru village was acquired under award No.1/2003, dated 02.08.2003, the Land Acquisition Officer fixed the compensation of Rs.1,00,000/- per acre for certain lands and Rs.1,25,000/- per acre for certain other lands, apart from other incidental benefits.

[ii] Considering the application/protest of the claimant/ one Lanka Siromani as to inadequacy of compensation and the price fixed and also the objection as to non-consideration of crop etc., present in the lands, reference was made in terms of section 18 of the land Acquisition Act.

Contention of the claimant before the referral Court:-

[i] The land in an extent of Ac.0.17 cents in R.S.No.245/B1 and an extent of Ac.0.80cents in R.S.No.247/1C of G.Konduru village of G.Konduru Mandal, Krishna District, in total Ac.0-97 cents belonging to the claimant/Lanka Siromani was acquired.

[ii] Land Acquisition Officer failed to consider the circumstances and mechanically fixed the compensation.

[iii] The land fetched @₹10,00,000/- to Rs.16,00,000/- per acre, when it is sold as residential plots, in surrounding areas.

[iv] Minimum value of the land cost is ₹10,00,000/- per acre, which was ignored.

[v] As promised employment was not provided to the claimant.

[vi] Compensation fixed for the crop is also very low.

[vii] The claimant is entitled for compensation for the land @Rs.12,50,000/- per acre as minimum and more than what is awarded for standing crop, trees and plants.

Contention of the Land Acquisition Officer:-

[i] The amount claimed by the claimant is exaggerated.

[ii] The sale transactions in the village for the relevant period were rightly considered, covering the years 1999 to 2002.

[iii] Registration statistics for (3) years preceding the last date of publication of notification under Section 4(1) of the Land Acquisition Act, was considered.

[iv] Two sales in the year 1999, 34 sales in the year 2000, 27 sales in the year 2001, 16 sales in the year 2002, were considered and the market value is fixed @Rs.1,25,000/- per acre in respect of the lands nearer to the road and Rs.1,00,000/- per acre in respect of the lands far away from the road. The valuation is justified.

[v] As per the basic register maintained by the Sub-Registrar, the value of the land is Rs.40,000/- per acre.

[vi] The rates of cotton paddy, paragrass, Deenanadh grass, green gram, red gram and black gram were obtained from the Assistant Director of agriculture and for drumstick crop, opinion was given by the Commissioner and Director of Horticulture, A.P.. The land value and solatium and additional allowances, compensation, value of trees etc., fixed are at reasonable.

Findings of the Referral Court:-

[i] As per the evidence of witnesses, the acquired land is up level dry land and it is suitable for house sites.

[ii] In respect of certain lands the sale transactions is ranging around Rs.9,68,000/- per acre. But as the said sales are in respect of small extent, the same cannot be the basis.

[iii] Certain lands were sold in square yards with higher value. Lands covered by those sales are at some distance vide R.S.No.247/1B, but the