The court ruled that the increment of 200% to the basic land value by the Reference Authority was arbitrary, emphasizing the need for justifiable procedures in compensation evaluations.

JUDGMENT

[LA.App. Nos.177/2022, 204/2022, 205/2022, 214/2022, 229/2022, 234/2022, 253/2022, 257/2022, 260/2022, 264/2022, 266/2022, 270/2022, 272/2022, 287/2022, 292/2022, 306/2022, 342/2022, 386/2022, 415/2022]

1. The State Government has filed these nineteen numbers of Land Acquisition Appeals under Section 74 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as ‘the LA Act, 2013’).

2. These Appeals arise from nineteen Land Acquisition References out of twenty Land Acquisition References disposed of by the Land Acquisition Rehabilitation and Resettlement Authority, Alappuzha (hereinafter referred to as ‘the Reference Authority’) by a common Award dated 18/01/2021.

3. The State Government initiated land acquisition proceedings under the Land Acquisition Act, 1894 (hereinafter referred to as ‘the LA Act, 1894’) to acquire 21.580 hectares of land spread in 9 villages, namely, Karumady, Karuvatta, Cheruthana, Haripad, Thakazhi South, Thakazhi North, Kumarapuram, Ambalappuzha and Veeyapuram in Karthikappally, Ambalappuzha and Kuttanad Taluks for doubling the railway track between Haripad and Ambalappuzha. Later, the total extent of land required for acquisition was reduced to 19.24.33 Hectares. The land involved in the present References are dry land in category No.B situated in Cheruthana village. The description of category No.B is ‘dry land with gravel road frontage’.

4. Section 4(1) Notification under the LA Act, 1894 is dated 24.06.2010. When the LA Act, 2013 came into force with effect from 01.01.2014, on the direction of the Government, the Land Acquisition Officer passed temporary Awards, fixing the land value @ Rs.79,500/- per Are, as the Rules under LA Act, 2013 were not framed. After framing the Rules, the Land Acquisition Officer passed final Awards fixing land value @ Rs.82,112/- per Are.

5. The District Level Purchase Committee (DLPC) had fixed the market value of the land after conducting a detailed negotiation with landowners. The DLPC had fixed the land value @ Rs.2,63,162/- per Are. The formula adopted by DLPC was to take 200% of the basic land value with 30% solatium and 12% additional land value [Basic Land value + 30% Solatium +12% Addl Land Value) X 200%]. The market value fixed by the DLPC was approved by the State Level Empowered Committee (SLEC). Several landowners settled their claims by accepting the market value fixed by the DLPC.

6. The Reference Authority awarded enhanced compensation fixing the land value @ Rs.2,38,500/- per Are. The Reference Authority fixed the land value relying on the basic land value fixed by the DLPC and fixed market value, adding 200% of the basic land value to the basic land value [Basic Land Value + 200% of Basic Land Value]. In effect, 300% of the basic land value of Rs.79,500/- per Are fixed by the DLPC was taken to arrive at the market value of Rs.2,38,500/- per Are fixed by the Reference Authority.

7. In the judgment dated 02.07.2025 in L.A.Appeal No.252/2021 & connected cases arising from the very same Section 4(1) Notification, this Court has found that there is no rationale to add 200% to the basic land value by the Reference Court instead of 100% added by the DLPC and that such an addition of 200% by the Reference Authority is arbitrary and without any material to support the same and accordingly fixed land value by taking 200 % of the Basic Land Value fixed by DLPC. The same criteria is applicable in these appeals also.

8. In these cases, DLPC had fixed the Basic Land Value at Rs.79,500/- per Are and 200% of the same is Rs.1,59,000/- per Are.