Original owners of land gifted to local authorities for Open Space Reservation (OSR), roads, or parks are entitled to compensation if the government subsequently acquires that land under the power of eminent domain.

ORDER

This writ petition is filed to direct the respondents to fix the compensation for the entire Extent of land in Survey No. 5/2, 5/3, 5/5, 8/3, 15/4, 21/1, 21/5, 22/9A and 22/9B (measuring a total extent of 11.42 Acres (8.98 Acres for plots) and 2.44 Acres (88,431 Sqft + 18,000 Sq ft) for road & Park) situated at Nemili Village, Sriperumbudur, Kanchipuram District and to properly file the reference before the Hon’ble District Court, Kancheepuram.

2. Learned counsel for the petitioner would submit that there are two issues in this writ petition. One issue is with regard to fixation of compensation for more than 1 lakh sq.ft., of land. The petitioner is a promotor and formed a layout consisting of 104 plots and earmarked the lands for laying roads and park in the said layout, which was later handed over to the local authorities. Under these circumstances i.e., after the formation of layout, the respondents have initiated the land acquisition proceedings. However, without paying compensation to the entire extent of land, the respondents awarded the compensation exempting the lands reserved for formation of roads and park. As far as the second issue is concerned, he would submit that no reference has been made for re-determination of the award. Hence, this writ petition.

3. Learned Additional Government Pleader appearing for the respondents would submit that the petitioner has registered a gift deed to the local authorities in regard to the lands earmarked for roads and park. Therefore, awarding compensation to the said lands is not applicable. He would further submit that, already reference has been made with regard to the enhancement/re-determination of award vide letter No.127/2021 dated 29.09.2021 before the Principal District Court, Chengalpet. Accordingly, he prays for appropriate orders.

4. Heard the learned counsel on either side and perused the materials available on record.

5. In regard to the first limb of the prayer, the petitioner has submitted that they are entitled to compensation in respect of 1,06,431 square feet of land, which was gifted to the local authorities for the formation of roads and a park, and that no compensation has been provided for the same. This Court, in numerous precedents, has consistently held that where property is gifted to local authorities for the purpose of developing a layout, the original owner of such property is entitled to compensation. In a gift deed is executed in favour of the local authorities in respect of a portion of the land, including roads, parks and Open Space Reservation (OSR) the local authority acts merely as a custodian of the said property and does not acquire absolute ownership over the same. In this context, as emphasized in Association of Vasanth Apartments Owners vs. V.Gopinath & Others [2023 SCC Online SC 137] (herein after referred as Vasanth Apartments’ Case), which was also observed by the Hon’ble Division Bench of this Court in W.P.Nos.33522 & 33530 of 2018 dated 13.03.2024. For better appreciation, paragraph No.4 reads as follows:-

“4.Precisely, the question raised in the present writ petitions is adjudicated by the Apex Court in the case of Association of Vasanth Apartments, supra. The questions posed before the Apex Court were - (I) Who would be entitled to the compensation if a gift is made in terms of the impugned Rule/Regulation?; and, (ii) What would happen if the OSR area is acquired in the exercise of the power of eminent domain for the public purpose?. The Apex Court held that the gift under Rule/Regulation is intended only to ensure due compliance with the requirement of the OSR area being effected and to prevent misuse by the owner. Upon acquisitio