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Supreme Court Enhances Land Acquisition Compensation to ₹403 per sq. yd.

Background

The case involved a long-standing dispute over the compensation granted to landowners in Village Chhalera Bangar, Tehsil Dadri, District Ghaziabad, whose land was acquired by the New Okhla Industrial Development Authority (NOIDA) for planned industrial development. The acquisition process was initiated in 1991 under the Land Acquisition Act, 1894.

Arguments

The landowners argued that the compensation granted by the lower courts was inadequate and sought parity with the higher compensation of ₹449 per sq. yd. awarded in the Bir Singh v. State of Uttar Pradesh case. NOIDA, on the other hand, contended that the Bir Singh decision was based on a factual error and that the compensation should be lower, considering the large scale of the acquisition and the need for extensive development of the land.

Court's Analysis and Reasoning

The Supreme Court acknowledged that the Bir Singh decision was based on a bona fide factual error and, therefore, would not bind the court. The court then applied the principle of "guesstimation" to determine a fair and just compensation, considering the land's characteristics, future potentiality, and market sentiments.

The court found that the land had significant potential for commercial development, given its proximity to major roads, schools, and other landmarks. While the landowners' reliance on a single sale deed was insufficient, the court considered other evidence, such as lease deeds and circle rates, to arrive at a reasonable estimate.

Decision

The Supreme Court partly allowed the appeals and revised the rate of compensation to ₹403 per sq. yd. for the entire acquired land, except for the portion that was the subject of the Bir Singh decision. The court also allowed the landowners' miscellaneous applications, invoking its powers under Article 142 of the Constitution to ensure uniformity in the award of compensation.

The enhanced compensation amount is to be deposited with the Reference Court within eight weeks and then disbursed to the claimants at the earliest.