Supreme Court: land acquired under one notification can't be paid different rates just by distance
In 47 connected civil appeals arising from acquisition of contiguous farmland across six villages in Fazilka, Punjab for a drainage canal, the Punjab and Haryana High Court had graded the compensation using a 'radial step-down' model, paying less to land farther from the border and more to land closer to it, even though all the land was acquired under the same notification. The Supreme Court, per Justices Dipankar Datta and Sheel Nagu, set the model aside, holding it created an artificial and legally unsustainable disparity between similarly placed lands. Reaffirming the principle from Krishan Kumar v. State of Haryana that land with similar locational and developmental potential must be compensated equitably unless clear, objective distinctions justify otherwise, and that arbitrary differentiation violates settled principles of fairness and equality, the Court restored the Reference Court's uniform market value of Rs.
5,00,000 per acre for the entire acquired stretch. It also restored severance charges at 50% of the value of the remaining unacquired land, while upholding the caps placed on tree compensation and tubewell compensation. The additional compensation is to be paid within six months, with any resulting recoveries to be made within nine months after due notice to landowners.
Quick checkWhat did the Supreme Court hold about compensation for contiguous land acquired under a single notification?- It may be graded purely by distance from a fixed point
- It must be equal for similarly placed land absent objective distinguishing factors
- It is entirely at the acquiring authority's discretion
- It cannot include severance charges
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Answer: B. The Court held that land with similar locational and developmental potential must be compensated equitably unless clear, objective distinctions justify otherwise.
Issued by Supreme Court of India. If this summary and the source differ, the source is right — tell us and we will correct it.