Supreme Court sets aside decades-old land acquisition for fraud, restores land to original owners

The Supreme Court set aside a land acquisition under the Land Acquisition Act, 1894, holding it vitiated by fraud and a colourable exercise of the power of eminent domain. A Bench of Justice K. Vinod Chandran, invoking the principle that condemnation of private land for a public purpose is permissible only with authority of law, just compensation, and a genuine public purpose, found that the acquisition for a housing scheme was arranged through a prior agreement with a private society before any such scheme was approved, that no layout plan was ever placed before the government for sanction, and that the society's own records and membership were unreliable, with office-bearers admitting bribes were paid to officials.

The Court held these facts exposed a fraud on the landowners, so the Division Bench had erred in dismissing the challenge on res judicata and delay instead of examining the fraud allegations on merits; it restored the original order quashing the acquisition. Applying its own earlier ruling in similar cases involving the same category of societies, the Court directed that possession be restored to the original landowners regardless of whether they had individually challenged the acquisition, on their refunding any compensation received, and enhanced costs to Rs. 50,000 per party.