Fix 10 per cent escalation costs for land acquired: SC

New Delhi, Aug 2(PTI) An annual land escalation cost of
10 per cent should be added while awarding compensation to
land owners in semi-urban areas as they have a huge housing
potential, the Indian Supreme Court has held.
A bench of justices G S Singhvi and H L Dattu said such a
compensation was essential as the poor land owners cannot be
left to the mercy of authorities or others in fixing the
compensation.
"Therefore, it can safely be concluded that the land is
semi-urban and has a huge potential for being developed as
housing sites and the High Court should have added 10% per
annum escalation in the price specified in the sale deeds
relied upon for fixing market value of the acquired land.
"In such matters, the Court cannot be oblivious of the
fact that the land owners have been deprived of the only
source of livelihood, the cost of living has gone up manifold
and the purchasing power of rupee has substantially declined,"
the apex court said.

The bench passed the ruling while enhancing the rate
of compensation to Rs.36/- per square feet for land owners in
Erode district of south Indian state Tamil Nadu.
The aggrieved land owerns Valliyammal and others had
moved the apex court challenging the Madras High Court's
decision to reduce the compensation fixed by the Reference
Court.
The High Court reduced the market value fixed by the
Reference Court from Rs.19.28 to Rs.12/- and from Rs.20/- to
Rs.8/- per square feet, while dealing with the acquistion of
55.89 acres land by the State for construction of houses by
the Tamil Nadu Housing Board.