Farmers be given market price for land while acquisition: SC

New Delhi, Aug 25 (PTI) Compensation given by the
government to farmers while acquiring their land should be
decided on the basis of its market value, the Indian Supreme
Court has held.
While increasing the base price from Rs 2.75 lakh per
hectare to Rs 4.09 lakh per acre for the land which was
acquired by the north Indian state Punjab government, a bench
of Dalveer Bhandari and Deepak Verma said that the owners are
entitled to the highest value which similar land in the
locality is shown to have fetched.
The court passed the order on a bunch of petitions filed
by the land owners seeking enhanced compensation for their
land which is situated on the Ambala-Chandigarh Highway.
While fixing the price, the apex court took into
consideration the various deals in which the land was sold
around the time of issuing notification and the highest price
was Rs 4.08 lakh per hectare.
"After all when land is being compulsorily taken away
from a person he is entitled to say that he should be given
the highest value which similar land in the locality is shown
to have fetched in a bona fide transaction entered into
between a willing purchaser and a willing seller near about
the time of the acquisition," the bench said while referring
to its earlier judgement.
In this case, the state government had issued
notification for acquiring 550.03 acre of land in Patiala
district in 1992 for setting up of industrial plant there.
Not satisfied by the compensation given to them, the land
owner had approached the lower court which fixed the price at
Rs 1.50 lakh per acre. They then approached the Punjab and
Haryana High Court for further enhancement which fixes it at
Rs 2.75 lakh per acre.
The land owners and the state government then moved the
Supreme Court challenging the high court order.
The apex court after hearing dismissed the plea of the
state government and increased the compensation to Rs 4.08
lakh per acre saying that "it was a valuable land for the
land owners and it had great potential".
"In 1992, the market value of the same, at the time of
issuance of notification under Section 4 of the Act, would be
much more than what has been awarded to them vide the impugned
judgement," the bench said after looking at the various land
deals at the time of issuing notification.
"Needless to say, once the industry is set up, it would
be for the financial benefit and gain of the corporation
(which is given land) year after year. Thus, looking to the
matter from all angles, Corporation would be a great
beneficiary at the cost of depriving the appellant - land
owner of his sole livelihood of agriculture. Therefore, it is
neither desirable nor proper to deduct more than 10 per cent
of the amount in the base price fixed by us at Rs. 4.08 lakh
acre.