NHAI Directed to Pay Rs. 25 Lakhs for Long-Pending Land Acquisition Compensation.


08 April 2025 Land Acquistion >> Property & Real Estate  

In Rahul Ramchandra Rathi v/s The Competent Authority & Others., the Bombay High Court has directed the National Highways Authority of India (NHAI) and other authorities to expedite the acquisition process and pay Rs. 25 lakhs as an interim measure to a petitioner whose additional 500 sq.mtr of land was taken over during acquisition in 2018 without due compensation.

The petitioner had initially received compensation for only 50 sq.mtr of their 550 sq.mtr land. While acknowledging the discrepancy through affidavits filed by the Deputy Collector (Acquisition) and a representative of NHAI, the authorities had only initiated inter-departmental correspondence without concrete action on acquiring the remaining land and paying compensation since the initial takeover in 2012.


 

 

The High Court, despite its usual reluctance to entertain petitions involving disputed facts, made an exception due to the "unimpeachable material" presented, including the admissions in the affidavits of the concerned officials. The court lauded the officers for their transparent disclosure and assistance.

The affidavits confirmed that an additional 500 sq.mtr was indeed taken over without compensation. NHAI stated its intention to undertake a fresh acquisition process under the National Highway Act, 1956. However, the court noted the lack of a timeline despite the prolonged delay since 2012.

Referencing internal communications within the highway authorities acknowledging the unpaid compensation, and the Deputy Collector's affidavit detailing the error in measurement, the court found sufficient grounds to intervene.

While NHAI sought a year to complete the acquisition, the court deemed this excessive, considering the long delay. To provide immediate relief, the court directed the NHAI and concerned respondents to jointly and severally pay Rs. 25 lakhs to the petitioner within two months. This amount was calculated based on the initial compensation rate determined in 2012, along with a notional interest.

The court clarified that this interim payment would be adjusted against the final compensation determined through the fresh acquisition process. The petitioner retains the right to challenge the final compensation amount through the legal channels provided under the National Highways Act, 1956. Failure to make the interim payment within the stipulated time would attract a 7% per annum interest, potentially recoverable from the responsible officials.

The court explicitly kept all contentions regarding the final compensation open for determination by the competent authorities, emphasizing that its observations were prima facie. The judgment also cited a Supreme Court ruling highlighting the right to fair compensation and an efficient acquisition process as integral aspects of the right to property under Article 300A of the Constitution.

The petition was disposed of with a direction for the acquisition process to commence within a month and conclude within a year, with the interim payment of Rs. 25 lakhs to be made within two months.


National Highways Act, 1956