Supreme Court Enhances Compensation for Land Acquired for Upper Tunga Project, Citing Parity and Escalation.
14 May 2025
Civil Appeals >> Civil & Consumer Law | Land Acquistion >> Property & Real Estate
The Supreme Court in S.V Rajashekarappa v/s The Special Land Acquisition Officer & Another., has significantly increased the land acquisition compensation for an appellant whose land in Survey No. 43/2 of Odeyrahattur Village was acquired for the Upper Tunga Project canal. The Court, overturning a High Court decision, ruled that the appellant is entitled to higher compensation based on the principle of parity with a similarly situated land acquisition and an annual escalation rate.
The appellant's land, measuring 5 Acres, 33 Guntas, was acquired through a Notification dated June 29, 2001, with an initial compensation of Rs. 30,000 per acre. Dissatisfied, the appellant sought a reference, and the Reference Court enhanced the compensation to Rs. 1,25,000 per acre in 2015. The appellant then appealed to the High Court for further enhancement.
Meanwhile, a crucial development occurred in a related acquisition. Land from the same Survey No. 43/2, acquired earlier under a September 11, 1997, notification for the same public purpose, had its compensation enhanced by the High Court to Rs. 2,38,950 per acre on October 25, 2017. This judgment was subsequently upheld by the Supreme Court on May 9, 2022.
Despite this precedent, the High Court, in its impugned judgment dated April 16, 2021, granted the appellant only Rs. 1,87,500 per acre. The High Court distinguished the cases by stating that the 1997 acquired land was proven to be cultivable and suitable for sugarcane, while acknowledging the appellant's land was "irrigated."
The Supreme Court, however, found no justification for this disparity. It reasoned that "it is a matter of commonsense that an irrigated land can be used for growing sugarcane and various other crops." Given that both parcels of land were from the same survey number and acquired for the same purpose, the Court concluded there was no significant difference in their nature.
Furthermore, recognizing the time gap between the two acquisitions (1997 vs. 2001), the Supreme Court applied an annual escalation rate of at least 7% for the four-year period.
Based on these considerations, the Court modified the High Court's judgment and held the appellant entitled to a compensation of Rs. 3,05,856 per acre, along with all statutory benefits and interest. The enhanced compensation is to be paid within eight weeks.