Crop-yield valuation for acquired land upheld with 50% cultivation deduction and statutory solatium and interest.

Where reliable sale deeds are unavailable, compensation for acquired agricultural land may be assessed on the basis of crop yield, but oral evidence of realised value must be scrutinised carefully. The accepted annual income was fixed at Rs. 2,050 per acre, and a 50% deduction for cultivation expenses was treated as appropriate rather than a one-third deduction. Applying a multiplier of 10 years to the net annual income, the market value was determined accordingly. The claimants were also entitled to statutory solatium and interest on the enhanced compensation under the amended acquisition law.

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Issues: Determination of compensation for acquired agricultural lands on the basis of crop yield, including the proper deduction towards cultivation expenses and the claimant's entitlement to enhanced statutory benefits.

Analysis: In the absence of reliable sale deeds, the compensation could be assessed on the basis of the realised value of the crop, though such oral evidence had to be scrutinised with care. The accepted annual income from the lands was Rs. 2,050 per acre. The Court held that deduction of one-third towards cultivation expenses was not justified and that a deduction of 50% was the proper approach. The multiplier of 10 years was applied to the net annual income to determine market value. The claimants were also held entitled to statutory solatium and interest on the enhanced compensation in terms of the amended acquisition law.

Conclusion: The enhanced compensation was fixed at Rs. 20,500 per acre after 50% deduction from the assessed annual yield, together with solatium and interest as applicable under the amended Act.

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