Punjab Haryana HC awards Rs 2.8 crore per acre compensation for land acquisition under Section 25

The Punjab and Haryana HC enhanced compensation for acquired land, awarding Rs. 2,80,00,000 per acre to landowners. The court relied on SC precedent establishing that post-1984 amendment to Section 25 removed the maximum compensation cap while maintaining minimum limits, enabling courts to award just compensation exceeding claimed amounts. The HC applied uniform compensation rates based on comparable land values from adjoining villages, citing multiple SC judgments supporting landowners' claims. Landowners were granted statutory benefits under the Land Acquisition Act from the Section 4 notification date.

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Issues Involved:
1. Market value assessment.
2. Potentiality and location of the acquired land.
3. Evidence produced by the respondent-State.
4. Additional evidence and judicial precedents.
5. Entitlement to enhanced compensation.
6. Statutory benefits and procedural directions.

Detailed Analysis:

1. Market Value Assessment:
The primary issue was the assessment of the market value of the acquired land. The Land Acquisition Collector (LAC) initially assessed the market value at Rs. 25 lakhs per acre, which was later increased by the reference court to Rs. 41,81,500 per acre. The landowners sought further enhancement, resulting in the High Court's decision to partly allow the appeals and enhance the compensation to Rs. 2,80,00,000 per acre, considering the market value of adjoining village Dhankot.

2. Potentiality and Location of the Acquired Land:
The court noted the prime location and immense potentiality of the acquired land, situated on Delhi-Badli road, close to Delhi Border, and within the vicinity of NCR. The land was also near the Urban areas of Gurgaon City and KMP Expressway. The court emphasized the high potential value of the land for private builders and its proximity to fully developed residential sectors and essential facilities like hospitals and educational institutions.

3. Evidence Produced by the Respondent-State:
The evidence presented by the State, including sale deeds Ex. R1 to R3, was found to be less than the amount awarded by LAC and deemed undervalued or distress sales. The court excluded these sale deeds from consideration based on the Supreme Court's observations in Lal Chand vs. Union of India, which stated that undervalued or distress sales should be excluded from assessing the market value.

4. Additional Evidence and Judicial Precedents:
The court allowed additional evidence, including an award dated 29.9.2012 (Annexure A-1) and site plans (Annexure A-2 and A-3), which were not available at the time of the reference court's decision. The court also considered the notification dated 12.5.1995, declaring the land as a controlled area, and the Final Development Plan 2021 A.D. The court relied on judicial precedents like State of Goa vs. Gopal Baburao Gaudo and others, and the Supreme Court's judgment in Udho Dass Vs. State of Haryana, emphasizing the entitlement to the best price for acquired land.

5. Entitlement to Enhanced Compensation:
The court concluded that the landowners were entitled to the benefit of the judicial precedent in Ram Chander's case, which assessed the market value of adjoining village Dhankot at Rs. 2,80,00,000 per acre. The court rejected the State's argument that only the time gap increase should be considered, stating that denying the benefit of a judicial precedent would be unjustified.

6. Statutory Benefits and Procedural Directions:
The court directed that the landowners should receive compensation at the uniform rate of Rs. 2,80,00,000 per acre from the date of notification under Section 4 of the Act. The court also issued procedural directions for the Land Acquisition Collector to inform landowners about their entitlement, instruct them to open savings bank accounts, and deposit the compensation cheques in these accounts, following the Supreme Court's guidelines in Haryana State Industrial Development Corporation Vs. Pran Sukh and others.

Conclusion:
The court's judgment comprehensively addressed the issues of market value assessment, potentiality and location of the land, evidence evaluation, entitlement to enhanced compensation, and procedural directions, ensuring that the landowners received fair and just compensation for their acquired land.

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