They are also entitled to interest on solatium, additional market value
Farmers whose land is acquired for a public purpose are entitled to the highest market value as compensation, the Supreme Court held on Friday.
“When the land is being compulsorily taken away from a person, he is entitled to 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,” said a Bench of Justices P. Sathasivam and J. Chelameswar.
Writing the judgment, Justice Sathasivam said: “It seems to be only fair that where sale deeds pertaining to different transactions are relied upon on behalf of the government, the transaction representing the highest value should be preferred to the rest unless there are strong circumstances justifying a different course.”
The Bench held that bona fide sale transactions proximate to the point of acquisition of the land “are the real basis to determine the market value.” It was not desirable to take an average of [amounts entered in] various sale deeds placed before the authority/court for fixing fair compensation. “The person entitled to the compensation awarded is also entitled to get interest on solatium and additional market value.”
In the instant case, Colonel Harindar Singh, since deceased, was the former ruler of Faridkot. In 1979, the Punjab government acquired 259 Kanals and 16 Marlas (33 acres) of his land for extension of the existing grain market at Faridkot. The total compensation it awarded including solatium at 15 per cent was Rs.4, 85,202.86. The trial court enhanced it by fixing the value of land at Rs. 1 lakh per acre. The Mehrawal Khewaji Trust, Faridkot, and others were aggrieved over a judgment of the Punjab and Haryana High Court, which refused to interfere with the trial court order. Allowing their appeals, the Supreme Court said: “The materials placed before the Land Acquisition Collector and the Reference Court show that the land is of great potential value inasmuch as the same was strategically located at a commercial hub abutting main roads and surrounded by commercial buildings…” The Reference Court erroneously determined the market price of the appellants' land by averaging the prices of all the three exemplars and thereby awarded a compensation of Rs. 1 lakh per acre.”
The Bench said the appellants made out a case for enhancement of compensation. “Accordingly, the same is fixed at Rs.1, 45,000 per acre with all other statutory benefits including interest on solatium and additional market value.”
It is a good ruling from the farmers'point of view and also from
the general point of view.When every business man with huge investments bigger returns form those investments why to state
which is working for the welfare of the people should deny the normal gains from their investments.They should pay more than normal value for such poor and middle class investors not only on farm lands but also resiential lands.Many are hoping on the increases on the value of the invested properties,the negative action of the goverrnment in the name of industrial develpment is not justified from any angle.They should change their attitude even before the court takes up the case of these persons.
Fair Decision again!! Policy of acquiring land and adequate solatium had been in chaos. Why this injustice when land is of such importance in development? Cases of Greater Noida for dwellings, issues of Displacement of Tribals for Dams, poor farmers' reemployment issues are frightening. Judiciary is playing a crucial role in providing the rights of the needy but there are still many left without justice who need a statute solution from Legislature. Its high time that we need to repeal Act of 1894 and enact Rehabilitation bill with full consensus !!
This verdict is not going to help the farmers. Everyone knows most of the deeds recorded in the past would not show real value paid for the land. To reduce the cost of stamp paper the buyers show far less value of the land on documents. Also the buyer pays from the black money. Either way the buyer benefits. One would not find a transaction in the registrar's office showing actual money paid to the seller. Recently , in Coimbatore, land was acquired for widening NH 47 highway. The revenue department paid compensation of Rs. 35000.00 per cent based on a transaction within a radius of one to two kilometers from the land compensated. The market value of the land is about five crores per acre and the guide value of the land 3.5 crores per acre. Farmers can not fight the government and the recent judgement does not help either. It seems the guide line values are introduced to generate easy income for the goverment and not to help the farmers.
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