Mumbai: The Bombay High Court has substantially enhanced the compensation payable for agricultural land acquired for the Neera Deoghar irrigation project in Pune district, raising the market value to Rs.3.13 lakh per hectare from Rs.2.54 lakh per hectare fixed by the Reference Court, and far above the Rs.40,000 to Rs.46,000 per hectare originally awarded by the Land Acquisition Officer.
Justice Amit Borkar on July 10 directed that the landowners be paid the enhanced compensation along with all statutory benefits, including solatium, additional compensation and interest under the Land Acquisition Act.
Case Related To Land Acquisition In Pune's Bhor Taluka
The case relates to the acquisition of agricultural land in Village Parhar (Khurd), Taluka Bhor, for the Neera Deoghar Project. The acquisition notification was issued on October 9, 1997, and the Land Acquisition Officer passed the award in May 1999, fixing compensation between Rs.40,000 and Rs.46,000 per hectare for different categories of jirayat (dry crop) land.
Claiming that the compensation did not reflect the prevailing market value, the landowners sought higher compensation before the Reference Court.
Reference Court Increased Compensation Based On Earlier HC Order
The Reference Court later enhanced the compensation to Rs.2.54 lakh per hectare after relying on an earlier High Court judgment concerning land acquired from neighbouring Village Dapkeghar. However, it granted only a 6% annual escalation in land value for the four-year gap between the acquisition notifications of the two villages.
In the appeal before the HC, the landowners argued that the Reference Court had adopted the Dapkeghar judgment but had failed to apply the same methodology for calculating market value. They contended that the lands in Parhar (Khurd) were comparable to those in neighbouring villages and that they were entitled to a 12% annual escalation in land prices.
Accepting the contention, Justice Borkar said there was no justification for restricting the annual increase to 6%.
“There appears to be no convincing reason for restricting the annual appreciation only to 6% per annum when the material available on record... indicates annual appreciation at the rate of 12% per annum,” the court observed in a detailed 87-page judgment.
Court Directs Deposit Of Balance Compensation Within 12 Weeks
The court held that the evidence on record, the methodology adopted by the Land Acquisition Officer and the earlier High Court judgment supported granting a 12% annual escalation. It accordingly enhanced the market value to Rs.3.13 lakh per hectare, while partly allowing the landowners' appeals and dismissing the appeals filed by the Maharashtra Krishna Valley Development Corporation.
It directed the authorities to deposit the balance compensation with statutory benefits before the Reference Court within 12 weeks.
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