Land's market value be determined keeping in view factors like proximity to developed area, road:SC

The Supreme Court Monday said that the nature of the land is not the factor that alone is determinative of its market value and it must be determined keeping in view factors, including proximity to developed area and the road.

The apex court made the observation while setting aside the July 2017 order of the Bombay High Court which had assessed as Rs 56,500 per hectare the compensation for land acquired for resettlement of affected person from lower Wardha submergence project.

A bench of Justices Hemant Gupta and V Ramasubramanian said the high court had erred in law in setting aside the determination of the market value of the land by the reference court, which had enhanced the compensation to Rs 1,95,853 per hectare.

"It is not the nature of the land which alone is determinative of the market value of the land. The market value must be determined keeping in view the various factors including proximity to the developed area and the road etc," the bench said.

The top court delivered the verdict on the pleas filed by the landowners against the high court order.

The bench noted that as per the evidence led by the landowners, the land acquired is half a kilometre from the road and is close to the developed residential or commercial or institutional area.

"Therefore, we find that the reasoning of the high court is fallacious and not sustainable. Consequently, appeals are allowed. The order passed by the high court is set aside and the order of the reference court is restored," it said.

The high court had set aside the order of the reference court which had enhanced the amount of compensation to Rs 1,95,853 per hectare.

The apex court noted in its verdict that 2.42 hectares of land were intended to be acquired in pursuance of the notification under section 4 of the Land Acquisition Act, 1894 published in February 1999 for resettlement of affected person from the project.

It noted that the Special Land Acquisition Officer had granted compensation at the rate of Rs 56,500 in July 2000. The landowners had said the acquired land was near to the populated area of Deoli town having all the facilities like educational institutions, banks, Tehsil office, hospitals and is located within the municipal area of Deoli.

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