The Supreme Court has recently delivered a landmark judgment concerning compensation for land acquisition. Exercising its special powers, the apex court has issued a crucial decision that brings significant relief to landowners across the country. This ruling is expected to influence several ongoing disputes between the government and landowners over fair compensation.
Supreme Court Invokes Special Powers for Compensation Verdict
In a notable move, the Supreme Court utilized its special powers under Article 142 of the Constitution to pass this verdict. This provision allows the court to exercise authority to ensure complete justice in any case. The decision aims to address the longstanding grievances of farmers and other landowners who have been waiting for fair compensation.
Compensation Based on Current Market Value
The Supreme Court clarified that if there is an unreasonable delay in providing compensation after land acquisition, the affected landowners are entitled to receive compensation based on the current market value of the land. This ruling is expected to set a precedent for similar cases across India, ensuring that landowners are not deprived of their due rights.
Background of the Case
The case that led to this landmark decision involved a petition filed against the Karnataka Industrial Area Development Board (KIADB). In 2003, KIADB issued a notification to acquire thousands of acres of land from farmers for the Bengaluru-Mysore Infrastructure Corridor project. However, despite acquiring the land, the board failed to disburse the compensation to the landowners.
Delay in Compensation Led to Legal Battle
Due to the prolonged delay in releasing the compensation, landowners sought legal intervention. Although the court had previously directed the board to release the payments, KIADB failed to comply. In 2019, the board faced contempt proceedings for not honoring the court’s order. Eventually, KIADB agreed to compensate the landowners based on the 2003 market rates.
Landowners Challenge Compensation Rate in High Court
Unhappy with the outdated valuation, landowners approached the Karnataka High Court, seeking compensation based on the market value in 2019. The High Court ruled in their favor and directed the land acquisition officer to calculate the market value as of April 22, 2019. However, KIADB challenged this order in the Supreme Court.
Supreme Court Criticizes Outdated Compensation Rate
While hearing the case, a bench comprising Justices BR Gavai and KV Vishwanathan expressed dissatisfaction with the 2003 valuation. Justice Gavai stated that paying compensation at rates from 2003 would be an injustice to landowners, who had already been deprived of their land for over 22 years. He remarked that determining compensation based on outdated rates is akin to mocking justice.
Land Ownership: A Constitutional Right
The Supreme Court emphasized that, although the 44th Amendment of 1978 removed the right to property as a fundamental right, it remains a constitutional right under Article 300A. The court stressed that land ownership is also a human right in a welfare state, and ensuring timely and fair compensation is essential.
Final Verdict: Compensation to Be Based on 2019 Market Value
The Supreme Court concluded by directing KIADB to determine and disburse compensation based on the market rates of 2019. This ruling reinforces the importance of timely and fair compensation in land acquisition cases, safeguarding the rights of landowners.
This decision is expected to impact future land acquisition cases and ensure that landowners receive just compensation aligned with the current market value.