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The Supreme Court observed that even if the compensation awarded for land notified in 1994 was accepted, with a base price of Rs 30,000 per acre and a cumulative annual appreciation of 10%, the amount would total approximately Rs 94,153 per acre
The Supreme Court has enhanced compensation to Rs 90,000 per acre, with all statutory benefits, for landowners whose property was acquired for the expansion of a water tank. The decision came in response to an appeal filed by R. Manohara Murthy and others, challenging the Karnataka High Court’s judgment of July 26, 2021.
A bench comprising Justices B.R. Gavai and K.V. Viswanathan noted that the land in question, admeasuring 14 acres and 37 guntas in Survey No. 15 at Yarabally village, Hiriyur Taluk, was initially notified for acquisition through a preliminary notification issued on October 19, 2006. A final notification followed on January 16, 2009, and compensation was determined at Rs 23,000 per acre in an award dated December 14, 2008.
Unhappy with this amount, the landowners sought redress in the Reference Court, which increased the compensation to Rs 35,000 per acre. Dissatisfied with this enhancement, the appellants approached the Karnataka High Court, which further raised the compensation to Rs 66,000 per acre, using a 1994 case as a benchmark. The High Court had applied a base price of Rs 30,000 per acre from 1994, adding a 10% annual escalation over 12 years to arrive at its figure.
Still aggrieved, the appellants moved the Supreme Court, seeking a further increase. Their counsel presented a chart showing that, with the cumulative 10% annual escalation applied to the 1994 base price of Rs 30,000, the compensation should amount to Rs 94,153 per acre for 2006.
The bench also considered a Reference Court order from October 25, 2021, in which similar land was valued at Rs 5,103 per gunta, translating to Rs 2,00,000 per acre. Accounting for the six-year gap between the notifications for the two cases and applying a 10% deduction per year, the value for the appellants’ land would still reach Rs 1,40,000 per acre. However, the bench decided not to delve further into this aspect.
Court concluded that even if the 1994 base price of Rs 30,000 per acre was accepted, with a 10% cumulative appreciation applied annually, the compensation would reasonably amount to Rs 94,153 per acre. In light of this, the Supreme Court allowed the appeal and fixed the compensation at Rs 90,000 per acre, along with all statutory benefits.
Case Title: R. Manohara Murthy and Others vs. Assistant Commissioner and Land Acquisition Officer
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