Summary
The Supreme Court increased acquisition compensation to Rs. 4,43,258 per acre by replacing a 67.5% development deduction with one-third on the particular facts. It retained the earlier sale exemplar and escalation calculation, while rejecting the post-notification instances relied on for review. Development deductions vary with the land and necessary works; the higher cut was unjustified here. Statutory benefits followed, but interest was excluded for the claimants’ delay in appealing from review.
Issues
- Whether the post-notification instances and the 67.5% development deduction justified revising compensation.
Held
- Market value was to be determined at the Section 4 notification date. Applying the cited authority, the Court declined to use the later sale and subsequent acquisition instances relied upon by the claimants. (¶¶ 4, 5, 6)
- A small developed-plot exemplar may require deductions for land devoted to amenities and for development expenditure. The percentage is fact-sensitive; one-third is common but neither a rigid minimum nor maximum. (¶¶ 7, 8, 9, 10, 11)
- Here 67.5% was excessive. From the escalated exemplar value of Rs. 6,64,887 per acre the Court deducted one-third, Rs. 2,21,629, yielding Rs. 4,43,258 per acre. All statutory benefits were allowed, with no interest for delay in preferring appeals from review. (¶¶ 11, 12)
Result
Appeals partly allowed; compensation enhanced to Rs. 4,43,258 per acre with statutory benefits. Interest excluded for the period of delay in appealing from review.