Court rules in favor of landowners, ordering National Highway Authority to compensate for service roads and open spaces.
In a significant ruling, the Bombay High Court's Aurangabad Bench has directed the National Highway Authority of India (NHAI) to compensate landowners fully, including for land reserved for public utilities such as service roads and open spaces. The judgment, delivered by Justices Kishore C. Sant and Sushil M. Ghodeswar, came in response to a writ petition filed by Youvraj and others, who challenged the non-payment of compensation for land acquired for public utility purposes.
The petitioners' land was acquired for the widening of National Highway No. 211, with a total compensation of Rs. 64,09,201 determined by the Deputy Collector. However, a dispute arose when authorities refused to compensate for 2168 sq. meters of land designated for a service road, arguing that it was reserved for public use and thus not eligible for compensation.
The High Court, referencing the Supreme Court's precedent in Pt. Chet Ram Vashist v. Municipal Corporation of Delhi (1995), held that landowners are entitled to compensation for all acquired land, including areas reserved for public utility. The Court emphasized that such reservation inherently serves a public purpose, but does not negate the landowners' right to fair compensation.
Furthermore, the judgment invoked the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013, stipulating that compensation must be calculated at double the market value plus a 100% solatium. The Court criticized the arbitrary actions of the authorities in withholding compensation and ordered the respondent to rectify this within two months or face a penalty of Rs. 50,000 for any delays.
This landmark decision underscores the judiciary's commitment to uphold landowners' rights and ensure fair compensation in land acquisition cases, setting a precedent for future disputes involving land reserved for public utilities.
Bottom line:-
Land Acquisition - Compensation payable to landowners even for land reserved for public utility such as service roads, open spaces, and amenities under the National Highways Act, 1956 and related laws.
Statutory provision(s): National Highways Act, 1956; Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013; Delhi Municipal Corporation Act, 1957.
