Chhattisgarh High Court Upholds Land Acquisition for Adani Power, Dismisses Compensation Objections

Court Emphasizes Statutory Distinctions, Allows State to Proceed with Industrial Development Project

In a significant ruling, the Chhattisgarh High Court has upheld the land acquisition process for Adani Power Limited, dismissing objections primarily related to compensation and employment raised by Panchanand Gupta, a landowner affected by the acquisition. The court emphasized the proper statutory procedures under the Land Acquisition Act, 1894, asserting that objections under Section 5A must pertain directly to the acquisition itself, not ancillary issues such as compensation or environmental safeguards.

The judgment, delivered by Chief Justice Ramesh Sinha and Justice Bibhu Datta Guru, pertains to writ appeals arising from a prior order dated August 14, 2025, where the learned Single Judge had set aside the award based on the alleged non-compliance with Section 5A(1). However, the Division Bench clarified that the objections raised by Gupta were outside the ambit of Section 5A, which only addresses objections to land acquisition itself and not related compensation matters.

The court noted that Gupta had accepted the public purpose of the acquisition for industrial development but raised demands confined to compensation and ancillary benefits. It pointed out that such issues are to be addressed under Sections 11 and 18 of the Land Acquisition Act, which provide for determining compensation and seeking reference to a civil court, respectively.

The judgment underscored the need for judicial restraint in unsettling concluded acquisitions involving large-scale public projects, referencing the Supreme Court's stance in cases like New Okhla Industrial Development Authority v. Darshan Lal Bohra. The court highlighted the substantial public investment made in the project since its operational commencement in 2013 and the significant public interest it serves.

In its ruling, the court dismissed the writ petitions, allowing the State's notifications under Sections 4(1) and 6 of the Land Acquisition Act to stand, and preserving the acquisition and award for all affected landowners, including Gupta. The judgment also reaffirmed Gupta's right to seek enhanced compensation through the statutory remedy provided under Section 18 of the Act.

Legal experts view this judgment as a reinforcement of statutory distinctions within the land acquisition framework, emphasizing the limited scope of objections under Section 5A. It also reflects the court's cautious approach in dealing with public projects and the interests of third parties involved.

Bottom Line:

Land Acquisition - Objections under Section 5A of the Land Acquisition Act, 1894 must pertain to acquisition of land itself and not ancillary issues like compensation, employment, or environmental safeguards. Objections outside the ambit of Section 5A are to be addressed under relevant statutory provisions or policies. Courts must exercise caution in unsettling concluded acquisitions involving large public projects, particularly where third-party rights and public interests are at stake.

Statutory provision(s): Section 5A, Section 11, Section 18 of the Land Acquisition Act, 1894

Adani Power Limited v. Panchanand Gupta, (Chhattisgarh)(DB) : Law Finder Doc Id # 2823059