Employment Assured to Land Losers as State Policy Prevails in Landmark Judgment
In a significant judgment delivered by the Chhattisgarh High Court on January 27, 2026, Justice Arvind Kumar Verma ruled in favor of the petitioners, Ishwarilal Sahu and others, in their plea against the South Eastern Coalfields Limited (SECL). The court held that the State Government's Rehabilitation Policy of 2007 and its amendments shall have overriding effect over SECL guidelines concerning employment benefits for land losers. This decision affirms the petitioners' entitlement to employment benefits despite the land acquired being less than two acres.
The case revolved around the acquisition of land for an SECL project in 2009, during which the petitioners' land was taken with the promise of employment as part of the rehabilitation measures. However, SECL denied the petitioners employment benefits, citing its policy that required a minimum of two acres of land for eligibility. The court found SECL's denial of employment benefits based on its guidelines to be incorrect, emphasizing that the State Policy mandates employment for land losers.
The judgment noted that the land acquisition and rehabilitation proceedings were governed by the Chhattisgarh Rehabilitation Policy, 2007, which did not stipulate a minimum land requirement for employment eligibility. Justice Verma clarified that the policy in force at the time of land acquisition is relevant for granting rehabilitation benefits, and subsequent changes in policy would not affect the petitioners' claim.
Furthermore, the court addressed the issue of land partition among family members prior to acquisition, stating that such partition cannot be termed malafide if it occurred naturally and before knowledge of land acquisition. The petitioners were deemed entitled to employment benefits under the State Rehabilitation Policy, and SECL was directed to reconsider the petitioners' claims within 45 days.
The judgment underscored the right to rehabilitation and employment as integral to the right to life under Article 21 of the Constitution of India. It criticized SECL's denial of employment as violative of Articles 14, 15, and 21, emphasizing the significance of employment benefits for land oustees.
This decision is expected to have far-reaching implications for similar cases, reaffirming the supremacy of state policies over guidelines from public sector undertakings in matters of land acquisition and rehabilitation. It sets a precedent for ensuring that land losers are granted employment benefits as per the policy in force at the time of acquisition, protecting their rights and livelihoods.
Bottom Line:
Rehabilitation policy of the State Government shall prevail over the guidelines or policies framed by public sector undertakings like SECL. Employment to land losers must be granted as per the rehabilitation policy in force at the time of acquisition of land.
Statutory provision(s): Land Acquisition Act, 1894 Section 4, Chhattisgarh Land Revenue Code, 1959 - Section 247, Article 21 of the Constitution of India
The judgment marks a crucial victory for the petitioners and reinforces the legal framework governing land acquisition and rehabilitation in Chhattisgarh, ensuring that affected families receive the benefits promised to them.
Ishwarilal Sahu v. State of Chhattisgarh, (Chhattisgarh) : Law Finder Doc id # 2845204
