Delhi High Court Enhances Compensation in Land Acquisition Cases for Kilokari and Adjacent Villages to Rs. 2.07 Lakhs per Bigha

Court Recognizes Building Potentiality and Proximity to Developed Colonies; Directs Payment of Balance Compensation with Interest under Section 28A of Land Acquisition Act, 1894

In a significant judgment dated September 26, 2025, the Delhi High Court, presided over by Justice Tara Vitasta Ganju, has allowed a batch of 144 appeals related to land acquisition in four villages - Kilokari, Khizrabad, Nangli Razapur, and Garhi Mendu. The land in these villages was acquired under a 1989 notification for the planned development and channelization of the Yamuna river. The Court enhanced the compensation payable to landowners from Rs. 89,600 per Bigha, awarded by the Reference Court, to Rs. 2,07,500 per Bigha, based on unimpeached sale exemplars and the land's development potential.

The litigation arose when the Land Acquisition Collector (LAC) initially assessed compensation at Rs. 27,344 per Bigha, considering the land as 'Sailabi' (flood-prone) or 'Khadar' (alluvial). The Reference Court had enhanced this to Rs. 89,600 per Bigha, relying on the precedent in the Attar Singh and Tindey cases, but the appellants contended that this undervalued their land. They submitted that their land, situated near posh colonies like Maharani Bagh, Kalindi Colony, and New Friends Colony, possessed higher potentiality, evidenced by a registered sale deed dated March 17, 1988, which recorded a sale price of Rs. 2,07,500 per Bigha in Kilokari.

The Court undertook a detailed examination of evidence, including affidavits, cross-examinations, and a site inspection report, which confirmed the land was under cultivation and not submerged at the time of acquisition. It also recognized the proximity to developed urban colonies, highlighting that the acquired land was neither submerged nor “Sailabi” in a manner that eliminated its development potential. The Court dismissed the respondents’ arguments that the land lacked building potentiality due to environmental restrictions and waterlogging, noting the presence of multi-storeyed buildings in adjacent areas such as Siddharth Nagar and the development of colonies dating back to the 1960s and 70s.

The judgment underscored the principle of parity under Section 28A of the Land Acquisition Act, 1894, which mandates that once the Court determines a higher compensation for land under a particular notification, all other similarly situated landowners covered by the same notification must receive equivalent compensation. The Court therefore ordered that compensation at Rs. 2,07,500 per Bigha be awarded uniformly to landowners in Kilokari, Khizrabad, Nangli Razapur, and Garhi Mendu. Since the appellants had already received Rs. 89,600 per Bigha, the balance amount is to be paid with interest and statutory benefits.

This ruling reinforces the settled legal position that the highest bona fide sale exemplar of similar land, accounting for building potentiality and proximity to developed colonies, should be the basis for compensation in land acquisition. The Court rejected the averaging of sale prices and upheld the unimpeached higher sale deed as the correct benchmark. It also emphasized that the acquisition’s compulsory nature requires fair and just compensation to avoid discrimination among landowners.

The judgment has been hailed as a landmark for landowners in Delhi and sets a precedent for future land acquisition cases, ensuring that compensation reflects true market value inclusive of potential development benefits.

Bottom Line:

In land acquisition cases, compensation must reflect the highest bona fide sale exemplar of similar land, recognizing building potentiality and proximity to developed colonies; where land under the same notification and similar conditions has been judicially valued, parity in compensation must be ensured.

Statutory provision(s): Land Acquisition Act, 1894 - Sections 4(1), 6, 11, 17, 18, 23, 24, 28A

Bed Ram v. UOI, (Delhi) : Law Finder Doc Id # 2789486