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Karnataka High Court Mandates Prompt Compensation Payment in Land Acquisition Case

LAW FINDER NEWS NETWORK | 9/23/2025, 5:51:00 AM
Karnataka High Court Mandates Prompt Compensation Payment in Land Acquisition Case

Court orders swift compensation deposit by Collector, emphasizing duties under RFCTLARR Act, 2013.


In a significant ruling, the Karnataka High Court has mandated the prompt deposit of compensation in a land acquisition case, highlighting the obligations of the Collector under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act, 2013). The court, presided over by Justice Suraj Govindaraj, addressed the grievance of Shri Lokanna and other petitioners, who sought a writ of mandamus for the timely compensation of their acquired land.


The petitioners, owners of land in Bagalkot, faced delays in receiving compensation following a general award declaration on October 5, 2024, despite fulfilling all required documentation. Responding to the petition, the court underscored the statutory duty of the Collector to deposit the awarded compensation into the bank accounts of the land losers within 30 days of the award, barring any disputes regarding the title.


Justice Govindaraj clarified that under Sections 30 and 77 of the RFCTLARR Act, 2013, the Collector is obligated to expedite the compensation payment process unless hindered by specific contingencies like title disputes. Importantly, the court noted that disputes over the compensation amount do not justify withholding payment, as land losers can file a reference under Section 64(1) for further adjudication on the compensation quantum.


The court dismissed the respondents' argument that the petitioners should pursue execution proceedings, asserting that there is no necessity for such actions when the Collector has a clear statutory duty to remit the compensation directly. The ruling emphasized that the Collector's failure to execute this duty, even when compensation quantum is contested, is unjustified.


In its order, the High Court allowed the writ petition and issued a mandamus directing the Collector to deposit the compensation amount with applicable interest within four weeks from receipt of the court order. The court also instructed that the Reference Authority address any compensation amount disputes as per legal provisions, noting that no title objections existed in this case.


This judgment reinforces the accountability mechanisms within the RFCTLARR Act, ensuring timely compensation to land losers and setting a precedent for adherence to statutory obligations by authorities involved in land acquisition processes.


Bottom Line:

Land Acquisition - Collector's duty to deposit compensation amount into the land loser's bank account within 30 days of the award under Section 30 of the RFCTLARR Act, 2013, unless there is a dispute regarding title. 


Statutory provision(s): Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Sections 30, 77, 64(1).


Shri. Lokanna v. State of Karnataka, (Karnataka) : Law Finder Doc Id # 2790333

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