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Karnataka: Supreme Court orders state government to pay revised compensation for 1986 land acquisition

#Law & Policy#India#Karnataka#Bangalore
PNT Reporter | Last Updated : 11th Dec, 2024
Synopsis

The Supreme Court rebuked the Karnataka government for delaying compensation to landowners for land acquired in 1986, deeming the 33-year delay unconstitutional under Article 300A, which protects property rights. The court ordered compensation at the 2019 market value for Jayalakshmamma and others, whose two-acre land in Mysuru's Hinkal village was acquired for the Vijayanagar layout. Despite compensation being paid in 2019, it was unfairly calculated at 1986 rates. The court mandated reassessment of land value, with the revised amount to be deposited within four weeks. While condemning the delay, the court upheld acquisition due to public development priorities.

Earlier this month, the Supreme Court strongly voiced its disappointment with the Karnataka government for a decades-long delay in compensating landowners for land acquired in 1986. The court declared that no government has the authority to withhold compensation for extended periods and directed the state to pay the current market value of the land as of mid-2019.


A bench comprising Justices Surya Kant and Ujjal Bhuyan ruled in favour of Jayalakshmamma and other landowners, represented by senior advocate Anand Sanjay M Nuli. The disputed property, approximately two acres in Hinkal village, Mysuru, was initially acquired for the development of the Vijayanagar layout. The acquisition process began with the final notification in 1984, followed by the award in 1986. However, as argued by Nuli, the authorities failed to take possession of the land or provide compensation, leaving the petitioners to retain ownership and bear the associated costs, including taxes and utility bills.

The court observed that withholding compensation for over 33 years violated Article 300A of the Constitution, which safeguards the right to property. The bench sharply criticised the Karnataka government for its failure to justify the delay in payment. Although compensation was eventually paid in 2019, the amount was calculated at the 1986 rate, which the court deemed unfair and inadequate given the significant appreciation in land value over the years.

To rectify the situation, the Supreme Court ordered the Special Land Acquisition Officer to reassess the market value of the land as of mid-2019. It directed the government to deposit the revised compensation amount with the reference court within four weeks of completing this determination. The landowners, in turn, were instructed to hand over the property, free from any encumbrances, after receiving the updated compensation.

Additionally, the court ruled that once the compensation was paid, the landowners would no longer have the right to challenge the acquisition. Despite condemning the delay, the bench recognised that cancelling the acquisition was not feasible. It highlighted the impracticality of isolating a small parcel of land from a larger development project like the Vijayanagar layout, which was designed to serve public interests by providing essential infrastructure and amenities.

This judgment underscores the importance of timely and fair compensation in land acquisition cases, striking a balance between safeguarding individual rights and advancing public development objectives.

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