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Chandigarh Municipal Corporation in dispute over INR 32 crore land compensation

Synopsis

The Chandigarh Municipal Corporation (MC) is in a dispute with the Chandigarh administration over INR 32 crore in land acquisition compensation. The MC claims ownership of the land and seeks the release of the funds, but ownership remains contested. The issue involves four plots totaling 652 kanals (81.5 hectares) acquired between 2004 and 2009 in villages like Maloya and Sector 39. Despite the administration paying INR 31.79 crore in compensation, the money has remained unused due to legal disputes. The MC's claim is bolstered by a 2022 Supreme Court judgment favoring gram panchayat ownership, potentially strengthening their case as the successor to these councils.

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The Chandigarh Municipal Corporation (MC) is locked in a dispute with the Chandigarh administration over INR 32 crore related to land acquisition compensation. The MC claims ownership of the land and wants the money released, but the issue of who rightfully deserves the compensation remains unresolved.

The dispute centers around four plots of land totaling approximately 652 kanals (around 81.5 hectares) acquired by the Chandigarh administration between 2004 and 2009 for various development projects in Chandigarh villages. These villages, including Maloya and Sector 39, were previously under the jurisdiction of gram panchayats (village councils) but later came under the purview of the MC.

The Chandigarh administration paid a total of INR 31.79 crore as compensation for the acquired land. However, this money has been lying unused in reference courts for the past 15-20 years due to legal issues surrounding ownership. Villagers had previously contested that the land belonged to them and the compensation should be paid to them, not the gram panchayat.

The MC is now basing its claim on a recent Supreme Court judgment from April 7, 2022. This judgment stated that land once added to the common pool (including gram panchayat land) remains vested with the gram panchayat, even if unused for a specific purpose. This potentially strengthens the MC's claim as the successor to the gram panchayats in these villages.

Here's a breakdown of the land acquisition details: In March 2004, around 652 kanals were acquired in Maloya for urban development, with compensation amounting to INR 7.05 crore. In June 2009, about 148 kanals were acquired in Sector 39 for the development of the modern terminal market, with compensation deposited in March 2014. In September 2009, land was acquired in Maloya village for slum rehabilitation colonies, with compensation of INR 6.14 crore deposited in April 2010. Additionally, in October 2009, another block of village land was acquired, with compensation of INR 2.25 crore deposited in March 2010.

The MC has written to the UT land acquisition officer requesting the release of the INR 31.79 crore compensation amount along with accrued interest. It remains to be seen how the Chandigarh administration responds. Negotiations or even a legal battle are possibilities as both sides try to resolve the land ownership dispute and claim the compensation.

This case highlights the complexities of land ownership and compensation issues, especially when administrative boundaries change. It will be interesting to see how this dispute unfolds and how the INR 32 crore in question is ultimately distributed.

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