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by sayum
14 February 2026 2:22 PM
The Supreme Court of India, in a recent judgment, addressed appeals concerning the enhancement of compensation for land acquired under the Hippargi Barrage project. The central legal issue was the determination of the fair market value and statutory benefits owed to the appellants whose lands were acquired for the construction of canals.
The appellants, landowners of irrigated lands, were initially awarded compensation of Rs. 1,31,263 per acre by the Special Land Acquisition Officer (S.L.A.O.). Dissatisfied, they approached the Reference Court, which increased the market value to Rs. 3,00,000 per acre. Subsequent appeals and cross-objections by both parties led to a re-evaluation of the compensation amount. Notably, in a similar matter, the market value was set at Rs. 3,69,000 per acre, a decision previously confirmed by the Supreme Court.
Comparable Sales Method: The appellants sought compensation at Rs. 5,00,000 per acre, based on a High Court order for similar lands acquired during the same period under the same project. The Supreme Court noted the respondents' admission to the fairness of a market value of Rs. 3,69,000 per acre for acquisitions from 2004-2005.
Annual Escalation: Acknowledging an annual escalation rate of 5% applied from the fixed market value in 2004-2005, the court found it just to set the compensation for lands acquired in 2007 at Rs. 4,50,000 per acre, modifying an earlier High Court order.
Equitable Relief: The Court directed that the appellants be compensated at the enhanced rate with all statutory benefits, interest, and costs, though it upheld the High Court's decision to deny interest for delays in filing cross-objections.
Decision The Supreme Court allowed the appeals, granting compensation at Rs. 4,50,000 per acre. It emphasized that the decision was based on the peculiar facts of the case and should not serve as a precedent for future claims.
Date of Decision: May 07, 2024
Shripal & Anr. vs Karnataka Neravari Nigam Ltd. & Anr.
