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Market value of acquired land must be determined considering existing geographical situation, advantages, disadvantages, and evidence produced by claimant. Claimant failed to produce evidence to prove claim for higher compensation. In absence of comparability and supporting evidence, no basis to interfere with High Court's award based on appellant's own demand.
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The Supreme Court held that compensation for the lands acquired under the Land Acquisition Act, 1894 should be reassessed based on market value, applying a cumulative yearly escalation rate of 12% per annum from date of Notification under s.4; deduction for development costs should generally be one-third (33 1/3%) instead of the higher rates (40% or 60%) imposed by lower courts; the belting system for dividing acquired land is inappropriate unless justified by distinct potentiality. Statutory benefits are to be given as per the Act.
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Sale instances relied upon by claimants were collusive and not bona fide, so fair market value must be determined using comparable sales after deduction for development charges; a 10% deduction is just in these circumstances. Compensation is fixed at Rs. 11,70,000 per acre with statutory benefits.
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The compensation for acquired land must consider its building potential as indicated by urban development and evidence of rapid price increase; awards for comparable neighbouring land and ongoing area development are appropriate reference points where proceedings are protracted. Belting system is not justified for housing project land within developed municipal limits, and compensation must be set at Rs.225/- per square yard.
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High Court was in error in awarding compensation at a uniform rate for all lands; claimants must establish equivalence in market value between levelled-up and low-lying lands. Belting system adopted by Land Acquisition Officer and Reference Court is proper for determining just compensation.
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