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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 claimants are entitled to compensation at Rs. 2,800/- per cent after applying a 30% deduction to the comparable sale instance, plus solatium and interest as per the proviso to Section 34.
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The High Court erred in adopting DDA leasehold allotment rates and in averaging sale deeds without appropriate development deduction. Sale deeds for small residential plots in Rithala village in 1981 are relevant evidence for market value, but must be averaged and a 40% development deduction applied to determine proper compensation for large agricultural holdings. Exemplar sale deeds showing much lower values are excluded as likely distress sales or undervalued.
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