Supreme Court grants parity in land acquisition compensation to all landowners
The Supreme Court of India has recently emphasized equitable compensation in land acquisition cases, ensuring parity for similarly situated landowners. This stems from key rulings focusing on fairness under the Land Acquisition Act, 1894, and its successor laws.
In May 2025, Justices Surya Kant and Ujjal Bhuyan ruled that compensation must reflect equity, not mechanical assessment, for lands in Gurugram villages (Fazalwas and Kukrola). Lands with similar potential—such as those in the “inner belt” near NH-8—received parity at Rs 1.21 crore per acre, overriding strict proximity distinctions.
On March 24, 2026, the Court held that landowners can seek a second re-determination under Section 28A based on High Court enhancements, treating it as a beneficial provision for parity without estoppel. This ensures equal treatment for all affected parties, even after initial awards.
The Court stresses time-escalated market values, solatium, and interest (e.g., 9% under the Act), rejecting financial burden as a bar to just compensation under Article 14. These apply to industrial, highway, and similar acquisitions, promoting non-discriminatory equity.
