Supreme Court Boosts Compensation for Farmers in Maharashtra Land Acquisition Case
The Supreme Court has significantly enhanced the compensation granted to farmers whose lands were acquired in 1994 for the establishment of an industrial area in Maharashtra. The court's decision increases the compensation from Rs 32,000 per acre to Rs 58,320 per acre, recognizing the prime location of the land and the farmers' right to fair compensation.
Supreme CourtLand AcquisitionCompensationFarmersMaharashtraReal Estate MaharashtraJul 28, 2025
The bench directed that the compensation granted to the appellants be enhanced from Rs 32,000 per acre to Rs 58,320 per acre. The court noted that the farmers' land was situated in a prime location and they deserved the benefit of the highest sale exemplar. The bench stated that while it could have remitted the matter to the high court for a fresh consideration, it was more appropriate to decide the case in favor of the farmers, given that their land was acquired by the state in the early 1990s.
The top court referred to the settled position of law, which stipulates that when there are several exemplars with reference to similar land, the highest of the exemplars, which is a bona fide transaction, should be considered. The bench also noted that the compensation payable to the landowner is determined by the price which a seller might reasonably expect to obtain from a willing purchaser.
The case involved the acquisition of land for the establishment of the Jintur industrial area. The appellants, who are farmers and owners of the lands situated at Pungala village in Maharashtra's Parbhani district, had their land taken possession of by the state in December 1994. An award was passed by the Land Acquisition Officer, and the total compensation awarded was Rs 45,70,508. Dissatisfied with the quantum of compensation, the appellants moved to the reference court and later to the high court.
The Supreme Court, while allowing the appeals, set aside the high court order. This decision is a significant victory for the farmers, ensuring they receive fair compensation for their land, which was acquired for a public purpose. The court's ruling not only addresses the financial loss of the farmers but also sets a precedent for future land acquisition cases in the region.
The decision underscores the importance of fair and just compensation in land acquisition processes, especially in areas with high economic potential. It also highlights the Supreme Court's commitment to protecting the rights of farmers and landowners, ensuring that they are not unduly disadvantaged by state actions. This ruling is expected to bring relief to many farmers who have long been fighting for fair compensation for their land.
Frequently Asked Questions
What was the main issue in the case?
The main issue was the adequacy of the compensation granted to farmers whose lands were acquired in 1994 for the establishment of an industrial area in Maharashtra. The farmers were dissatisfied with the quantum of compensation and challenged the decision in court.
How much was the compensation increased to?
The Supreme Court increased the compensation from Rs 32,000 per acre to Rs 58,320 per acre.
Why did the Supreme Court decide to enhance the compensation?
The Supreme Court decided to enhance the compensation because the farmers' land was situated in a prime location and they deserved the benefit of the highest sale exemplar. The court also considered the settled position of law and the principle of fair compensation.
What is the significance of this ruling?
This ruling is significant as it ensures fair and just compensation for farmers in land acquisition cases. It sets a precedent for future cases and highlights the Supreme Court's commitment to protecting the rights of farmers and landowners.
Where is the Jintur industrial area located?
The Jintur industrial area is located in Parbhani district, Maharashtra, India.
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