Delhi HC boosts land compensation payout

Delhi High Court raises land compensation for villagers from ₹89,600 to over ₹2 lakh per bigha for Yamuna project, citing discrimination in valuation.

The Delhi High Court has enhanced compensation for hundreds of villagers from Kilokri, Khizrabad, Nangli Razapur and Garhi Mendu whose lands were acquired over three decades ago for the Yamuna Channelisation Project. The court increased the compensation from ₹89,600 per bigha to more than ₹2 lakh per bigha, directing the government to pay the balance amount with interest.

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The order, delivered by a bench of justice Tara Vitasta Ganju on September 26 and released on Monday, came while deciding over 140 appeals filed by villagers against a 2006 trial court ruling that had earlier increased compensation from ₹27,344 to ₹89,600 per bigha.

The acquisition was carried out under a 1989 notification for the “Planned Development of Delhi” and the channelisation of the Yamuna -- a Delhi Development Authority (DDA) project that sought to regulate the river and prevent flooding. Under the plan, about 3,500 hectares of land were acquired across 15 villages along the riverbanks.

The villagers contended that the Land Acquisition Collector (LAC) had undervalued their land, first assessing it at ₹26,000 per bigha in 1959, and later awarding ₹27,344 per bigha in 1992. They argued that the rate did not reflect the fair market value at the time of acquisition in 1989. They alleged that landowners in nearby Behlolpur Khadar and Jasola villages had received much higher compensation -- ₹2.5 lakh per bigha and ₹4,948 per sq yard respectively -- despite comparable location and potential for urban development.

In particular, the petitioners argued that the lands in Kilokri should not have been valued differently from nearby upscale neighbourhoods such as Maharani Bagh, Kalindi Colony and Jangpura, given their proximity and similar urban potential.

DDA and the Centre, however, opposed the plea, asserting that the acquired land was “sailabi” -- low-lying and prone to flooding -- and therefore could neither be used for agriculture nor for construction. They maintained that the lands could not be compared with the developed or developable tracts in adjoining villages.

The court rejected this argument. It noted that the petitioners had shown the land was located near areas that had begun developing as early as the 1970s. Neither DDA nor the Centre, the court observed, could prove that the land was repeatedly submerged or unfit for development.

Concluding that denying the villagers the same rate of compensation as nearby areas would amount to discrimination, the court said: “In matters of compulsory acquisition, the Government needs to keep in mind that the villagers whose land is acquired are not willing parties but are compelled to sell their lands to the State for public purposes. Thus, failing to award similar compensation in similar areas would lead to discrimination between the land owners.”

The court further cited Section 28A of the Land Acquisition Act, which mandates that once a particular compensation rate is judicially determined, all landowners whose land was acquired under the same notification are entitled to the same benefit. Accordingly, the court held that all villagers from Kilokri, Khizrabad, Nangli Razapur and Garhi Mendu would be entitled to the enhanced compensation.