Supreme Court enhances compensation to farmers whose lands acquired in Maharashtra

The Supreme Court on Monday enhanced the compensation granted to farmers whose lands were acquired in 1994 for setting up an industrial area in Maharashtra.

A bench of Chief Justice B R Gavai and Justice Augustine George Masih was deciding the pleas challenging an April 2022 order of the Bombay High Court, which had dismissed the appeals filed by the farmers.

"We direct that the compensation granted to the appellants be enhanced from Rs 32,000 per acre to Rs 58,320 per acre," the bench held.


The court observed farmers' land was situated in a "prime location" and they deserved the benefit of the highest sale exemplar.

The bench noted it could have remitted the matter to the high court for a fresh consideration but said appellants were farmers and their land was acquired by the respondent-state in the early 1990s, and it was only appropriate for it to decide if they ought to be granted compensation on the basis of the highest exemplar sale deed.

The top court referred to the settled position of law stipulating when there were several exemplars with reference to similar land, "usually the highest of the exemplars, which is a bona-fide transaction, will be considered".

The bench said it was also settled that compensation payable to the land owner was determined by reference to the price which a seller might reasonably expect to obtain from a willing purchaser.

Dealing with the case, the bench said the land was acquired for public purpose for the establishment of Jintur industrial area.

While allowing the appeals, the bench set aside the high court order.

The appellants were stated to be farmers and owners of the lands situated at Pungala village in Maharashtra's Parbhani district .

The bench said in December 1994, the state took possession of the appellants' land and an award was passed by the Land Acquisition Officer.

It noted the total compensation awarded was Rs 45,70,508.

Being aggrieved by the quantum of compensation awarded, the appellants moved the reference court and later to the high court.