Solatium U/S 30 RFCTLARR Act Has To Be Calculated Only On The Market Value Plus The Value Of The Assets Attached To The Land: SC [Read Judgment]

The solatium as contemplated under sub-section (1) of Section 30 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has to be calculated only on the market value plus the value of the assets attached to the land i.e. total compensation amount as determined as per Sections 26, 27 and 28 of the 2013 Act, the Supreme Court has held in RB Dealers Private Limited vs. The Metro Railway, Kolkata. 

The bench comprising Justice Arun Mishra and Justice MR Shah upheld a Calcutta High Court judgment in this regard by dismissing Special Leave Petitions filed by Land owners whose land were acquired for the purpose of construction of the Metro railway. The bench has held that the solatium shall not include the additional amount at the rate of 12% per annum on such market value as payable under sub-Section (3) of Section 30 of the 2013 Ac

While rejecting the contention put forth on behalf of the land owners, the bench observed:

"On a fair reading of the relevant provisions of the 2013 Act, namely Sections 26 to 30, we are of the opinion that the High Court has rightly observed and held that the solatium amount to be determined and calculated under sub-section (1) of Section 30 of the 2013 Act shall be equivalent to 100% of the market value determined under Section 26 of the Act plus the value of all assets attached to the land i.e. the total amount of the compensation and shall not include an amount calculated at the rate of 12% per annum on such market value payable under sub-section (3) of Section 30 of the 2013 Act.

The court also rejected the contention that the solatium amount equivalent to one hundred per cent of the compensation amount includes the amount calculated at the rate of 12% on such market value (as per subsection (3) of Section 30 of the 2013 Act). It said:

"What is provided under sub-section (1) of Section 30 of the 2013 Act is the "compensation amount" and not the total amount payable as per the final award. The total amount of compensation payable would be only that amount compensation determined as per Sections 26 to 29 of the 2013 Act. "

Click here to Download Judgment

Read Judgment