[Land Acquisition] Land Owners Entitled To Rent, Damages & Consequential Benefits From Date Of Dispossession By Govt: Telangana High Court

Brief Facts of the Case

The agricultural land of the appellant was acquired for excavation of Bethupalli flood flow channel along with other lands. After enquiry, the Land Acquisition Officer has passed an Award dated 06.03.1997 fixing the market value for various lands categorizing them.

The market value fixed for the land of the appellant was Rs. 23,400/- per acre. The appellant claimed compensation at Rs. 1,50,000/- per acre, but the same was not accepted by the Land Acquisition Officer. Thus, the Claimant sought reference.

The reference Court after appreciating the evidence on record confirmed the market value fixed by the Land Acquisition Officer. Challenging the same, the appeal was filed.

The appellant contended that his land was very near to the highway and thus it was an advantageous land and he was entitled for enhancement of compensation as per the market value. He relied on the sale deed document covering an extent of land admeasuring Ac. 0.10 guntas, which was sold for total amount of Rs. 30,000/-. The market value for one acre was thus calculated at Rs. 1,20,000/- per acre.

The respondent contended that the sale transaction was not a genuine transaction and the sale price was inflated therein in anticipation of the acquisition proceedings. Further, the sale deed relied on by appellant related to smaller extent, and hence the same was not rightly relied upon by the respondent and the Reference Court. The Respondent submitted that the market value fixed was fair with reference to its potentiality, fertility of soil and the then prevailing market conditions.

Findings of the Court

The court observed that appellant's land which was near to the State highway would fetch more price than which are far away to the road access. Furthermore, considering the sale transaction in respect of land admeasuring Ac. 0.10 guntas and evidence of appellant, the Court opined that fixation of market value of Rs. 75,000/- per acre was just and fair in the facts and circumstances of the case. Accordingly, the market value in respect of the subject property was enhanced from Rs. 23,400/- to Rs. 75,000/- per acre.

In respect of consequential benefits, the court relied on the case Special Deputy Collector & Land Acquisition Office, SRSP L.A. Unit, Warangal v. Myakala Veera Reddy and Others (2022) in which it was held that the land owners are entitled for rent or damages towards use and occupation for the period the Government retains possession before notification under the Land Acquisition Act.

The court allowed additional benefit of 12% per annum towards rent or damage for use and occupation of the land from the date of possession till the notification passed by the Government.

In the result, the appeal was partly allowed.

Case Title: Madiraju Radha Krishna Rao v. The Land Acquisition Officer

Citation: 2022 LiveLaw (Tel) 26

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