In a significant judgment offering long-awaited relief, the Supreme Court on Monday enhanced the compensation payable to a group of farmers whose lands were acquired in 1994 by the Maharashtra government for the development of an industrial area.
A bench comprising Chief Justice B.R. Gavai and Justice Augustine George Masih was hearing appeals filed by the affected farmers challenging a 2022 order of the Bombay High Court, which had dismissed their claim for higher compensation. The Supreme Court reversed the high court’s order and raised the compensation amount from ₹32,000 per acre to ₹58,320 per acre.
“We direct that the compensation granted to the appellants be enhanced,” the court ordered, emphasizing that the land in question was located in a prime location, warranting consideration of the highest comparable sale exemplar.
The case pertains to land in Pungala village, located in Parbhani district, which was acquired for the establishment of the Jintur industrial area. The acquisition, conducted in December 1994, resulted in a total award of ₹45.7 lakh as determined by the Land Acquisition Officer. Dissatisfied with the compensation, the farmers pursued remedies before the reference court and subsequently the high court, before finally approaching the apex court.
While deliberating on the matter, the bench underscored that “when there are several exemplars with reference to similar land, usually the highest of the exemplars, which is a bona-fide transaction, will be considered.” The judgment reiterated the settled principle that compensation should reflect what a willing seller might reasonably expect from a willing buyer.
Though the top court considered remitting the case back to the Bombay High Court, it declined to do so, citing the prolonged delay and the fact that the landowners were small farmers who had already waited over three decades for just compensation.
With this ruling, the Supreme Court not only set aside the Bombay High Court’s 2022 verdict but also reaffirmed its commitment to ensuring equitable treatment and just compensation for those whose lands are acquired for public purposes.
