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Land Value in Similar Adjacent Village Can Be Taken to Determine Compensation in Land Acquisition 2010 Sc

Land Value in Similar Adjacent Village Can Be Taken to Determine Compensation in Land Acquisition 2010 Sc

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The power of compulsive acquisition has an inbuilt element of duty and responsibility upon the State to pay the compensation which is just, fair and without delay. It is the price which would be payable to a person after the complete appraisal of land with its peculiar advantages and disadvantages being estimated with reference to commercial value. Thus, other consequential right, legal or commercial, which remotely flows from an agricultural activity will not and should not be treated as a relevant consideration. The potentiality has to be directly relatable to the capacity of the acquired land to produce agricultural products or, its market value relatable to the known methods of computation of compensation. It is a settled principle of law that lands of adjacent villages can be made the basis for determining the fair market value of the acquired land. The evidence tendered in relation to the land of the adjacent villages would be a relevant piece of evidence for such determination. Once it is shown that situation and potential of the land in two different villages are the same then they could be awarded similar compensation or such other compensation as would be just and fair.


The power of compulsive acquisition has an inbuilt element of duty and responsibility upon the State to pay the compensation which is just, fair and without delay. It is the price which would be payable to a person after the complete appraisal of land with its peculiar advantages and disadvantages being estimated with reference to commercial value. Thus, other consequential right, legal or commercial, which remotely flows from an agricultural activity will not and should not be treated as a relevant consideration. The potentiality has to be directly relatable to the capacity of the acquired land to produce agricultural products or, its market value relatable to the known methods of computation of compensation. It is a settled principle of law that lands of adjacent villages can be made the basis for determining the fair market value of the acquired land. The evidence tendered in relation to the land of the adjacent villages would be a relevant piece of evidence for such determination. Once it is shown that situation and potential of the land in two different villages are the same then they could be awarded similar compensation or such other compensation as would be just and fair.


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08/01/2011

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provisions of law, we have no hesitation in coming to the conclusion

that consequential or remote benefits occurring from an agricultural

activity is not a relevant consideration for determination of the fair

market value on the date of the Notification issued under Section 4(1)

of the Act. It is only the direct agricultural crop produced by the

agriculturist from the acquired land or its price in market at best, which

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is a relevant consideration to be kept in mind by the court while

applying any of the known and accepted method of computation of

compensation or the fair market value of the acquired land.

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