In Brief
Bharat Sanchar Nigam Limited challenged a High Court decision that had increased land acquisition compensation from Rs. 21 per sq. ft. to Rs. 174 per sq. ft. (an 800% increase), based primarily on Ready Reckoner rates prescribed for stamp duty purposes. The Supreme Court held that Ready Reckoner rates cannot form the basis for determining compensation under the Land Acquisition Act, as they apply uniform valuations across entire areas without accounting for individual land characteristics. The Court emphasised that compensation must be based on genuine bona fide transactions of comparable land, adjusted for location, size, proximity to amenities, and other site-specific factors. The appeal was allowed and the Reference Court's original award of Rs. 21 per sq. ft. was restored.
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