In Brief
The Supreme Court considered whether Bihar Industrial Area Development Authority (BIADA) could recover unearned increase when industrial land allottees transferred their holdings. The Court held that BIADA's policy to calculate recovery based on circle rates (market value) rather than mere cost plus development charges is legally valid. However, the Court disposed the appeals on the principle that no recovery would be made from respondents due to earlier High Court orders protecting their arrangements. The matter was remitted to determine shareholding patterns to decide liability, establishing that those with over 51% initial shareholding avoid transfer charges while others remain liable."
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