In Brief

Land acquired in Punjab in 1988 for a cotton spinning mill was valued by courts with reference to a sale deed dated 1979 (a 9-year gap). Land owners sought enhancement of compensation, arguing for cumulative escalation at 12% annually and no deduction for development charges. The Supreme Court held that gaps exceeding 4-5 years make escalation methods unsafe; here, militancy in Punjab (1979–1992) caused price crashes, making 12% escalation unjustified. Maximum 10% escalation was appropriate. The High Court's 15% deduction for development charges on agricultural land acquired for industrial use was reasonable. The Court upheld the High Court's valuation of Rs. 88,400 per acre and dismissed the land owners' appeals."

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