In Brief

The Supreme Court examined land acquisition cases involving flood protection wall construction in Akola, Maharashtra. The primary issue was whether land fell within a 'Blue Zone' (restricted development area) limiting its value. The Court held that statutory demarcation of Blue Zones came into draft form only after the acquisition notification date; therefore, the extant 1974 Building Bylaws applied, restricting development only within 15 meters of the water course boundary. For land beyond this zone, the Court awarded compensation at Rs. 100 per sq. ft. based on comparable arm's-length sales, rejecting higher values from related-party transactions. The Court confirmed no development charges should be deducted for flood wall construction. It reaffirmed that courts must award fair market value irrespective of claims made, balancing State power with citizens' compensation rights.

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