In Brief
Mahanti Devi acquired land was notified under the Land Acquisition Act, 1894 for a cement project in Himachal Pradesh. The Reference Court valued compensation at Rs. 5 lakhs per bigha by taking a small-sized sale deed valued at Rs. 12 lakhs per bigha and imposing a 60% deduction. The High Court affirmed this. The Supreme Court held that any deduction from comparable sale values must be justified by detailed analysis of positive and negative factors (size, proximity, shape, location). Lacking such reasoned justification, the Court remitted the matter to the High Court for fresh consideration of whether the 60% deduction was properly justified under established principles of land acquisition law.
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