In Brief
Farmers whose land was compulsorily acquired near Jintur, Maharashtra in 1994 for an industrial area challenged compensation awards fixed at Rs 32,000 per acre. The Supreme Court held that land in a prime location near a district headquarters with water and highway access deserves the highest bona fide sale exemplar (Rs 72,900/acre from March 1990), not an average of lower exemplars. Though the exemplar concerned smaller plots (warranting 20% reduction), the reduction should apply to the highest value, not justify omitting it. The Court enhanced compensation to Rs 58,320 per acre plus statutory benefits, and rejected the lower courts' flawed approach of averaging sale prices across a wide range without considering location and potential.
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