In Brief
Land belonging to 297 kanals was acquired in 1988 for a cotton spinning mill. The Land Acquisition Officer valued it at Rs.25,000 per acre. The Reference Court increased this to Rs.1,12,000 per acre using a 1979 sale deed as reference plus 12% annual increase and a 25% deduction. The High Court reduced it to Rs.88,400 per acre with a 15% deduction. Land owners appealed, arguing for cumulative increases and no deduction. The Supreme Court dismissed the appeals, holding that 12% flat increase was excessive given the 9-year gap and intervening militancy in Punjab, and that the 15% development charge deduction was justified for agricultural land converted to industrial use.
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