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Supreme Court of India 2022-07-21 partly_allowed

RAMESHWAR AND ORS vs STATE OF HARYANA & ORS

Bench: 3 — Uday Umesh Lalit, S. Ravindra Bhat, Pamidighantam Sri Narasimha

In Brief

This judgment clarifies and applies the Supreme Court's earlier decision in Rameshwar v. State of Haryana, which held that the State's withdrawal from land acquisition in Manesar was fraudulent. The Court interpreted 'transfer' broadly to include collaboration and development agreements, not just formal sales. Where landowners parted with possession and development rights for substantial sums during the acquisition threat, these amount to 'transfer' and the lands remain part of the deemed award to HSIIDC. However, bona fide third-party home buyers with registered deeds or possession are protected. Developers must pay ₹5 crores per acre to HSIIDC for certain projects, or the lands vest wholly in HSIIDC. The Court balanced protecting innocent consumers against remedying the acquisition fraud, setting timelines for title validation, refunds, and project completion.

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Land Acquisition Land Acquisition Act, 1894 Fraud on Power Development Agreements Collaboration Agreements Real Estate Property Rights Consumer Protection Compensation Administrative Law

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