In Brief
The Supreme Court upheld an award of Rs. 70 per square feet as compensation for land acquired by the State under the Land Acquisition Act, 1894. The High Court had drastically reduced the amount to Rs. 317 per square meter (29 per square feet). The Court held that when valuing large land acquisitions using sale exemplars of smaller developed plots, a 50% deduction for development costs was appropriate in this case, given the land was rocky, undeveloped, and taken into possession years before formal acquisition. The Court also awarded 9% interest per annum from the date possession was taken until notification, as an equitable remedy for deprivation of use rights.
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