In Brief
The State of Haryana appealed the High Court's decision on compensation for agricultural land acquired from villages Garauli Kalan and Dhankot under the Land Acquisition Act. The High Court had substantially increased compensation rates without properly applying legal principles governing deductions for development costs. The Supreme Court held that a one-third deduction towards roads, drains, utilities, and development costs is the settled norm for undeveloped land, subject to variations based on location and circumstances. For large land tracts requiring layout and plotting, further 20%–50% deductions apply for entrepreneurial risk and capital lockup. The Court set aside the High Court's judgment and remanded the case for reconsideration.
The lawyer headnote and full judgment text are available to registered users.