In Brief
The State of Haryana appealed against a High Court judgment enhancing compensation for land acquired for a drainage project in villages Garauli Kalan and Dhankot. The Supreme Court set aside the High Court's award, holding that it failed to apply settled principles of deduction for development costs. The Court reaffirmed that a one-third deduction towards roads, drains, and civic facilities is normally required, with additional deductions (20-50%) for large land blocks requiring subdivision and development. The Court emphasized that deductions must account for entrepreneurial hazards and vary based on whether the area is rural or urban and development pace. The case was remanded for reconsideration.
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