In Brief
The State of Madhya Pradesh acquired land in Village Sala for rehabilitation of persons displaced by the Sardar Sarovar Dam. The Land Acquisition Officer awarded compensation at Rs. 47,165/hectare (irrigated) and Rs. 29,621/hectare (unirrigated). The Reference Court enhanced it to Rs. 36.62 lakh and Rs. 24.41 lakh per hectare respectively after deducting 48% for development. The High Court further modified this, deducting only 35%. The Supreme Court held that market value determination must involve proper adjustment when using small exemplar plots for large land tracts, and development deductions require evidence-based analysis specific to each case, not mechanical application of principles from other acquisitions. The Court set aside the High Court judgment and remitted the matter for fresh consideration on both issues.
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