In Brief
The State of Haryana acquired approximately 520 acres across 15 villages to construct the KMP Express Highway. The Land Acquisition Officer fixed compensation at Rs.12,50,000 per acre; the Reference Court enhanced it to Rs.43,17,841 per acre; and the High Court further increased it to Rs.62,11,700 per acre using a single rate formula based on a precedent case. The Supreme Court held that this approach was flawed because fair market value cannot rely on one factor or village. The Court remanded the cases to the Reference Court for fresh determination with proper evidence on location, development, potentiality, and market conditions of each village, emphasizing that determining compensation requires sincere consideration of all material factors, not mechanically applied uniform rates."
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