In Brief
The Supreme Court decided disputes concerning compensation for over 1,157 acres of land acquired in six Uttar Pradesh villages by the U.P. Awas Evam Vikas Parishad under a 1982 notification. The Reference Court had awarded Rs. 120 per square yard; the High Court enhanced this to Rs. 297 per square yard. The Court held that market value must be assessed using sale deeds and judicial precedents proximate in time and location to the acquisition, not later comparable cases. Potentiality of land (capacity for development) is a primary factor, assessed by condition, situation, proximity to developed areas, and connectivity. Compensation cannot be based on notifications made five years later or on precedents for different acquisitions. The Court allowed the appeals, restoring the Reference Court's award of Rs. 120 per square yard.
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