In Brief
The Supreme Court was asked whether compensation for land acquired by the U.P. Awas Evam Vikas Parishad in 1982 should be Rs. 120 or Rs. 297 per square yard. The High Court had awarded Rs. 297 relying on later acquisitions in nearby areas. The Supreme Court held that market value must be based on comparable sales and judicial precedents proximate to the acquisition date, not later transactions. It stressed that potentiality, location, and connectivity matter, but compensation from acquisitions 5+ years later cannot be a reliable yardstick. The Reference Court's assessment of Rs. 120 per square yard was justified by the available sales evidence with appropriate deductions for large-area purchases. The Court allowed the appeal, setting aside the High Court's enhancement and restoring the Reference Court's award.
The lawyer headnote and full judgment text are available to registered users.