In Brief
The State of Haryana and various landowners challenged the High Court's award of ₹380 per square yard for land acquired in four villages (Ramgarh, Bhana Madanpur, Jhuriwla, Mongi) under Section 4 of the Land Acquisition Act, 1894. The Supreme Court held that comparable sale deeds must be the primary basis for compensation, not mere awards or proximity to developed areas like Chandigarh. The Court ruled that the annual increase method is unsafe beyond 4–5 years and that non-binding awards from distant villages cannot override local transactional evidence. Accordingly, compensation was reduced to ₹290 per sq. yard, with adjustments for development and area smallness. The State's appeal was partly allowed and landowners' appeals dismissed.
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