In Brief
Land owners appealed against High Court's compensation award of Rs. 13,93,920 per acre (Rs. 32 per sq. ft.) for approximately 30 acres acquired for a rehabilitation centre. They argued for Rs. 218 per sq. ft. based on the highest-priced small plot sale deed. The Supreme Court held that while small plot sale deeds (ranging Rs. 55–218 per sq. ft.) are relevant, courts should average them rather than rely on isolated high values. A large block requires development and subdivision, warranting deductions. The Court averaged 11 sale deeds (Rs. 99 per sq. ft.), deducted 40% for development charges, yielding Rs. 60 per sq. ft. as fair market value. The appeals were partly allowed; compensation was enhanced from Rs. 13,93,920 to Rs. 26,00,000 per acre (approx.), with payment within 3 months.
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