In a landmark ruling, the Supreme Court has asserted that landowners are entitled to compensation based on the current market value of their acquired land if there is a delay in disbursement. The judgment underscores the principles of justice and fairness in land acquisition cases, emphasizing the importance of prompt compensation.
The case, Bernard Francis Joseph Vaz and Others v. Government of Karnataka and Others, arose from a dispute over land acquired for the Bengaluru-Mysuru Infrastructure Corridor Project (BMICP) in 2003 under the Karnataka Industrial Areas Development Act. Despite the acquisition nearly two decades ago, the landowners had not received compensation, prompting them to seek relief.
Key Observations by the Court
A Bench comprising Justices BR Gavai and KV Viswanathan noted that awarding compensation based on the market value from 2003 would result in a “travesty of justice.” The Court underscored that the right to property, though no longer a fundamental right, remains a human right and constitutional right under Article 300A of the Indian Constitution.
In its ruling, the Court remarked:
- “If the compensation to be awarded at the market value as of the year 2003 is permitted, it would amount to permitting a travesty of justice and making the constitutional provisions under Article 300A (right to property) a mockery.”
- “Money is what money buys. The value of money is based on the idea that money can be invested to earn a return, and that the purchasing power of money decreases over time due to inflation. What the appellants herein could have bought with the compensation in 2003 cannot do in 2025.”
Timeline of the Dispute
- 2003: Land acquired by the Karnataka government for the BMICP project.
- 2009-10: Landowners filed a plea in the Karnataka High Court seeking to quash acquisition notifications or receive alternative residential plots.
- 2011: The High Court dismissed the landowners’ plea, citing delays in challenging the notifications.
- 2017: High Court directed the State to consider the landowners’ representation for rehabilitation, which was ignored.
- 2019: The Special Land Acquisition Officer (SLAO) revised the compensation date to 2009, but the State authorities challenged the award.
- 2022: The Karnataka High Court quashed the SLAO’s award, prompting landowners to approach the Supreme Court.
Supreme Court’s Directive
The apex court directed the SLAO to reassess the compensation based on the market value of the land as of April 22, 2019. Additionally, the landowners are entitled to statutory benefits under the 1894 Land Acquisition Act.
The Court invoked its powers under Article 142 of the Constitution, stating, “It is utmost important that the determination of the award and disbursal of compensation in case of acquisition of land should be made with promptitude.”
Case: Bernanard Farncis Joseph Vaz and Others vs Government of Karnataka and Others – Available on LAWFYI.IO
