Fix 10 per cent escalation costs for land acquired: Supreme Court

An annual land escalation cost of 10 per cent should be added while awarding compensation to land owners in semi-urban areas as they have a huge housing potential, the Supreme Court has held.

A bench of justices GS Singhvi and HL Dattu said such a compensation was essential as the poor land owners cannot be left to the mercy of authorities or others in fixing the compensation.

"Therefore, it can safely be concluded that the land is semi-urban and has a huge potential for being developed as housing sites and the high court should have added 10% per annum escalation in the price specified in the sale deeds relied upon for fixing market value of the acquired land.

"In such matters, the court cannot be oblivious of the fact that the land owners have been deprived of the only source of livelihood, the cost of living has gone up manifold and the purchasing power of rupee has substantially declined," the apex court said.