Gujarat High Court orders defence to pay higher compensation to farmers

In a major relief to farmers whose land parcels were acquired by the Defence Ministry for an Air Force Station in Gandhinagar, the Gujarat High Court has upheld a judgment of a Kalol court directing the ministry to pay 17 times higher compensation to the farmers. While the ministry had acquired the land by adopting a market rate of Rs 30 per sqm, the court has directed it to compensate the landowners at the rate of Rs 520 per sqm.

Notably, various land parcels were acquired by the ministry in the villages of Vadsar and Santej under Kalol taluka of Gandhinagar district for the defence utility. The land acquisition process started in November 1998 and the awards were passed in February 2003. The land acquisition officer determined the rate of Rs 30 per sqm for compensation. Several farmers accepted the meagre compensation under protest and challenged it before the lower court, which ruled in their favour by enhancing the compensation by 17 times in October 2014.

The ministry through the defence estates officer had appealed before the high court against the lower court's verdict, which was eventually rejected by the high court.

During the hearing of the appeals, it was contended by the union government's counsel that the award passed by the special land acquisition officer is reasonable and based on cogent reasons, and does not require any interference. It was also contended that the lower court failed to consider the fact that there was no industry or business in the village. The advocate also argued that the main occupation of the landowners was agriculture and the lower court should not have re-determined the compensation by considering a sale deed produced by the farmers of land in Vadsar executed in October 1997.

On the contrary, the counsel for the farmers sought even higher compensation citing the sale deed of a plot in the adjoining village of Khatraj executed in October 1997. The advocate also cited the price of land ascertained by the Price Determination Committee for Santej in order to get higher compensation.

Following the arguments, the court held that there is industrial development around Vadsar and Santej, which negates the claim of the ministry that there is no development in the area. The court also held that the sale deeds considered by the lower court for re-ascertaining the market value was apt and needs no interference. The court also refused to further increase the compensation awarded, while clarifying that the lower court has determined the right market price for the acquired land.