In land acquisition cases, delayed compensation entitles landowners to the current market value of their land : Supreme Court
The Supreme Court in Bernanard Francis Joseph Vaz & Others v. Government of Karnataka & Others ruled that landowners are entitled to compensation based on the current market value of their land if there is a delay in payment by the government. The case involved land acquired in 2003 for the Bengaluru-Mysuru Infrastructure Corridor Project (BMICP) under the Karnataka Industrial Areas Development Act, for which compensation had not been paid even after 18 years.
A Bench of Justices BR Gavai and KV Viswanathan observed that using 2003 market rates would be a "travesty of justice" and undermine Article 300A (right to property). It emphasized the decline in the purchasing power of money due to inflation and directed the authorities to determine compensation based on the 2019 market value.
The landowners had unsuccessfully sought relief from the Karnataka High Court, which dismissed their plea to quash acquisition notifications and allot alternative plots. After filing representations and facing non-compliance by authorities, the landowners pursued contempt proceedings and eventually moved the Supreme Court.
The Supreme Court noted the 22-year delay in compensation, highlighting the urgent need for timely resolution in land acquisition cases. Invoking Article 142 of the Constitution, the Court directed the Special Land Acquisition Officer to reassess the compensation as per 2019 market rates and awarded all statutory benefits under the 1894 Land Acquisition Act to the appellants.