SC stays order enhancing compensation for land acquisition near India-China border

New Delhi: The Supreme Court on Friday stayed an order that enhanced the compensation awarded for acquiring 537 acre of land for the establishment of a defence-related project near the India-China border in Arunachal Pradesh.

A bench of Justices K V Viswanathan and N Kotiswar Singh passed the direction while hearing a plea filed by the Centre and others challenging a March 2025 order of the Itanagar bench of the Gauhati High Court.

The Centre told the bench that compensation to the beneficiaries was already paid and the land was acquired but subsequently, one person, on the strength of a power of attorney, filed a reference case.

It said the earlier compensation awarded was around Rs 70 crore for all beneficiaries, but it was increased to over Rs 410 crore by the additional district and sessions judge in the reference case in October 2024.

The Centre argued in the apex court that the reference was based on a "fraud" and the person had "fabricated power of attorney" of over 100 persons.

It said the government had approached the high court seeking a stay on the operation of the order passed in the reference case.

The Centre said the high court had directed that order passed in the reference case shall stand stayed subject to the condition that 50 per cent of the enhanced amount awarded be deposited within three months.

The government challenged the high court's direction before the apex court, which agreed to hear the matter.

The top court observed the Centre's counsel argued in the high court that the government was ready to deposit 10 per cent as security deposit but there should be no order for withdrawal of the disbursement until the disposal of the appeal.

"Issue notice to the respondents. There shall be a stay of operation of the impugned order on condition that the petitioner (Centre), as undertaken by them (before the high court), deposit 10 per cent of the enhanced amount in the registry of the high court within four weeks from today," the bench said.

The court further stayed the October 2024 order of the reference court and posted the matter on August 18.

When the bench asked if the Centre had paid the undisputed amount, the counsel said, "Yes. Rs 70 crore was paid."