Market value of land to be determined by proximity to developed areas, SC says

The Supreme Court has said market value of price of the land must be determined, keeping in mind various factors including proximity to developed areas and the roads etc.

A bench of Justices Hemant Gupta and V Ramasubramaian emphasised the importance of considering location of the land in deciding its price for acquisition.

"It is not the nature of land which alone is determinative of the market value of the land. The market value must be determined keeping in view the various factors including proximity to the developed area and the road etc," the bench said.

The top court allowed an appeal filed by Madhukar against the Bombay High Court's order which has set aside a judgement by the reference court enhancing the compensation for land acquired as Rs 1,95,853 per hectare.

On a plea by Vidharbha Irrigation Development Corporation, the High Court assessed the compensation for the land as Rs 56,700 per hectare.

"The High Court has erred in law in setting aside the determination of market value of the land by the reference court," the bench said.

The top court restored the order by the reference court, saying the High Court's reasoning is fallacious and not sustainable.

The High Court distinguished the lands earmarked for acquisition between those irrigated and ones not irrigated.

"It is not the reasonable yardstick to determine market value of the land as the land in question is close to already developed area," the bench said.

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