Supreme Court Backs Landowners on Compensation, Rejects NHAI's ₹29,000 Cr Plea

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AuthorAarav Shah|Published at:
Supreme Court Backs Landowners on Compensation, Rejects NHAI's ₹29,000 Cr Plea
Overview

The Supreme Court has rejected the National Highways Authority of India's (NHAI) request to apply a 2019 verdict on land acquisition compensation only prospectively. The ruling upholds landowners' rights to solatium and interest, rejecting NHAI's argument of a ₹29,000 crore financial burden. However, the court clarified that previously finalized compensation claims will not be reopened.

Court Sets Rules for Landowner Compensation

The Supreme Court outlined specific conditions for compensation claims. Landowners whose cases were pending on March 28, 2015, the effective date of the 2013 Land Acquisition Act, will receive solatium and interest based on the 2019 verdict. Those who received enhanced compensation but hadn't had solatium and interest settled can also seek these benefits, with interest starting from their claim date. However, claims finalized before March 28, 2015, with no ongoing proceedings, will remain closed.

NHAI's ₹29,000 Crore Plea Denied

NHAI had asked the court to make the 2019 ruling apply only to future cases. The authority cited a potential financial burden of around ₹29,000 crore. The 2019 judgment had previously declared the exclusion of landowners from solatium and interest for highway land acquisition unconstitutional, violating their right to equal treatment.

Court Prioritizes Rights Over Financial Concerns

A bench led by Chief Justice of India Surya Kant and Justice Ujjal Bhuyan dismissed NHAI's argument. The court held that the constitutional guarantee of just compensation must not be weakened by financial considerations. It emphasized that projected financial burdens alone do not justify reviewing or limiting landowners' rights.

The Legal Journey to Today's Ruling

The case began with NHAI filing a review petition against a February 4, 2025, decision that supported the 2019 verdict and rejected the bid to apply it only going forward. The original 2019 ruling had declared the exclusion of landowners from solatium benefits on highway projects unconstitutional. The Supreme Court's latest decision effectively ends NHAI's efforts to change outcomes for cases already concluded.

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