In a key judgment, the Supreme Court of India has clarified that the market value of land acquired under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) must be calculated based on the date of the Section 11 notification, not the date of the Act's enforcement.
The decision came in the case of Sumitraben Singabhai Gamit vs. State of Gujarat & Ors., where the bench comprising Justice Dipankar Datta and Justice Manmohan overturned a Gujarat High Court ruling that had fixed the valuation date as January 1, 2014—the date the Act came into force. The land in question had been used without formal acquisition or compensation.
“The legislative scheme does not give discretion to the Courts to select a date for valuation. On the contrary, RFCTLARR Act, 2013 expressly mandates that compensation/valuation must be determined as of the date of Notification under Section 11,” the Court stated.
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The Court referred to the proviso of Section 26(1), which clearly says that the market value of the land must be determined as on the date when the Section 11 notification is issued. Section 11 itself outlines the procedure for the government to issue a preliminary notification when land is to be acquired for public purposes.
“This Court is of the view that the said provision lays down the methodology for computing the market value of the land on the date of the acquisition notification,” the bench noted.
“The use of the word ‘shall’ in Section 26(1) proviso is reflective of the legislative mandate that Section 11 Notification is the date for determination of the compensation.”
The appellant, Sumitraben Singabhai Gamit, owned land in Vyara, Tapi district, Gujarat, of which a portion had been previously acquired for a canal project. Another portion of the land was later used without any legal acquisition or compensation. The High Court had directed the State to file an affidavit, and the government admitted the unauthorized use.
“This Court has no doubt that the legislative intent is to ensure that the landowners receive fair compensation reflective of the market value prevailing at the time of acquisition,” the Court emphasized.
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The Supreme Court firmly held that January 1, 2014, holds no relevance for fresh acquisitions under the 2013 Act. That date would only be applicable in cases transferred from the previous 1894 Land Acquisition Act.
As a result, the Court allowed the appeal, setting aside the Gujarat High Court’s judgment, and directed that the market value be assessed on the actual date when the Section 11 notification is issued by the State.
Case Title: SUMITRABEN SINGABHAI GAMIT VERSUS STATE OF GUJARAT & ORS.
Appearance:
For Petitioner(s) : Ms. Aastha Mehta, Adv. Ms. Poonam Mehta, Adv. Ms. Prerana Mohapatra, Adv. Ms. Prina Sharma, Adv. Mr. Anshuman Srivastava, AOR
For Respondent(s) : Ms. Deepanwita Priyanka, AOR
