New Delhi(ABC Live): On May 7, 2025, the Supreme Court of India, through Justice Surya Kant, gave a key judgment on land acquisition compensation for Kukrola and Fazalwas villages in Gurgaon, Haryana. This ruling clarifies how land near infrastructure should be valued.

Why This Judgment Matters for Land Acquisition

Belting Method Confirmed
The Court upheld the “belting” method. This means land is divided into zones based on proximity to major infrastructure—in this case, National Highway 8 (NH-8). Consequently, lands next to highways get a “compensation proximity premium” because they are more valuable.

Focus on Comparable Sales
Moreover, Justice Surya Kant stressed using recent sales of similar-sized plots near the site. The Court rejected small distress sales. Instead, it relied on a December 2006 sale (Exhibit P-3) as the best benchmark. This follows the “comparable sales method” widely used in Haryana land valuation.

Ensuring Fairness and Equality
Furthermore, the judgment made sure landowners in both villages, with similar locations, receive the same compensation. This avoids unfair differences and supports the principle of “equal compensation.”

Strengths of the Judgment

• Backed by Precedents: The ruling follows the Bijender v. Haryana (2017) case, which accepted value differences based on infrastructure.

• Clear Escalation Rate: A 10% yearly increase from 2006 prices was applied. This reflects real estate trends without overpaying.

• Consistency Across Villages: It reinforced the Karigowda principle that adjacent lands should have equal compensation.

Areas for Improvement

• More Explanation Needed: However, a clearer reason why Fazalwas’ sale example ranked higher would improve transparency.

• More Gradual Development Cuts: Instead of a flat 30% cut for outer belts and none for inner belts, a sliding scale (for example, 10–15%) might better match actual costs.

• Consider Post-Notification Sales: Additionally, looking into sales after notification, like the July 2008 sale at ?2.06 crore per acre, could provide useful market insight.

Practical Advice for Stakeholders

• Landowners: Therefore, collect recent sale deeds for similar plots near highways to claim fair compensation.

• Authorities and Surveyors: Also, clearly mark belt boundaries and apply consistent development cut rules. This helps avoid disputes later.

• Policymakers: Finally, review and improve “development cut” guidelines to balance public needs with fair returns for landowners.