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1994 (1) TMI 276 - SC - Indian Laws

Issues involved: Determination of market value for land acquisition u/s 18 of Land Acquisition Act, applicability of Basic Valuation Register, entitlement to interest at 6% u/s 28 of the Act.

Summary:
The appellant's land was proposed for acquisition under notification issued u/s 4(1) of the Land Acquisition Act. The Land Acquisition officer awarded compensation based on letting value, which was enhanced to Rs. 75 per sq. yard by the Additional District Judge. The appellant appealed in the High Court seeking Rs. 300 per sq. yard, but the appeal was dismissed. The appellant contended that the market value should be Rs. 300 based on various factors, including the location of the land and stamp duty rates. The High Court rejected the post-notification sale deeds and agreements of sales as evidence, finding them unreliable to establish market value.

The High Court held that the Basic Valuation Register had no evidentiary value and could not be used to enhance the market value. The appellant argued that the Register, which showed a value of Rs. 300 per sq. yard for commercial use, should be the basis for determining market value. However, the Court found that without proper evidence, the entire land could not be assumed to have commercial value. The Court cited legal precedents emphasizing the need for reliable methods to determine market value, such as expert opinions or actual sale prices of similar lands.

The Court clarified that the Basic Valuation Register, used for stamp duty purposes, did not have a statutory basis to determine market value for land acquisition. Various judgments were referenced to support this position, highlighting that the burden of proof lies with the claimant to establish the prevailing market value. The Court concluded that the Basic Valuation Register could not be relied upon to determine the market value of acquired lands u/s 23 of the Act. Additionally, the Court noted that the State did not appeal the reference court's award, and thus the High Court's decision stood.

 

 

 

 

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