2011 (9) TMI 1214 - SC - Indian Laws

Summary

Issues Involved:
1. Determination of compensation for acquired lands.
2. Basis for determining the market value of the acquired lands.
3. Justification for additions to the base value for various advantages.
4. Appropriate deduction for development costs.
5. Adjustment of advance payment made to the landowner.
6. Relevant date for determining compensation.

Issue-wise Detailed Analysis:

1. Determination of compensation for acquired lands:
The appeals by KMDA and the State of West Bengal relate to the determination of compensation for the acquisition of three lands for the East Calcutta Area Development Project. The lands in question were classified as Sali (agricultural) and Beel (marshy) lands. The initial compensation determined by the Collector was Rs. 2386 per cottah for Sali land and Rs. 1193 per cottah for Beel land. The Reference Court later increased the compensation to Rs. 120,000 per cottah for Sali lands and Rs. 60,000 per cottah for Beel lands, which was affirmed by the Calcutta High Court.

2. Basis for determining the market value of the acquired lands:
The first Respondent relied on five sale deeds to prove the market value. The Expert Valuer assessed the value of the acquired lands by comparing them to a nearby Sali plot sold for Rs. 100,000 per cottah. The valuer added percentages for various advantages and made deductions for the larger size of the acquired plots.

3. Justification for additions to the base value for various advantages:
The valuer added 8% for appreciation in value during eight months, 20% for frontage to Anandpur main road, 10% for frontage to a kutcha road, and 20% for frontage to a sixty feet wide road. Additional percentages were added for better FAR and facing East. The Court found these additions unwarranted, particularly the double addition for frontage advantage and the addition for facing a particular direction.

4. Appropriate deduction for development costs:
The Reference Court applied a deduction of 33.33% for development costs. The Supreme Court reviewed this and found it appropriate, citing precedent that deductions for development costs can range from 20% to 75% depending on various factors. The Court upheld the 33.33% deduction for development costs.

5. Adjustment of advance payment made to the landowner:
The Court noted that 80% of the estimated value was paid to the first Respondent in 1979. The Court held that this advance payment should be adjusted against the final compensation with interest at 15% per annum from the date of payment to the date of publication of the preliminary notification.

6. Relevant date for determining compensation:
The Court clarified that the relevant date for determining compensation is the date of publication of the notification under Section 4(1) of the LA Act, which in this case was 13.9.2000. The Court rejected the contention that the relevant date should be 16.11.2000, the date of public notice in the locality.

Conclusion:
The Supreme Court partially allowed the appeals, reducing the compensation to Rs. 67,000 per cottah for Sali lands (plot Nos. 62 and 42) and maintaining the compensation at Rs. 60,000 per cottah for Beel land (plot No. 272). The first Respondent is entitled to statutory benefits, and the Appellants can adjust the advance payment made with interest. Each party is to bear its respective costs.