Purpose Of Land Acquisition Also A Relevant Factor For Determining Market Value: Supreme Court

Purpose Of Land Acquisition Also A Relevant Factor For Determining Market Value

Case: S. Shankaraiah vs Land Acquisition Officer and Revenue Divisional Officer Peddapali Karimnagar Dist

Coram: Justices MR Shah and Krishna Murari

Case No.: CA 6821 OF 2022

Court Observation: “Identical question came to be considered by this Court in the case of Nelson Fernandes (supra) and after taking into consideration the earlier decision of this Court in the case of Basavva vs. Spl. Land Acquisition Officer, (1996) 9 SCC 640, in which this Court has held that the purpose for which acquisition is made is also a relevant factor for determining the market value”

“When the acquisition is solely for the purpose of excavation of coal and the entire land is acquired on the basis of the estimates of the coal reserve identified and the entire land is to be mined and used and no further developmental activity is required, we are of the opinion that in the facts and circumstances of the case, the High Court has erred in deducting 1/3rd towards the developmental activities.”

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