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Telangana High Court Orders Additional Compensation for Land Acquisition in NIMZ Project

 

Telangana High Court Orders Additional Compensation for Land Acquisition in NIMZ Project

The Telangana High Court has ruled in favor of assigned landholders, ordering the government to provide them with compensation equivalent to that of private landowners for land acquired for the National Investment and Manufacturing Zone (NIMZ) project in Zaheerabad. This decision underscores the principles of fair compensation and non-discrimination in land acquisition processes.

Background of the Case

The case emerged from the establishment of the NIMZ project in Zaheerabad, for which the government of Telangana acquired significant tracts of land. In 2015, the government issued G.O.Ms.No.123, detailing the procedure for land procurement. The petitioners, assigned landholders from marginalized sections of society, expressed willingness to relinquish their lands under the terms outlined. They submitted requisite forms and later received show-cause notices regarding the resumption of their lands, to which they did not respond. In 2016, the government resumed their lands and transferred them to the Telangana State Industrial Infrastructure Corporation Limited (TSIIC), providing ex-gratia payments significantly lower than those given to private patta landholders.

Legal Controversy and Petitioners' Claims

The petitioners received Rs. 4,00,000 per acre for cultivated land and Rs. 3,25,000 per acre for fallow land, whereas private patta holders received Rs. 5,65,000 per acre. In 2017, the government issued G.O.Ms.No.53, exempting the NIMZ project from certain provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The petitioners argued that this exemption was discriminatory and unjust, denying them the fair compensation and rehabilitation benefits guaranteed under the Act. They claimed the acquisition process did not follow the due process required by the Act and filed writ petitions in 2018 and 2023, demanding compensation equal to that of private landowners and expressing their willingness to return the ex-gratia payments.

Government's Defense

The government and TSIIC contended that the acquisition process was legal and transparent, emphasizing the issuance of show-cause notices and payment of ex-gratia. They argued that the petitioners had consented to the acquisition by submitting the necessary forms and accepting payments. The defense also relied on the exemption provided under G.O.Ms.No.53 and claimed the petitioners' grievances were time-barred.

High Court's Ruling

Justice K. Sarath, presiding over the case, ruled in favor of the petitioners. The court held that the petitioners, despite being assigned landholders, were entitled to the same compensation rate as private patta holders. The ruling was based on the principles established in the Mekala Pandu case and affirmed by the Division Bench in the Special Collector's case. The court found the differential compensation to be discriminatory and ordered the government and TSIIC to pay the petitioners the differential amount along with accrued interest, without nullifying the entire acquisition process.

Justice Sarath noted that the petitioners' lands, being assigned lands, should be compensated at par with private lands as per the definition of 'landowner' under Section 3(r)(iii) of the Act, 2013. This includes any person entitled to be granted patta rights under state laws, thereby encompassing the petitioners.

Implications of the Judgment

This landmark judgment has significant implications for land acquisition policies in India, particularly concerning assigned landholders. It reinforces the judiciary's commitment to upholding principles of equity and non-discrimination in compensation matters. The ruling serves as a precedent for future cases, ensuring that marginalized landholders receive fair compensation and are not deprived of their entitlements due to technicalities or procedural lapses.

Legal Precedents and Future Directions

The decision aligns with previous judicial precedents that advocate for fair treatment of all landowners, irrespective of the nature of their landholding. The Mekala Pandu and Special Collector cases, cited in the judgment, set the groundwork for equitable compensation, which the Telangana High Court has upheld. This case underscores the judiciary's role in interpreting and enforcing laws in a manner that protects the rights of the marginalized and ensures justice.

Conclusion

The Telangana High Court's ruling in favor of assigned landholders in the NIMZ project case is a significant step towards ensuring fair compensation for all landowners. By ordering the government to pay compensation at par with private patta holders, the court has reinforced the principles of equity and non-discrimination. This judgment will likely influence future land acquisition cases, promoting a more just and transparent process that safeguards the rights of marginalized landholders.

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