Explore the in-depth legal analysis conducted by the High Court regarding land valuation in acquisition cases. The court’s thorough evaluation of assessment methods, evidence evaluation, and relevant factors sheds light on the intricate process of determining market value for lands. Stay informed about the nuances of land valuation in legal proceedings.
Facts
- In ‘Kasturi Vs. State of Haryana’ 2003 (1) SCC 354, a 20% cut was applied when 84.23 acres were acquired for the development of residential and commercial areas in Bhiwani.
- The High Court issued a judgment and order on 25.05.2018 which led to individual appeals being disposed of.
- The proceedings for acquisition of lands for the Industrial Model Township in Gurgaon were initiated in 2004.
- The High Court directed the market value of land in Naurangpur and Lakhnoula to be assessed at Rs. 48,46,000 per acre along with all statutory benefits on 17.09.2004.
- The market value for lands in villages Naharpur Kasan and Kasan was assessed at Rs. 39,54,666 per acre.
- For lands in Villages Bas Kusla, Bas Haria, and Dhana, the market value was set at Rs. 29,77,333 per acre, along with statutory benefits.
- The appeals of the HSIIDC were allowed by the High Court while appeals of landowners for further enhancement were dismissed.
- The market value for certain lands was assessed based on proximity to development hubs and historical compensation rates.
- An additional 10% reduction was applied to market value for certain villages.
- The High Court assessed the market value of lands in villages Naurangpur and Lakhnoula at Rs.48,46,000 per acre.
- For lands in villages Nawada Fatehpur, Naharpur Kasan, and Shikohpur, the market value was assessed at Rs.43,61,400 per acre.
- The assessment considered the frontage of the land on National Highway No.8 and applied a 12% enhancement followed by a 15% reduction for development.
- The market value was determined based on the sale deed Exhibit P-13 for lands abutting the highway in villages Naurangpur and Lakhnoula.
- The market value for lands in Village Manesar was assessed at Rs.59,31,999 lakhs per acre.
- The description of the land and its proximity to activities in IMT Manesar influenced the assessment of market value.
- Various factors such as the growth potential, location, and surrounding developments were taken into account in determining the market value.
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Analysis
- Sale Deeds, like Exhibit P.20, executed on 28.04.2004, showed values higher than assessed by the High Court.
- Market value determination using annual increase method was considered in Wazir and Another vs. State of Haryana.
- The reliance on nearby lands’ market values from previous years for escalation is safe within a gap of up to four to five years only.
- Using an annual increase method with a significant gap in years can lead to unreliable results due to fluctuating market rates.
- ONGC Ltd. emphasized clear valuation assessment methods, unlike the cumulative increase method used in Wazir and Another case.
- Madan Pal III vs. State of Haryana scaled down the market value assessed in a previous case, impacting the present case’s valuation.
- Evidence evaluation is done to determine if landholders are entitled to enhancement despite the rejection of Exhibit P-20 Sale Deed.
- High Court’s assessment in connection with Phases II, III, and IV acquisitions was considered for valuation.
- The appropriate valuation determined for lands from village Naharpur Kasan after a 2 ½ year cumulative increase was provided.
- High Court’s consideration of Sale Deeds like Exhibits P13, P24, and P25 for land in Village Lakhnoula was deemed appropriate and required no interference.
- Court expressed caution in granting annual increase
- Emphasized the need to carefully evaluate such requests
- Highlighted the importance of considering all relevant factors before granting annual increase
- In cases where the method of cumulative annual increase is used, the cumulative increase over the valuation in Wazir and Another vs State of Haryana must displace the valuation based on Sale Deed.
- Valuation based on Sale Deed is normally considered the safest method for determining value.
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Decision
- The decision of the High Court is under appeal and calls for no interference
- The appeals are dismissed without any order as to costs
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Case Title: VED Vs. THE STATE OF HARYANA (2021 INSC 234)
Case Number: C.A. No.-001158-001158 / 2021