New Delhi, 25 March (H.S.):

The Supreme Court ruled Wednesday that constitutional guarantees for just compensation in land acquisition cases cannot be watered down making solatium and interest payments independent of any financial burden on acquiring authorities.

A bench led by Chief Justice Surya Kant alongside Justice Ujjal Bhuyan dismissed the National Highways Authority of Indias (NHAI) review petition against its own February 4 2025 judgment. That earlier verdict had declared the courts 2019 ruling—which granted farmers compensation and interest for land taken under the NHAI Act—applicable retrospectively to all similar cases.

The bench clarified landowners must receive interest at nine percent as per the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act 2013 rather than the NHAIs five percent cap. Solatium a 100 percent bonus on market value also stands mandatory rejecting NHAs claim it creates excessive fiscal strain.

This stems from ongoing disputes where NHAI acquired land for highway projects often paying below market rates without statutory interest or solatium. The 2019 top court order initially mandated these benefits but confusion arose over prospective versus retrospective application. Februarys ruling settled that by applying benefits backward protecting thousands of affected farmers across India.

The decision reinforces Article 300A of the Constitution safeguarding property rights while balancing infrastructure needs. NHAI argued retrospective liability could hit hundreds of crores but the court prioritised affected parties rights calling financial hardship no excuse to deny lawful dues. Landowners can now claim enhanced payouts with cases potentially reopening nationwide.

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Hindusthan Samachar / Jun Sarkar