The Supreme Court in the case Bharat Sanchar Nigam Limited vs Nemichand Damodardas observed and stated that prices mentioned in the Ready Reckoner and under the Land Acquisition Act, the prices are meant for calculation of the stamp duty and cannot be the basis for determination of the compensation.
In the present case, the Bombay High Court while allowing the appeal of claimants or Land owners enhanced the amount of compensation for the lands acquired mainly relying upon the prevailing Ready Reckoner rates of the land.
In appeal, before the Apex Court, it was contended by the appellant that the High Court seriously erred in enhancing the amount of compensation solely relying upon the prevailing Ready Reckoner rates. However, it was submitted that the sole basis for more than 800% increase by the High Court is the prevailing Ready Reckoner rates of land, which as such is not permissible as held by the court in the case of Jawajee Nagnatham Vs. Revenue Divisional 2 Officer, Adilabad, A.P. and Ors and in the case Krishi Utpadan Mandi Samiti, Sahaswan Vs. Bipin Kumar. It was contended by the respondent that the value the land mentioned in the Ready Reckoner is a statutory cost and even the Government has issued a Resolution that while determining the amount of compensation. In the Ready Reckoner, the price or value mentioned is required to be taken into consideration.
The Apex Court bench noted that the bench is in complete agreement with the view taken in the aforesaid two decisions that the prices mentioned in the Ready Reckoner for the purpose of calculation of the stamp duty, which are fixed for the entire area and cannot be the basis for determination of the compensation under the Land Acquisition Act.
It was also explained by the court that why the prices mentioned in the Ready Reckoner and which is basically for the purpose of collecting proper stamp duty and registration charges for the lands acquired under the Land Acquisition Act, shall not be the basis for determination of the compensation for the lands acquired, while allowing the appeal.
The bench observed that there are several various other factors, which are required to be considered for determining upon the market value of the land and upon the location of the land, the market value of the land depends and also the area of the land; whether the acquisition is of a small plot of land or a big chunk of land; whether the land is in a developed area or not and number of other advantageous and disadvantageous factors are required to be considered. However, for different lands there cannot be same market value and while determining the compensation for the lands acquired under the Land Acquisition Act. Furthermore, the rates mentioned in the Ready Reckoner and which are basically for the purpose of collection of stamp duty and as observed hereinabove, which are the uniform rates for all the lands in the area and under the Land Acquisition Act, for the lands acquired the prices cannot be the basis for determination of the compensation.
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