Fair Land Compensation restored: HP High Court overturns 2015 rule

Shimla, May 25,

In a significant ruling, the Himachal Pradesh High Court on May 22 delivered a major relief to thousands of landowners impacted by highway expansion and infrastructure projects across the state. The court invalidated the Himachal Pradesh government’s contentious notification from April 1, 2015, which had set the land compensation multiplier at 1.0 for rural regions.
A division bench, comprising Justice Tarlok Singh Chauhan and Justice Sushil Kukreja, declared the 2015 notification to be beyond the powers conferred by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The judgment stated, “This Court finds merit in the petitions, and the same are allowed. Accordingly, Notification dated 01.04.2015 (Annexure P-1) is quashed and set aside.”
The bench has directed the state government to issue a new notification establishing a multiplier of two, in line with the provisions of the 2013 Act. Furthermore, it ordered the respective Land Acquisition Collectors to issue supplementary awards, ensuring the application of the correct multiplier. Affected parties are to receive the revised compensation, along with all statutory benefits, by September 30, 2025.
Justice Chauhan strongly criticized the state’s arbitrary reduction of the multiplier factor, observing, “The executive must abide by the provisions of the Act and cannot act contrary to it… The executive instructions cannot override the law.” The court’s decision highlighted that the impugned notification lacked legislative authority and unfairly discriminated against rural landowners, particularly those in remote areas.
Reacting to the landmark judgment, Joginder Walia, convenor of the Bhumi Adhigrahan Prabhavit Manch, hailed it as a “historic decision,” noting that their decade-long struggle against this injustice had finally yielded results. He accused both the BJP and Congress governments of failing to deliver on their promises of fair compensation to farmers. Bailey Ram Kaundal, president of the Manch, echoed these sentiments, stating that the verdict represented not just a legal triumph but also a moral victory against the state governments that had repeatedly misled farmers.
Local residents in areas affected by major projects, including the Kiratpur-Nerchowk and Mandi-Pathankot four-lane corridors, expressed cautious optimism. Tara Devi, a landowner from Nerchowk, remarked, “We were forced to accept meagre compensation earlier. This order gives us hope that we will be treated with dignity.” Advocacy groups such as the Kisan Sabha and Fourlane Sangharsh Samitis, who had consistently challenged the legality of the 2015 notification, also welcomed the ruling. Amar Singh, a farmer and activist from Sundernagar, emphasized that the verdict reaffirms the law’s protection of vulnerable rights and sends a clear message to the state to cease exploiting farmers for political gain.
This High Court ruling is expected to have far-reaching implications for current and future land acquisition cases throughout Himachal Pradesh, reinforcing the imperative for the state to adhere to constitutional and statutory safeguards when acquiring private land.

Team Himachal Scape