Telangana High Court
The Special Deputy Collector Land ... vs Savitha Joshi on 15 July, 2024
Author: Abhinand Kumar Shavili
Bench: Abhinand Kumar Shavili
HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI
AND
HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY
LAAS.Nos.115 of 2022 & 54 of 2023
COMMON JUDGMENT:
(per Hon'ble Sri Justice Laxmi Narayana Alishetty)
Since both the appeals arise out of same order, they are heard
together and being disposed of by common judgment.
2. L.A.A.S.No.54 of 2023 is filed by the claimants and
L.A.A.S.No.115 of 2022 is filed by the Special Deputy Collector
(Land Acquisition Officer), GHMC, Hyderabad, both under Section
64 of the Right to Fair Compensation and Transparency in Land
acquisition, Rehabilitation and Resettlement Act, 2013 (for brevity
'the Act'), aggrieved by the order and decree dated 02.06.2022 passed
in L.A.O.P.No.67 of 2020 on the file of the Land Acquisition,
Rehabilitation and Resettlement Authority for the State of Telangana
at Hyderabad, (for brevity, hereinafter referred to as "the Authority")
whereby the compensation for the lands acquired in Gudimalkapur
Village, Asifnagar Mandal, Hyderabad District, was enhanced from
Rs.17,000/- per square yard to Rs.30,000/- per square yard apart from
granting other benefits.
AKS, J & LNA, J
& 54 of 2023
3. For convenience, hereinafter the parties will be referred to as
arrayed in L.A.A.S.No.115 of 2022.
4. Heard the learned Government Pleader for Appeals appearing
for the appellant and Sri V.M.M.Chary, learned counsel for the
respondents/claimants in LAAS.No.115 of 2022 and Sri P.Harsha
Reddy, learned counsel for appellants in LAAS.No.54 of 2023.
5. The admitted facts of the case are that on a requisition made by
the Assistant City Planner, Circle-13, GHMC, Hyderabad, the land
admeasuring 1,740 square yards, T.S.No.11/1/2, Block-G, Ward
No.19 situated in Gudimalkapur Ville, Asifnagar Mandal, Hyderabad,
was proposed to be acquired for the purpose of widening of
connecting road from Karwan road to Puranapool road at turning
junction and accordingly, a notification under Section 11(1) of the Act
was published in Gazette No.21 dated 19.07.2019 and a Declaration
under Section 19(1) of the Act was published in Gazettee No.30 dated
14.09.2019. The Land Acquisition Officer, after conducting necessary
award enquiry, passed an Award, dated 11.11.2019, fixing the market
value of the acquired lands @ Rs.17,000/- per square yard.
AKS, J & LNA, J
& 54 of 2023
6. Dissatisfied with the said Award, the respondents/claimants
filed an application before the Authority under Section 64 of the Act
seeking enhancement of compensation for the acquired lands.
7. Before the Authority, on behalf of the respondents/claimants,
P.W-1 was examined and Exs.A-1 to A-11 were marked. On behalf of
the Reference Officer, the Land Acquisition Officer, GHMC,
Hyderabad, was examined as R.W.1 and Exs.B-1 to B-6 were marked.
8. It is contended by the learned Government Pleader for Appeals
appearing for the appellant that the Authority erred in relying upon
Exs.A-3 and A-4, ignoring Ex.B-6, while assessing the market value
of the acquired land and consequently, it erred in enhancing the
market value @ 67.47% over and above the market value fixed by the
Land Acquisition Officer; that the Authority had failed to take note
that the possession of the acquired land was taken on 16.01.2020, but
not on 01.06.2016, as contended by the respondents; and therefore, the
impugned order passed by the Authority is liable to be set aside.
9. Per contra, learned counsel for the respondents/claimants,
contended that the Authority went wrong in observing that as the
property covered under Exs.A-1 and A-2 pertains to shops, the market
value mentioned therein cannot be considered; the Authority ought to
AKS, J & LNA, J
& 54 of 2023
have seen that the property covered under Exs.A-1 and A-2 are very
old shop structures including appurtenant land; that further, the
Authority, having observed that the market value of the acquired land
in the year 2013 was Rs.17,000/- per square yard and the same was
not revised till 2021, failed to calculate the escalation in the market
value in a proper manner and erroneously fixed the market value of
the acquired land @ Rs.30,000/- per square yard; and therefore, the
impugned order needs interference by this Court, by enhancing the
meager market value fixed by the Authority.
10. In the present case, a perusal of the impugned order discloses
that the Authority has relied upon Exs.A-3 and A-4-Market Value
Certificates issued by the Sub-Registrar, Golconda, wherein the
market value of the land was mentioned as Rs.17,000/- per square
yard. Undisputedly, the properties covered under Exs.A-3 and A-4 are
situated adjacent to the acquired land.
11. The issue as regards considering the escalation/increase of
market value of the lands was elaborately dealt with and analyzed by
the Hon'ble Supreme Court in General Manager, ONGC Ltd Vs.
AKS, J & LNA, J
& 54 of 2023
Rameshbhai Jivanbhai Patel and another1, wherein at paras 13 and
14 of the judgment it was observed as under:-
"13. Primarily, the increase in land prices depends on four
factors situation of the land, nature of development in
surrounding area, availability of land for development in
the area, and the demand for land in the area. In rural
areas unless there is any prospect of development in the
vicinity, increase in prices would be slow, steady and
gradual, without any sudden spurts or jumps. On the other
hand, in urban or semi-urban areas, where the development
is faster, where the demand for land is high and where there
is construction activity all around, the escalation in market
price is at a much higher rate, as compared to rural areas.
In some pockets in big cities, due to rapid development and
high demand for land, the escalations in prices have
touched even 30% to 50% or more per year, during the
nineties.
14. On the other extreme, in remote rural areas where
there was no chance of any development and hardly any
buyers, the prices stagnated for years or rose marginally at
a nominal rate of 1% or 2% per annum. There is thus a
significant difference in increases in market value of lands
in urban/semi-urban areas and increases in market value of
lands in the rural areas. Therefore if the increase in market
value in urban/semi-urban areas is about 10% to 15% per
annum, the corresponding increases in rural areas would at
(2008) 14 SCC 745
AKS, J & LNA, J
& 54 of 2023
best be only around half of it, that is about 5% to 7.5% per
annum. This rule of thumb refers to the general trend in the
nineties, to be adopted in the absence of clear and specific
evidence relating to increase in prices. Where there are
special reasons for applying a higher rate of increase, or
any specific evidence relating to the actual increase in
prices, then the increase to be applied would depend upon
the same."
12. From a reading of the aforesaid judgment of the Hon'ble
Supreme Court, it is evident that the increase/escalation of land price
has to be assessed based on four factors, viz., location of the land,
nature of development in surrounding area, availability of land for
development in the area and the demand for land in the area; and by
taking so, we find that there is significant difference in increase of
market value of lands in urban/semi urban areas compared to increase
in the rural areas.
13. Admittedly, the acquired lands are situated in urban area i.e.,
Asifnagar, Hyderabad; that the lands were proposed to be acquired
under the notification issued under Section 11(1) of the Act, dated
19.07.2019; and that there is no revision of the market value of the
acquired land by the authority concerned from 2013 to 2022. Further,
the market value of the acquired land in the year 2013 was Rs.30,000/-
AKS, J & LNA, J
& 54 of 2023
and in the year 2022, it was Rs.44,900/-, as is evident from the Market
Value Certificates issued by the concerned Sub-Registrar.
14. As regards the determination of market value, Section 26(1) of
the Act envisages that the Collector shall adopt the highest among the
following three criteria for assessment and determination of the
market value i.e., (i) the market valuation specified under the Indian
Stamp Act, 1899, for registration of sale deeds or agreements to sell,
as the case may be, in the area where the land is situated; (ii) the
average sale price for similar type of land situated in the nearest
vicinity; and (iii) consented amount of compensation.
15. It is common knowledge that now-a-days, urbanization is
rapidly increasing and the acquired land being located in urban area,
one can visualize that its market value would have been substantially
increased from the year 2013 to 2022. However, it is not out of place
to note that escalation of market value of land would not be uniform
for every year. It depends on factors like inflation, rate of
development in the vicinity, etc. In the recent past, the escalation of
market value of land situated in urban areas was drastic compared to
escalation of market value of land in the year 2013.
AKS, J & LNA, J
& 54 of 2023
16. Therefore, following the ratio laid down by the Hon'ble
Supreme Court in Rameshbhai Jivanbhai Patel and another's case
(cited supra) coupled with Section 26(i)(ii) of the Act, this Court is of
the opinion that the Market Value Certificates issued for the years
2013 and 2022 in respect of the acquired land, which was admittedly
revised in the year 2022 for the first time after the year 2013, has to be
taken into account for assessing the market value of the acquired land
while keeping in mind the other factors referred above.
17. Therefore, in the light of the judgment of the Hon'ble Supreme
Court in Rameshbhai Jivanbhai Patel and another's case (cited
supra) and the backdrop of the above factors, this Court noticed that
there is escalation of market value of land at about Rs.15,000/- per
square yard from the year 2013 to 2022, i.e., on an average, the
escalation of market value of land for each year comes to Rs.1,667/-
per square yard. If the escalation of market value is considered at this
average/uniform phase and applied to the instant case, for a period of
six years, the escalation comes to around Rs.10,000/- per square yard,
which amounts to Rs.40,000/- per square yard in the year 2019, i.e.,
the year in which the notification under Section 11(1) of the Act was
issued. However, in view of the factors as stated supra, one cannot
AKS, J & LNA, J
& 54 of 2023
visualize uniform rate of increase of market value of the land every
year, i.e., escalation in land cost may not be same in the years 2013-
2018 to that of 2019-2022. The outbreak of Covid-19 pandemic had
not only affected the lives of the entire human race but also had
adverse impact on the land cost. In other words, the escalation in land
cost was not much during the pandemic period i.e., 2019 to 2022
compared to the years 2013-2018. In that view of the matter, this
Court is of the considered opinion that it would be appropriate to
apply average escalation from 2013 to 2022 and as calculated supra,
the market value of the acquired land is fixed @ Rs.40,000/- per
square yard, which would be fair and reasonable.
18. Accordingly, LAAS.No.115 of 2022 is dismissed and
LAAS.No.54 of 2023 filed by the claimants is partly allowed and the
impugned order of the Authority is modified to the extent of
enhancing the market value of the acquired land from Rs.30,000/- to
Rs.40,000/- per square yard. Except to the above extent, the impugned
order passed by the Authority remains unaltered. Interim order dated
12.12.2022 granted in LAAS.No.115 of 2022 shall stand vacated. No
costs.
AKS, J & LNA, J
& 54 of 2023
19. As a sequel, pending Miscellaneous Applications, if any, shall
stand closed.
_______________________________
ABHINAND KUMAR SHAVILI, J
___________________________________
LAXMI NARAYANA ALISHETTY, J
Dated:15.07.2024
dr
