Supreme Court Urges Centre to Ensure Parity in Land Acquisition Compensation
Apex court flags disparity between National Highways Act and LARR Act
Calls for legislative reforms to protect landowners’ constitutional rights under Article 300-A
By Our Legal Reporter
New Delhi: January 21, 2026:
In a landmark observation, the Supreme Court of India has urged the Union Government to revisit existing land acquisition laws and bring parity in the determination of market value of acquired land. The Court noted that different statutes provide varying mechanisms for compensation, leading to inequity and dissatisfaction among landowners.
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A bench led by Justice Surya Kant emphasized that while land acquisition is necessary for development projects, compensation must be fair, transparent, and uniform. The Court directed that its order be forwarded to the Attorney General for India and the Union Ministry of Law and Justice for consideration.
Background of the Case
- The issue arose in disputes over compensation for land acquired under the National Highways Act, 1956.
- Landowners argued that compensation under this Act was significantly lower compared to acquisitions under the LARR Act, 2013 (Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013).
- Under the National Highways Act, compensation disputes are decided by government officers like Collectors or Commissioners, who often lack judicial training.
- In contrast, the LARR Act provides for judicial oversight and additional statutory benefits, including solatium and rehabilitation packages.
- The Supreme Court noted this disparity and called for legislative parity to uphold Article 300-A of the Constitution, which protects the right to property.
Court’s Observations
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The Supreme Court made several key points:
- Disparity in laws: Different statutes lead to unequal treatment of landowners.
- Heartburn among landowners: Those whose land is acquired under weaker laws feel disadvantaged compared to others.
- Judicial oversight needed: Compensation decisions should not rest solely with administrative officers.
- Legislative domain: The Court refrained from issuing binding directions, instead urging the Centre to take a holistic view.
Justice Surya Kant observed: “Since the issue primarily falls within the domain of the legislature, we refrain from expressing any final opinion and leave it to the authority concerned to look into this aspect and take a holistic view.”
Why This Judgment Matters
This ruling has far-reaching implications:
- Protects landowners: Ensures fair treatment regardless of which law governs acquisition.
- Strengthens constitutional rights: Reinforces Article 300-A’s protection of property rights.
- Policy reform: May lead to amendments harmonizing compensation mechanisms across statutes.
- Development projects: Ensures smoother execution of infrastructure projects by reducing disputes.
Likely Impact on Stakeholders
- Landowners: Greater confidence in receiving fair compensation.
- Government: Need to harmonize laws without slowing down development projects.
- Judiciary: Reduced litigation if compensation mechanisms are standardized.
- Infrastructure sector: More predictable acquisition processes, aiding timely project completion.
Expert Reactions
- Legal Scholars: Welcomed the Court’s call for parity, noting it addresses long-standing inequities.
- Policy Analysts: Said reforms could balance development needs with social justice.
- Landowners’ Associations: Expressed hope that the government will act swiftly to ensure fairness.
Broader Context
India’s land acquisition regime has long been contentious. The LARR Act, 2013 was introduced to make compensation more transparent and fairer, but older laws like the National Highways Act, 1956 continue to govern specific projects.
This dual framework has led to disparities in compensation, sparking litigation and protests. The Supreme Court’s intervention highlights the need for a uniform compensation mechanism across all acquisition laws.
Conclusion
The Supreme Court’s call for parity in land acquisition compensation is a milestone in property rights jurisprudence. By urging the Centre to harmonize laws, the Court has sought to protect landowners from inequitable treatment and strengthen constitutional guarantees.
If the government acts on this suggestion, India could move towards a uniform, transparent, and fair compensation regime, balancing development with justice for those whose land is acquired.
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