Bombay High Court

Bombay HC: Land Acquisition Rule Overturned for Ignoring Recent Sales

Updated
Jan 20, 2026 11:05 AM
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Let's break down a recent decision from the Bombay High Court about land acquisition in Maharashtra. On December 24, 2025, Judges Aarti Sathe and G. S. Kulkarni made a decision that affects how land is valued for payment during acquisitions.

Background of the Case

The case is about a rule issued on January 24, 2023, by the Maharashtra government's Revenue and Forest Department. This rule tried to ignore certain land sale deals when figuring out payment for land acquisitions. Specifically, it ignored sales made within one year before the official notice for land acquisition.

The Petitioners' Argument

Several people, including Govind Poslya Gavit and others, challenged this rule. They argued that it went against the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act). The petitioners claimed that the rule unfairly lowered payment by leaving out recent sale deals.

The Court's Findings

  • Purpose of the Law: The court highlighted that the 2013 Act's goal is to ensure fair payment for landowners. Ignoring one-year sale deals was seen as not fitting with this goal.

  • Law Details: According to Section 26(1) of the 2013 Act, the market value should consider sales from the three years before the acquisition notice. The court found that the rule misunderstood this detail.

  • Effect on Payment: The court decided that the rule could lead to lower payments, which goes against the Act's aim to improve the living standards of affected families.

Key Quotes from the Judgment

"The challenged rule cannot change the clear and straightforward law."

"The law clearly states that the Section 11 notice is the date for deciding payment."

Court's Decision

The court declared the January 24, 2023, rule illegal and invalid. It ordered a new determination of payment without ignoring deals from the year before the notice. The decision ensures that affected families receive payment based on the actual market value of their land.

Summary of the Verdict

The judgment allows for the reassessment of payment for landowners affected by the rule. It also clarifies that any ongoing challenges to land acquisition decisions can be revisited because of this decision.

This ruling is important for landowners in Maharashtra, ensuring that their rights to fair payment are protected under the 2013 Act.

Tags:
Right to Fair Compensation
Land Acquisition
Property Rights