Madras High Court

Chennai HC: 2003 Land Values Reinstated for Morai Village Acquisition

Updated
Jan 26, 2026 3:11 PM
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Quick Summary: A court in Chennai just decided to change the payment rate for land taken for a road project. Initially, the value was set much lower than what the landowners wanted. After a big debate, the court fixed a new rate. Here’s how it all went down.

The Initial Case: Land Acquisition in Morai Village

Back in 2003, land in Morai Village, Poonamallee, was taken for the Outer Ring Road project. The official in charge set the market value at ₹500 per cent. But the landowners, including K. Muthu, felt this was unfair. They argued that the area had more potential and deserved higher payment.

The Reference Court's Decision: A Big Jump in Value

Fast forward to October 23, 2017, the Reference Court decided to increase the payment to ₹75,000 per Are (about ₹30,364 per cent). They based this on a 2015 decision for nearby land, which seemed like a fair comparison at the time.

"The Reference Court enhanced the compensation to Rs.75,000/- per Are."

The Appeal: Not So Fast!

The official in charge wasn’t happy. They appealed, arguing that the Reference Court used data from 2015, way after the original 2003 notification date. They said this wasn’t a fair comparison.

The High Court's Take: Back to 2003 Values

On December 18, 2025, Justice Dr. A.D. Maria Clete gave the final word. The court agreed that using 2015 data wasn’t right. They rolled back the value to ₹16,500 per cent, based on a similar 2003 project in the same area.

"Market value is re-fixed from Rs.30,364/- per cent to Rs.16,500/- per cent."

What the Landowners Get

Even with the lower rate, landowners will receive extra benefits:

  • 12% annual increase from 2003 until the award or possession date.
  • 30% bonus (a kind of extra payment for inconvenience).
  • Interest on the extra amount, starting at 9% for the first year and 15% after.

Verdict Summary

The final decision by the court set the land value back to ₹16,500 per cent, aligning it with values from 2003. While this may seem like a setback for the landowners, they will still receive additional benefits to make up for the inconvenience.

Tags:
Land Acquisition
Right to Fair Compensation
Property Rights