Madras High Court

Madras HC: Ariyalur Cement Factory Must Pay Rs.1,500 Per Cent for Land

Updated
Feb 12, 2026 11:30 PM
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Quick Summary: The Special Tahsildar's request to lower the payment for land used by a cement factory in Ariyalur was denied. The court decided on a higher payment rate, making sure landowners get a fair amount.

The Appeal and the People Involved

The case involves a request made by The Special Tahsildar, Land Acquisition Unit-II, against Chinnapillai and others, including the Managing Director and Deputy General Manager of Arasu Cements Corporation Ltd., Chennai. The request aimed to challenge the payment given for land taken in Ariyalur for a government cement factory.

Background of the Case

Originally, the government announced on February 22, 1996, that it would take land in Ariyalur for the Tamil Nadu Cements Corporation Limited (TANCEM). The Land Acquisition Officer set the land price at Rs.200 per cent. However, the landowner was not happy with this and asked for a higher price.

Court's Initial Decision

On February 16, 2017, the Sub Court in Ariyalur increased the payment to Rs.1,200 per cent. This included extra benefits like a bonus and interest. The Special Tahsildar thought this was too much and challenged the decision.

Consistent Court Rulings

The High Court of Madras, led by Honourable Dr. Justice A.D. Maria Clete, looked at the request on February 2, 2026. Previous court decisions had already increased the payment to Rs.1,500 per cent in similar cases.

On January 29, 2024, the court rejected requests from the state and TANCEM, supporting the landowners' claims. By August 23, 2024, TANCEM agreed to pay Rs.1,500 per cent with interest, as confirmed by Judge S.M. Subramaniam.

Final Judgment

The court decided that the payment should be Rs.1,500 per cent, with no cuts for development costs. The request was denied, ensuring fairness for all landowners involved.

Next Steps for Compensation

The court ordered that any remaining payment, along with interest, be deposited within eight weeks. This amount will be credited to the Sub Court in Ariyalur, allowing landowners to withdraw their due payment.

The judgment ensures that the landowners in Ariyalur receive fair payment, setting a strong example for similar cases in the future.