Summary: In a recent decision, the Madras High Court decided to increase the payment for land taken in Ariyalur for a cement factory. The payment was raised from ₹1,200 to ₹1,500 per cent.
This case involves taking land in Ariyalur District for the Tamil Nadu Cements Corporation Limited (TANCEM). The government official in charge of the land acquisition originally set the land price at ₹200 per cent in 1999. However, landowner Govindasamy was not satisfied with this price and asked for more money.
On February 3, 2017, the Sub Court in Ariyalur increased the payment to ₹1,200 per cent. This decision included additional benefits like extra money for inconvenience and interest. The government official appealed this decision, saying that the increase was too much.
The case went through several appeals. On January 29, 2024, the High Court dismissed appeals by the State and TANCEM, further increasing the payment to ₹1,500 per cent. Judge S.M. Subramaniam noted that TANCEM agreed to this rate, aiming for fairness among all landowners.
"The Board noted that TANCEM took 1137.97.5 hectares of land in 3 phases... Agreed that the proposal of TANCEM to settle the cases by paying the amount fixed by the High Court, Madras in the judgment dated 29.01.2024 at the rate of ₹1,500 per cent plus interest as per section 23(2) of LA Act,1894 is approved."
On February 2, 2026, Honourable Dr. Justice A.D. Maria Clete upheld the decision to set the payment at ₹1,500 per cent. The court emphasized maintaining uniformity and fairness, rejecting any cuts for development costs.
