Madras High Court

Madras HC: Karaikal Land Value Reassessed, Boosts Compensation for Landowners

Updated
Jan 26, 2026 11:07 AM
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Summary: In a recent decision, the Madras High Court increased the payment for lands taken in Karaikal from Rs. 4,750 to Rs. 6,728 per Are. This decision, made by Judge Dr. A.D. Maria Clete, is a big win for the landowners, including D.P. Ramamurthy.

Background of the Case

The case is about the government taking land in Kurumbagaram Village, Karaikal, to give free house plots to people without land. The first notice was sent out on December 1, 2005, and the final decision was made on December 23, 2009. The person in charge of deciding the land's worth said it was worth Rs. 3,428 per Are, which the landowners thought was too low.

The Appeal

D.P. Ramamurthy and others disagreed with this decision and argued that the payment should be based on a higher land value. They showed a sale document (Ex.C4) from June 6, 2003, which listed a price of Rs. 7,475 per Are for the same land. An earlier court had not accepted this example, leading to the appeal.

The Court's Decision

Judge Dr. A.D. Maria Clete looked over the case and found that the earlier assessment didn't use the best example of a sale. The court said:

"Official sale documents should be accepted unless there's a reason to doubt them."

The court decided to use Ex.C4 as the example to follow, setting the land value at Rs. 7,475 per Are, with a 10% cut for development, making the fair value Rs. 6,728 per Are.

Legal Precedents

The court's decision was influenced by earlier rulings that stressed using the most trustworthy sale documents to figure out land value. A Supreme Court case, Manohar v. State of Maharashtra (2025), was especially important, backing the use of genuine sales as the best proof.

Verdict Summary

The judgment not only raised the payment but also made sure that the landowners receive all the benefits they are entitled to under the Land Acquisition Act. The appeals were settled on December 18, 2025, resulting in a good outcome for D.P. Ramamurthy and the others involved.

Tags:
Land Acquisition
Right to Fair Compensation
Development Agreements