Madras High Court

Madras HC: Landowners in Ariyalur Secure Higher Compensation for Cement Factory Land

Updated
Feb 13, 2026 11:34 AM
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Quick Summary: The Madras High Court has increased the payment for land taken in Ariyalur for a cement factory. The court raised the payment from Rs. 1,200 to Rs. 1,500 per cent, ensuring fair treatment for the landowners.

Appeals and Payment Dispute

The case involves several appeals filed by the Special Tahsildar, Land Acquisition Unit-II, against the payment set by the Sub Court in Ariyalur. The land was taken for the Tamil Nadu Cements Corporation Limited (TANCEM) for a government cement factory. The original payment was considered too low by Kaliyaperumal, the person affected.

Initial Court Decisions

The Sub Court in Ariyalur had initially set the payment at Rs. 1,200 per cent on various dates in 2017. Kaliyaperumal was not satisfied with this amount and asked for a change. The appeals were filed under a section of the Land Acquisition Act, with the appellants arguing that the payment was too high.

Court's Ruling

The Honourable Dr. Justice A.D. Maria Clete handled the appeals. The court looked at previous decisions, including a common judgment from January 2024, which set a rule for increasing the payment to Rs. 1,500 per cent.

“The market value of the acquired land is fixed at Rs.1,500/- (Rupees One Thousand Five Hundred only) per cent, with no deduction for development charges.”

Consistent Payment Policy

The court stressed keeping payments the same for everyone. Previous decisions by TANCEM and government approvals supported this rate, ensuring no unfair treatment among landowners.

Final Decision and Implementation

The appeals were rejected, and the court ordered the increased payment to be made within eight weeks. The landowners are entitled to extra benefits, including additional payment and interest.

“The remaining payment, along with all extra additions and interest, shall be deposited by the acquiring authority within eight weeks.”

This decision ensures that landowners in Ariyalur receive fair payment, reflecting the property's true value and aligning with previous court judgments.