Madras High Court

Madras HC: Tamil Nadu Cements Must Pay Higher Land Compensation

Updated
Feb 12, 2026 7:44 PM
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Quick Summary: In a big land compensation case, the court decided to increase the payout for land taken by Tamil Nadu Cements Corporation Ltd. in Ariyalur. The government's appeal to lower this amount was denied.

The Background Story

Back in 2000, the government announced plans to take over land in Ariyalur for a cement factory. The initial payment offered was Rs.250 per cent. However, the landowners weren't happy and took the matter to court. By 2017, the local court in Ariyalur increased the payment to Rs.1,200 per cent.

The Appeal and Arguments

The government official, representing the authority taking the land, filed an appeal against this decision. The official argued that the payment was too high and that the court used sales that weren't similar to determine the value. The official wanted the original Rs.250 per cent to be upheld.

Court's Consideration

The case was heard by Dr. Justice A.D. Maria Clete. The main questions were whether the increase to Rs.1,200 was fair and if any cuts should be applied. The court had already decided similar cases, setting an example for increasing the payment even further to Rs.1,500 per cent.

Final Decision

On February 2, 2026, the court dismissed the appeal, sticking to the Rs.1,500 per cent payment. The judge noted that this decision was consistent with previous cases and aimed to maintain fairness among all affected landowners.

"The market value of the acquired land is fixed at Rs.1,500 per cent, with no deduction towards development charges."

What This Means

The court's decision means that the landowners will receive Rs.1,500 per cent as payment, along with legal benefits. The authority taking the land must pay this amount within eight weeks.