Madras High Court

Madras HC: TANCEM Ordered to Increase Compensation for Ariyalur Landowners

Updated
Feb 13, 2026 3:25 PM
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Here's a quick breakdown of a recent court decision that affects landowners in Ariyalur. The court decided to increase the payment for lands taken by the Tamil Nadu Cements Corporation Ltd. (TANCEM) for setting up a cement factory.

Background: Land Acquisition in Ariyalur

The government, through a representative, had taken lands in Ariyalur for TANCEM. Initially, the payment was set at ₹250 per cent. However, landowners weren't happy with this amount and challenged it in court.

Court's Decision: Compensation Increased

On February 2, 2026, Dr. Justice A.D. Maria Clete of the Madras High Court decided in favor of the landowners. The payment was increased to ₹1,500 per cent. This decision was based on earlier decisions and a decision by TANCEM itself.

"The market value of the acquired land is fixed at ₹1,500 per cent, with no cuts for development charges."

Important Dates and Developments

  • March 14, 1996: Initial notices for land acquisition were issued.
  • February 10, 2017 & April 26, 2017: A local court in Ariyalur passed decisions to increase the payment.
  • January 29, 2024: A significant decision increased the payment to ₹1,500 per cent.
  • August 23, 2024: TANCEM decided to pay this higher rate to all affected landowners.

Why the Increase?

The court found that the earlier payment was too low compared to similar cases. The decision aimed to make sure all landowners affected by the acquisition were treated fairly.

What's Next?

TANCEM and the government have been instructed to pay the increased compensation within eight weeks. Landowners can then collect their payment from the local court in Ariyalur.

This ruling is a big win for Pitchaipillai and the other landowners in Ariyalur, ensuring they get fair payment for their lands.