Supreme Court orders Tamil Nadu to pay market rate land compensation or return 970 acres
UPSC / SSC current affairs note · Polity
Why in news
The Supreme Court has directed Tamil Nadu to either pay compensation at market rate (as of Jan 1, 2014) for 970 acres of land acquired in 2009-10, or return the land within six weeks. This order significantly increases the state's financial burden from Rs 21 crore to over Rs 180 crore, worsening its fiscal crisis.
Background
Tamil Nadu, through SIPCOT, acquired 970 acres of land in 2009-10 for industrial development. However, no compensation award was passed, and landowners were not paid for nearly two decades. The Madras High Court had earlier ruled that the cutoff date for compensation should be Jan 1, 2014, under the central land acquisition law.
Key facts
Supreme Court bench: CJI Surya Kant, Justices Joymalya Bagchi and V Mohana.
Land acquired by SIPCOT in 2009-10 for establishing industries.
State offered Rs 21 crore as compensation under earlier procedure.
Court directed compensation at market rate as of Jan 1, 2014, raising amount to over Rs 180 crore.
Alternatively, state must return 970 acres to landowners within six weeks.
Court held that landowners should not suffer due to government inaction.
Senior advocates A M Singhvi and Prashanto Sen appeared for Tamil Nadu; Arvind Nayar for landowners.
Prelims pointers
- SIPCOT: State Industries Promotion Corporation of Tamil Nadu
- Land Acquisition Act, 2013 (central law) – cutoff date Jan 1, 2014 for compensation
- Supreme Court bench composition: CJI Surya Kant, Justices Joymalya Bagchi, V Mohana
Mains angles
- GS2 Polity: Role of judiciary in protecting property rights and ensuring fair compensation.
- GS3 Economy: Impact of land acquisition costs on state finances and industrial development.
- GS2 Governance: Delay in government actions leading to increased financial burden and litigation.