Case Note & Summary
The High Court allowed a writ petition filed by landowners challenging the State Government's notification and Government Resolutions that specified a multiplier factor of 1.00 for land acquisition compensation in national highway projects. The Court held that for national highway projects implemented by NHAI, the Central Government is the 'appropriate Government' under the RFCTLARR Act, 2013, and therefore its notification dated 09.02.2016 specifying a multiplier factor of 2.00 prevails over the State Government's notifications. The State Government's notification dated 05.10.2021 and Government Resolutions dated 06.10.2021 and 14.01.2022 were quashed to the extent they applied to national highway land acquisitions. The award dated 13.01.2023 was set aside to the extent it applied multiplier factor of 1.00, and the respondents were directed to apply multiplier factor of 2.00 as per the Central Government notification.
Headnote
The High Court of Judicature at Bombay -- Civil Appellate Jurisdiction -- heard a writ petition challenging the applicability of State Government notifications specifying multiplier factor of 1.00 for land acquisition for national highways -- The petitioners owned land in Village Odha, District Nashik, acquired for Surat-Nashik-Ahmednagar Greenfield Section of national highway -- The Central Government issued notification under Section 3-A(1) of the National Highways Act, 1956 on 01.11.2021 -- The Central Government had earlier issued notification dated 09.02.2016 under Section 30(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 specifying multiplier factor as 2.00 -- The State Government issued notification dated 05.10.2021 and Government Resolutions dated 06.10.2021 and 14.01.2022 specifying multiplier factor as 1.00 for national highways -- The petitioners objected under Section 3-C of the National Highways Act, 1956 -- The Competent Authority rejected objections on 27-28.01.2022 -- The award dated 13.01.2023 applied multiplier factor of 1.00 -- The Court held that for national highway projects, the Central Government is the 'appropriate Government' under Section 3(e)(v) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 -- The State Government notifications were quashed to the extent they applied to national highway acquisitions -- The Central Government notification dated 09.02.2016 specifying multiplier factor of 2.00 was held applicable
Issue of Consideration
Whether the notification and Government Resolutions issued by the State Government, pertaining to applicability of multiplier factor of 1.00, can apply to acquisition proceedings undertaken in pursuance of notification issued by the Central Government under Section 3-A(1) of the National Highways Act, 1956, for national highway project implemented by NHAI, particularly when the Central Government by notification issued under Section 30(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 had specifically notified the multiplier factor to be 2.00
Final Decision
The High Court allowed the writ petition, quashed the State Government's notification dated 05.10.2021 and Government Resolutions dated 06.10.2021 and 14.01.2022 to the extent they applied to national highway land acquisitions, set aside the award dated 13.01.2023 to the extent it applied multiplier factor of 1.00, and directed respondents to apply multiplier factor of 2.00 as per Central Government notification dated 09.02.2016
Law Points
- Interpretation of 'appropriate Government' under Section 3(e)(v) of the Right to Fair Compensation and Transparency in Land Acquisition
- Rehabilitation and Resettlement Act
- 2013
- Hierarchy of notifications under Section 30(2) of RFCTLARR Act
- Applicability of National Highways Act
- 1956 provisions for land acquisition
- Conflict between Central and State Government notifications on compensation factors
Case Details
2026 LawText (BOM) (02) 8
Writ Petition No. 8122 of 2022
Manish Pitale J. , Shreeram V. Shirsat J.
Mr. Pralhad Paranjape a/w. Mr. Rahul Punjabi, Ms. Shweta More, Mr. Ishan Shroff for petitioners, Ms. Shehnaz V. Bharucha a/w. Mr. Ashutosh Mishra, i/b. Adv A. A. Ansari for respondent No.1-UOI, Ms. M. S. Bane, AGP for respondent Nos.2 to 4-State authorities, Mr. Rakesh Singh, i/b. M. V. Kini & Co. for respondent No.5-NHAI
Vikrant Happy Homes Private Limited and others
Union of India, Through Principal Secretary, Ministry of Rural Development, and others
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Nature of Litigation
Writ petition challenging the applicability of State Government notifications on multiplier factor for land acquisition compensation in national highway projects
Remedy Sought
Petitioners sought direction to apply Central Government notification specifying multiplier factor of 2.00 and quashing of State Government notification and Government Resolutions specifying multiplier factor of 1.00 for national highway acquisitions
Filing Reason
State Government issued notification and Government Resolutions reducing multiplier factor from 2.00 to 1.00 for national highway land acquisitions despite Central Government notification specifying 2.00
Previous Decisions
Competent Authority rejected petitioners' objections on 27-28.01.2022, Award dated 13.01.2023 applied multiplier factor of 1.00
Issues
Whether the State Government's notification and Government Resolutions specifying multiplier factor of 1.00 can apply to land acquisition for national highways initiated by Central Government under National Highways Act, 1956
Which government is the 'appropriate Government' under Section 3(e)(v) of RFCTLARR Act, 2013 for national highway projects
Submissions/Arguments
Petitioners argued that Central Government is the appropriate government for national highway projects under Section 3(e)(v) of RFCTLARR Act, 2013
Petitioners contended that State Government cannot issue notifications affecting Central Government projects
Respondents defended the State Government's authority to issue notifications on multiplier factor
Ratio Decidendi
For national highway projects implemented by NHAI, the Central Government is the 'appropriate Government' under Section 3(e)(v) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and therefore its notification under Section 30(2) specifying multiplier factor prevails over State Government notifications
Judgment Excerpts
The question that arises for consideration in this petition is, as to whether the notification and Government Resolutions issued by the respondent No.3-State Government, pertaining to applicability of multiplier factor of 1.00, can apply to acquisition proceedings undertaken in pursuance of notification issued by the respondent No.1-Union of India under Section 3-A(1) of the National Highways Act, 1956
It was submitted that as per Section 3(e)(v) of the Act of 2013, the appropriate Government in the present case, concerning the national highway project, is only respondent No.1-Central Government and not respondent No.3-State Government
It was submitted that to the extent that the said notification and GRs issued by respondent No.3-State Government, included lands acquired for national highways, they were rendered bad in law and unsustainable
Procedural History
Central Government issued notification under Section 3-A(1) of National Highways Act on 01.11.2021 -- Petitioners submitted objections under Section 3-C on 02.12.2021 -- Competent Authority heard petitioners on 27-28.01.2022 and rejected objections -- Petitioners filed writ petition in 2022 -- Award passed on 13.01.2023 applying multiplier factor of 1.00 -- Petitioners amended petition to challenge award -- High Court heard final arguments and pronounced judgment on 02.02.2026
Acts & Sections
- National Highways Act, 1956: Section 3-A(1), Section 3-C
- Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 3(e)(v), Section 30(2)
