Case Note & Summary
The petitioners, landowners whose land was acquired for railway purposes, challenged the award of additional compensation under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act). The competent authority under the Railways Act, 1989 had granted 12% additional compensation only on the base market value determined under Section 26(1) of the 2013 Act, excluding the multiplication factor of 2 applied under Section 26(2). The petitioners contended that the additional compensation should be calculated on the market value after applying the multiplication factor. The High Court of Gujarat, relying on its earlier decision in Special Civil Application No. 7561 of 2023 decided on 23.12.2025, held that the term 'market value' as defined in Section 3(u) of the 2013 Act means the value determined in accordance with Section 26, which includes the multiplication factor under Section 26(2). Therefore, the additional compensation under Section 30(3) must be computed on the market value after applying the multiplication factor. The Court allowed the petition and directed the respondents to recalculate the additional compensation accordingly.
Headnote
A) Land Acquisition - Additional Compensation - Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Computation of 12% additional compensation - The issue was whether the 12% additional compensation under Section 30(3) should be calculated on the base market value under Section 26(1) or on the market value after applying the multiplication factor under Section 26(2). The Court held that 'market value' as defined in Section 3(u) means the value determined in accordance with Section 26, which includes the multiplication factor under Section 26(2). Therefore, additional compensation under Section 30(3) must be computed on the market value after applying the multiplication factor. (Paras 2-3) B) Land Acquisition - Market Value - Section 26 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Determination of market value - Section 26(1) provides for determination of base market value, and Section 26(2) mandates application of multiplication Factor 2. The Court interpreted that the term 'market value' in Section 30(3) refers to the final market value determined under Section 26, which includes the multiplication factor. (Paras 2-3)
Issue of Consideration
Whether additional compensation under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 should be calculated on the base market value under Section 26(1) or on the market value after applying the multiplication factor under Section 26(2).
Final Decision
The High Court allowed the petition and directed the respondents to recalculate the additional compensation under Section 30(3) of the RFCTLARR Act, 2013 on the market value after applying the multiplication factor under Section 26(2).
Law Points
- Market value under Section 26 includes multiplication factor
- Additional compensation under Section 30(3) computed on market value as determined under Section 26
- Interpretation of 'market value' as defined in Section 3(u)
