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 awarded 12% additional compensation only on the base market value determined under Section 26(1), refusing to apply the multiplication Factor-2 under Section 26(2) for the purpose of calculating additional compensation. The petitioners contended that the issue was already settled by a Division Bench of the Gujarat High Court in Special Civil Application No. 7561 of 2023 decided on 23.12.2025, which held that 'market value' as defined in Section 3(u) includes all components of Section 26, including the multiplication Factor-2. The Court, relying on its earlier decision, held that additional compensation under Section 30(3) must be calculated on the market value after applying the multiplication Factor-2. The Court allowed the petition and directed the respondents to recompute the additional compensation accordingly within a specified period.
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 - Calculation of additional compensation @ 12% per annum - The issue was whether the additional compensation under Section 30(3) should be awarded on the base market value or on the market value after applying the multiplication Factor-2 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-2, and therefore additional compensation under Section 30(3) is payable on the market value after applying Factor-2 (Paras 96-97).
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 or on the market value after applying the multiplication Factor-2 under Section 26(2) of the Act.
Final Decision
The Court allowed the petition and directed the respondents to recompute the additional compensation under Section 30(3) of the 2013 Act on the market value after applying the multiplication Factor-2 under Section 26(2), within a specified period.
Law Points
- Additional compensation under Section 30(3) is payable on the market value determined under Section 26
- which includes the multiplication Factor-2 under Section 26(2)
- market value defined in Section 3(u) includes all components of Section 26
