Gujarat High Court Allows Petitioners in Land Acquisition Case for NHAI Expressway, Directing Recalculation of Additional Compensation on Multiplied Market Value Under Section 30(3) of RFCTLARR Act, 2013. The Court Held That Additional Compensation @12% Must Be Computed on the Market Value Determined Under Section 26(2) After Applying Multiplication Factor 2, Not on the Base Market Value Under Section 26(1).

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The petitioners, Sureshbhai Ravajibhai Ahir and others, were landowners whose lands were acquired for the National Highway Authority of India (NHAI) under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the Act). The Competent Authority and Deputy Collector, Navsari (Expressway) passed awards dated 19.03.2020 and 05.08.2020 determining the market value of the lands by applying multiplication factor 2 under Section 26(2) of the Act. However, while granting additional compensation @12% under Section 30(3) of the Act, the authority computed it only on the base market value under Section 26(1), not on the multiplied market value. The petitioners challenged this before the Gujarat High Court, contending that the additional compensation should be calculated on the market value as determined after applying the multiplication factor. The Court noted that the issue had been settled by its earlier decision in Special Civil Application No.7561 of 2023 and cognate matters decided on 23.12.2025, and further by an order dated 26.02.2026 in Special Civil Application No.2324 of 2026, which held that additional compensation under Section 30(3) must be granted on the market value computed under Section 26(2). The Court allowed the petitions, directing the respondents to recalculate the additional compensation on the multiplied market value and pay the same within eight weeks. The Court also clarified that if the amount was not paid within the stipulated time, it would carry interest at the rate applicable under the Act.

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 additional compensation @12% on market value - The issue is whether additional compensation under Section 30(3) should be calculated on the market value determined under Section 26(2) after applying multiplication factor or only on the base market value under Section 26(1) - The Court held that the benefit of additional compensation @12% must be granted on the market value computed under Section 26(2) after applying multiplication factor 2, as the award had already determined market value by applying the multiplication factor - The Court relied on its earlier decision in Special Civil Application No.7561 of 2023 and cognate matters decided on 23.12.2025, and followed the order dated 26.02.2026 in Special Civil Application No.2324 of 2026 - The respondents were directed to recalculate and pay the additional compensation accordingly within eight weeks (Paras 1-5)

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Issue of Consideration

Whether the benefit of additional compensation @12% under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 should be granted on the market value computed after applying multiplication factor 2 under Section 26(2) or only on the base market value under Section 26(1)

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Final Decision

The Court allowed the petitions and directed the respondents to recalculate the additional compensation @12% under Section 30(3) on the market value computed under Section 26(2) after applying multiplication factor 2, and pay the same within eight weeks. If not paid within that time, the amount shall carry interest at the rate applicable under the Act.

Law Points

  • Additional compensation under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013 must be computed on the market value determined under Section 26(2) after applying multiplication factor
  • not on the base market value under Section 26(1)
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Case Details

2026:GUJHC:19054-DB

R/Special Civil Application No. 3198 of 2026 with R/Special Civil Application No. 3221 of 2026

2026-03-10

Sunita Agarwal, D.N.Ray

2026:GUJHC:19054-DB

A.J. Yagnik, Tushar L. Chauhan, Hetal Patel, Pradip D. Bhate, Nanavati & Co.

Sureshbhai Ravajibhai Ahir & Ors.

Competent Authority, National Highway Authority of India and Deputy Collector, Navsari (Expressway) & Ors.

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the non-award of benefit of Section 30(3) of the RFCTLARR Act, 2013 on the market value computed after applying multiplication factor 2.

Remedy Sought

Petitioners sought direction to the respondents to grant additional compensation @12% under Section 30(3) on the market value determined under Section 26(2) after applying multiplication factor 2.

Filing Reason

The competent authority granted additional compensation @12% only on the base market value under Section 26(1) instead of the multiplied market value under Section 26(2).

Previous Decisions

The issue was settled by the Gujarat High Court in Special Civil Application No.7561 of 2023 and cognate matters decided on 23.12.2025, and further followed in Special Civil Application No.2324 of 2026 decided on 26.02.2026.

Issues

Whether additional compensation under Section 30(3) of the RFCTLARR Act, 2013 should be computed on the market value determined under Section 26(2) after applying multiplication factor 2 or only on the base market value under Section 26(1).

Submissions/Arguments

Petitioners argued that the award had already determined market value by applying multiplication factor 2 under Section 26(2), and therefore additional compensation under Section 30(3) should be calculated on that multiplied value. Respondents contended that additional compensation should be computed only on the base market value under Section 26(1).

Ratio Decidendi

The benefit of additional compensation under Section 30(3) of the RFCTLARR Act, 2013 must be granted on the market value as determined under Section 26(2) after applying the multiplication factor, as the award had already computed the market value by applying the multiplication factor. The earlier decisions of the Court in Special Civil Application No.7561 of 2023 and Special Civil Application No.2324 of 2026 are binding and settle the issue.

Judgment Excerpts

The petitioners herein are aggrieved by non-award of benefit of Section 30 sub-section (3) of the the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, on the market value computed by application of the multiplication factor 2, which was granted vide award dated 19.03.2020 / 05.08.2020. The issue pertaining to the grant of benefit of additional compensation @ 12% on multiplication factor 2, i.e. the market value computed under Section 26(2) of the Act’ 2013 has been set at rest with the decision of this Court in Special Civil Application No.7561 of 2023 and other cognate matters decided on 23.12.2025.

Procedural History

The petitioners filed Special Civil Application No.3198 of 2026 and No.3221 of 2026 before the Gujarat High Court challenging the non-award of additional compensation on multiplied market value. The Court heard the matter along with connected petitions and delivered judgment on 10.03.2026.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 26(1), Section 26(2), Section 30(3)
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