India's Supreme Court bars National Highways Authority of India from denying interest on land compensation
Change
India's Supreme Court held that land owners with compensation proceedings pending as of March 28, 2008 are entitled to solatium and interest and rejected the National Highways Authority of India's plea to limit those remedies on fiscal-burden grounds.
Why it matters
Public authorities and acquiring agencies must accept and adjudicate solatium and interest claims for cases pending on March 28, 2008 instead of declining them for budgetary reasons. Interest on solatium or related enhanced components will run only from the date a claimant raises that specific demand; cases finally concluded before March 28, 2008 will not be reopened.
Implications
- • National Highways Authority of India legal and compensation teams must review all land acquisition files pending as on March 28, 2008 and pay or adjudicate outstanding solatium and interest claims — failure will leave the authority subject to enforcement of the Supreme Court order.
- • Competent authorities and court registries handling land acquisition matters must accept and decide solatium and interest claims for cases pending as on March 28, 2008 — failure to process claims will keep awards unresolved and liable to judicial compulsion.
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Topics
Governance Policy & Regulation Court Rulings Regulatory Actions