IAS officer’s ‘arbitrary’ arbitration shocked court
CHANDIGARH: Punjab-cadre IAS officer Sucha Ram Ladhar’s controversial method of resolving land compensation disputes between farmers and the National Highway Authority of India (NHAI) even “shocked the conscience of the court,” it has now emerged.
The functioning of the 1991batch officer, known for enjoying political patronage, has come under the scanner following Hindustan Times’ expose about Ladhar’s money-making practice (‘IAS officer reaps a rich harvest’ and ‘No policy, Ladhar makes hay as arbitrator’, May 24-25).
Ladhar, whom chief minister Parkash Singh Badal has again appointed Jalandhar divisional commissioner, admitted before the state government — after the HT reports — that he had made about Rs 1.58 crore in arbitration fee. The fee was allegedly charged during Ladhar’s postings as Jalandhar and Patiala division commissioner-cumarbitrator since August 2007.
Ladhar, 53, was the Jalandhar divisional commissioner from August 2007 to July 2011. Subsequently, he occupied the post in Patiala, till last month.
In a 14-page verdict pronounced on October 14, 2011, Atul Kasana, additional district judge, Jalandhar, had “set aside” the August 28, 2009, award passed by the Jalandhar divisional commissioner-cum-arbitrator, who had given a hike in land compensation. Aggrieved by Ladhar’s order, the union ministry of road transport and highway had petitioned the court, challenging the award.
Ruling that the impugned award “is required to be set aside as the same is in conflict with the public policy of India,” the court held: “It is so unfair and unreasonable that it shocks the conscience of the court.”
“Perusal of the award goes to show that the entire assessment
ADDITIONAL DISTRICT JUDGE HAD SET ASIDE DIVISIONAL COMMISSIONER LADHAR’S ORDER TO HIKE COMPENSATION
FOR LAND ACQUISITION
of compensation awarded… was based on surmises and conjectures and without recording any reason for enhancement of compensation…” the court ruled.
“…the fundamental policy of India expects a judicious approach and not an arbitrary one, ” the ruling states.
The judge held that the commissioner “terminated in haste” the arbitral proceedings of the impugned award and that “when proper procedure was not adopt- ed” and when compensation was enhanced without recording any reason, “the award is definitely and patently illegal.”
BADAL’S DOUBLE STANDARDS
Anurag Verma, who was the Jalandhar divisional commissioner from July 28, 2011 to June 23, 2012, followed in the footsteps of predecessor Sucha Ram Ladhar and charged arbitration fee — without prior sanction of the Punjab government.
While Ladhar allegedly made Rs 1.58 crore in arbitration fee when posted as divisional commissioner of Jalandhar and Patiala, Verma, during his stint, earned more than Rs 10 lakh.
Following the HT expose, Verma deposited the money he had made from arbitration fee into the state treasury.
However, Badal recently trans- ferred Verma to an ‘inconsequential’ post (secretary, revenue, and survey commissioner, Wakfs), while the well-connected Ladhar got the post of Jalandhar divisional commissioner.
THE CONTROVERSY
After the NHAI acquired land and released compensation as per the price fixed by subdivisional magistrates, residents of Patiala and Jalandhar approached the divisional commissioner, seeking a hike in compensation. Though the divisional commissioner functions as an ex officio arbitrator between the NHAI and the private party, Ladhar had been charging arbitration fee. As per his directive, the arbitration costs, “worked out at Rs 12,000 lump sum”, have to be shared 50:50 by both parties — the NHAI and the petitioner whose land was acquired.