‘Industries have no say in case of land compensation dispute’

NEW DELHI: In a setback to industries allotted public land after the government acquires it from farmers, the Supreme Court has ruled that the allottee cannot be a participant in a legal dispute if the landowner moves court seeking enhancement of compensation for the property.

A bench headed by Justice AK Goel gave the judgement on a petition filed by landowners from Gurgaon challenging a Punjab and Haryana high court judgement that allowed Maruti Suzuki India Limited (MSIL) to intervene in proceedings pertaining to determination of compensation.

The SC said: “The mere fact that the Government chooses to determine the allotment price with reference to compensation price determined by the court does not provide any locus to an allottee to contest the claim for enhancement of compensation.”

“We hold that the post-acquisition, allottee has no locus to be heard in the matter and is neither a necessary nor a proper party.”

Advocate Jasbir Singh Malik, who represented the landowners in SC, said the SC verdict clarifies industries should not be heard if the farmers raise a dispute over compensation, even though the final amount computed has to be paid by the allottee. In the present case if the landowners’ demand is accepted, MSIL might have to cough out ₹900 crore. Haryana acquired the land in different phases for setting-up Industrial Model Township by the Haryana State Industrial Development Corporation (HSIDC). A substantial part was allotted to MSIL. The SC found fault with the HC verdict that allowed MSIL’s plea to be heard because according to the lease deed, it was liable to pay the additional sum if the court ordered an increase .