State can acquire land, but must pay full compensation: SC

ISLAMABAD: The Supreme Court has ruled that the state has the power to acquire land in the public interest, but it is a constitutional obligation to provide full, fair and real compensation to the affected citizens.

The court clarified that compensation for land cannot be determined solely based on government rates but must also take into account the market value, potential use of the land, future development, and price increases due to delay in land acquisition.

This important observation was made by Supreme Court Judge Justice Muhammad Ali Mazhar in a 20-page written judgment in a case related to compensation for land acquired for a canal project in Swabi.

The apex court rejected all civil appeals of the Khyber Pakhtunkhwa government and upheld the decisions of the Peshawar High Court and the reference court, which had increased the government compensation in favor of the landowners.

According to the judgment, the landowners had taken the position that the compensation fixed by the government was less than the actual value of the land, and they approached the court.

The reference court increased the compensation based on the evidence, while the Peshawar High Court also upheld the decision.

Later, the Khyber Pakhtunkhwa government challenged the increased compensation in the Supreme Court, but the apex court rejected all the government’s objections.

The Supreme Court said in its judgment that fixing compensation for land based solely on the government rate is not in line with the requirements of justice. According to the court, the actual market value of the land, its future use, and development prospects must also be included in the determination of compensation.

The court further ruled that if there is a delay in the process of acquiring land, the effects of an increase in property prices and inflation during this period should also be made part of the compensation so that the affected citizen can be compensated for the real financial loss.

The Supreme Court also emphasized in the judgment the principle that the standard of compensation for land should be ‘gold for gold, not copper’, meaning that the affected owner should get compensation that reflects the real value of his land and provides him with complete financial justice.

The Supreme Court ruled that the acquisition of land in the public interest is certainly a legal authority of the state, but providing fair, full, and real compensation is the constitutional right of every affected citizen, which must be ensured in all cases.