KOCHI: In a landmark ruling that could have implications for several major infrastructure projects in the state, the Kerala High Court has held that landowners cannot be denied the benefits of the 2013 land acquisition law through so-called "negotiated purchase" agreements.
The case concerns 163.41 cents of prime land owned by Puducherry native Ravikumar RC, acquired for the Atlantis overbridge project.
Acquisition proceedings began in 2012 under the old Land Acquisition Act, but before the process was completed, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) came into force on January 1, 2014, providing substantially higher compensation and rehabilitation benefits.
TRS Kumar, counsel for Ravikumar, argued that officials persuaded him to accept a negotiated settlement at Rs 20 lakh/cent, even though land values along MG Road were significantly higher. He contended that this arrangement deprived him of the enhanced compensation guaranteed under the 2013 law.
The High Court agreed that the state could not use a negotiated purchase mechanism to defeat statutory rights available under the LARR Act. In a significant finding, the court noted that authorities had already taken possession of the land and passed an award before a registered sale deed was executed, making the subsequent transaction legally unsustainable.
Setting aside the registered conveyance deed, the court ruled that Ravikumar is entitled to compensation under the 2013 Act, including market value, solatium, additional compensation, and other statutory benefits. Authorities have been directed to determine and disburse the revised compensation within three months.
Though the court stopped short of accepting allegations that the state committed a "fraud on the power of eminent domain," the verdict effectively overturns the argument that negotiated purchase agreements can be used to bypass the protections of the 2013 land acquisition law.
Kumar said the ruling could influence similar claims arising from land acquisitions for projects such as Kochi Metro, Kannur International Airport, National Highway expansion, and Vizhinjam Port, where negotiated purchase arrangements were widely used.