Supreme Court Stays Enhanced Land Compensation in Arunachal Defence Project Case – In a significant interim relief to the Central government, the Supreme Court has stayed a Gauhati High Court order that had directed the deposit of 50% of the enhanced compensation awarded for land acquired in Arunachal Pradesh for a key defence infrastructure project. The top court also stayed the reference court’s October 2024 decision, which had increased the compensation amount from ₹70 crore to over ₹410 crore.
A bench of Justices K.V. Viswanathan and N. Kotiswar Singh passed the order on Friday while hearing a special leave petition filed by the Union of India challenging the Gauhati High Court’s March 2025 decision. The land in question, measuring approximately 537 acres, was acquired for a strategic defence-related project located near the India-China border, an area of growing geopolitical significance.
The Central government informed the court that compensation amounting to ₹70 crore had already been disbursed to landowners in accordance with the initial acquisition process. However, the situation took a complex turn when a reference case was filed under Section 18 of the Land Acquisition Act by an individual who claimed to represent more than 100 landowners through a power of attorney. The government has alleged that the said power of attorney was forged and fraudulent. ……. Land Compensation
Based on the reference case, the Additional District and Sessions Judge passed an order in October 2024 enhancing the compensation amount from ₹70 crore to a staggering ₹410 crore. The Centre challenged the legality of the reference, citing that it was initiated through false documents and did not reflect the genuine interests or consent of the actual beneficiaries.
In response, the government moved the Gauhati High Court, seeking a stay on the reference court’s order. The High Court partially granted relief but imposed a condition requiring the Centre to deposit 50% of the enhanced amount within three months. The Centre, calling this condition financially burdensome and procedurally unfair, approached the Supreme Court for further relief.
Arguing before the apex court, the Centre submitted that it was willing to deposit 10% of the enhanced amount as security but requested that there be no direction for disbursal of funds until the matter is finally adjudicated. The government also emphasized the need for urgent intervention, given the allegations of fraud and potential misuse of public funds. ………. Land Compensation
After considering the submissions, the Supreme Court issued notice to the respondents and granted a conditional stay. The bench ordered that the operation of both the High Court’s and the reference court’s orders shall remain stayed, provided the Centre deposits 10% of the enhanced compensation amount in the registry of the High Court within four weeks.
The Supreme Court further clarified that the initial compensation of ₹70 crore had already been paid and was not in dispute. The matter is now scheduled to be heard again on August 18, 2025. ……. ……. Land Compensation
This development highlights the judiciary’s careful balancing act between protecting public resources and ensuring fair compensation for land acquisition. It also underscores the increasing vigilance required in reference proceedings, particularly in sensitive border areas where strategic interests are involved. ……. ……. Land Compensation