Market value for 1986 New Bombay acquisitions fixed at Rs. 1,725 per square metre across adjacent villages.

In 1970, the Government of Maharashtra initiated large-scale land acquisition for the ‘New Bombay Project,’ which later lapsed.

On September 24, 1986, a fresh Section 4 notification was issued to acquire 3640 sq. mtrs. of land in Village Padghe, Panvel.

The SLAO awarded a total compensation of Rs. 14,560/- (approx. Rs. 4/- per sq. mtr.) on September 11, 1989.

Dissatisfied, the claimants sought a reference under Section 18, claiming Rs. 5,000/- per sq. mtr.

The Reference Court (Alibaug) enhanced the rate to Rs. 1,500/- per sq. mtr. via an award dated October 31, 2014.

The State appealed against this enhancement, while the claimants filed cross-objections seeking further increase.

1. Whether the market value of the acquired land as determined by the Reference Court was fair and just as of the date of the Section 4 notification

2. Whether the comparative sales method or leasehold instances provided a valid basis for determining the market value of freehold agricultural land

3. Whether the claimants were entitled to a uniform rate of compensation (Rs. 1,725/- per sq. mtr.) similar to that granted for neighboring villages like Roadpali under the same notification

The court applied Section 23 of the Land Acquisition Act, 1894, which mandates determining market value based on the date of notification.

Section 24, which prohibits considering future use or potential value increases resulting from the acquisition itself.

It relied on Chimanlal Hargovinddas v. SLAO, which established a balance-sheet of 'plus' and 'minus' factors for valuation.

The court followed Lal Chand v. Union of India, which cautions against using leasehold allotment rates to value freehold land.

Lastly, it applied the principle of parity from State of Maharashtra v. Trimbak Joma Thakur, where the High Court had fixed Rs. 1,725/- per sq. mtr. for the same notification in adjacent villages.

The court noted that because the 1970 notification froze private land sales, no genuine sale deeds were available for comparison.

Consequently, it analyzed three lease instances from Kalamboli and the standardized rates previously upheld by the Supreme Court for the "New Bombay Project".

The State argued for a lower rate (approx. Rs. 120/-) based on 10% annual escalation from the 1970 base rate; however, the court observed that for urbanizing areas, escalation can range between 10% and 30%.

Relying on the letter from the Law and Judiciary Department (2007), the court found that the State had previously acquiesced to a rate of Rs. 1,725/- per sq. mtr. for the neighboring Village Roadpali.

The court rejected the Reference Court’s downward adjustment to Rs. 1,500/- based on a 160-meter distance from Roadpali, holding that such minute segregation is improper for lands acquired under the same scheme with similar potentiality.

The Court dismissed the State’s appeal and partly allowed the claimants' cross-objections. The claimants were awarded this enhanced rate along with all statutory benefits under Sections 23(1-A), 23(2), and 28 of the Act. The Reference Court was directed to calculate the final amount within three months, and the State was ordered to deposit the excess amount within three months thereafter.