In this batch of special leave petitions arising from land acquisition proceedings under the Shatabdi Nagar Housing Scheme dating back to 1987, the Supreme Court addressed interim compensation orders passed while First Appeals were pending before the High Court of Judicature at Allahabad. The Reference Court had substantially enhanced compensation from the original awards of Rs. 20/- and Rs. 27/- per square yard to Rs. 690/- and Rs. 720/- per square yard. To maintain parity with similar housing scheme matters, the Supreme Court disposed of the petitions by directing the Meerut Development Authority to deposit the entire enhanced compensation awarded by the Reference Court with the High Court registry within four weeks. Out of this amount, 8.33% is to be released to the landowners, while the balance must be invested in interest-bearing fixed deposits on an auto-renewal basis pending the outcome of the first appeals. Furthermore, the Court requested the High Court to expedite the pending appeals and render a decision within six months.
- Background and Enhancement of Compensation:
- Lands were acquired in 1987 for the Shatabdi Nagar Housing Scheme, with the Special Land Acquisition Officer initially fixing compensation at Rs. 20/- and Rs. 27/- per square yard in February 1990.
- On reference, the Land Acquisition, Rehabilitation and Resettlement Authority enhanced the compensation to Rs. 690/- and Rs. 720/- per square yard vide an award dated March 30, 2024.
- Interim Relief and Parity of Deposit:
- The High Court had stayed the implementation of the Reference Court’s award on condition that the petitioner deposit 50% in cash and furnish security for the rest, permitting claimants to withdraw the entire cash deposit.
- Citing a coordinate bench order dated April 24, 2026, involving similar proceedings where approximately 8.33% of the enhanced amount was permitted for release, the Supreme Court modified the mechanism to maintain consistency.
- Directions for Deposit and Disbursement:
- The Meerut Development Authority is mandated to deposit the entire enhanced sum awarded by the Reference Court with the High Court Registry within four weeks.
- The Registrar General must set apart 8.33% of the enhanced compensation to be remitted to the respective respondents, while investing the remaining balance in interest-bearing fixed deposit accounts in a nationalized bank on an auto-renewal basis.
- The release is subject to the final outcome of the pending first appeals, meaning the funds must be returned to the Authority if the appeals succeed.
- Expeditious Disposal by the High Court:
- Highlighting that the acquisition dates back nearly four decades (1987), the Supreme Court expressed regret over the prolonged delay and lack of alacrity in hearing the first appeals under Section 54 of the Land Acquisition Act, 1894.
- The High Court was requested to accord priority to the Shatabdi Nagar Housing Scheme batch and dispose of the appeals preferably within six months, granting liberty to landowners to seek further release of funds if the timeline is unmet.


