Compensation, interest on land acquisition payout can't be contingent on financial burden: SC

NEW DELHI: (Mar 25) Stating that the constitutional guarantee of just compensation cannot be diluted, the Supreme Court on Wednesday said solatium and interest in a land acquisition matter cannot be contingent on the magnitude of the financial burden.

A bench of Chief Justice Surya Kant and Justice Ujjal Bhuyan made the observation while disposing of the National Highway Authority of India's (NHAI) plea seeking review of the apex court’s February 4, 2025 verdict -- that the 2019 decision of the top court allowing grant of compensation and interest to farmers whose land was acquired under the NHAI Act would apply retrospectively.

The bench said interest payable to the landowners will be according to the land Acquisition Act, which is nine per cent, and not the NHAI Act, which has a five per cent cap.