The Supreme Court has directed the Meerut Development Authority to deposit the entire enhanced compensation awarded to landowners whose properties were acquired for the Shatabdi Nagar Housing Scheme, while allowing them to withdraw 8.33% of their respective enhanced awards during the pendency of appeals.
The bench of Justice Dipankar Datta and Justice Sheel Nagu ordered that the remaining amount be invested in separate interest-bearing fixed deposits with a nationalised bank. The Court also requested the Allahabad High Court to prioritise the compensation appeals and decide them, subject to its convenience, preferably within six months of communication of the order.
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The dispute arose from land acquisition proceedings initiated in 1987 for the Shatabdi Nagar Housing Scheme in Meerut.
Through an award dated February 22, 1990, the Special Land Acquisition Officer initially fixed compensation at ₹20 and ₹27 per square yard. Dissatisfied with these rates, the landowners sought references for enhancement.
On March 30, 2024, the Presiding Officer of the Land Acquisition, Rehabilitation and Resettlement Authority, Meerut, enhanced compensation to ₹690 and ₹720 per square yard for the respective villages.
The development authority challenged the enhanced awards before the Allahabad High Court through first appeals under Section 54 of the Land Acquisition Act, 1894. Those appeals remain pending.
During the pendency of the appeals, the High Court stayed implementation of the enhanced awards on the condition that the development authority deposit 50% of the enhanced compensation in cash and furnish security for the remaining 50%.
The High Court also permitted the claimants to receive the entire amount deposited in cash. Consequently, its interim arrangement allowed the landowners to withdraw half of the enhanced compensation while the appeals were awaiting adjudication.
The development authority approached the Supreme Court against these interim orders.
The Supreme Court considered an earlier order dated April 24, 2026, passed by a coordinate bench in a similar proceeding.
In that matter, the Court had permitted the release of ₹50 lakh to landowners out of an enhanced compensation amount of approximately ₹6 crore, subject to conditions. This represented approximately 8.33% of the enhanced amount.
To maintain parity with that arrangement, the bench adopted the same percentage for the present batch of cases.
Since the substantive appeals were already pending before the High Court, the Supreme Court observed that keeping the special leave petitions pending would serve no useful purpose. It disposed of them with directions governing the deposit, investment and interim release of compensation.
The Court directed the Meerut Development Authority to deposit the entire enhanced sum awarded by the Reference Court in favour of the respondents with the High Court Registry within four weeks from the date of the order.
Once the deposit is made, the Registrar General must set apart 8.33% of the enhanced compensation awarded to each respondent and remit that amount to the landowner in accordance with law.
The balance must be invested in separate fixed deposit accounts with a nationalised bank. These deposits are to earn interest and renew automatically, subject to further orders of the High Court in the pending appeals.
The arrangement therefore requires the authority to deposit the full enhanced amount while limiting the immediate release to landowners to 8.33%.
The Supreme Court expressly clarified that the release and receipt of the interim amount would be without prejudice to the rights and contentions of both sides in the pending first appeals.
It further recorded that, if the development authority’s appeals succeed, the respective respondents must return the released amount to the authority.
The order does not finally determine the correctness of the enhanced compensation rates. That issue remains for the High Court to decide.
The bench expressed regret over the pace of the High Court proceedings, noting that the underlying acquisition dated back to 1987.
Despite an earlier request to hear the appeals on priority, the High Court had not taken them up for hearing. While acknowledging the heavy workload faced by High Court benches, the Supreme Court observed that a request for expedited consideration should prompt a sincere effort by the roster bench to decide the matters promptly.
The Court also noted that the Reference Court had increased compensation by an “unusually large margin”. This placed a substantial financial burden on the development authority while leaving landowners uncertain about the compensation that would ultimately become final.
Against this background, it renewed its request for priority hearing and disposal, preferably within six months from communication of the order, subject to the High Court’s convenience.
The bench also provided a safeguard for landowners if the litigation continues beyond that period.
If, for valid reasons, the High Court cannot dispose of the appeals within six months, the respondents may seek release of an additional amount. The High Court will determine what further sum, if any, it considers fit and proper to release.
The Supreme Court directed its Registry to communicate the order to the Registrar General of the Allahabad High Court for placement before the Chief Justice, including for any necessary administrative directions.
A chart furnished by the development authority and annexed to the order records assessed decretal amounts totalling ₹59,35,09,179.73, or approximately ₹59.35 crore, across the listed matters.
The chart records payments of ₹14,92,580 and a balance payable of ₹59,20,16,598.18. These figures were supplied by the development authority and taken on record as Appendix-I.
The Supreme Court’s directions establish an interim arrangement for securing the enhanced awards and providing limited immediate relief to landowners until the High Court determines the compensation appeals.
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