SC verdict shields Karnataka from massive payout in irrigation projects

Bengaluru: The Supreme Court has allowed 530 appeals in land acquisition cases linked to major infrastructure projects in several states, including Upper Krishna Basin Project and Singatalur Lift Irrigation Project across northern parts of Karnataka, granting significant relief to the govt and state-owned Karnataka Neeravari Nigama Limited (KNNL).A bench f Justices MM Sundresh and Satish Chandra Sharma passed the order while deciding a batch of appeals that raised a common question of law under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act-2013. The ruling also extended to similar appeals filed by Bihar and Maharashtra concerning highway projects in those states.
Clarifying the legal position, the Supreme Court held that Section 24(1)(a) of the 2013 Act applies to all cases where awards were passed after commencement of the Act. It directed that such awards must be governed by provisions of the 2013 Act, except with regard to rehabilitation and resettlement entitlements. The court further ruled that first appeals before the high courts must be treated under Section 74 of the 2013 Act and not under Section 54 of old Land Acquisition Act-1894.The judgment carries major financial implications for Karnataka. Public funds amounting to several tens of thousands of crores of rupees have effectively been safeguarded.The dispute arose after landowners sought enhanced compensation before reference courts, which in many cases granted substantial increases over the amounts awarded by land acquisition officers. The state alleged that several such enhancements were excessive and not aligned with prevailing market or guidance values.However, when the govt challenged these awards, many appeals were dismissed by the high court on the ground that delays beyond 120 days could not be condoned. The Supreme Court's ruling now reopens the door for adjudication on merits, potentially correcting inflated compensation awards and addressing concerns of systemic lapses in handling such cases.