The Supreme Court will hear NHAI’s review plea against its 2019 judgment that granted retrospective compensation benefits to farmers whose land was acquired for highways.
NHAI claims the retrospective implementation could cost the government ₹32,000 crore and reopen thousands of old acquisition cases.
The outcome could set a major precedent for future land acquisition and compensation policies across India.
Supreme Court To Hear NHAI’s Review Plea On Farmer Compensation In Open Court
The hearing, to be held in open court, will likely attract close scrutiny from both farmer groups and infrastructure bodies. The verdict could redefine how compensation is calculated and awarded in land acquisition cases nationwide.
Summary
The Supreme Court has agreed to hear in open court a review petition filed by the National Highways Authority of India (NHAI), challenging an earlier judgment that granted retrospective compensation and interest benefits to farmers whose land was acquired under the National Highways Act.
A bench led by Justices Surya Kant and Ujjal Bhuyan issued a notice in the matter and listed the hearing for November 11 at 3 pm. The NHAI’s plea contends that the retrospective application of the ruling could impose an enormous financial burden on the government and lead to widespread reopening of past land acquisition cases.
The case stems from the Supreme Court’s 2019 judgment in Union of India vs. Tarsem Singh, which struck down Section 3J of the National Highways Act, 1956 — a provision that had excluded the benefits of the Land Acquisition Act, 1894, for landowners affected by highway projects. The ruling made farmers whose lands were acquired between 1997 and 2015 eligible for solatium and interest, significantly enhancing their compensation.
The NHAI, however, argues that implementing the decision retrospectively would have huge financial implications, estimating the additional burden at around ₹32,000 crore — a sharp increase from the earlier assessment of ₹100 crore. Officials claim the verdict affects thousands of cases across the country, potentially delaying key infrastructure projects.
The outcome of the review plea will be crucial not only for the NHAI but also for thousands of farmers and landowners awaiting clarity on their compensation rights. If the court maintains its earlier stand and upholds retrospective application, it could lead to a fresh round of claims and payouts. On the other hand, a prospective ruling would limit the benefits to future acquisitions but may trigger debates over fairness and equality under Article 14 of the Constitution.
The hearing, to be held in open court, will likely attract close scrutiny from both farmer groups and infrastructure bodies. The verdict could redefine how compensation is calculated and awarded in land acquisition cases nationwide.
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