Significance of the Case
For the first time, the Supreme Court of India drew a sharp distinction between acquisition of land undertaken by government on public purpose grounds versus for the benefit of a private company. Notably, the Court stated that “[s]uch an acquisition, if allowed to sustain, would lead to the attempt to justify any and every acquisition of land of the most vulnerable sections of the society in the name of ‘public purpose’ to promote socio-economic development.” In the case of land acquisition for companies, the legal provisions are very strict and require a prescribed procedure, including negotiations with farmers. In this regard, and considering the pace of economic development, the Court confirmed that “when the brunt of this ‘development’ is borne by the weakest sections of the society, more so, poor agricultural workers who have no means of raising a voice against the action of the mighty state government, as is the case in the instant fact situation, it is the onerous duty of the state Government to ensure that the mandatory procedure laid down … [is] followed scrupulously”. This is the first time that farmers have been given back their land and simultaneously been allowed to retain the compensation paid by government for acquisition.
