The Apex Court held that there is no such rule that the land owners must be given alternate site or flat in all land acquisition cases.
In a writ filed in Madras High Court with regard to acquisition for a project of MRTS (Railways), court direct State Government and Tamil Nadu Housing Board to provide alternative land to the land owners as a special category of displaced persons.
The contention of State in State of Tamil Nadu vs. Dr. Vasanthi Veerasekaran was that the High Court orders was in the nature of granting an extra-legal concession by way of allotment of an alternative site for the acquired lands sans any such legal obligation on the State under the 1894 Act or any policy in force pertaining to the project of MRTS (Railways) to be implemented by the Ministry of Railway, Government of India.
The Bench of Justices A M Khanwilkar and Ajay Rastogi asserted the contention and put forth their view that in absence of such scheme, the High Court should not have issued such direction to state. Court stated, “Such a direction cannot be countenanced in law. This is reinforced from the principle underlying the dictum in the case of New Reviera Coop. Housing Society and Anr. Vs. Special Land Acquisition Officer and Ors, the court noted that it would be different matter if the State had come forward with a proposal to provide an alternative site but that principle cannot be extended as a condition in all cases of acquisition of the land that the owner must be given an alternative site or flat. And thus the court rejected the contention of the affected persons that acquisition of their land without providing them an alternative site would impinge upon their right to life under Article 21 of Indian Constitution.”
The apex court while setting aside the High Court judgment looked over other citation which was cited by High court to give such direction. One of the judgments was in case of Bharat Singh and Ors. vs. State of Haryana and Ors, where the land was acquired for utilization for industrial purpose.
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