SC issues notice to Gujarat government over validity of section 24 of Right to Fair Compensation under Land Acquisition

The Supreme court has issued notices to the Centre, Gujarat government and Reliance Ltd. in an appeal challenging the Gujarat High court's order on the validity of Section 24(2) of & lsquo Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013'. The Gujarat government had earlier acquired a land for Reliance Ltd. under Part VII of the Land Acquisition Act, 1894 (relating to the acquisition of land for companies). Thereafter, Reliance was given 95% of the acquired land. Meanwhile, the 1894 Act was replaced by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. According to section 24 of the said Act, if a land was acquired under the 1894 Act, five years or more before the new Act came into force, and if the physical possession of the acquired land is not taken or the compensation to the landowners is not paid, then the acquisition shall be deemed to have lapsed. The enactment of this Act arose much tension for the Reliance Ltd. that had acquired the land under the old Act of 1894 but had then taken the possession of only 95% of the said land. Hence, it had filed a petition in the Gujarat High court challenging the validity of Section 24 of the Act. The Gujarat High Court had held that when while applying section 24(2) of the Act of 2013, a distinction has to be drawn for acquisition of land by the government for its own purpose, and the acquisition of land covered by Part-VII of the Land Acquisition Act, 1894, where acquisition is for companies. The High court further held that section 24 is not applicable to those lands were acquired under Part VII of the 1894 Act and where the award was passed and compensation was paid by the beneficiary company (Reliance in this case). Aggrieved by the said decision of the High court the landowners have now challenged the order on the ground that as per section 24 the acquisition by the Gujarat government for Reliance Ltd. has elapsed.