MP High Court Orders Release of ₹3.35 Crore Compensation for Acquired Land

The Madhya Pradesh High Court has directed authorities to release compensation worth ₹3.35 crore to landowners whose property was acquired for a National Highway project, holding that bureaucratic delays cannot be used to deny citizens the benefits guaranteed under the Constitution.

A division bench of Justices Anand Pathak and B.P. Sharma passed the order while hearing a petition filed by Smt. Shanti Singh and other landowners from Shahdol district. Their land was acquired as part of a highway development project after authorities identified it as a “missing plot” required for construction. Compensation for the acquisition had already been assessed and finalized by the competent authority.

According to the petitioners, an award determining compensation at ₹3.35 crore had been passed and the proposal for payment was forwarded in January 2026. Despite repeated representations seeking disbursement of the amount, no payment was made. The landowners argued that withholding compensation after taking possession of the land amounted to an unlawful deprivation of property.

The State contended that payment had been delayed due to pending administrative and procedural formalities. However, the High Court found that the acquisition process and compensation assessment were undisputed, leaving no valid reason for continued non-payment.

Emphasizing the constitutional protection of property rights under Article 300A, the court observed that compensation for acquired land is not merely a statutory entitlement but an important constitutional safeguard. It held that delaying payment after acquisition results in arbitrary exercise of power and unfairly prejudices landowners.

Allowing the petition, the court directed the concerned authorities to take all necessary steps to release the compensation, preferably within eight weeks, provided no other legal obstacle exists.