Himachal High Court Orders Fourfold Compensation for Land Acquisition in Rural Areas
Brigadier Khushal Thakur, President of Four Lane Joint Struggle Committee
Mandi, May 24:
In a major relief to project-affected residents in Himachal Pradesh’s rural areas, the High Court has ordered that they be paid four times the compensation for acquired land. The division bench of Justice Tarlok Singh Chauhan and Justice Sushil Kukreja passed the judgment on May 22, setting aside the state government’s April 1, 2015 notification enforcing only “Factor 1” for compensation.
The order came during the hearing of a petition filed by Keshav Ram, Karam Chand, and others against the state government. Brigadier Khushal Thakur, chairman of the Fourlane Joint Struggle Committee, welcomed the ruling and expressed gratitude to the High Court, calling it a historic decision.
Speaking in Mandi, Thakur said that affected residents had been fighting for justice for the past 10 years. He alleged that the state government had wrongfully applied “Factor 1” across the board, ignoring the provisions of the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013, which clearly mandates “Factor 2”—four times compensation—for rural areas. With the court’s intervention, lakhs of affected residents across the state are finally set to receive their rightful dues.
Brigadier Thakur added that based on figures available two years ago, the compensation owed to affected residents was approximately ₹3,000 crore. That figure may now have increased to ₹4,000 crore due to the state’s delays. He stressed that the issue is not merely about compensation, but about taking someone’s valuable land for public projects—land they do not give up voluntarily. Therefore, fair and lawful compensation is essential.
What Are Factor 1 and Factor 2?
The Government of India enacted a new Land Acquisition Act in 2013. Under this law, compensation is calculated using different multipliers:
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Factor 1 applies to urban areas, where compensation is up to twice the market value.
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Factor 2 applies to rural areas, where compensation must be up to four times the market value.
However, the Himachal Pradesh government had implemented only Factor 1 statewide. As a result, land acquired for central and state projects in rural regions was compensated at only double the rate, instead of quadruple. The court’s latest ruling now compels the state to pay four times the market value to landowners in rural areas, in accordance with the 2013 law.
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