The Supreme Court has directed the Meerut Development Authority (MDA) to deposit the entire enhanced land compensation awarded to landowners under the Shatabdi Nagar Housing Scheme, while permitting the release of 8.33% of the enhanced amount to the claimants. The remaining sum must be invested in interest-bearing fixed deposits until the Allahabad High Court decides the pending appeals.
A Bench of Justice Dipankar Datta and Justice Sheel Nagu passed the order on October 8, 2026, while disposing of a batch of special leave petitions arising from the long-pending land acquisition proceedings.
Background
The dispute concerns land acquired in 1987 for the Shatabdi Nagar Housing Scheme. In its award dated February 22, 1990, the Special Land Acquisition Officer, Meerut, fixed compensation at Rs. 20 and Rs. 27 per square yard for the acquired land.
The landowners challenged the amounts, seeking higher compensation. On March 30, 2024, the Land Acquisition, Rehabilitation and Resettlement Authority, Meerut, enhanced the compensation to Rs. 690 and Rs. 720 per square yard for the respective villages.
The enhanced award is under challenge before the Allahabad High Court in a batch of first appeals. The High Court had earlier granted interim relief to the MDA, subject to depositing 50% of the enhanced compensation in cash and furnishing security for the remaining amount. The claimants were permitted to withdraw the cash deposit.
The Supreme Court considered an earlier order dated April 24, 2026, in a similar matter, under which Rs. 50 lakh out of approximately Rs. 6 crore in enhanced compensation had been directed to be released to landowners. To maintain consistency, the Court adopted a similar approach in the present batch.
The Bench also expressed concern over the delay in hearing the appeals, given that the acquisition proceedings date back to 1987. Acknowledging the heavy workload of the High Court, it nevertheless emphasised the need to expedite the matter.
The Court observed,
"We are not unmindful of the heavy burden on each bench of the High Court; yet, once a request is made, it is expected of the roster bench to make a sincere endeavour to expedite its decision on the appeals."
The Supreme Court directed the MDA to deposit the entire enhanced compensation awarded to the respective respondents with the Allahabad High Court Registry within four weeks.
The Registrar General must set aside 8.33% of the enhanced compensation for release to each claimant and invest the balance in separate, interest-bearing fixed deposit accounts with a nationalised bank on an auto-renewal basis. The release will not prejudice either side's arguments in the pending appeals, and the claimants must return the released amount if the appeals succeed.
The Court requested the High Court to prioritise the connected appeals and, subject to its convenience, decide them preferably within six months of receiving the order. If the appeals cannot be decided within that period for valid reasons, the respondents may seek release of a further amount as the High Court considers appropriate.
The special leave petitions and pending applications were accordingly disposed of.
