The Delhi High Court has limited the development-cost deduction on acquired greenbelt land to 15%, rejecting the routine use of reductions designed for residential or commercial layouts.
Justice Shail Jain assessed compensation for land in Bahapur acquired through notifications issued in 1998 and 2002 for Delhi’s green development. The court said development deductions must reflect the work actually required for the notified public purpose. Because the land was recorded as a park and intended to remain a green or open area, deducting space and expenditure associated with roads, amenities and plotted colonies would overstate the necessary development.
Using comparable sale evidence, the court fixed market values of ₹6,579 per square yard for the 1998 acquisition and ₹8,624 per square yard for the 2002 acquisition after the 15% deduction.
The landowners’ appeals were partly allowed and the government’s cross-appeals dismissed. The award includes statutory solatium, an additional amount and interest, underscoring that valuation adjustments must remain tied to the acquisition’s real use.