• Additional land compensation

Hon'ble High court of Allahabad have pronounced judgement of additional land compensation of 64.7% to farmers and to realise the same from the profit of builders/developers and which further agreed by Hon'ble Supreme court of India then how come builders/developers can realise from Flat Owners irrespective of registration has been completed or not or there is space deed agreement between buyers and sellers. Please enlighten and oblige.
Asked 4 years ago in Property Law
Religion: Hindu

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8 Answers

Hi, the builder cannot extract the compensation from the allottes by overcharging them ..The judgments says the compensation to be shared from the profit made by the developers.. File a SLP in Supreme Court against such act of developers

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

This liability cannot be affixed on flat buyers, and has to be meted out by the builders exclusively.

At anytime the builder tries to pass on this liability upon you, desist and send a legal notice the builder.

In case the legal notice fails to help, you'll have sufficient remedy under law.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

The builder cannot recover from the buyer he has to sell them on agreed prices further also cannot ask more money from already registered flats the owners of flats donot have to pay any additional amount.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Flat owners are not bound to pay additional compensation demanded by builders

It is for builders to pay the additional compensation

Flat owners have to pay to builder only consideration mentioned in sale deed

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0


1) The High Court and Supreme Court judgment you are referring to (Savitri Devi vs State Of U.P.& Ors) pertains to cases where NOIDA authority had initially acquired land for industrial purposes but later it changed the land use in respect of a large chunk of it for residential purposes and gave it to builders.

2) In this case, both High court and Supreme court have categorically said that the builders/ developers and NOIDA authority has to bear the additional land compensation of 64.7% and that too for Lands that were acquired by NOIDA Authorities using the urgency clause, in the year 2008 and specific to 589.188 hectares of land in NOIDA and Greater NOIDA in Dadri sub-division) .

3) The High Court and Supreme Court Judgment is not binding on flat owners (registered owners or buyers)

4) The Builders/Developers and Noida authorities alone are liable to pay for the enhanced compensation as they have obtained land at cheaper rates from noida authorities.

5) You can always approach the consumer forum or civil court in case the builder / developer is demanding the flat owner (you) to bear the costs of additional land compensation.

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2169 Answers
394 Consultations

5.0 on 5.0

Compensation will realize from income already earned by developers by sale of flats and from future sales.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Dear Sir,

The direction was issued to recover from the profits of builders/developers only. Intern the said builders/developers cannot recover or enhance such amounts from the purchasers of flats. The flat owners agreements/sale deed hold good with whatever amount mentioned therein.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

The concluding portion of the referred impugned judgment makes your question clear with clarity on the referred subject, the same is reproduced below for your inflammation:

According to said agreement arrived at, only 50% of the amount of the development or betterment charges were to be realized from such farmers whose land were acquired and was subject matter of these proceedings. He further submits that this issue which has been raised in Writ Petition No. 746 of 2017, has to be answered by filing an affidavit therein.

The question before us is as to whether the petitioners are liable to pay any development or betterment charges that is sought to be imposed on the petitioners in terms of the allotment letter dated 29.06.2016 or not.

Prima facie, we find that the judgments of the High Court and that of the Apex Court do not refer to any issue relating to imposition of betterment or development charges or otherwise it's exemption but the words used in both the judgments are to the effect that the petitioners would be entitled for allotment of developed abadi plots to the extent of 10% of their acquired land subject to maximum of 2500 square meters. The Apex Court in paragraph 46 of the judgment in the case of Savitri Devi (supra) has held that the High Court has considered the ground realities of the matter and has arrived at a more practical and workable solution by adequately compensating the landowners in the form of compensation as well as allotment of developed abadi land. In paragraph 48.2 of the said judgment, the Apex Court has indicated that the benefit that has been accorded to the landowners would include the directions for allotment of developed abadi land to the extent of 10% of the land acquired of each of the landowners.

Thus, the words used in the judgment are to the effect that developed abadi land has to be allotted to the landowners but it is a settled principle of law that a judgment has not to be read like statute. The judgment therefore has to be construed in the light of the background of the controversy and the intention of adequately compensating the farmers by giving the said benefit of allotment of 10% of their land as developed abadi plots.

If there were negotiations as contended by the Development Authority on 24.4.2013 and the rate of development charges was reduced to 50% in such cases, then in that event it will have to be further seen as to whether such agreement had been entered into and whether it is binding between the parties or not.

Thirdly, there is yet another class of landowners whose land has been acquired and who have already been extended benefits to the extent of 6 to 10 % which is being adjusted as has been observed by the Full Bench of the High Court, and in the event any such allotment has preceded earlier then whether any such terms and conditions of realizing settlement/development charges had been imposed or not, and to what extent had that been accepted by the landowners.

The respondent Development Authority will therefore, specifically respond by filing an appropriate affidavit about the aforesaid facts as also whether any such decision was communicated to the farmers about the imposition of betterment charges after the judgment of the High Court dated 21.10.2011, and whether such an issue had been contested between the parties before the Apex Court or not. .

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

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