Supreme Court Rules Land Compensation Cannot Be Based Solely on Official Rates

Islamabad: The Supreme Court of Pakistan has ruled that compensation for acquired land cannot be determined solely on the basis of government-notified rates, dismissing all appeals filed by the Khyber Pakhtunkhwa government in the Swabi land compensation case.

The judgment, authored by Justice Muhammad Ali Mazhar, upheld the decisions of the lower courts in favor of the landowners.

The court held that the actual market value of the land must be taken into account when determining compensation. It further ruled that the future potential of the land and any increase in its value resulting from delays in the acquisition process should also be considered.

The Supreme Court emphasized that fair compensation is a constitutional right of every affected citizen. While the state has the authority to acquire private land for public purposes, it is legally obligated to provide just and adequate compensation.

In its judgment, the court stated that the guiding principle for land acquisition compensation should be “gold for gold, not copper,” underscoring that affected landowners must receive full financial justice rather than inadequate compensation.

The case concerned land acquired for a canal project in Swabi. The landowners had challenged the government’s compensation, arguing that it was significantly below the market value.

A Reference Court had increased the compensation after reviewing the evidence, and the Peshawar High Court subsequently upheld that decision.

The Khyber Pakhtunkhwa government challenged the enhanced compensation before the Supreme Court. However, the apex court rejected all of the government’s objections and affirmed the rulings of the Peshawar High Court, bringing the legal dispute to a close.