Image is for representational purposes only. | Photo credit: Prathmesh Kher
The Supreme Court on Wednesday (March 25, 2026) ruled that the fiscal consequences of the award of solatium and interest in land acquisition matters cannot outweigh the substantive claim of those who lost their land.
“There is no objection that the constitutional guarantee of just compensation cannot be conditioned on the magnitude of the financial burden. Mere escalation of the presumed liability, however significant, does not in itself constitute a valid ground for review or modification of the award,” the Bench headed by Chief Justice of India Surya Kant said in the judgment.
The verdict was based on a review petition filed by the National Highways Authority of India (NHAI) seeking a declaration that the 2019 judgment which held that solatium and interest apply to land acquisitions for highways will only apply prospectively.
The Chief Justice, who authored the judgment, said NHAI had argued that the financial liability from solatio and interest would be high, around ₹29,000 crore.
In a series of directives, the Supreme Court decided that the owners of land whose proceedings relating to the determination of compensation were ongoing as of March 28, 2008 before a competent authority or court, will be entitled to demand solatium and interest in accordance with the law.
He clarified that landowners in cases where enhanced compensation has been provided but the issue of solatia and interest has not been specifically claimed or assessed, may claim such benefits in accordance with applicable legal principles. However, interest on these components would be payable only from the date on which the solatium or interest was claimed.
On the other hand, the Supreme Court clarified that there will be no reopening of cases closed before March 28, 2008, warning that relentless reopening of proceedings would only undermine the certainty of litigation.
Published – 25 March 2026 13:14 IST
