In a significant development, the Madras High Court has directed a thorough probe into a compensation payment of ₹93.4 crore made by the Chennai Metro Rail Limited (CMRL) to landowners. The court expressed serious concerns over the disbursement of the massive sum without proper verification of land titles.
Court Bench Sets Aside Appeals, Flags Compensation Issue
A division bench comprising Justices S M Subramaniam and Mohammed Shaffiq issued this order on Friday. The bench was hearing a batch of appeals related to the acquisition of 20.6 acres of land in Koyambedu, Chennai, back in 1975. The land was initially acquired for a housing scheme but was later repurposed for the now-famous Koyambedu market and bus terminus projects.
The court set aside the appeals against this decades-old acquisition. The legal saga saw awards being passed in 1983, with compensation deposited in court due to disputes over land ownership. While some landowners challenged the acquisition, the Supreme Court upheld it in 1996, directing that 1.5 acres be spared for the landowners' residential use. The rest of the land has been used for crucial public infrastructure since.
Fresh Petitions and Court's Firm Stand
Despite the Supreme Court's ruling, a new wave of petitions emerged between 2005 and 2010. These petitions sought the reconveyance of the land, the invalidation of the original acquisition, and enhanced compensation under the newer Land Acquisition Act of 2013. The petitioners argued that the acquisition had lapsed due to non-payment of compensation and non-taking of possession.
The Madras High Court bench firmly rejected these pleas. It held that possession of the land was taken in 1983 and the compensation was duly deposited in court at the time. The court stated that making claims of lapse was untenable and an abuse of the legal process, especially since the apex court had already upheld the acquisition nearly three decades ago.
The Core Concern: ₹93.4 Crore Paid Without Title Check
The most critical part of the order revolves around a separate but related transaction. The bench highlighted its deep concern over a payment of ₹93.4 crore made to the petitioners. This payment was made through a compromise during CMRL's acquisition of the exempted 1.5-acre portion in 2010.
The court pointed out a major procedural flaw: the title verification of the lands was not conducted before releasing this enormous compensation. This lack of due diligence raised red flags for the judiciary.
Consequently, the bench has directed the concerned authorities to initiate appropriate action, including criminal proceedings, if any fraud or collusion is discovered during the investigation. This order underscores the court's intent to ensure transparency and accountability in large-scale public fund transactions related to land acquisition.
