Supreme Court halts Gauhati HC order enhancing land compensation from Rs 70 Cr to Rs 410 Cr. Centre alleges fraud in power of attorney used for claim.
New Delhi: Today, on June 27, the Supreme Court of India stayed a Gauhati High Court order that had increased the compensation amount for 537 acres of land acquired for a defence project near the India-China border in Arunachal Pradesh.
The bench, comprising Justices K V Viswanathan and N Kotiswar Singh, passed the stay order while hearing a petition filed by the Central Government challenging the March 2025 order of the Itanagar Bench of the Gauhati High Court.
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The land was acquired for a defence-related project, and according to the Centre, compensation had already been paid to the landowners. The government stated that around Rs 70 crore was given to all the beneficiaries earlier.
However, a person claiming to act on behalf of over 100 people through a power of attorney filed a reference case in October 2024, which resulted in the compensation amount being increased significantly—from Rs 70 crore to more than Rs 410 crore—by the Additional District and Sessions Judge.
The Centre, while presenting its case in the Supreme Court, argued that the reference case was fraudulent.
According to the government, the person who filed the reference had “fabricated power of attorney” documents and misrepresented himself as a representative of more than 100 landowners.
The Centre also informed the Court that it had approached the Gauhati High Court earlier to get a stay on the implementation of the October 2024 order.
The High Court, however, had said that the reference court’s order would remain stayed only if the government deposited 50% of the enhanced amount—i.e., more than Rs 205 crore—within three months.
Unhappy with this condition, the government filed a plea before the Supreme Court.
During the hearing, the Centre’s lawyer argued that the government was prepared to deposit only 10% of the enhanced compensation as a security amount until the case was decided, but there should be no direction for disbursing any amount to the beneficiaries in the meantime.
The top court took note of the Centre’s concern and observed:
“Issue notice to the respondents. There shall be a stay of operation of the impugned order on condition that the petitioner, as undertaken by them, deposit 10 per cent of the enhanced amount in the registry of the high court within four weeks from today.”
In addition to staying the High Court’s order, the Supreme Court also stayed the October 2024 order of the reference court which had significantly enhanced the compensation.
The Court posted the matter for further hearing on August 18, 2025.
When the Supreme Court bench asked whether the government had already paid the undisputed amount of compensation, the Centre’s lawyer confirmed by saying,
“Yes. Rs 70 crore was paid.”
Background of the Case
The case revolves around the acquisition of 537 acres of land in Arunachal Pradesh near the India-China border for a defence-related project by the Government of India. Initially, the government awarded compensation of approximately Rs 70 crore to all the rightful landowners for the acquired land.
However, in October 2024, a reference case was filed by an individual who claimed to represent over 100 landowners through a power of attorney. Based on this claim, an Additional District and Sessions Judge enhanced the compensation amount drastically from Rs 70 crore to over Rs 410 crore.
The Centre challenged this enhancement, alleging that the reference case was based on fraudulent documentation. It specifically claimed that the person who filed the case had submitted a “fabricated power of attorney” and was not authorized by the actual landowners.
The government then moved the Gauhati High Court, requesting a stay on the enhanced compensation order. The High Court conditionally stayed the order but directed that 50% of the increased amount be deposited within three months.
Dissatisfied with the High Court’s condition, the Centre approached the Supreme Court. The apex court has now stayed both the High Court and reference court’s orders, asking the government to deposit only 10% of the enhanced amount as a security measure while the case continues.
Case Title:
Union of India & Others vs. State of Arunachal Pradesh & Others
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