HON’BLE SRI JUSTICE C.V. NAGARJUNA REDDY W.P.No.28628 of 2011 Date : 15-12-2011 Between: Gangodi Anandam and others .. Petitioners And The State of Andhra Pradesh, Represented by its Secretary, I & CAD Department (PW), Hyderabad and others .. Respondents Counsel for petitioner: Sri P. Gangarami Reddy Counsel for respondents : Government Pleader for Land Acquisition The Court made the following: ORDER: The petitioners are members of the Co-operative Joint Farming Society (CJFS) who claim to have been allotted certain pieces of land for carrying on agriculture. The said lands got submerged in Kandaleru Reservoir of Telugu Ganga Project in the year 2002. As no compensation was paid, the petitioners filed W.P.No.11107/2011 for a direction to the respondents to provide alternative lands as a measure of rehabilitation or pay compensation at the rate of Rs.1,85,000/- per acre. In pursuance of the interim direction granted by this Court, respondent Nos.3 and 4 fixed the market value of the lands at Rs.10,000/- for payment of ex gratia to the petitioners vide proceedings dated 25-8-2011 of respondent No.4. Being dissatisfied with fixation of the said value, the petitioners filed the present Writ Petition. Respondent No.4, in his proceedings dated 25-8- 2011, placed reliance on award No.9/TGP/91 dated 8-3- 1991 pertaining to Gundavolu village in which the lands in question are situated for which ex gratia at the rate of Rs.10,000/- per acre was granted in respect of patta lands under category III. Respondent No.4 has also taken into consideration payment of Rs.10,000/- per acre for CJFS members in reach No.15. On the above basis, a sum of Rs.10,000/- per acre has been fixed as ex gratia to petitioner Nos.1, 2, 4, 5, 6, 7, 10 and 11 and the entitlement of petitioner Nos.3, 8, 9 and 12 to claim compensation is under verification. At the hearing, Sri P. Gangarami Reddy, learned counsel for the petitioners, submitted that, admittedly, the lands in possession of the petitioners were submerged in the year 2002 and that therefore there is no rationale or justification in the respondents fixing the market value on the basis of the award passed in the year 1991. The learned counsel placed reliance on G.O.Ms.No.1307, Revenue (Assignment-I) Department, dated 23-12-1993 and submitted that under the said G.O., lumpsum ex gratia equivalent to the market value is payable to the assignees whose lands are resumed for projects and other public purposes. In the counter-affidavit, respondent No.4 sought to justify fixation of Rs.10,000/- per acre as compensation on the same reasons which are contained in the impugned order. In my opinion, when the lands of the petitioners were taken possession in the year 2002, the market value prevailing at that time should be taken into consideration for computing the compensation. It is common knowledge that the value of money keeps dwindling with the passage of time and the sum of Rs.10,000/- in the year 1991 will not carry the same value in the year 2002. In recognition of this fact, the concept of payment of market value as on the date of acquisition is being followed. Under G.O.Ms.No.1307, dated 23-12-1993, lumpsum ex gratia equivalent to the market value along with 30% towards solatium is payable. The expression ‘market value’ should be given a reasonable and rational construction as the market value prevailing as on the date when possession of the land was taken over. In the instant case, it is not in dispute that the lands were taken over in the year 2002. Therefore, respondent No.4 ought to have valued the lands as they stood in the year 2002 and added 30% to such value in terms of G.O.Ms.No.1307, dated 23-12-1993. As the utility of land as well as the compensation are denied to the petitioners all these years, they are also entitled to reasonable interest on the compensation so fixed. On the analysis as above, respondent No.4 is directed to reconsider the issue by fixing the compensation on the market value of the lands as on 1-1-2002. He shall add 30% to the value so arrived. The compensation amount, together with interest @ 12% per annum from 1-1-2002 till the date of payment, shall be paid to petitioner Nos. 1, 2, 4, 5, 6, 7, 10 and 11 within a period of three months from the date of receipt of this order. Since it is averred in the counter-affidavit that the claims of petitioner Nos.3, 8, 9 and 12 are yet to be verified, the said petitioners shall also be paid the compensation as directed above, subject to verification of authenticity of their claims. The Writ Petition is accordingly allowed with the above observation. As a sequel, WPMP No.35371/2011 is disposed of as infructuous. ________________________ Justice C.V. Nagarjuna Reddy Date : 15-12-2011 AM