Various organizations in Himachal Pradesh have launched a fierce attack against the state government for challenging a landmark High Court judgement on land compensation in the Supreme Court. The government filed a Special Leave Petition (SLP) against the May 2023 High Court order, which had quashed a 2015 state notification and mandated higher compensation for rural land acquisition.
A Decade-Long Struggle for Justice
The High Court's decision, hailed as a victory for lakhs of people, directed the state to provide compensation as per the ‘factor 2’ formula, instead of the lower ‘factor 1’ formula fixed by the Virbhadra Singh government in 2015. This order was the culmination of a ten-year struggle by affected families whose land was acquired for major infrastructure projects like highways, railways, and power plants.
Brigadier Khushal Thakur (retd), patron of the Bhumi Prabhavit Sangh, called the government's move a "criminal act." He stated, "The high court's landmark decision will benefit lakhs of people. The state govt doesn't want to give people the compensation they deserve, which is also guaranteed under the Land Acquisition Act of 2013." He urged Chief Minister Sukhvinder Singh Sukhu to comply with the court order and notify the factor 2 compensation.
The Core Issue: Factor 1 vs. Factor 2
The dispute centers on the formula used to calculate compensation. Under the ‘factor 2’ formula, compensation is fixed at four times the market value of the acquired rural land after adding solatium. The ‘factor 1’ formula, which the state tried to enforce via its 2015 notification, pays only two times the market value.
Brigadier Thakur pointed out that most states in India give compensation between factor 1 and 2, and no state gives as low as factor 1. He also cited that Prime Minister Narendra Modi had advocated for 2-factor compensation. The High Court's quashing of the 2015 notification was seen as a corrective measure.
Financial Constraints and Broken Promises
Activists allege the state's poor finances are driving its attempt to deny fair compensation. Dinesh Sen, President of the Bhumi Prabhavit Sangh in Kullu, explained, "If the factor 2 formula is implemented, the Himachal govt will have to pay higher compensation. Compared to the Centre, the state govt hardly acquires any land."
He and others highlighted the hypocrisy of political promises. "Both the BJP and the Congress promised factor-2 compensation in their manifestos. They should have thought about the state's financial situation before making those promises," Sen added.
Ground Realities: Delays and Deception
The fight for fair compensation is not just about formulas but also about implementation and transparency. Vijay Sharma, President of the Fourlane Sangharsh Samiti in Dehar, Mandi, gave a stark example. He claimed thousands of families whose land was acquired for the Kiratpur-Nerchowk highway widening in 2012-13 are yet to receive the mandatory 30% solatium, despite a 2019 Supreme Court order.
Activists further accuse the government of systemic deception. Brajesh Mahant, general secretary of the Bhumi Prabhavit Sangh, alleged that circle rates used to determine land value are deliberately kept far below market rates. "In areas between Kullu and Manali, market value is Rs 10-15 lakh per biswa, but circle rates are only Rs 1-1.5 lakh. The government is cheating people," he said.
Mahant criticized the method of fixing circle rates based on the average of registered sale deeds, calling it faulty as it doesn't reflect true market value. "The govt deliberately tries not to pay fair compensation. But we will keep fighting for our rights," he asserted.
The affected projects span the last decade and include key infrastructure works: the Kiratpur-Manali, Kalka-Shimla, Shimla-Mataur, and Mandi-Pathankot highway expansions; the Chandigarh-Baddi and Bhanupali-Bilaspur-Beri rail lines; and several hydroelectric projects. With the state's appeal now in the Supreme Court, the wait for justice for thousands of displaced families in Himachal Pradesh continues.
