HP High Court Orders SJVNL to Pay Land Compensation for Luhri Hydro Project
SHIMLA — The High Court of Himachal Pradesh has directed Satluj Jal Vidyut Nigam Limited (SJVNL) to pay statutory solatium, along with interest and additional increase, to landowners whose private land was acquired through negotiated sale deeds for the 210 MW Luhri Hydro Electric Project.
Delivering a common verdict on a batch of 19 writ petitions led by Rakesh Kumar v. State of Himachal Pradesh & others (CWP No. 13048 of 2025), Justice Sandeep Sharma ordered the public sector undertaking to release the dues under Sections 30(1), 30(3), and Section 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, within three months.
The case originated after the Governor of Himachal Pradesh constituted a Negotiation Committee to determine land rates for residents of Badrash and Nirath villages in Rampur Sub-Division to expedite land procurement for the project.
On March 6, 2020, the state government approved negotiated rates of Rs 40 lakh per bigha for village Badrash and Rs 50 lakh per bigha for village Nirath—which were lower than the prevailing average circle rates of Rs 59,17,251 and Rs 1,05,73,862 per bigha, respectively.
The government’s approval was granted with the express condition that SJVNL would comply with mandatory Rehabilitation and Resettlement provisions and other statutory stipulations under the 2013 Act.
Subsequent to this, SJVNL issued a communication on June 26, 2020, confirming the purchase and agreeing that benefits under the 2013 Act would be extended.
Landowners later executed sale deeds and received the base land value as well as solatium for structures standing on the land, but SJVNL denied them solatium on the acquired land itself.
Before the High Court, counsel representing SJVNL argued that solatium under Section 30 of the 2013 Act only applies when a formal award is rendered by a Collector.
The PSU maintained that since the transaction was carried out through private negotiations and direct sale deeds without a Collector's award, statutory solatium on land was not payable.
Rejecting these arguments, Justice Sharma observed that SJVNL was attempting to "blow hot and cold in one breath" by granting solatium on structures while simultaneously denying it on the underlying land without an award.
Citing the Supreme Court’s landmark ruling in M/s Motilal Padampat Sugar Mills vs. State of Uttar Pradesh on the doctrine of promissory estoppel, the court ruled that because the state government’s approval specifically bound the transaction to the 2013 Act, SJVNL cannot avoid statutory obligations simply because it chose direct purchase over formal acquisition proceedings.
The court further noted that the respondents placed no evidence on record indicating that the landowners had waived or given an undertaking relinquishing their right to solatium.
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