STAFF REPORTER
PESHAWAR : The Peshawar High Court has cut the compensation for land acquired for the northern side of the Peshawar Ring Road by half, fixing the rate at Rs4 lakh per marla instead of Rs8 lakh, and rejecting the landowners’ plea for a further increase to Rs12 lakh.
Justice Muhammad Faheem Wali, who heard appeals filed by the Peshawar Development Authority (PDA) and connected appeals by the affected landowners, ruled that the enhanced compensation awarded by the Referee Court was not supported by sufficient and reliable evidence.
The land acquisition award issued in 2012 had assessed around 23 kanals of land at Rs82,380 per marla. The landowners challenged the valuation and secured an enhancement from the Referee Court, which in 2022 fixed the compensation at Rs8 lakh per marla.
The landowners subsequently approached the High Court seeking a further increase to Rs12 lakh per marla, maintaining that the acquired property possessed considerable commercial potential because of its location near developed townships.
The PDA opposed the claim through its counsel, Barrister Asad-ul-Mulk, who argued that the rates of adjoining developed townships could not serve as a valid benchmark for agricultural land. He maintained that the landowners had also failed to produce credible evidence of comparable sale transactions supporting the enhanced valuation.
The counsel further argued that the Referee Court had relied on speculative considerations and had not properly reconciled its assessment with the findings of the commission.
The High Court observed that potential value, location, surrounding development, road access and availability of other facilities could be relevant factors in determining compensation for compulsorily acquired land.
However, the court held that such factors could not replace the requirement for credible evidence. According to the judgment, compensation must represent a fair and reasonable assessment based on the material available on record rather than on assertions made by claimants.
The court also placed the burden on the landowners to establish their claim for enhanced compensation through convincing evidence, observing that they had failed to discharge that burden.
The bench further held that the market rates of developed townships could not automatically be applied to undeveloped agricultural land.
Accordingly, the High Court set aside the Referee Court’s enhancement and reduced the compensation from Rs8 lakh to Rs4 lakh per marla.
The ruling underscores that while the future potential of acquired property may be considered, claims for higher compensation must be backed by solid market evidence. In the present case, the High Court found the evidence insufficient to sustain the higher valuation awarded by the Referee Court.
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