The Supreme Court of Pakistan has ruled that while the state has the authority to acquire land for public interest, it must pay compensation based on the land’s actual market value. In its decision on the land acquisition compensation case from Swabi, the court dismissed all objections raised by the Khyber Pakhtunkhwa government and upheld the earlier judgment of the Peshawar High Court.
The court stated that compensation for acquired land cannot be determined solely on official government rates. Instead, authorities must consider the property’s real market value to ensure that landowners receive fair and reasonable compensation for their property.
In its detailed judgment, the Supreme Court emphasized that the principle of compensation should be “gold for gold, not copper.” It added that the future value of the land and any increase in prices caused by delays in the acquisition process must also be taken into account when calculating compensation.
The court further ruled that fair compensation is a constitutional right of every affected citizen. Although the government has the legal authority to acquire land for projects serving the public interest, it is equally responsible for ensuring that landowners receive proper compensation.
The case involved land acquired in Swabi for a canal project, where landowners argued that the compensation offered by the government was too low. The Reference Court increased the compensation based on evidence, and the Peshawar High Court upheld that decision. The Supreme Court has now also confirmed the ruling, reinforcing the principle of land acquisition compensation based on fair market value.