Allahabad High Court orders NHAI Chairman to explain delays in paying compensation

The Allahabad High Court has ordered the Chairman of the National Highways Authority of India (NHAI) to explain delays noticed in the payment of compensation awarded to people whose land has been acquired by Central authority for highway projects [Shiv Pal Singh And 17 Others v. Union Of India And 2 Others].

A Bench of Justices Manoj Kumar Gupta and Anish Kumar Gupta noted that even after a compensation award is passed, the compensation amount is not being transferred to the Competent Authority for payment to the affected landowners.

"We are finding that this is a normal practice being adopted by NHAI in different acquisitions leading to unnecessary litigation before this Court", the Court lamented in its November 14 order.

The Court, therefore, asked the Chairman and Managing Director (MD) of NHAI the explain such delays and to bring on record any guideline or timeframe that the NHAI has prescribed on the payment of compensation.

"We require the affidavit of the Chairman and the Managing Director, NHAI as to why compensation amounts are not being approved and transferred to Competent Authority for long period even after the award is made. He will also bring on record the guideline/time frame, if any, prescribed in this regard by the Authority," the Court said.

The Court passed the order in a case where a compensation award had been made in March 2022 for the acquisition of certain land by the NHAI. However, eighteen affected landowners later moved the High Court for relief on the ground that they were yet to be paid the awarded compensation amount.

In response, the NHAI's counsel informed the Court that while the compensation amount has been sanctioned by the NHAI's regional office, it is yet to be made available to the Competent Authority for disbursal. He sought some time so that this could be done.

The Court noted that under Rule 3 of the National Highways Rules, 2019 the Executing Agency (NHAI) is required to authorize funds upon demand by the Competent Authority before announcing the award. This enables the Competent Authority to electronically disburse compensation to landowners as per Reserve Bank of India (RBI) regulations, without any further reference to the land-acquiring agency (of the NHAI).

The Court proceeded to direct the NHAI Chairman to disclose how the aforesaid mandate has been followed by NHAI in the present case.

The matter is listed next on December 4.

Advocate Akhilesh Kumar Mishra appeared for the petitioners.

Additional Solicitor General of India (ASGI) Rajesh Kumar Jaiswal and Advocate Mahendra Pratap represented the Union of India.

Advocate Vaibhav Tripathi represented the NHAI.

[Read Order]