Surinder Ahuja & Anr. v. State of Punjab & Anr. 2026 INSC 1068
If a government project (like a massive drain or canal) cuts through a property and leaves remaining land isolated or unusable because heavy machinery can’t cross it, the state must fairly compensate for that loss of utility (known as severance charges).
The judgment addresses appeals regarding land acquisition for the Aspal Extension Drain project, where landowners sought better compensation. The court fixed a uniform market value of Rs. 5,00,000 per acre across the affected villages and restored a 50% severance charge for remaining land isolated by the project.
Additionally, standardizes compensation for tubewells and fruit-bearing trees while clarifying that statutory benefits like compensation apply only to the core market value of the land. It also includes safeguards stating that any excess money paid out cannot be arbitrarily clawed back without proper written notice, a fair hearing, and a strict nine-month timeline.