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Patna High Court

Parshuram SinghversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The High Court held that the land acquisition for the Patna Metro project is valid, the petition for quashing the acquisition and related reports is dismissed, and the State must update the MVR/Circle rates but compensation need not be conditioned on that update.

Summary

The petitioner, Parshuram Singh, challenged the land acquisition process for the Patna Metro Rail project, seeking to quash the acquisition notification, the Social Impact Assessment (SIA) report, the expert committee report, the rejection order of his objection, and the compensation award, alleging violations of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act). The High Court examined earlier judgments, notably Lalita Devi v. State of Bihar, and a Division Bench decision in Ranjeet Kumar v. State of Bihar, which had directed revision of the 2014 MVR/Circle rates but held that compensation could not be delayed pending such revision. The Court noted that the Supreme Court’s pending order in Lalita Devi would determine the final outcome on the MVR update. Consequently, the writ petition was dismissed, the land acquisition upheld, and the State was directed to update MVR/Circle rates across Bihar without making compensation contingent on that update.

Issues considered

  • Whether the acquisition notification dated 17‑11‑2022 under Section 11(1) of the RFCTLARR Act is valid despite alleged procedural deficiencies.
  • Whether the Social Impact Assessment report and the expert committee report were issued in compliance with Sections 4, 6 and 7 of the RFCTLARR Act and the Bihar Rules, 2014.
  • Whether the petitioner’s objection under Section 15(ii) of the RFCTLARR Act was duly considered and a rejection order should be recorded.
  • Whether the compensation award under Sections 23 and 30 of the RFCTLARR Act is valid in view of alleged non‑compliance with procedural provisions.
  • Whether the MVR/Circle rate must be revised before compensation can be paid.

Legislation cited

Subjects

  • land acquisition
  • RFCTLARR Act
  • Social Impact Assessment
  • Environmental Impact Assessment
  • Metro rail project
  • compensation
  • MVR circle rate
  • public purpose
  • rehabilitation and resettlement

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.12846 of 2024
     ======================================================
     Parshuram Singh Son of Late Krishna Singh Resident of Shivpuri Colony,
     Chas, Bokaro Steel City, Jharkhand, presently residing near Pillar No.3,
     Bailey Road, Patna- 800014.

                                                            ... ... Petitioner/s
                                     Versus
1.   The State of Bihar through the Chief Secretary, Government of Bihar, at
     Patna.
2.   Urban Development and Housing Department, Govt. of Bihar, Patna through
     the Principal Secretary, District- Patna.
3.   Principal Secretary, Urban Development and Housing Department, Govt. of
     Bihar, Patna.
4.   Commissioner, Patna Division, District- Patna.
5.   District Magistrate-cum-Collector, Patna.
6.   District Land Acquisition Officer, Patna, District- Patna.
7.   Circle Officer, Danapur, District- Patna.
8.   Patna Municipal Corporation through its Commissioner, District- Patna.
9.   Commissioner, Patna Municipal Corporation, Mauryalok, District- Patna.
10. Chief Managing Director, Patna Metro Rail Corporation Ltd, Indira Bhawan
    7th Floor, Bailey Road, Patna- 800001.
11. Director (Work) Project, Patna Metro Rail Corporation Ltd, Indira Bhawan
    7th Floor, Bailey Road Patna- 800001.
12. Ministry of Jal Shakti, Department of Water Resources, River Development
    and Ganga Rejuvenation, through the Project Director, Bihar, at Patna.
13. National Mission for Clean Ganga, Ministry of Jal Shakti, Department of
    Water Resources, River Development and Ganga Rejuvenation, through its
    Project Director, Vikash Bhawan Bailey Road, Patna, Bihar- 800001.
14. Bihar State Pollution Control Board, Patna, Bihar through its Principal
    Secretary, Bihar at Patna.
15. Principal Secretary, Bihar State Pollution Control Board, Bihar at Patna.
16. Archaeological Survey of India through Regional Director, Patna Circle,
    Puratattwa Bhawan, J.C. Road, Anta Ghat, Patna- 800001.
17. Regional Director, Patna Circle, Archaeological Survey of India, Patna.
                                                             ... ... Respondent/s
    ======================================================
     Appearance :
     For the Petitioner/s     :    Mr. Sumeet Kr. Singh, Adv.
                                   Mr. Anmol Kumar, Adv.
                                   Ms. Abhilsha Kumari, Adv.
     For Resp. nos. 14 & 15 :      Mr. Pramod Kumar Singh, AC to SC-26
     For PMC                :      Mr. Prasoon Singh, Sr. Adv.
                                   Mr. Prabhat Kumar, Adv.
     For Patna Metro          :    Ms. Anukriti Jaipuriar, Adv.
     For resp. nos. 10 & 11   :    Mr. Rajnikant Kumar, Adv.
     ======================================================
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                 CORAM: HONOURABLE MR. JUSTICE RAJIV ROY
                                    ORAL ORDER

3   16-06-2026                   Heard the parties.

                               2. The present application has been preferred for the

                   following relief(s):

                                                       I. that the present writ application
                                          is being filed in the nature of Certiorari for
                                          quashing         the      process     of   acquisition
                                          published          in     the     daily    newspaper
                                          "Hindustan" dated 17.11.2022 (Annexure-
                                          P/10) under Section-11(1) of the Right To
                                          Fair Compensation And Transparency in
                                          Land       Acquisition,         Rehabilitation     And
                                          Resettlement Act, 2013 (hereinafter referred
                                          to as "RECTLARRA, 2013 for the sake of
                                          Brevity") which has been initiated under the
                                          signature of the District Magistrate, Patna:
                                          on the ground that the notification dated
                                          17.11.2022 is incorrect, the process is
                                          without       following         the   Social     Impact
                                          Assessment (herein after referred as SIA for
                                          the sake of brevity"), the action is in
                                          violation of section-4. 6 & 7 of RFCTLARR
                                          Act. 2013, the notification is itself wrong as
                                          the same on the face of record states that
                                          there is no displacement of people and the
                                          SIA report is totally contradictory stating
                                          there is displacement of people;
                                                       II.        That    the    present     writ
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                                 application is being filed in the nature of
                                 Certiorari for quashing the report of the
                                 Social Impact Assessment in relation to the
                                 Patna      Metro         Rail   depot     Corporation
                                 (Annexure-P/4) dated 27.08.2022; as the
                                 same is in complete violation of section 4, 6
                                 and 7 of the "RFCTLARRA, 2013", there is
                                 no proper report of Environmental Impact
                                 Assessment (EIA), even the objection of the
                                 public at large has not been considered, no
                                 proper opportunity of hearing was given to
                                 the public at large as the entire process was
                                 conducted in hurry, there is no finding for
                                 alternative land;
                                              III.    That       the     present     writ
                                 application is being filed in the nature of
                                 Certiorari for quashing the expert committee
                                 report dåted 11.02.2023 issued under the
                                 signature of the General Manager (Works)
                                 Technical Expert -cum- Coordinator by
                                 which report has been submitted under
                                 Section 7 of the RFCTLARR Act 2013, on the
                                 ground that the initial proceeding of the SIA
                                 report     has      not     been      considered,   the
                                 formation of the expert committee is not in
                                 consonance with Section 7 read with the
                                 intent and object of the Bihar RFCTLARR
                                 Rules, 2014;
                                              IV.     That       the     present     writ
                                 application is being filed in the nature of
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                                 Mandamus for a direction to the District
                                 Magistrate, Patna Respondent No.5 And
                                 District Land Acquisition Officer, Patna,
                                 Respondent No.6 to bring on record the
                                 rejection order of the objection filed by the
                                 petitioner       under     section   15     (ii)   of
                                 RECTLARR Act, 2013 read with the Bihar
                                 RECTLARR Rules, 2014 and quash the
                                 same;
                                              V. That the present writ application
                                 is being filed in the nature of Certiorari for
                                 quashing         the     award   prepared      dated
                                 08.06.2024 issued under the signature of
                                 District Land Acquisition Officer, Patna
                                 Respondent No. 6 by which award in L.A.
                                 Case No. 23/2022-2023 for Patna Metro Rail
                                 project has been prepared under Section - 23
                                 and Section-30 of the RFCTLARR Act, 2013;
                                 on the ground that the award prepared under
                                 Section-23 and under Section-30 is in breach
                                 of Section-30(2) of the 2013 Act, the due
                                 process of law has not been followed as per
                                 the provisions of the law, the entire award
                                 under form IX as per the Rules, 2014 is
                                 incorrect, improper, illegal, no process
                                 followed under section-21 and 26 of the
                                 RFCTLARR Act, 2013;
                                              VI. And pass any such other order/
                                 orders as this Hon'ble Court deem fit and
                                 proper.
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                      3.    The petitioner owns a piece of land with the

          following details:

                                      Survey Plot no.- 87;
                                      Mauja- Sadikpur;
                                      Thana No.- 19
                                      area- 23 decimal;
                                      Block- Danapur;
                                       district- Patna.
                      4. The Patna Metro Rail Corporation Limited

          (henceforth for short ‘the Patna Metro’) is constructing the

          East- West Corridor (Danapur Cantonment to Khemnichak) and

          North-South Corridor (Patna Railway Station to New ISBT) and

          the petitioner’s land fall under East-West Corridor. Though, as

          reflects in the prayer portion itself, the petitioner wanted number

          of reliefs, now he has come up with limited relief inasmuch as

          the petitioner wants disposal of the matter in the light of earlier

          cases which stood disposed of by the Patna High Court.

                      5. Mr. Singh representing the petitioner submits that

          in the case of Lalita Devi and Anr. vs. State of Bihar & ors.

          (CWJC No. 4562 of 2022) along with other analogous cases, a

          Bench of this Court vide an order dated 21.12.2023 held as

          follows:

                                      226. I have already held herein above
                           that since this project is a public project, certain
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                          procedural infirmities shall not render the entire
                          acquisition process as invalid. However, upon
                          balancing the public interest vis-a-vis the interest
                          of land/house owners, who have lost their entire
                          land,    including      houses   and   some   business
                          establishments, the interest of justice demands that
                          just, fair and adequate compensation be paid to the
                          land/house owners, including their rehabilitation
                          and resettlement, as prescribed under the Scheme
                          of the 2013 Act and also recommended by the
                          Expert Committee.
                                      227. From the records of these cases, it
                          appears that the lands have been acquired at two
                          mauza, i.c. Pahari and Ranipur, For mauza
                          Ranipur, the rate of the lands fixed by the State
                          Government is less than the rate fixed for the land
                          of mauza Pahari. Since the lands have been
                          acquired in both the mauza, i.e. Pahari and
                          Ranipur, for one project, therefore, on the principle
                          of one project one compensation, the lands owners
                          of mauza Ranipur are entitled to get equal
                          compensation at the same rate, which has been
                          given to the land owners of mauza Pahari. Both the
                          lands are situated adjacent to each other.
                                      228. The question, which, now, requires
                          consideration is as to how to ascertain the just and
                          fair compensation, which the petitioners and others
                          are entitled and at the same time, the Court must
                          balance the State exchequer by not awarding any
                          amount, which may be in excess so that not to put
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                          additional burden on the State entity.
                                      229. The price of the land in Patna has
                          skyrocketed and increased manifold, but the
                          M.V.R./circle rate of the area has not been revised
                          for many years. The Court has been informed that
                          the     compensation        has    been    fixed   on   the
                          M.V.R./circle rate prevalent in the year 2014.
                                      230. The M.V.R./circle rate is provided
                          for the purpose of payment of stamp duty, but that
                          cannot be made a basis to determine the actual
                          price of the market value of the property. The
                          purchasers, while purchasing the land, in the sale
                          deed, quote the consideration amount on the basis
                          of the M.V.R./circle rate and not the actual price
                          paid for the purchase of the land.
                                      231. Accordingly, in my considered
                          opinion, let the M.V.R./circle rate, which has not
                          been revised since long by the Collector, be revised
                          by taking into consideration the relevant factors,
                          including the opinion of the Expert. The concerned
                          respondents are further directed to re-fix the
                          compensation amount, payable to the petitioners,
                          based upon the revised M.V.R./circle rate.
                                      232. It has also been found that
                          recommendations of the Expert Committee, as
                          quoted herein above, have not been considered by
                          the      State       Government,          including     the
                          recommendation of the Expert Committee on the
                          point      of     rehabilitation     and      resettlement,
                          accordingly, I direct the State Government and the
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                          Collector, Patna, to consider the recommendation
                          of the Expert Committee, and to take decision on
                          the point of rehabilitation and resettlement of the
                          land/house losers, as per Section 31 of the 2013
                          Act.
                                      233. The aforesaid exercises must be
                          completed by the respondents within the maximum
                          period of six months from today.
                                      234. With the aforesaid observations and
                          directions, these writ applications are partly
                          allowed, to the extent indicated above.
                                      235. All the interlocutory applications,
                          filed in this batch of writ applications, are also
                          disposed accordingly.
                                      236. There shall be no order as to costs.



                      6. Aggrieved by the said order, both the petitioners

          (who were not inclined to part away with the land for the

          purpose of acquisition) and the State of Bihar as also ‘the Patna

          Metro’ who were aggrieved by the direction to update the MVR/

          circle rate moved before the Division Bench in LPA No. 45 of

          2024 (Ranjeet Kumar & ors. vs. State of Bihar & ors. and

          analogous cases).

                      7. It was taken up by a Division Bench headed by the

          then Hon’ble the Acting Chief Justice and paragraph 51

          onwards read as follows:
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                                              51. All these principles inhere in
                                  the Act of 2013.
                                              52. The land owners were noticed;
                                  their objections were heard; they were
                                  informed about the rejection of their
                                  objections and; they were also heard with
                                  respect to suggestion regarding other sites.
                                  The compensation amount has been fixed
                                  and the process has been speeded up to
                                  perhaps the maximum possible limit. It must
                                  stand concluded with the net result that the
                                  Metro line should become functional without
                                  any     delay.     So   far   as   quantum   of
                                  compensation is concerned, we do reckon
                                  that revising the MVR/Circle Rates which
                                  are of the year 2014 is urgently needed.
                                              53. However, the direction of the
                                  learned Single Judge that it should be done
                                  first and then compensation be paid, would
                                  not be practical in the sense that updating
                                  the Circle Rates require time and in the
                                  present circumstance, time would be the
                                  essence especially if seen in the context of
                                  the land owners who have been divested of
                                  their land who would require money urgently
                                  for their resettlement.
                                              54. The procedure adopted by the
                                  State in comparing the MVR rates with the
                                  sale deeds exemplars in the last three years
                                  and the highest being given to the land
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                                  owners appears to us to be absolutely
                                  justified.
                                               55.        While      reiterating    the
                                  importance of the various provisions of the
                                  Act of 2013, which need to be complied with
                                  to the fullest before acquiring lands. The
                                  Supreme       Court      in     Delhi    Metro   Rail
                                  Corporation, 2023 Live Law SC 363, ruled
                                  that disturbing the process of acquisition
                                  and compensation would not be appropriate,
                                  looking at the positive impact viz., fast
                                  traffic, saving the cost of acquisition,
                                  practically no destruction of buildings etc.,
                                  and the stage of construction to the extent of
                                  30%. In that case, a concern was expressed
                                  over diversion of various areas of land in
                                  morphological            ridge     for     non-forest
                                  purposes. In the context of PMRP, we find
                                  that disturbing the process of acquisition,
                                  more so when more than 45% of work has
                                  already advanced would not be correct. It
                                  would not only result in huge escalation of
                                  cost but loss to the public exchequer also.
                                               56. We, therefore, find that the
                                  acquisition is for public purposes and the
                                  objections of the land owners are not valid.
                                  However, we have also found that the
                                  manner of computation of compensation to
                                  be paid to the land owners is justified.
                                               57. We, therefore, modify the
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                                  judgment of the learned Single Judge and
                                  direct that the MVR/Circle rates of 2014
                                  must be updated, which would be an
                                  independent exercise which shall be carried
                                  out by the State after observing the due
                                  process in that regard but the payment of
                                  compensation to the land owners would not
                                  be contingent on such updation as it would
                                  take long time.
                                              58. Thus the appeals on behalf of
                                  the land owners are dismissed whereas the
                                  appeals preferred by the State and the
                                  PMRC are allowed to the extent indicated
                                  above.
                                              59.         All   the   appeals     and
                                  Interlocutory Applications are disposed off.



                      8. Lalita Devi and Another who were part and parcel

          of the writ petition and the appeals, thereafter, moved before the

          Hon’ble Supreme Court                of India in SLP (Civil)- Diary

          No(s). 39641 of 2025 (Lalita Devi & Anr. vs. State of Bihar &

          ors.) and the short order dated 19.09.2025 by the Hon’ble Apex

          Court read as under:

                              Heard       learned     Senior      Counsel   for   the
                  petitioners.
                              Delay condoned.
                              3. Issue notice for the limited purpose to modify
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                  para Nos. 53 and 57 of the impugned judgment, passed
                  by the Division Bench of the High Court of Judicature at
                  Patna, so that the affected landowners may seek
                  determination of the market value of their land in
                  accordance with the scheme conceptualized under the
                  Act.
                              4. Notice be made returnable on 27.10.2025./
                              5. The acquisition of land is, however, upheld
                  and the respondent-authorities are directed to continue
                  with the project without any impediment.


                      9. Learned counsel for the petitioner submits that it

          will suffice if he is allowed to agitate the matter in the light of

          the final outcome of the order passed by the Hon’ble Apex

          Court in the aforesaid case of Lalita Devi (supra).

                      10. Learned Senior Counsel for the Bihar State

          Pollution Control Board, learned counsel for the State as also

          learned counsel representing ‘the Patna Metro’ has no objection.

                      11. In that background, the writ petition is disposed of

          with the observation that the final outcome in the case of Lalita

          Devi (supra) pending before the Hon’ble Supreme Court shall

          decide the fate of the present case also with regard to updation

          of the MVR/circle rate in the district of Patna.

                      12. Let a copy of the order be sent to the Additional

          Chief Secretary, Urban Development & Housing Department,
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                    Govt. of Bihar, Patna for his/her perusal and needful in view of

                    the fact that irrespective of the outcome of the case of Lalita

                    Devi (supra), the State Government need to update the

                    MVR/circle rate across the State and it should not be restricted

                    only to the Capital City of Patna.

                                13. Pending I.A.(s), if any, also stands disposed of.



                                                  (Rajiv Roy, J)
Vijay Singh/
Munindra Kumar
Sahu

U


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