Luhri Project: HP High Court Orders SJVNL to Pay Landowners Statutory Benefits
The Himachal Pradesh High Court directs SJVNL to pay solatium and interest to landowners of the Luhri Hydro Electric Project within three months.
In a significant victory for landowners, the Himachal Pradesh High Court has directed SJVN Limited (SJVNL) to clear all pending dues, including solatium and interest, for those whose land was acquired for the 210 MW Luhri Hydro Electric Project (Stage-I). The court has mandated that these payments be disbursed within a strict window of three months.
The Core of the Dispute
The legal battle centered on the procurement of private land from various villages, including Nirath and Badrash, to make way for the hydroelectric project. Rather than opting for the standard compulsory land acquisition process, SJVNL acquired the land through negotiated rates. These rates were finalized by a Negotiation Committee constituted by the state government.
When the Himachal Pradesh government approved these negotiated rates on March 6, 2020, it did so with a clear condition: SJVNL had to comply with the mandatory provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. This included all requirements regarding compensation, resettlement, and rehabilitation.
SJVNL's Defense and the Court's Rejection
Despite the government's stipulations, SJVNL resisted the landowners' demands for solatium and other statutory benefits. The company argued that since the land was obtained through direct negotiations and not through a formal award issued by a competent authority, the provisions of the 2013 Act were not applicable.
However, Justice Sandeep Sharma, presiding over a batch of petitions led by CWP No. 13048 of 2025, rejected this argument. The court emphasized that the company could not use the method of procurement as a loophole to bypass the conditions set by the state government during the approval of the compensation rates.
Key Observations by the Court
- Prior Payments: The court noted that SJVNL had already paid solatium for structures located on the acquired land, which strengthened the landowners' claim for similar benefits on the land itself.
- Promissory Estoppel: Invoking the doctrine of promissory estoppel, the court ruled that SJVNL is legally bound by the commitments and conditions under which the land was originally obtained.
- Statutory Obligations: The court held that the company cannot avoid its obligation to provide statutory benefits simply because the transaction was negotiated.
The Final Verdict
The High Court has now ordered SJVNL to provide the benefits payable under Sections 30(1), 30(3), and 80 of the 2013 Land Acquisition Act. This includes:
- Solatium (compensation for the involuntary nature of the acquisition).
- Interest on the compensation amounts.
- Other statutory benefits related to land acquisition.
The ruling brings much-needed relief to the petitioners and ensures that the affected landowners receive the full compensation and benefits promised under the law, with the company required to complete the process within the next three months.