The Supreme Court of India has ruled that land acquisition cases prior to 2018 under the NHAI Act can not be reopened to grant additional compensation with interest to affected farmers. This oral observation came during a review plea hearing by the National Highways Authority of India (NHAI).
Court Background
A bench led by Chief Justice Surya Kant and Justice Ujjal Bhuyan made the remark on February 22, 2026, while addressing NHAI’s challenge to a 2019 judgment. That 2019 verdict in the Tarsem Singh case had allowed compensation with interest for lands acquired under the NHAI Act, initially applied retrospectively. Earlier, on February 4, 2025, the court rejected NHAI’s plea for prospective application only, citing Article 14 equality principles.
Key Dispute
NHAI argued that reopening settled pre-2018 cases where compensation was finalised would impose a massive ₹32,000 crore burden, far beyond the initial estimates of ₹100 crore. The authority sought to limit the 2019 ruling prospectively to avoid disturbing final awards. The court clarified that the 2019 decision focused on solatium and interest for 1997-2015 acquisitions but did not mandate reopening finalised matters.
Implications
This stance protects fiscal stability for infrastructure projects while balancing landowner rights under the NHAI Act. Farmers from pre-2018 acquisitions lose grounds for fresh claims on interest, though pending cases may proceed. The bench directed written submissions, signaling potential formal order ahead.
