Supreme Court Bars Reopening of Settled Land Acquisition Claims

Dismisses NHAI's Plea to Limit Retrospective Application of Solatium Ruling

Mar. 25, 2026 at 8:50am

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The Supreme Court has dismissed a review petition filed by the National Highways Authority of India (NHAI) seeking to limit the retrospective application of the 2019 Tarsem Singh judgment, which established that solatium and interest are applicable to land acquisitions under the National Highway Act. The Court clarified that claims finalized before March 28, 2015 cannot be revisited, despite the NHAI's argument that the ruling would create a financial liability of ₹29,000 crore.

Why it matters

This ruling underscores the importance of upholding constitutional rights, even when faced with significant financial consequences. The Court's decision prioritizes equitable treatment of landowners and reinforces the principle that just compensation is a fundamental right, rather than being contingent on the financial burden placed on the acquiring authority.

The details

The 2019 Tarsem Singh judgment had declared Section 3J of the National Highways Act 1956 unconstitutional, as it excluded solatium and interest for land acquisitions under the National Highway Act. The NHAI sought to limit the application of this ruling to future land acquisitions, but the Supreme Court dismissed the review petition. The Court clarified that claims finalized before March 28, 2015 - the date the 2013 RFCTLARR Act was extended to National Highway acquisitions - cannot be revisited, even though the NHAI argued the ruling would create a financial liability of approximately ₹29,000 crore.

  • The 2019 Tarsem Singh judgment established that solatium and interest are applicable to land acquisitions under the National Highway Act.
  • On March 28, 2015, the 2013 RFCTLARR Act was extended to National Highway acquisitions.
  • On Wednesday, the Supreme Court dismissed the NHAI's review petition.

The players

National Highways Authority of India (NHAI)

The government agency responsible for the development, maintenance, and management of national highways in India.

Tarsem Singh

The petitioner in the 2019 judgment that established the applicability of solatium and interest for land acquisitions under the National Highway Act.

Justices Surya Kant and Ujjal Bhuyan

The Supreme Court justices who refused to review the 2025 judgment affirming the retrospective application of the Tarsem Singh ruling.

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What they’re saying

“The grant of solatium and interest cannot be made contingent upon the magnitude of the financial burden. The constitutional guarantee of just compensation cannot be diluted on that basis. Mere projection of financial liability does not constitute a valid ground for review.”

— The Supreme Court

What’s next

The Court's clarification on the scope of entitlement means that landowners with pending proceedings as of March 28, 2015 are entitled to claim solatium and interest, and those who received enhanced compensation but did not specifically claim solatium and interest may also pursue those benefits, with interest accruing from the date of the claim.

The takeaway

This ruling reinforces the principle that just compensation for land acquisitions is a fundamental right, and that the financial burden on the acquiring authority cannot be used to dilute this constitutional guarantee. It underscores the importance of upholding the rights of landowners, even in the face of significant financial implications for infrastructure projects.