Wayanad rehab: ‘Erroneous’ extra ‘0’ in fair value leads to estate’s Rs 500 crore claim

Kochi: An erroneous addition of a ‘zero', as claimed by the state govt, in the final fair value notification for a land parcel in Kalpetta village, Wayanad, enabled Elstone Estate to claim over Rs 500 crore as compensation for land being acquired for rehabilitation of those affected by the July 30, 2024 landslides.
On Friday, the state offered to increase its earlier offer of Rs 26.56 crore by an additional Rs 17.77 crore and Kerala high court bench of Chief Justice Nitin Jamdar and Justice S Manu allowed it to deposit the enhanced amount with the registry. The govt deposited the additional amount and preliminary work on the township to rehabilitate the landslide-affected began at the estate on Saturday.
It was during the hearing of Elstone Estate's petition for enhancement of the compensation for their 78.73 hectares of land that the state govt submitted that the fixation of Rs 2,50,000 per Are in 2010 was a clerical error caused by the erroneous addition of a zero during data entry, as the fair value in adjoining areas was only Rs 30,000 per Are. Additionally, the district collector filed an affidavit stating that the error in the fair value of Re-survey No. 88/1 had gone unnoticed since then and was inadvertently carried forward in subsequent notifications, leading to the 2023 valuation of Rs 6.60 lakh per Are. The village officer discovered the error on Jan 3, 2025 and a meeting of revenue officials on March 5 decided to issue an erratum notification, the govt said. The minutes of the meeting were also placed on record.
Earlier, on an appeal filed by Elstone Estate challenging the land acquisition, the court had issued an interim order on March 21 directing the state to deposit Rs 26.56 crore to symbolically acquire the land. The state deposited the amount and proceeded to take possession of the land, formally inaugurating the construction work on March 27.
Subsequently, Elstone Estate filed two petitions — one challenging the compensation amount of Rs 26.56 crore and another challenging the erratum notification issued on March 30. The erratum revised the fair value for Re-survey No. 88 in Kalpetta village (which includes the acquired estate land) to Rs 25,000 per Are. The petitioner alleged that the correction was a fraudulent move, made only after the court's March 21 order, and sought enhancement of compensation.
The estate contended that the fair value for the land was fixed at Rs 6.60 lakh per Are in a notification issued in 2023, entitling them to a higher compensation of Rs 519 crore. It pointed out that the notification was issued in line with the budget speech for 2023–24 and produced six sale deeds registered between March 9, 2023 and Sept 5, 2024, to demonstrate that the value had been accepted in them.
The govt agreed to deposit the additional amount citing the urgency of rehabilitation. An additional affidavit filed by the state highlighted the need for immediate land clearance, earthwork and foundation laying before the onset of the monsoon. The residential units are to be completed within 180 days of commencement and the entire township project within 540 days.
Besides issuing an interim order asking the state to deposit the additional amount, the court said the petitioner was at liberty to withdraw both the previously deposited amount of Rs 26.56 crore and the additional Rs 17.77 crore, subject to compliance with the terms and conditions prescribed by the high court registry (excluding the requirement to furnish a bank guarantee). The court adjourned the petitions and the appeal to July 7.