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1984 (1) TMI 64 - SC - Indian LawsWhether there has been any error in principle or in law in the method of valuation arrived at by the courts below in adopting " fifteen " to be the multiple for computation of capitalized value of certain agricultural lands acquired in the years 1971 and 1972? Held that:- In the premises, when the rate of return on investment was 8.25% in the years 1971 and 1972, a person investing his capital in agricultural lands would ordinarily expect 2% to 3% more than what he could obtain from gilt-edged securities or other forms of safe investment and, therefore, the proper multiplier to be applied for the purpose of capitalization could not, in any event, exceed " ten ". Ans as the State Government, however, contends that the proper multiple to be applied should be 12 1/2 in computation of the capitalized value of the lands in these cases having regard to the rate of return of 8% at the relevant time, i.e., on the date of the notification under s. 4(1) of the Act. In view of this, it must be held that the multiple of 121 should be applied in the computation of the capitalized value of the lands The appeals must succeed and are allowed. The judgments and decrees of the High Court are modified by directing that the compensation awarded for acquisition of land should be reduced by one sixth in these cases wherever the amount of compensation has been determined by the method of capitalization. The respondents shall get solatium at 15% on the compensation computed on the above basis and shall be paid interest at the rate decreed by the courts below
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