Thu Jun 12 12:24:59 UTC 2025: ## Karnataka Farmers Petition CM for Fair Compensation Decades After Land Acquisition

**ERODE, June 12, 2025** – Members of the Perundurai SIPCOT Affected People Welfare Association have appealed to Chief Minister M.K. Stalin to intervene in a decades-long dispute over land compensation. The association is seeking fair compensation for 350 acres of land acquired in 1991 for the Perundurai SIPCOT project, aligning with a Madras High Court order.

The plea was submitted through Minister for Housing, Prohibition, and Excise, S. Muthusamy, during the CM’s visit to Perundurai on Wednesday. Farmers claim a significant disparity in compensation received, with land acquired under the Land Acquisition Act of 1894 receiving substantially less than land directly purchased at the time.

While directly purchased land fetched between ₹60,000 to ₹2 lakh per acre, land acquired through the Act yielded a meager ₹29,700 to ₹34,100 per acre. This led to legal challenges, culminating in a 2012 Madras High Court verdict favoring the farmers and ordering enhanced compensation ranging from ₹1.80 lakh to ₹2.50 lakh per acre.

However, the association alleges that SIPCOT has not fully disbursed the compensation, and that bureaucratic delays have left many claims pending. They cite Section 28A of the Land Acquisition Act of 1894, urging the government to re-determine the compensation, considering current land values and applicable legal provisions, potentially resulting in a payout of ₹2.50 lakh per acre as base land value, plus 30% solatium, 12% additional market value, and 15% interest as per the court order.

The association emphasized that SIPCOT now leases land at significantly higher rates, highlighting the disparity. They stressed that over 100 families lost their livelihoods without adequate compensation and have suffered for three decades. The association hopes for the Chief Minister’s immediate intervention to provide justice and a resolution to this protracted issue.

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