NHAI Yet to Release Rs 125 Crore Compensation to Budgam Families

   

SRINAGAR: More than three dozen families in central Kashmir’s Budgam district have alleged that the National Highways Authority of India (NHAI) has failed to release over Rs 125 crore in enhanced compensation for land acquired for the Srinagar Ring Road project, despite a fresh award being prepared by the district administration in November last year.

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The aggrieved landowners from Wathoora village in Chadoora tehsil have appealed to Union Minister for Road Transport and Highways Nitin Gadkari to intervene and ensure early release of the payments.

According to official documents, around 488 kanals of agricultural land were acquired in Budgam district in 2019 for construction of the 60.84-kilometre Srinagar Semi Ring Road project. While initial compensation was paid under the Jammu and Kashmir Land Acquisition Act, Svt 1990, several landowners challenged the award before the Jammu and Kashmir High Court seeking enhanced rates.

In judgments dated November 16, 2022 and September 2, 2025, the High Court set aside the final award insofar as it related to the petitioners and directed the Collector Land Acquisition, Budgam to pass a fresh award by treating the date of the final award as the relevant date for determination of market value while applying the yardsticks under the 1990 Act. The Court also directed that statutory benefits, including 15 percent Jabirana and interest calculated from March 13, 2018, the date possession was taken, be factored into the reassessment.

The Union Territory government filed Special Leave Petitions before the Supreme Court of India against the High Court order, but these were dismissed on December 1, 2023 and again on August 6, 2024, rendering the directions final. A separate appeal filed by some landowners remains pending before the apex court.

In compliance with the High Court directions, Collector Land Acquisition/ACR Budgam Afroza Bano issued a fresh award vide communication No. DCB/LAS/2025-26/1127-29 dated November 27, 2025. The detailed assessment was forwarded to the Project Director, NHAI Srinagar, seeking release of Rs 1,25,50,86,698 for landowners of village Wathoora.

The total land under acquisition in Wathoora measured 254 kanals, 7 marlas and 118 square feet. The reassessment includes compensation for proprietary land, land belonging to petitioners at revised rates, Shamilat land, as well as fruit-bearing and non-fruit-bearing trees and structures. The award reflects adoption of a rate of Rs 40.30 lakh per kanal for petitioners, along with 15 percent Jabirana and applicable interest, in line with the High Court’s directions.

The Collector’s office has also sought additional deposits from the executing agencies, including Rs 14.27 crore as 90 percent share from NHAI and Rs 1.58 crore as 10 percent share from the Chief Engineer, R and B Kashmir.

Despite the award having been prepared more than three months ago, the affected families allege that the enhanced compensation has not yet been credited to them. “It is more than three months since the award was prepared and till date the compensation is yet to be paid by the NHAI. We have already suffered as our land had higher market value. If the award was finalised in November, we fail to understand why the payment is still pending,” said Nazir Ahmad, a farmer from Wathoora Chadoora.

The Srinagar Ring Road project, part of the Prime Minister’s Development Package inaugurated by Prime Minister Narendra Modi in 2018, is aimed at decongesting traffic in Srinagar and improving connectivity across the Kashmir Valley. The four-lane semi-ring road spans 60.84 kilometres and is being constructed in two phases — a 42-kilometre stretch from Galander to Narbal under Phase I and an 18.84-kilometre stretch from Narbal to Ganderbal under Phase II. Officials have stated that Phase I has achieved around 90 percent physical completion and is expected to be opened by May 2026.

While the project nears completion, the affected families maintain that their long-pending compensation must be settled without further delay.

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