PESHAWAR: Peshawar High Court has ordered a reduction in the rate of compensation for acquisition of land for the construction of the northern side of the Peshawar Ring Road from Rs0.8 million per marla to Rs0.4 million per marla.

Justice Mohammad Faheem Wali of a single-member bench partially accepted an appeal filed by the Peshawar Development Authority (PDA) and directed that the rate of compensation determined by a referee court at Rs800,000 per marla be reduced to Rs400,000 per marla along with 15 per cent compulsory acquisition charges, as already provided in the award, along with six per cent simple interest per annum on the compensation in accordance with law.

He also rejected an appeal of some landowners seeking enhancement of compensation from Rs800,000 to Rs1,200,000 per marla.

The appeals have arisen out of a judgement of Dec 2, 2022, passed by an additional district judge, as a referee judge, whereby the reference made by the landowners was allowed to the extent that the rate of compensation was enhanced from Rs82,380 to Rs800,000 per marla of the acquired land along with 15 per cent compulsory acquisition charges.

The government or land acquisition collector acquired the land owned by Munir Khan, Waris Khan and Attaullah for the construction of the northern side of Ring Road (Missing Link) in Larama area of Peshawar district and announced the award on Jan 7, 2012, whereby compensation was assessed at the rate of Rs82,380 per marla along with 15 per cent compulsory acquisition charges.

Both the PDA and landowners had challenged the decision of the referee court with the high court.

Lawyers for the landowners sought further enhancement at the rate of Rs1.2 million per marla, contending that the property was commercial in nature and situated near townships.

The PDA’s counsel, Barrister Asadul Mulk, argued that the referee court’s decision was impeachable on the grounds that the rate of adjoining townships could not be taken as a reference point, as they were developed properties.

He argued that the acquired land was agricultural in nature, no evidence of sale transactions supporting the price fixed had been adduced and the increase proposed by the Referee Court was speculative and contrary to the commissioner’s report.

“In the present case, although the landowners claimed compensation at the rate of Rs12,00,000 per marla, the material brought on record, particularly the Commissioner’s report and the evidence collected in connection therewith, does not justify such assessment,” the bench ruled in its nine-page detailed judgement.

“At the same time, the original assessment of Rs82,380 per marla made by the Land Acquisition Collector also does not adequately reflect the potential value of the acquired property, particularly in view of its location and the surrounding development. The assessment, therefore, requires reconsideration within the parameters of the evidence available on record,” it declared.

Published in Dawn, October 8th, 2026