Compensation For Demolished Houses Must Be Recovered From Erring Officials, Not State: Jharkhand High Court
Rushil Batra
29 Dec 2025 12:05 PM IST
The Jharkhand High Court has recently directed the registration of FIRs and investigation by the Anti-Corruption Bureau against erring officials for permitting illegal construction and encroachments on land acquired for the Rajendra Institute of Medical Sciences (RIMS). The Court held that large-scale encroachments could not have taken place without serious administrative lapses. The Bench further held that residents whose houses were demolished are entitled to compensation, which must be recovered from the erring officials and builders, and not from the State exchequer.
A Division Bench of the Jharkhand High Court comprising Chief Justice Tarlok Singh Chauhan and Justice Sujit Narayan Prasad was hearing a matter concerning encroachment on land acquired for the Rajendra Institute of Medical Sciences. The Court noted that encroachment had been found within the premises of RIMS to the extent of approximately seven acres.
Background:
Earlier, by an order dated 3 December 2025, the High Court had issued directions for the removal of illegal encroachments and encroachers who had constructed pucca structures and residential houses on the encroached land. The said order was challenged before the Supreme Court by way of a Special Leave Petition, which was dismissed.
The Court observed that, taking note of the role of the authorities who were at fault in permitting residents to construct over the acquired land of RIMS, it had earlier recorded in its order dated 11 December 2025 that appropriate action would be taken against the erring officials so that such illegalities are not repeated in the future. The Court further noted that in some cases, the encroached land had been registered in the names of subsequent transferees and that revenue records had been manipulated. It was also observed that rent receipts and non-encumbrance certificates had been issued in respect of the encroached land. The Court held:
“16. This Court to say the least is shocked to note at no stage, any query has been raised regarding the issue of title of the land by the concerned authorities and the land has been allowed to be transferred in favour of one or the other private party even though the land had already been acquired as has been dealt with in the various orders as referred hereinabove.”
The Court expressed surprise that the Circle Officer had placed the relevant records before the Court but, while entering the name of the concerned litigant at the relevant time, had failed to consult or even verify the said records. The Court observed that the buildings being demolished belonged to purchasers or flat owners who had invested their hard-earned money in properties situated on the acquired land.
The High Court emphasised that unless the erring officers are penalised, such instances are likely to be repeated. The Court held:
20. The question, therefore, is that if these officials will not be penalized, then, such things will again happen in future and some of the innocent persons may be made to suffer like in the present instance…This Court is astounded to note as to what the RIMS authority were doing when the buildings were being constructed within the precincts of the RIMS. It is further more surprising to note that the instant public interest litigation is pending since 2018 but at no time even this Court has been informed about the encroachment within the precincts of the RIMS...”
The Court observed that, in the present circumstances, it was open to the Court to hand over the investigation to the Central Bureau of Investigation (CBI). However, at this stage, the Court refrained from doing so and instead directed the State Police to institute an FIR and for the investigation to be conducted by the Anti-Corruption Bureau against the erring officials. The Court further directed that departmental proceedings be initiated against them.
The Court also held that the residents whose houses had been or were being demolished are entitled to compensation. However, the Bench questioned why the State exchequer should bear the burden of compensating affected persons for illegalities committed by officials of the State, Municipal Corporation, and other authorities. It observed that accountability must instead be fixed on the erring officials and builders who permitted or carried out construction on acquired government land.
Accordingly, the Court directed the State to fix accountability on each and every official involved in the malpractice and to adequately compensate the affected residents whose constructions had been demolished.
The matter has been listed on 6 January 2026 for further hearing.
Title: Jyoti Sharma v. State of Jharkhand
Case Number: W.P. (PIL) No. 4736 of 2018
Appearance: Mr. Saurav Arun, Mr. Deepak Kr. Dubey, and Ms. Rashi Sharma appeared for the Petitioner. Mr. Sachin Kumar, Mr. Ashok Kumar Yadav, and Mr. Abhijeet Anand appeared for the State. Dr. Ashok Kumar Singh, Mr. Nipun Bakshi, and Mr. Sharon Toppo appeared for RIMS. Ms. Khalida Haya Rashmi appeared for JSBCCL. Mr. Ajit Kumar appeared for the Intervenor. Mr. Indrajit Sinha and Mr. Kashish Tiwary appeared as Amicus Curiae.