The Rawalpindi Bench of the Lahore High Court has upheld enhanced compensation awarded to landowners whose land was acquired for the 720 MW Karot Hydropower Project, while further increasing compulsory acquisition charges from 15% to 25%.
On 26-01-2026, a division bench comprising Justice Jawad Hassan and Justice Mirza Viqas Rauf decided three connected appeals arising from the acquisition of more than 3,437 kanals of land in Kahuta, Rawalpindi, for the project.
The landowners were represented by Barrister Imran Hassan Ali, who successfully defended the enhancement granted by the Referee Court and sought further relief on behalf of the affected owners.
The Court dismissed appeals filed by the Punjab government and Karot Power Company challenging the compensation rate of Rs500,000 per kanal awarded by the Referee Court, holding that the assessment was supported by the evidence on record.
While maintaining the compensation rate and 8% compound interest, the Court partly allowed the landowners’ appeal by ruling that, since the acquisition was for a company project, the owners were entitled to 25% compulsory acquisition charges under Section 23(2) of the Land Acquisition Act, 1894, instead of the 15% awarded by the Referee Court.
The judgment reiterates that compensation in land acquisition cases must be determined by considering not only market value but also the potential value and surrounding circumstances of the acquired land.