How to Handle Land Acquisition Compensation Cases in Islamabad & Peshawar?

Land acquisition by government or public authorities for infrastructure projects is a common occurrence in Pakistan, often leading to disputes over fair compensation for affected landowners. These cases involve the valuation of land, crops, structures, and related losses, ensuring that owners receive just remuneration as per legal standards. For landowners in Islamabad, the federal capital where urban development drives frequent acquisitions by entities like the Capital Development Authority (CDA), and Peshawar, a growing city in Khyber Pakhtunkhwa (KP) with projects like dams and highways, handling compensation claims requires a thorough understanding of the process. This blog post explores the mechanisms for claiming and challenging compensation, drawing from the Land Acquisition Act, 1894, and recent reforms under the CDA Ordinance, 2025, and KP notifications as of September 2025. Nouman Muhib Kakakhel – Lawyer & Legal Consultant advises landowners to document all losses meticulously and seek legal advice early, as delays can impact compensation amounts and interest entitlements.

With Pakistan’s infrastructure boom, including the China-Pakistan Economic Corridor (CPEC) extensions, acquisition cases have surged, prompting 2025 updates to enhance transparency and fairness in valuations.

Understanding Land Acquisition and Compensation

Land acquisition occurs when the state or authorized bodies take private property for public use, such as roads, dams, or urban expansion, under the principle of eminent domain. Compensation covers the market value of land, structures, crops, and trees, plus solatium (15% additional under Section 23(2)) and interest for delays (up to 15% annually under Section 34). In Islamabad, acquisitions are frequent for CDA projects like housing schemes, while in Peshawar, KP’s Provincial Development Working Party (PDWP) approves initiatives such as the Baran Dam, involving significant land takeovers.

The process begins with notifications and culminates in an award by the Land Acquisition Collector (LAC). If dissatisfied, landowners can reference the matter to court for enhanced compensation, a right under Section 18.

Legal Framework for Compensation Cases

The Land Acquisition Act, 1894, remains the primary law, with Section 4 notifying intent to acquire, Section 5 for survey, Section 6 for declaration, and Section 11 for the LAC’s award determining compensation based on market value. The CDA Ordinance, 2025, introduces reforms for Islamabad, allowing non-cash compensation like equivalent land allotments and 8% annual interest on delayed payments from possession date, with retrospective application to pre-October 2025 cases. In KP, including Peshawar, the Act applies alongside provincial notifications, such as the June 2025 amendment to West Pakistan Land Revenue Rules for streamlined processes in projects like the General Bus Stand acquisition.

Courts, including District Courts and High Courts (IHC for Islamabad, PHC for Peshawar), handle references under Section 18, with appeals to the Supreme Court under Article 185. The Specific Relief Act, 1877, may aid in enforcing awards.

This framework, updated in 2025, ensures equitable treatment in acquisition compensation disputes.

Grounds for Challenging Compensation Awards

Landowners can challenge awards if the compensation is inadequate, based on outdated valuation rates, or excludes losses like business interruption or relocation costs. Valid grounds include undervaluation ignoring current market rates (e.g., ignoring 2025 CDA framework for equivalent land), procedural lapses like insufficient notice under Section 9, or failure to include solatium and interest. In Peshawar, challenges often cite KP’s 2025 PDWP approvals for projects like the Baran Dam, where compensation overlooked crop losses or tribal land values.

Courts enhance awards if evidence shows higher market value, as in recent PHC rulings awarding 20-30% uplifts. Retrospective claims under the CDA Ordinance, 2025, allow revisiting old cases.

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Step-by-Step Process in Islamabad

In Islamabad, compensation cases are handled by the LAC under CDA oversight, with court references to District Courts or IHC. Start by responding to Section 4/6 notifications, submitting objections and valuation evidence within 30 days. The LAC issues an award under Section 11, including market value assessment.

If dissatisfied, file a reference under Section 18 within six weeks of award publication, detailing undervaluation with expert reports or comparables. The court hears evidence, appoints valuers if needed, and issues an enhanced award. Execution follows under Section 31, with interest from award date.

The 2025 CDA Ordinance mandates 8% interest on delays, applicable retrospectively, and allows non-cash options like land swaps.

This process is facilitated by professionals in Islamabad land acquisition.

Step-by-Step Process in Peshawar

In Peshawar, KP’s Revenue Department and LAC manage acquisitions, with references to District Courts or PHC. Upon Section 4 notification, submit claims for land, structures, and losses within 30 days. The LAC conducts inquiries and awards under Section 11.

Challenge via Section 18 reference within six weeks, providing market value proofs like recent sales or expert appraisals. Courts in Peshawar, handling PDWP projects like the General Bus Stand, assess additional claims like relocation. Enhanced awards include 15% solatium and interest.

As per 2025 notifications, KP’s amended rules expedite surveys, reducing timelines for rural acquisitions.

Local expertise aids in Peshawar compensation claims.

Essential Documents for Compensation Cases

Key documents include ownership proofs like fard or title deeds, mutation entries, and revenue records. Provide valuation reports from registered valuers, photos of land/structures, and loss estimates for crops or businesses. Include objection letters to notifications and witness statements. For Islamabad, CDA forms under the 2025 Ordinance are required for non-cash claims; in Peshawar, KP revenue forms suffice.

These documents ensure comprehensive acquisition compensation filings.

Role of Legal Professionals

Legal experts guide landowners through notifications, draft references, and represent in court to maximize compensation. They challenge valuations, negotiate settlements, and appeal to High Courts. In Islamabad, familiarity with CDA reforms is key; in Peshawar, KP’s PDWP processes matter.

Nouman Muhib Kakakhel – Lawyer & Legal Consultant offers specialized assistance in evidence preparation and advocacy.

Their role is indispensable in land valuation disputes.

Common Challenges and Solutions

Challenges include delayed awards, undervaluations based on outdated rates, or exclusion of solatium. In 2025, CDA’s retrospective clause helps old cases, but backlogs persist. Solutions: File timely references, use expert valuers, and seek interim interest claims. Mediation under CPC can resolve amicably.

Overcoming these requires strategic compensation recovery tactics.

Conclusion

Handling land acquisition compensation in Islamabad and Peshawar involves navigating the Land Acquisition Act, 1894, with 2025 reforms like the CDA Ordinance enhancing fairness. By following procedures, gathering documents, and challenging awards, landowners can secure just compensation. For expert support, contact Nouman Muhib Kakakhel – Lawyer & Legal Consultant to manage your land acquisition case effectively.