2,500 Houses In 30 Days? Highway Fuels 'Compensation Boom' In Madhya Pradesh

Work on highway construction has suddenly disrupted the tranquil landscape in Singrauli in Madhya Pradesh, but not in the way you would think. As the Singrauli-Prayagraj highway begins to snake its way through 33 villages in the district, green fields are undergoing a metamorphosis and, in almost no time at all, nearly 2,500 new "houses" have sprung up in the proposed path.

The reason? Having a house built on farmland bumps up the compensation significantly compared to the payout for the land itself. The new structures popping up on farms, however, are often just four-foot high walls - too short even for children - topped with a tin roof.

And, in what is now being called a "compensation industry" locally, these structures are allegedly being built in connivance with local officials and brokers, who will get a lion's share of the cut, despite a ban on new construction or land deals in the areas earmarked for compensation after a survey in March.  

The administration has now said no compensation will be given for the new houses. 

Huge Surge

Drone footage from the villages in the Chitrangi and Dudhmaniya regions reveals the houses laid out in the path of the highway, 70 km of which will pass through the district. Residents say brokers have orchestrated this surge in construction with the involvement of officials from the local administration. 

Land acquisition began in March and the administration imposed a ban on new constructions and land transactions, but the pace of building only quickened after that. 

"As soon as people got information about compensation, construction of houses started within a month or two. More than 2,500 houses were built here in about a month. Most of these houses have been built with the connivance of government employees like those from the revenue department," said Sankatha Singh Chauhan, a local resident.

Before the survey for the highway, land in the path of the road was being sold for Rs 8,000 per decimal (435.6 square feet or one-hundredth of an acre), which has now gone up to Rs 80,000.

An official said, "The compensation for the land varies, but if a house is built on the land and someone resides there, a rehabilitation package must be provided. This includes offering a job to a family member and providing a house elsewhere. Additionally, if there is a hand pump, bore well, or trees on the land, separate compensation is given for each of these."

Villagers claim the brokers have been facilitating agreements between people from other areas - even other states - and local landowners. These agreements, often formalised on stamp paper, stipulate that 80 per cent of the compensation amount will go to those building the house, while only 20 per cent will remain with the original landowners. This "industry" has also expanded to other areas, including the under-construction Singrauli-Lalitpur Railway Line.

'No Payout For New Structures'

Suresh Jadha, Sub-Divisional Magistrate of Singrauli, said, "The highway, 135 C, will be constructed under the Chitrangi block of the district and 70 km of it will pass through 33 villages of the district. The department's estimate for this stretch is Rs 759 crore. A joint survey was done and 500 old houses were found. About 3,200 new houses have been constructed and compensation will not be given for those."