Urging the State government to release the compensation for 300 acres acquired in 1991 for the Perundurai SIPCOT project, farmers and landowners have threatened to launch an indefinite protest at the Erode Revenue Division office from September 18.
According to the Perundurai SIPCOT Affected People Welfare Association, 2,709 acres were acquired from farmers in Ingur and Perundurai villages three decades ago to establish the SIPCOT Industrial Growth Centre. Of this, 2,350 acres were purchased directly, while 350 acres were acquired under the Land Acquisition Act of 1894 due to procedural hurdles. For directly purchased land, compensation ranged from ₹60,000 to ₹2 lakh per acre, but for land acquired through an Award, only ₹29,700 per acre in Ingur and ₹34,100 in Perundurai was paid, based on government valuation.
Challenging the disparity, farmers filed eight cases. The district court ordered enhanced compensation of ₹1.80 lakh to ₹2.50 lakh per acre for about 69 acres, a verdict upheld by the Madras High Court on March 6, 2012. However, the association alleges that SIPCOT has still not fully disbursed the revised amounts, while several other claims remain delayed or unresolved.
Citing Section 28A of the Land Acquisition Act, the association urged the government to re-determine compensation at ₹2.50 lakh per acre, plus 30% solatium, 12% additional market value, and 15% interest. They said over 100 families have lost their livelihood without fair compensation.
