ORDER : Leave granted. 1. The appellant is the Goa Housing Board. The land measuring 27,900 sq. m. belonging to the respondents on the outskirts of Mapusa was acquired in pursuance of a preliminary Notification dated 16-6-1994 issued under Section 4(1) of the Land Acquisition Act, 1894 (‘the Act’ for short). The said land is undeveloped land intended for industrial use. The Land Acquisition Officer, by award dated 9-2-1996 offered compensation at the rate of Rs. 18 per square metre. 2. The Reference Court, on consideration of the evidence, increased the compensation to Rs. 150 per square metre by its judgment dated 28-2-2003. On an appeal, the High Court by the judgment dated 16-4-2008, reduced the compensation to Rs. 136.50 per square metre. But subsequently by order dated 29-1-2009 the judgment was corrected and the rate of compensation was corrected as Rs. 147 per square metre. The said judgment is challenged in this appeal by special leave. 3. The appellant contends that the increase from Rs. 18 per square metre to Rs. 147 per square metre is excessive. It is pointed out that the acquired land was a large tract of undeveloped land and the Reference Court and the High Court had relied upon a sale transaction dated 23-3-1990 (Ext.AW-1/G) relating to two plots of 250 sq. m. which disclosed a price of Rs. 150 sq. m. without applying proper deduction towards development cost. According to the appellant the deduction towards development cost ought to have been at least 60% instead of 30% adopted by the High Court. 4. On the facts and circumstances, in the absence of any other evidence, we do not find any error in Ext.AW-1/G dated 23-3-1990 being taken as the basis for the purpose of valuation. But the said deed relates to a very small plot of 250 sq. m. Having regard to the fact that the land acquired was undeveloped land of about seven acres, appropriate deduction should have been made towards the development cost from the market price of the small developed land to arrive at the market value of the large tract of acquired land. m. Having regard to the fact that the land acquired was undeveloped land of about seven acres, appropriate deduction should have been made towards the development cost from the market price of the small developed land to arrive at the market value of the large tract of acquired land. This Court has held that the deduction to be made can be anything between 20% to 70% depending on the location, the nature of development of the land which is the subject-matter of the relied upon sale deed, the situation and the stage of development of the acquired land and other relevant circumstances. 5. Having regard to the fact that the acquired land is a large tract of about seven acres, we are of the view that the deduction towards development cost should be at least 50% and not 30%. On such deduction, the market value of the acquired land in the year 1990 would have been Rs. 75 per square metre. 6. The relied upon sale is of the year 1990. The preliminary notification in this case is of the year 1994. In view of the gradual increase in land prices, it is reasonable to provide an increase at a cumulative rate of 10% per annum for four years. On the market value of 1990 being so increased, the market value of the acquired land in 1994 would be Rs. 110 per square metre. 7. We accordingly, allow this appeal in part and reduce the market value to Rs. 110 per square metre instead of Rs. 147 per square metre awarded by the High Court. The claimant will be entitled to compensation at the said rate with all statutory benefits under Sections 23(1-A), 23(2) and 28 of the Land Acquisition Act, 1894. Appeal allowed in part.