L.A. Act,1894 empowers the Government, acquisition of
private land for public purpose (defined under Section 3 of the Act). This
Act is amended by Act 68 of 1984, which came into force with effect from 24-9-84.
The clearance of state level screening committee is required for approval of
Notification u/s. 4(1) of the Act. However, Government have granted exemption
in respect of acquisition of lands for Transport, Road & Buildings Dept.,
A.P.I.I.C., N.T.P.C. Market Yards and Irrigation Schemes.
The processing of a L.A. case under each of the stage
is indicated below.
I. DRAFT NOTIFICATION STAGE :
Whenever any Department or Organisation requires land
for a public purpose, the Requisitioning Authority shall identify the land
required, pegmark the area and shall give requisition in triplicate in Form-1
(Appendix II of the L.A. Manual), together with a plan of the land indicating
measurements and a certificate to the effect that it undertakes to pay the
cost of acquisition and the enhanced compensation determined if any by courts
in subsequent proceedings and that necessary budget provision is made in the
According to Government Memo No.12350/LA2/95-1 Revenue
(L.A.) Department dated 17-7-96 the D.N. proposals will be processed only on
receipt of required funds from the Requisitioning Department taking into
consideration the basic value and 30% solatium assuming the time taken for
acquisition as one year and if funds are not deposited, the proposals be
returned and that there will be no discrimination between Government and
ii) Submission of Draft Notification u/s 4 (1) of the
On receipt of correct requisition and after joint
inspection of the land with the representative of the Requisitioning
Authority, the L.A.O. shall cause verification of village accounts with
regard to the tenure and the ownership of the land. As far as possible the lands
of small and marginal farmers should not be proposed for acquisition. But in
unavoidable circumstances, prior permission of the Govt. should be obtained
before initiating proposals for acquisition of such lands. During
Inspections, the Land Acquisition Officer will note down the particulars of the
trees, topes etc., and structures, if any, existing on the land and will send
proposals to the Collector for notifying the lands and structures u/s 4 (1)
of the L.A. Act along with.
1) Draft Notification u/s 4 (1);
2) Extract of village A-Register/Settlement Fair
Adangal for the lands;
3) Extract of revised V.A.No.3 for the lands;
4) Combined sketch of the land;
5) One copy of requisition.
6) Copy of notes of Joint Inspection signed by the
L.A.O. and the representatives of the Requisitioning Department.
7) Attested copy of resolution, in case the
Requisitioning Authority is a Local Body etc.
8) Certificate of clearance under A.P.LR. (COACH) Act
or U.L.C. Act.
9) Check slip for scrutiny and monitoring L.A.
10) Information of Small and Marginal Farmers.
11) Proposals for placing the matter before Screening
It should be specifically mentioned in the report
whether any places of religious importance, tombs, or burial grounds are
involved in the acquisition. If any lands of H.R.& C.E/ Wakf Board should
also be obtained and enclosed to the proposals. This item of work has to be
completed in 30days from the date of receipt of the correct requisition.
iii) Urgency Provision :
In cases of urgency, the provisions u/s 17 of the Act
are to be invoked in the notification u/s 4(1) to dispense with the enquiry
under section 5-A of the Act. The purposes under which the urgency provisions
can be invoked are enumerated under section 17 (2) of the Act. The idea in
invoking the urgency provision is to publish the D.D. u/s 6 without
conducting enquiry u/s 5-A; to issue notices to the land owners u/s 9 (1) and
10 of the Act and to take advance possession of the land after the expiry of
15 days from the date of service of the said notices.
The Hon'ble High Court in its judgement dt. 29-11-90 in
W.A. 105/90 struck down Sec. 17(5) of the Act as repugnant and void in view
of the Central Amendment Act. 68/84 as such there is no need to conduct 5-A
enquiry if the possession is taken with in 90 days in the cases where urgency
clause is invoked, but the advance possession can be taken only if 80% of
compensation is paid to the land owners.
iv) Publication of the Notification :
The publication of the notification u/s 4 (1) comprises
the following actions :
1) Publication in the state official gazette (in Social
Welfare cases, District Gaette).
2) Publication in 2 Daily News papers (At least one
shall be in Telugu);
3) Causing Public Notice of the substance of the
notification is to be given at convenient places in the locality. This should
be done within 40 days from the date of publication of the notification in
the Gazette. The entire correspondence regarding the publication of the
notification should be placed in the L.A file, duly page numbered.
The publication in Gazette should precede other
publications. The last dates of such publication and giving of such
publication shall be the date of publication of the notification.
II Draft Declaration :
According to Section 6 (1) first proviso (ii) of the Act, the Draft
Declaration u/s 6 (i) of the Act shall be published within one year from the
date of the 4(1) notification. If it is not so published, the D.N.shall
lapse. Hence, immediately afte the 4(1) notification is published, the L.A.O.
has to adhere to the following time schedule for the submission of the D.D.
and the preliminary valuation proposals.
a) Gathering of Registration Statistics of land sales
and preparation of valuation statements 30 days
b) Preparation of subdivision records and conduct of
enquiry u/s 5 A : 30 days
c) Prescrutiny of S.D.Records and preparation
and submission of D.D. u/s 6 to the Collector : 30 days
ii) Section 5-A Enquiry :
Objections of the persons interested are to be heard
and disposed off under sec.5-A in all L.A cases. The persons interested are
entitled to file objections before the L.A.O. suo-motu within 30 days from
the date of publication of the notification. There should be a clear interval
of 15 days from the date of service of notice in form-III and the date fixed
for 5-A enquiry. This notice should be published on the notice board of the
Land Acquisition Officer; M.R.O; M.D.O; Police Station; Sub Registrar's
Office and also in the village and the published copies should be kept in the
L.A. file. Hence the date fixed for conduct of Enquiry u/s 5-A shall not be
within the said 30 days period, and the enquiry can be conducted from the
31st day onwards. The objections filed during the conduct of the enquiry
shall be examined after obtaining specific remarks of the Requisitioning
Authority. Authority competent to approve D.D. is competent either to accept
or reject the objection. The Land Acquisition. Officer should maintain
docket-entries for the 5-A Enquiry which should also accompany the record of
enquiry to be submitted along with the proposals for approval of the D.D. u/s
6 of the Act.
iii) Submission of D.D. u/s 6 :
The following records shall accompany the D.D.
1. D.D u/s 6 of the Act.
2. Pre-scrutinised S.D. Records.
3. Statement showing the variations between the D.N.
and the D.D. with the reasons for the variations if any.
4. Section 5-A Enquiry Record with the remarks of the
Requisitioning Department on the objections filed.
5. Certificate to the effect that the notification u/s
4 (1) was correctly published.
6. Errata to 4(1) Notification if there are any errors
in the publications in respect of the S.Nos. extent and classification of the
iv) Preliminary Valuation Proposals:
Registration statistics are to be gathered from the
concerned Sub-Registrarar's Office for the crucial period preceeding three
years from the date of 4(1) notification
The land value is to be based on the similar land sales
in the village during the crucial period. The L.A.O. has to send detailed
report discussing the sales, similarity of the sale lands or the reasons for
discarding the sales, etc., to arrive at true and reasonable market value of
the lands under acquisition. If the land is a tope, value is to be
capitalised keeping in view the guidelines issued in G.O.Ms.No.601 Revenue
(L.A) Dept. dt. 19-6-92). The L.A.O. should personally verify the existence
of any trees, houses, wells, buildings etc. on the lands under acquisition,
and propose suitable value for them. Basing on the ruling of Apex court, the
CCLA in ref. No.GI\1161\99 dt. 16.7.99 has informed that compensation can not
be awarded to wells and pipe line. Irrigation well in Agricultural land can
not have separate value from the values of agricultural land as held in the
decisions 1996(3) ALT, 1102, and 1197(1) APLJ 66 (SN). The following records
shall accompany the P.V proposals.
a) Detailed note discussing the valuation of lands
survey number wise existing in contiguity or vicinity of the lands under
b) Statement showing the registration statistics of the
sale lands in the village where the lands are under acquisition during the
c) Village plan showing the lands under acquisition and
the sale lands. The sale particulars should be exhibited in the plan noting
the serial number/year (wet lands - green ink and Dry lands - Red ink) of the
sales statistics furnished. The Village Plan should show all the important
topo details such as village sites, roads, hills, channels, industrial
institutions, etc., which will have bearing on the land value.
d) Tree valuation statement.
e) Estimates for the structures.
f) Opinion of Agricultural Department Officers
regarding the value of the tope, if topes are involved.
In case of Acquisition of lands for Social Welfare
Schemes, Divisional Officers may approve the P.V of the land if the total
value does not exceed Rs.20,000/- In other cases, the P.V.proposals are to be
approved by the Joint Collector irrespective of the total value of the lands.
Certified copies of sale deeds relied upon by the L.A.O. for fixing market
value should be obtained and filed in the relevant L.A. file.
III. Award Stage :
According to Sec. 11-A, an award u/s 11 should be
passed within 2 years from date of publication of the Declaration u/s 6 of
the Act. Otherwise, the entire proceedings will lapse. Soon after the
publication of the Draft Declaration and approval of the valuation, the land
Acquisition Officer shall fix up a date for holding the enquiry u/s 11 of the
Act, and issue public notices u/s 9 (1) and 10 and individual notices u/s
9(3) and 10 for service on the persons interested. The publication and
service of the notice should bedone in accordance with the instructions laid
down in para 3 of chapter 7 of part III of the L.A Manual and the served and
published copies should be kept in the L.A. file. It is of utmost importance
that notice u/s 9(3) and 10 should be served on all the occupiers of the land
and the interested persons as well. There should be a clear interval of 15
days between the last date of publication or service of the notices and the
date fixed for the award enquiry. On the date of award enquiry the claims of
the land owners regarding their title and their interests over the lands, the
amount of compensation claimed etc., have to be considered. The L.A.O. should
record his findings in the file with regard to details of the enquiry made by
him on the date of enquiry, the particulars of the petitions and other
records filed by the interested persons etc.
The award should contain the details of the ownership,
how he acquired the title to the land, particulars of legal heirs and
apportionment of compensation among such legal heirs. The award should also
contain the details of the valuation of the land. Award cannot be made in
excess of the claim made by the land owner. In the valuation portion of the
award, the dates of publication of the Draft Notification and the Draft
Declaration and the crucial period should be clearly discussed. The main
function of the LAO is to determine the persons entitled to receive the
compensation. In all cases where there are no persons competent to alienate
the land or where there are disputes regarding the ownership or as to the
apportionment of the compensation among the various claimants, the L.A.Os
should send references to the Civil Court u/s 30 and deposit the amount of
compensation in the court u/s 31 (2) of the Act. While arriving at the
compensation payable to the land owner, the award shall consist of the
i) True area of the land ;
ii) Market value of the land ; at the date of
publication of the notification u/s 4(1).
iii) Damages sustained, if any, by the person
iv) Value of structures;
v) Value of trees;
vi) Additional market value at 12% per annum from the
date of the publication of the notification u/s 4 (1) to the date of award or
the date of taking possession of the land, whichever is earlier.
vii) Solatium at 30% on the market value (on ii to v) ;
viii) As per Sec. 34 interest on the compensation at 9%
for the 1st year, and 15% per annum for the subsequent period from the date
of taking possession of land to the date of passing of award (if advance
possession is taken and compensation is not paid or deposited within a period
of one year from the date on which possession is taken). As per Supreme Court
Judgement interest will not be allowed [1996 (6) Sec. 551] on 12% additional
market value and 30% solatium.
Under section 11 (1) Pro.of the L.A. Act, the L.A.Os
should obtain prior approval of the Joint Collector for passing the award.
Draft award is to be approved by the District Collector.
Taking Possession of the land :
On the same day of Award, Notice u/s 12 (2) has to be
issued intimating the land acquired and compensation payable. After tendering
payment of compensation the possession of the land can be taken under section
16. In case of urgency on the expiration of 15 days from the publication of
the notices u/s 9 (1) & 10, the L.A.O. may take possesion of the land
even though no award has been made. However, the advance possession of the
land can be taken only after tendering 80% of the estimated compensation for the
land, as provided u/s 17 (3A) (a) of the Act. In case of difficulty,
possession can be taken enforcing surrender u/s 47 of the Act.
Even after the award was passed, the acquisition
proceedings can be withdrawn by Govt. if possession of the land is not taken
under the Act (Sec.48) Mere withdrawal cannot prevent the Government from
initiating L.A. Proceedings afresh for the same lands.
A. P. LAND ACQUISITION (DISTRICT LEVEL
NEGOTIATIONS COMMITTEE RULES) 1992:
The Government have constituted The A.P. Land
Acquisition (District Level Negotiations Committee Rules) 1992 in
G.O.Ms.No.1050, Revenue (L.A.) 17-10-1992.
The District Collector will be the Chairman, a Judge of
the District nominated by District Judge, Joint Collector, Executive Engineer
(R&B / PR / Irrigation) and a nominee of the Requisitioning Department
will be the members and the Land Acquisition Officer will be the convener.
Negotiations for an amicable settlement of the rate offered for acquisition
of the lands under acquisition will commence only after approval of
Preliminary Valuation and conduct of award enquiry by the LAO.
The Collector or the Convener shall cause notice in
Form-I to be published at one or two places calling for claims for settlement
through Negotiations Committee and to persons interested to appear before the
Committee on the appointed date. The interested persons may suomoto file
their claims for settlement. Negotiations shall start after the interested
persons/representatives authorized by them give their willingness for
settlement by the Committee. The Requisition Department shall also give their
willingness in Form-IV. The Court cases if any pending shall be withdrawn by
the persons interested. The District Committee is empowered to enhance the
compensation which shall not exceed 50% of the total benefits as determined
by the LAO in the P.V.Statement. The amount so agreed shall be a package deal
inclusive of Market Value/Addl. Market Value/Solatium/Cost of the
damages/Value of Structures, trees and interest etc., as provided U/S 34 of
the Act. If the settlement is reached, agreement in Form III
shall be attested by all the members in the final
meeting and the LAO shall obtain affidavit in Form IV from the concerned
interested persons on the same day. Then the LAO can pass consent award U/S
11(2) of LA Act read with Second Provisio under section 31(2) of LA Act.
After the Negotiated settlement, reference U/S 18 shall not be made in any
Civil Court. This settlement of rate is not applicable to any other similar
If the Negotiations fails, the L.A.O. shall proceed
further under L.A.Act. The District Level Negotiations Committee shall refer
the matter to the State Level Negotiations Committee if the rate demanded
exceeds the competency of District Level Committee.
Passing of Consent Award :
As provided u/s 11 (2) of the Act. at any stage of L.A
progs, an award can be passed if the land owners have agreed in writing on
the valuation etc. and given consent for passing of such award in such cases,
the L.A.O. should enquire into the ownership of the land, obtain the
agreement in the form prescribed, get the value agreed upon approved by the
competent Authority, obtain the permission of the Collector, and pass the
award. D.N. and D.D should be published for passing consent award.
Claims u/s 18 :
Sec. 18(1) any person interested who has not accepted
the award may, by written application to the collector, require that the
matter be referred by the collector for the determination of the court,
whether his objection be to the measurement of the land, the amount of the
compensation, the persons to whom it is payable. or the apportionment of the
compensation among the persons interested.
(2) The application shall state the grounds on which
objection to the award is taken :
Provided that every such applications shall be made :-
(a) if the person making it was present or represented
before the collector at the time when he made his award, within six weeks
from the date of the collectors award.
(b) in other cases with in six weeks of the receipt of
the notice from the collector under sec. 12, sub-sec. (2) or with in six
months from the collector's award, whichever period shall first expire.
Sec. 28A Re-determination of the compensation
on the basis of award of the court :
According to Section 28-A, there is a provision for
claim for redetermination of the compensation by the awardees on the basis of
a court judgment passed on the claims put in by any other awardee covered by
the same notification though they might not have made a request for a court
reference earlier. The claim for redetermination of the amount of
compensation should be made to the L.A.O. within 3 months from the date of
the award of the court. On such a reference, the L.A.O. shall issue notice to
all the persons interested give them a reasonable opportunity of being heard,
conduct an enquiry and make an award determining the compensation payable to
such applicants. Even after this award, if they are not satisfied with the redetermined
compensation, they may apply for a reference to the court u/s 18 of the Act.
The Supreme Court held that the additional benefit provided
by Amendment Act will also apply to the Award passed by Land Acquisition
officer or order passed by Court between the period from 30-4-82 to
The Govt. in their Memo No. 25646/LA (A2)/2002 dated 12.11.2002 have
issued instructions among other things for payment of interest on the
aggregate amount of compensation including Addl. Market value and solatium
while passing the awards by L.A.O., in complaince with the judgement
of Supreme Court of India in Civil Appeal No. 6271/98 dated 19.9.2001
Accounting procedure to be followed
after passing the Award:
All the amounts rendered by the Requisitioning Dept.
should be deposited in treasury under, "843 Civil Deposits".
Payment to awardees has to be made by way of bills presented to Treasury.
Code Form-A should be correctly prepared and, in it, the L.A.O. should
himself enter the total amount due to each person in words, both in the
original and in the copy and then sign and send it to the Accountant General.
The compensation amount will be disbursed after taking acquaintance from the
awardees in Code Form 'CC'.
A subsidiary statment in code Form 'AA' giving particulars
regarding the acceptance or otherwise of the amounts shall be furnished to
the Accountant General, as soon as possible.
In case the awardees failed to receive the compensation
within the time stipulated in 12 (2) notices, which is generally 7 days, the
compensation amount has to be kept under 'Revenue Deposits', through 'E' Form
If any amounts are to be deposited into the Court u/s
31 (2) of the Act, it should be done through 'D' form challan.
Govt. may alone are competent to reconvey the lands
acquired, even after possession of such land is taken under the Act.
The Government have a right to utilise the lands
acquired for one purpose to any other public purpose other than the one
stated in Sec.6(3) declaration, as held by the Supreme Court in the case of
Gulam Mustafa Vs State of Maharastra (2 AIR 1977 SC Page 448)
When once the original acquisition is valid for a
public purpose, the title is vested with the Government. How it uses the
excess land is no concern of the original owner and cannot be the basis for
invalidating the acquisition.
(Memo No.15613/LA/A-2/92-2 dt 12-5-92 of the Govt. of A.P.)
In G.O.Ms.No. 783 (Rev.(LA) Department Dt. 9-10-98 the
Government have issued the following amendment to B.S.O. 90 para (32)
Amendment for paragraph 32 of B.S.O.
90, the following paragraph shall be substituted, namely;
PARA 32 Utilisation of acquired lands for any other
"The land acquired for a public purpose under the
Land acquisition Act, 1894 shall be utilised for the same purpose for which
it was acquired as far as possible. In case, the land is not required for the
purpose for which it is acquired due to any reason, the land shall be
utilised for any other public purpose, as deemed fit, including
Further the Government in their circular Memo
No.88393/LA (A2)\99 Rev. Dept. dt.8.8.2000 issued instructions that wherever
claimants request for re-conveyance of the lands acquired under LA Act 1894,
the matter has to be referred to Government in the administration department
concerned (i.e. the one which has approved DN/DD) through CCLA instead of
taking decision at the District Level or other wise.
IV. Post Award Action :
Simultaneously while passing the award, the L.A.O.
should sanction the SD. Records. Immediately, the post award action
consisting of the following items should be taken up and the work should be
completed within the time limits specified againt each item.
a) Carrying out changes in village accounts, issue of
Notices u/s 9(2) of S&B Act and their service 20 days.
b) Final scrutiny of S.D.Record and incorporation of
changes in Mandal Accounts 90 days.
c) Submission of Notification u/s 13 of S&B Act
after the expiry of Statutory period of 3 months from
the date of service of 9 (2) notices 10 days.
d) Publication of section 13 Notification in the
District Gazette 20 days.
e) Submission of L.A. Check Memo along with a
Certificate of the incorporation of changes in the Village and Mandal
Accounts issued by M.R.O 5 days.
f) Total 145 days.
INCOME TAX ON INTEREST TO BE DEDUCTED BY THE LAND
ACQUISITION OFFICER UNDER SEC. 194(1) OF INCOME TAX ACT, 1961.
There is no mention about the Income-Tax, to be deducted by the
L.A.O, from the Land Acquisition Compensation payable to the Awardees either
in the Act, or in Government Orders given under the Land Acquisition Act. But
Section 194(1) of Income Tax Act, 1961 requires that whoever pays income by
way of interest other than on securities, shall at the time of payment
thereof in cash or by issue of a Cheque or draft or by any other mode shall
deduct Income Tax @10% plus 5% surcharge thereon in the case of individuals,
H.U.F. and 20% surcharge in other cases. Only the interest under Land
Acquisition Compensation is liable for Income-Tax deduction and not the other
benefits. Interest is also exempted from deduction of Income-Tax at source
where it does not exceed Rs.5000/- (Rupees Five Thousand). Source :
Lr.No.ITO/TDS/VSP Mics.,Dt.2002-2003 dt 19-08-2002 and 08-11-2002 of the Joint Commissioner of Income Tax, Visakhapatnam