Revenue Department- Land Acquisition

DESCRIPTION:
                      Draft Notification
                      Draft Declaration
                      Preliminary Valuation
                       Award
                      Negotiation Committee & Consent Award
                                 Claims u/s 18
                                 Sec. 28A Re-determination of the compensation
                                 Accounting procedure after passing the Award
                                 Reconveyance
                                 Amendment for paragraph 32 of B.S.O. 90
                                 Post Award Action

                                 Deduction of income tax on interest

  In brief:

      Land Acquisition Act empowers Government Acquisition of private land for public purpose or for assignment to land less poor for house sites. RDO is the land acquisition officer. Requisition for the land has to be received from the requisitioning authority. The first stage in the land acquisition process is Draft Notification. Joint inspection of LAO and requisitioning authority has to be conducted. During the Draft Notification stage proposal are sent to the Collector along with various documents such as Draft Notification, joint inspection note, extract of Fair Adangal for the lands, extract of Village Account no. 3 etc.

In cases of urgency the provisions under section 17 of the act have to be invoked. If urgency clause is invoked possession of land will be taken within 90 days.  Draft declaration has to be published without conducting enquiry.

        Draft Notification should be published in the state official Gazette and at least in two Daily News Papers.

         The Draft Declaration should be published within a year from the date of Draft Notification.

Objections of persons interested are heard and disposed off (Section 5 - A enquiry).

        Draft Declaration proposals consists of Draft Declaration statement showing variation between Draft Notification and Draft Declaration with reasons, Section 5 - A enquiry record etc.

       Then preliminary valuation proposals are sent along with required documents.  An award should be passed within two years from the date of publication of declaration. On the date of award enquiry the claims of the landowners regarding their title and their interest over the lands and the amount of compensation they claim have to be considered. Based on certain factors the compensation payable to the landowner is arrived at. After tendering payment of compensation the position of land can be taken in case of urgency. In certain cases LAO can take the possession of the land even though no award has been made

Land Purchase Scheme

           Under this scheme the social welfare department purchases lands when Government Lands are not available. The Social Welfare department in turn distributes the Land to the beneficiaries. The RDO assists the social welfare department in this process.

In Detail:

            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 :

i) Requisition:

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 financial year.

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 non-Government Department.

ii) Submission of Draft Notification u/s 4 (1) of the Act :

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. proposals.

10) Information of Small and Marginal Farmers.

11) Proposals for placing the matter before Screening Committee.

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 :

i) 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. proposals :

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 land.

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 acquisition.

b) Statement showing the registration statistics of the sale lands in the village where the lands are under acquisition during the crucial period.

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 following items:

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 interested;

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) ; and

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.

Withdrawal :

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 cases.

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 24-9-84.
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 challan.

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.

Reconveyance :

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 Public Purposes:

"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 afforestation."

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

ACTS

Land Acquisition Act 1894 as amended by Act 68 0f 1984

FORMS