Revenue Department

16/04/14 12:15 pmREVENUE DEPARTMENT

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Revenue Department- Land Acquisition

DESCRIPTION: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:In brief:

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

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

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

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

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

Draft Declaration proposals consists of Draft Declaration statement showingvariation between Draft Notification and Draft Declaration with reasons, Section 5 - Aenquiry record etc.

Then preliminary valuation proposals are sent along with required documents. Anaward should be passed within two years from the date of publication of declaration. Onthe date of award enquiry the claims of the landowners regarding their title and theirinterest over the lands and the amount of compensation they claim have to beconsidered. Based on certain factors the compensation payable to the landowner isarrived at. After tendering payment of compensation the position of land can be takenin case of urgency. In certain cases LAO can take the possession of the land eventhough no award has been made

Land Purchase Scheme

Under this scheme the social welfare department purchases lands whenGovernment Lands are not available. The Social Welfare department in turn distributesthe Land to the beneficiaries. The RDO assists the social welfare department in thisprocess.

In Detail:In Detail:

L.A. Act,1894 empowers the Government, acquisition of private land for publicpurpose (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 screeningcommittee 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.

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The processing of a L.A. case under each of the stage is indicated below.

I. DRAFT NOTIFICATION STAGE : I. DRAFT NOTIFICATION STAGE :

i) Requisition:i) Requisition:

Whenever any Department or Organisation requires land for a public purpose, theRequisitioning Authority shall identify the land required, pegmark the area and shallgive requisition in triplicate in Form-1 (Appendix II of the L.A. Manual), together with aplan of the land indicating measurements and a certificate to the effect that itundertakes to pay the cost of acquisition and the enhanced compensation determined ifany by courts in subsequent proceedings and that necessary budget provision is madein the financial year.

According to Government Memo No.12350/LA2/95-1 Revenue (L.A.) Department dated17-7-96 the D.N. proposals will be processed only on receipt of required funds fromthe Requisitioning Department taking into consideration the basic value and 30%solatium assuming the time taken for acquisition as one year and if funds are notdeposited, 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 ii) Submission of Draft Notification u/s 4 (1) of the Act :Act :

On receipt of correct requisition and after joint inspection of the land with therepresentative of the Requisitioning Authority, the L.A.O. shall cause verification ofvillage accounts with regard to the tenure and the ownership of the land. As far aspossible the lands of small and marginal farmers should not be proposed foracquisition. But in unavoidable circumstances, prior permission of the Govt. should beobtained before initiating proposals for acquisition of such lands. During Inspections,the Land Acquisition Officer will note down the particulars of the trees, topes etc., andstructures, if any, existing on the land and will send proposals to the Collector fornotifying 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 theRequisitioning 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 religiousimportance, tombs, or burial grounds are involved in the acquisition. If any lands ofH.R.& C.E/ Wakf Board should also be obtained and enclosed to the proposals. This itemof work has to be completed in 30days from the date of receipt of the correctrequisition.

iii) Urgency Provision :iii) Urgency Provision :

In cases of urgency, the provisions u/s 17 of the Act are to be invoked in thenotification u/s 4(1) to dispense with the enquiry under section 5-A of the Act. Thepurposes under which the urgency provisions can be invoked are enumerated undersection 17 (2) of the Act. The idea in invoking the urgency provision is to publish theD.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 15days 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 assuch there is no need to conduct 5-A enquiry if the possession is taken with in 90 daysin the cases where urgency clause is invoked, but the advance possession can be takenonly if 80% of compensation is paid to the land owners.

iv) Publication of the Notification :iv) Publication of the Notification :

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iv) Publication of the Notification :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 convenientplaces in the locality. This should be done within 40 days from the date of publicationof the notification in the Gazette. The entire correspondence regarding the publicationof 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 suchpublication and giving of such publication shall be the date of publication of thenotification.

II Draft Declaration : II Draft Declaration :

i)i) According to Section 6 (1) first proviso (ii) of the Act, the Draft Declaration u/s 6 (i) ofthe Act shall be published within one year from the date of the 4(1) notification. If it isnot so published, the D.N.shall lapse. Hence, immediately afte the 4(1) notification ispublished, the L.A.O. has to adhere to the following time schedule for the submission ofthe 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 :ii) Section 5-A Enquiry :

Objections of the persons interested are to be heard and disposed off under sec.5-A inall 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 shouldbe a clear interval of 15 days from the date of service of notice in form-III and the datefixed for 5-A enquiry. This notice should be published on the notice board of the LandAcquisition Officer; M.R.O; M.D.O; Police Station; Sub Registrar's Office and also in thevillage and the published copies should be kept in the L.A. file. Hence the date fixed forconduct of Enquiry u/s 5-A shall not be within the said 30 days period, and the enquirycan be conducted from the 31st day onwards. The objections filed during the conductof the enquiry shall be examined after obtaining specific remarks of the RequisitioningAuthority. Authority competent to approve D.D. is competent either to accept or rejectthe objection. The Land Acquisition. Officer should maintain docket-entries for the 5-AEnquiry which should also accompany the record of enquiry to be submitted along withthe proposals for approval of the D.D. u/s 6 of the Act.

iii) Submission of D.D. u/s 6 :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 forthe variations if any.

4. Section 5-A Enquiry Record with the remarks of the Requisitioning Department onthe 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 theS.Nos. extent and classification of the land.

iv) Preliminary Valuation Proposals:iv) Preliminary Valuation Proposals:

Registration statistics are to be gathered from the concerned Sub-Registrarar's Officefor 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 crucialperiod. The L.A.O. has to send detailed report discussing the sales, similarity of the salelands or the reasons for discarding the sales, etc., to arrive at true and reasonable





lands or the reasons for discarding the sales, etc., to arrive at true and reasonablemarket value of the lands under acquisition. If the land is a tope, value is to becapitalised 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 forthem. Basing on the ruling of Apex court, the CCLA in ref. No.GI\1161\99 dt. 16.7.99has informed that compensation can not be awarded to wells and pipe line. Irrigationwell in Agricultural land can not have separate value from the values of agricultural landas held in the decisions 1996(3) ALT, 1102, and 1197(1) APLJ 66 (SN). The followingrecords shall accompany the P.V proposals.a) Detailed note discussing the valuation of lands survey number wise existing incontiguity or vicinity of the lands under acquisition.

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

c) Village plan showing the lands under acquisition and the sale lands. The saleparticulars 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 Planshould 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 topesare involved.

In case of Acquisition of lands for Social Welfare Schemes, Divisional Officers mayapprove the P.V of the land if the total value does not exceed Rs.20,000/- In othercases, the P.V.proposals are to be approved by the Joint Collector irrespective of thetotal value of the lands. Certified copies of sale deeds relied upon by the L.A.O. forfixing market value should be obtained and filed in the relevant L.A. file.

III. Award Stage :III. Award Stage :

According to Sec. 11-A, an award u/s 11 should be passed within 2 years from date ofpublication of the Declaration u/s 6 of the Act. Otherwise, the entire proceedings willlapse. 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 forservice on the persons interested. The publication and service of the notice shouldbedone in accordance with the instructions laid down in para 3 of chapter 7 of part III ofthe L.A Manual and the served and published copies should be kept in the L.A. file. It isof utmost importance that notice u/s 9(3) and 10 should be served on all the occupiersof the land and the interested persons as well. There should be a clear interval of 15days between the last date of publication or service of the notices and the date fixed forthe award enquiry. On the date of award enquiry the claims of the land ownersregarding their title and their interests over the lands, the amount of compensationclaimed etc., have to be considered. The L.A.O. should record his findings in the filewith regard to details of the enquiry made by him on the date of enquiry, the particularsof 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 theland, particulars of legal heirs and apportionment of compensation among such legalheirs. The award should also contain the details of the valuation of the land. Awardcannot 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 Declarationand the crucial period should be clearly discussed. The main function of the LAO is todetermine the persons entitled to receive the compensation. In all cases where there areno persons competent to alienate the land or where there are disputes regarding theownership or as to the apportionment of the compensation among the variousclaimants, the L.A.Os should send references to the Civil Court u/s 30 and deposit theamount of compensation in the court u/s 31 (2) of the Act. While arriving at thecompensation 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 thenotification u/s 4 (1) to the date of award or the date of taking possession of the land,




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% perannum for the subsequent period from the date of taking possession of land to the dateof passing of award (if advance possession is taken and compensation is not paid ordeposited within a period of one year from the date on which possession is taken). Asper 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 theJoint Collector for passing the award. Draft award is to be approved by the DistrictCollector.

Taking Possession of the land :Taking Possession of the land :

On the same day of Award, Notice u/s 12 (2) has to be issued intimating the landacquired and compensation payable. After tendering payment of compensation thepossession of the land can be taken under section 16. In case of urgency on theexpiration of 15 days from the publication of the notices u/s 9 (1) & 10, the L.A.O. maytake possesion of the land even though no award has been made. However, the advancepossession of the land can be taken only after tendering 80% of the estimatedcompensation 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 :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 withdrawalcannot prevent the Government from initiating L.A. Proceedings afresh for the samelands.

A. P. LAND ACQUISITION (DISTRICT LEVEL A. P. LAND ACQUISITION (DISTRICT LEVEL NEGOTIATIONS COMMITTEE RULES)NEGOTIATIONS COMMITTEE RULES)1992:1992:

The Government have constituted The A.P. Land Acquisition (District Level NegotiationsCommittee 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 DistrictJudge, Joint Collector, Executive Engineer (R&B / PR / Irrigation) and a nominee of theRequisitioning Department will be the members and the Land Acquisition Officer will bethe convener. Negotiations for an amicable settlement of the rate offered for acquisitionof the lands under acquisition will commence only after approval of PreliminaryValuation and conduct of award enquiry by the LAO.

The Collector or the Convener shall cause notice in Form-I to be published at one ortwo places calling for claims for settlement through Negotiations Committee and topersons interested to appear before the Committee on the appointed date. Theinterested persons may suomoto file their claims for settlement. Negotiations shall startafter the interested persons/representatives authorized by them give their willingnessfor settlement by the Committee. The Requisition Department shall also give theirwillingness in Form-IV. The Court cases if any pending shall be withdrawn by thepersons interested. The District Committee is empowered to enhance the compensationwhich shall not exceed 50% of the total benefits as determined by the LAO in theP.V.Statement. The amount so agreed shall be a package deal inclusive of MarketValue/Addl. Market Value/Solatium/Cost of the damages/Value of Structures, trees andinterest etc., as provided U/S 34 of the Act. If the settlement is reached, agreement inForm III

shall be attested by all the members in the final meeting and the LAO shall obtainaffidavit in Form IV from the concerned interested persons on the same day. Then theLAO can pass consent award U/S 11(2) of LA Act read with Second Provisio undersection 31(2) of LA Act. After the Negotiated settlement, reference U/S 18 shall not bemade in any Civil Court. This settlement of rate is not applicable to any other similarcases.

If the Negotiations fails, the L.A.O. shall proceed further under L.A.Act. The DistrictLevel Negotiations Committee shall refer the matter to the State Level NegotiationsCommittee if the rate demanded exceeds the competency of District Level Committee.

Passing of Consent Award :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 ifthe land owners have agreed in writing on the valuation etc. and given consent forpassing of such award in such cases, the L.A.O. should enquire into the ownership ofthe land, obtain the agreement in the form prescribed, get the value agreed uponapproved 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 :Claims u/s 18 :

Sec. 18(1) any person interested who has not accepted the award may, by writtenapplication to the collector, require that the matter be referred by the collector for thedetermination 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 theapportionment 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 timewhen 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 undersec. 12, sub-sec. (2) or with in six months from the collector's award, whichever periodshall first expire.

Sec. 28A Re-determination of the compensation Sec. 28A Re-determination of the compensation on the basis of award ofon the basis of award ofthe court :the court :

According to Section 28-A, there is a provision for claim for redetermination of thecompensation by the awardees on the basis of a court judgment passed on the claimsput in by any other awardee covered by the same notification though they might nothave made a request for a court reference earlier. The claim for redetermination of theamount of compensation should be made to the L.A.O. within 3 months from the dateof the award of the court. On such a reference, the L.A.O. shall issue notice to all thepersons interested give them a reasonable opportunity of being heard, conduct anenquiry and make an award determining the compensation payable to such applicants.Even after this award, if they are not satisfied with the redetermined compensation, theymay 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 willalso apply to the Award passed by Land Acquisition officer or order passed by Courtbetween 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 issuedinstructions among other things for payment of interest on the aggregate amount ofcompensation including Addl. Market value and solatium while passing the awards byL.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 Accounting procedure to be followed after passing the Award:after passing the Award:

All the amounts rendered by the Requisitioning Dept. should be deposited in treasuryunder, "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 originaland in the copy and then sign and send it to the Accountant General. The compensationamount 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 orotherwise of the amounts shall be furnished to the Accountant General, as soon aspossible.

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 bedone through 'D' form challan.

Reconveyance :Reconveyance :

Govt. may alone are competent to reconvey the lands acquired, even after possession ofsuch land is taken under the Act.

The Government have a right to utilise the lands acquired for one purpose to any otherpublic purpose other than the one stated in Sec.6(3) declaration, as held by theSupreme Court in the case of Gulam Mustafa Vs State of Maharastra (2 AIR 1977 SCPage 448)

When once the original acquisition is valid for a public purpose, the title is vested withthe Government. How it uses the excess land is no concern of the original owner andcannot be the basis for invalidating the acquisition.







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 thefollowing amendment to B.S.O. 90 para (32)

Amendment for paragraph 32 of B.S.O. Amendment for paragraph 32 of B.S.O. 90, the following paragraph shall be90, the following paragraph shall be

substituted, namely;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 beutilised for the same purpose for which it was acquired as far as possible. In case, theland is not required for the purpose for which it is acquired due to any reason, the landshall 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 inthe 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 :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 upand 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 andtheir service 20 days.

b) Final scrutiny of S.D.Record and incorporation of changes in Mandal Accounts 90days.

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) notices10 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 ofchanges 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 LandAcquisition Compensation payable to the Awardees either in the Act, or in GovernmentOrders 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 anyother mode shall deduct Income Tax @10% plus 5% surcharge thereon in the case ofindividuals, H.U.F. and 20% surcharge in other cases. Only the interest under LandAcquisition Compensation is liable for Income-Tax deduction and not the otherbenefits. Interest is also exempted from deduction of Income-Tax at source where itdoes not exceed Rs.5000/- (Rupees Five Thousand). Source : Lr.No.ITO/TDS/VSPMics.,Dt.2002-2003 dt 19-08-2002 and 08-11-2002 of the Joint Commissioner ofIncome Tax, Visakhapatnam

ACTSACTS

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

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