Unit 1
Unit 1
Indian experiences and conception of property and wealth have a very different historical
basis than that of western countries. The fact the present system of property as we know
arises out of the peculiar developments in Europe in the 17 th to 18thcentury and therefore
its experiences were universally not applicable. A still more economic area in which the
answer is both difficult and important is the definition of property rights. The notion of
property as it has developed over centuries and it has embodies in our legal codes, has
become so much a part of us that we tend to take it for granted, and fail to recognize the
extent to which just what constitutes property and what rights the ownership of property
confers are complex social creations rather than self evident propositions.This also seems
to be the hidden reason why the right to property is suddenly much contested throughout
India today and why the state is coming up unexpectedly against huge resistance from
unexpected quarters in attempting to acquire land in India. The action of the state to
assert the Eminent Domain over subsidiary claims on property and the clash which
resulted there from Singur, Nandigram and other parts of India is precisely a
manifestation of a clash of cultures. To put in Samuel Huntingtons words, the ideas of the
west of development and liberalization propagated by the present ruling elite and the old
Indic ideas which shape the views of the majority of the people.
The right to property under the Indian constitution tried to approach the question of how
to handle property and pressures relating to it by trying to balance the right to property
with the right to compensation for its acquisition through an absolute fundamental
right to property and then balancing the same with reasonable restrictions and
adding a further fundamental right o compensation in case the properties are
acquired by the state. This was exemplified by Article 19(1)(f) balanced by Article
19(5) and the compensation article in Article 31. This was an interesting development
influenced by the British of the idea Eminent Domain but overall it struck an interesting
balance whereby it recognized the power of the state to acquire property, but for the first
time in the history of India for a thousand years or more, it recognized the individuals
right to property against the state.
However, when the state realized that an absolute property and the aspirations of the
people were not the same the legislature was subsequently forced to make the said right
to property subject to social welfare amid amendments to the constitution. Articles 31-A,
31-B and 31-C are the indicators of the change and the counter pressure of the state when
it realized the inherent problems in granting a clear western style absolute fundamental
right to property (even though it was balanced by reasonable restrictions in the interest of
the public), specially Article 31-C, which for the first time brought out the social nature
of property. It is another matter that the said provisions were misused, and what we are
discussing today, but the abuse of the socialist state in India is not the scope of the
present article and the articles are considered on their face value only.
Doctrine of Eminent Domain
v HISTORY
Few hundred years old and first used when an English king needed salt petre (form of
Potassium Nitrate, used in the manufacturing of fire work) to make gun powder and when
he was not able to find any land, he grabbed hold of a private mine. The owner of the
private mine approached the House of Lords, the House of Lords held that, the sovereign
can do anything, if the act of sovereign involves public interest.
Basically this doctrine entitles sovereign to acquire private land for a public use, provided
the public-ness of the usage can be demonstrated beyond doubt.
In the present context this doctrine raises the classic debate of powers of State v.
Individual Rights. Here comes the DID Development Induced Displacement which
means, The forcing of communities even out of their homes, often from their home
lands for the purpose of economic development, which is viewed as a Human Right
violation in the International level.
The above said are the two limitations imposed on the power of Eminent Domain by
the repealed A.31 .
Whereas the new A.300 A imposes only one limitation on this power (i.e.,)Authority
of Law
MAXIMS
The doctrine is based on the following two Latin maxims
i. Salus Populi est Suprema Lex Welfare Of The People Of The Public
Is The Paramount Law;
ii. Necessita Public Major est Quam Public Necessity Is Greater Than
Private Necessity.
Every government has an inherent right to take and appropriate the private property
belonging to individual citizen for public use.This power is known as Eminent Domain. It
is the offspring of political necessity. This right rests upon the above said two maxims.
Thus property may be needed and acquired under this power for government office,
libraries, slum clearance projects, public schools, parks, hospitals, highways, telephone
lines, colleges , universities, dams, drainages etc. The exercise of such power has been
recognized in the jurisprudence of all civilized countries as conditioned by public
necessity and payment of compensation. But this power is subject to restrictions provided
in the constitution. In the United States of America, there are limitations on the power of
Eminent Domain---
Meaning of Property
The word property as used in Article 31 the Supreme Court has said should be given
liberal meaning and should be extended to all those well recognized types of interest
which have the insignia or characteristic of property right. It includes both corporeal and
incorporeal right. It includes money, Contract, interest in property e.g., interest of an
allottee, licensees, mortgages or lessees of property. The Mahantship of a Hindu
Temple, and shareholders of Interests in the company are recognizable interest in
property. The right to receive pension is property.
By the Fourth Amendment Act, 1955, Art 31 relating to right to property was amended in
several respects. The purpose of these amendments related to the power of the state o
compulsory acquisition and requisitioning of private property. The amount of
compensation payable for this purpose was made unjustifiable to overcome the effect of
the Supreme Court judgement in the decision of State of West Bengal v. Bella Banerjee.
By the constitution (Seventeenth Amendment) Act, 1964, article 31 A was amended with
respect to meaning of expression estate and the Ninth Schedule was amended by
including therein certain state enactments.
During this period the Supreme Court was generally of the view that land reforms need to
be upheld even if they did strictly clash against the right to property, though the Supreme
Court was itself skeptical about the way the government went about exercising its
administrative power in this regard. The Supreme Court was insistent that the
administrative discretion to appropriate or infringe property rights should be in
accordance with law and cannot be by mere fact. The court however really clashed with
the socialist executive during the period of nationalization, when the court admirably
stood up for the right to property in however a limited manner against the over reaches of
the socialist state.
Earlier, the apex court in its famous Keshavanandan Bharti case of 1973 had first termed
some basic and unalterable parameters and features of the Indian state and its constitution
like the country's democratic form of government, as its basic structure, which could not
be changed at all even by constitutional amendment. But, in the judgement of the case,
Justice H.R. Khanna had made a passing observation to the effect that fundamental rights
accorded to the citizens' might not be a basic structure of the Constitution. This had left
the scope open for changing or diluting the fundamental right of the citizens. Though
later in 1975, while adjudicating another famous lawsuit between erstwhile Prime
Minister Indira Gandhi and prominent political leader of his times Raj Narain, Justice
Khanna had tried to clarify that his observation had been misconstrued. Despite that
clarification, the Janata Party government, under the advice of then law minister Shanti
Bhushan, had changed the Constitution, removing the right to property from the list of
fundamental rights.
Judiciary vs Legislature: The Tussle Begins
The saga of legislative manipulation of the right to property began with the First
Amendment Act, 1951 by which the Articles 31-A and 31-B were inserted into the
Constitution. Article 31-A was introduced by the Constitution First Amendment Act,
1951 wherein the Parliament defined ʺEstateʺ and continued by further amendments to
extend its meaning so as to comprehend practically the entire agricultural land in the rural
area including waste lands, forest lands, lands for pasture or sites of buildings. Under the
said amendment, no law providing for acquisition by the state of an estate so defined or
any rights therein of the extinguishment or modification of such rights could be
questioned on the ground that it was inconsistent with or took away or abridged any of
the rights conferred by Articles 14, 19 or 31. Article 31-B and Schedule Nine introduced
by the subsequent amendments was another attempt to usurp judicial power. It was an
innovation introduced in our Constitution unheard of in any other part of democratic
world. The legislature made void laws offending fundamental rights and they were
included in Schedule Nine and later on the list was extended from time to time. Article
31-B declared that none of the acts or regulations specified in neither the Ninth Schedule
nor any of the provisions thereof shall be deemed to be void on the ground that they are
inconsistent with Part III, notwithstanding any judgments, decree or order of any court or
tribunal to the contrary. By further amendment, the list was extended. This amendment
discloses a cynical attitude to the rule of law and the philosophy underlying our
Constitution. Autocratic power was sustained by democratic processes. The amendments
in the realm of property substituted the Constitutional philosophy by totalitarian ideology.
This totalitarian ideology is articulated by the deliberate use of amendments to add more
and more laws to the Ninth Schedule. Originally 64 laws were added to the Ninth
Schedule and more acts were added by the 4th, 17th and 29th Amendment Acts; 34th
Amendment added 17 more Acts; 39thAmendment added 38 Acts; 42nd Amendment
added 64 Acts; the 47th Amendment added 14 more Acts and by the end of this
amendment the number of Acts in the Ninth Schedule had risen to 202; The 66th
Amendment added 55 Acts raising the total to 257. The 75th Amendment Act, 1994 has
been passed by the parliament, which includes Tamil Nadu Act providing for 69 percent
reservation for backward classes under the Ninth Schedule. This is a clear misuse of the
Ninth Schedule for political gains as the object of the Ninth Schedule of the Constitution
is to protect only land reform laws from being challenged in court. After the addition of
27 more Acts to the Schedule by the 78th Amendment Act of 1995 the total number of
Acts protected by the Schedule has risen to 284. The saga did not end here, the hornets
nest had been stirred up already, the state made a consistent attempt by the process of
amendment to the Constitution to remove the judicial check on the exercise of its power
in a large area, and to clothe itself with arbitrary power in that regard. The history of the
amendments of Article 31(1) and (2) and the adding of Articles 31(A) and (B) and the
Ninth Schedule reveal the pattern. Article 31 in its first two clauses deals with the
deprivation of property and acquisition of property. The Supreme Court held in a series
of decisions viz. State of West Bengal v. Mrs. Bella Banerjee , State of W.B v. Subodh
Gopal , State of Madras v. Namasivaya Muralidar, that Article 31, clauses (1) and (2)
provided for the doctrine of eminent domain and under clause (2) a person must be
deemed to be deprived of his property if he was substantially dispossessed or his right to
use and enjoy the property was seriously impaired by the impugned law. According to
this interpretation, the two clauses of Article 31 dealt only with acquisition of property in
the sense explained by the court, and that under Article 31(1) the state could not make a
law depriving a person of his property without complying with the provisions of Article
31(2). It is worth mentioning in this context that it was the decision in the Bella Banerjees
case that actually induced the government to resort to the Fourth Amendment. In this case
the Apex court through this landmark decision had insisted for payment of compensation
in every case of compulsory deprivation of property by the state. It was held that clause
(1) and (2) of Article 31 deal with the same subject, that is, deprivation of private
property. Further the court held that the word compensation meant just compensation i.e.
just equivalent of what the owner had been deprived of. It is also worthwhile to note here
that this amendment also amended Article 305 and empowered the state to nationalize
any trade. The Parliament instead of accepting the decision, by its Fourth Amendment
Act, 1955 amended clause (2) and inserted clause (2-A) to Article 31. The effect of the
amendment is that clause (2) deals with acquisition or requisition as defined in clause (2-
A) and clause (1) covers deprivation of a personʹs property by the state otherwise than by
acquisition or requisition. This amendment enables the state to deprive a person of his
property in an appropriate case by a law. This places an arbitrary power in the hands of
the state to confiscate a citizenʹs property. This is a deviation from the ideals of the rule
of law envisaged in the Constitution. The amendment to clause (2) of Article 31 was an
attempt to usurp the judicial power. Under amended clause (2), the property of a citizen
could be acquired or requisitioned by law which provides for compensation for the
property so acquired or requisitioned, and either fixes the amount of compensation or
specifies the principles on which and the manner in which the compensation is to be
determined. It was further provided that no such law could be called in question in any
court on the ground that the compensation provided by that law is not adequate. This
amendment made the state the final arbiter on the question of compensation. This
amendment conferred an arbitrary power on the state to fix at its discretion the amount of
compensation for the property acquired or requisitioned. The non-justiciability of
compensation enables the state to fix any compensation it chooses and the result is, by
abuse of power, confiscation may be effected in the form of acquisition.
To these questions the Statement of Objects and Reasons gives no answer-it is doubtful
whether those who framed the property amendments were even aware of their effect on
other fundamental rights retained in Article 19(1)(f)(1), and on the political unity of India
which Article 19(1)(f)(1)(d), (e), (f) and (g) was intended, inter alia, to subserve, along
with other provisions of our Constitution. At any rate, the framers on these amendments
have provided no solutions for the problem, which the property amendments inevitably
raise. One further complication must be noted here. Although Article 19(1)(f) and Article
31(2) had been made mutually exclusive by Article 31(2-B), there was no such mutual
exclusiveness between Article 31(2) and the right to practise a profession or to carry on
any occupation, trade or business conferred by Article 19(1)(g). This right was subject to
restrictions mentioned in Article 19(1)(f)(6). But trade and business is capable of being
acquired, as Section 299(2) of the Government of India Act, 1935, clearly showed. By
what test is the validity of the law acquiring property, and a law acquiring trade or
business, including industrial and commercial undertakings, to be judged? The 25th
Amendment inserted in Article 31 a new sub clause (2) with the following proviso:
Provided that in making any law for the compulsory acquisition of any property of an
educational institution established and administered by minority, referred to in clause (1)
of Article 30, the State shall insure that e amount fixed by or determined under such law
for the acquisition of such property is such as would not restrict or abrogate the right
guaranteed under that clause.
'Authority by law' as understood in Article 300A: The term 'law' as defined in Article
300A is understood to mean only legislation or a statutory rule or order. The term 'law' as
understood by Article 300A will not include executive fiats. The source of the 'law'
depriving a person of his property has to be necessarily traced, through a statute, to the
legislature.
While summarizing the entire concept of Right to Property..
Once upon a time, it was thought that the so called personal rights like the right to vote,
right to freedom of speech or personal liberty occupied a higher status in the hierarchy of
values than property right. As a result the courts were more astute to strike down
legislations, which impinged upon these rights, than upon property rights. But Learned
Hand, a great judge, felt that the distinction between the two was unreal and said that
nobody seems to have bestowed any thought on the question why property rights are not
personal rights. The Supreme Court of America which once gave hospitable quarter to the
distinction between personal rights and property rights and accorded a preferred position
to the former, has given a decent burial both to the distinction and the preferred status of
the so called personal rights or liberties in 1972 by saying the dichotomy between
personal liberties and property rights is a false one. Property does not have rights. People
have rights. The right to enjoy property without unlawful deprivation, not less than the
right to speak or the right to travel is in truth a personal right, whether the property in
question be a welfare cheque, a home or a savings account. In fact, a fundamental
interdependence exists between the personal right to liberty and the personal right in
property. Neither could have meaning without the other.
With the twin objectives of achieving social equity and ensuring economic growth, the
land reforms programme was built around three major issues:
1. Abolition of intermediaries.
2. Settlement and regulation of tenancy.
3. Regulation of size of holdings.
The central thesis behind the abolition of intermediaries, underlined by the first as well as
the Second Five Year Plan, was that owners themselves should operate and manage farm
business, and so the tenant-landlord nexus should be put to an end. The intermediary’s
privileges were conceived as having an adverse impact on agricultural productivity as
well as denying the tiller of the soil his rightful place in the economy. ‘Between 1947 and
1954 … a law for the abolition of the zamindari system was adopted [passed] by the state
legislature and then ratified by the President of India. However, these acts of agrarian
reform did not affect landownership in the ryotwari areas where system was in existence,
i.e. 57 per cent of the country’s occupied land.
Tenancy reforms were launched to confirm the rights of occupancy by tenants, regulate
rents on leased land and to secure their possession of tenanted land. It was argued,
especially in the context of the spread of modern technology, that the tenants lacking a
security of tenure and paying excessive rents suffer a relative decline in inputs compared
to the owners. To this end the following recommendations were made by the Chief
Ministers’ Conference in 1967:
1. The rate of interest should not be more, preferably less, than 1/4 or 1/5 of the
gross produce.
2. Records of tenancy should be prepared and maintained.
3. Tenants in cultivating position of land should be given complete security of
tenancy by: i) staying all evictions; ii) suspending rights of resumption where
such rights had been given to landowners; and iii) regulating voluntary
surrenders in such a way landowners do not get an advantage by persuading
tenants to surrender their tenancy.
The third major land reform plank was regulating the size of land holdings through
ceiling as well as consolidation to correct the extremely skewed distribution of
agricultural land. It was designed to (i) to meet land hunger of working cultivators, (ii) to
reduce the disparities in agricultural income, ownership, and use of land, and (iii) to
increase rural employment in the sector. At the same time, consolidation of holdings was
also advocated to group together the numerous tiny and scattered holdings of poor
cultivators in order to form bigger tracts, susceptible to more efficient management.
Cooperative farming on these would increase productivity and employment through
economies of scale. The large, economical units of consolidated land, it was opined,
would mitigate the problem of poor yield and enhance productivity through economies of
scale and also increase employment.
Of all these laws only the abolition of intermediaries was achieved successfully. The bulk
of the zamindars’ lands were alienated: 87% in Uttar Pradesh and 84% in Bihar for
instance; and the landlord class lost close to 60% of the land it had owned previously.
However, it was achieved at a great cost to the Exchequer as the compensation to the
intermediaries came to be some 7,000 million rupees. The source from which these
compensation payments were drawn was the land-revenue paid to the state by the ex-
tenant farmers now farming on the land alienated from former zamindars’ estates. In
most cases the tenant farmers continued to pay the same land-rent as before, but now to
the state direct.
As to the implementation of the two other sets of reforms, namely tenancy and regulation
of land holdings, legal, administrative, and other factors became principal bottlenecks. In
most cases and for a long time, the factual evidence and administrative machinery for
enforcement of the laws just did not exist. For instance, land policy in the First Five Year
Plan was formulated without sufficient knowledge about the size and distribution of
agrarian land holdings. It was in the 8th round of the National Sample Survey in 1954 that
a considerable volume of data was collected for the first time; this too was submitted to
the Union Government only in 1960, a full six years later.
On tenancy reforms, from a lifetime of study, P. S. Appu has concluded that the laws
have not put an end to absentee ownership of land, nor has it led to the disappearance of
tenancies. Being a state subject, there have been striking differences in the track records
between the various States in the formulation and enforcement of the reform measures. It
was not before the Operation Barga in 1978, for instance, that tenancy reforms met with
any noticeable success in West Bengal, and then overtook the rest of the country in a
most spectacular manner. If political will is taken as the main reason behind the success
of tenancy reforms there, the absence of such a will must be held responsible for its
failure elsewhere. Taking the country as a whole, by 1992, ownership rights over 14.4
million acres of land have been conferred on some 11 million tenants. That constitutes,
however, no more than 4% of operated area. The seven States of Assam, Gujarat,
Himachal Pradesh, Karnataka, Kerala, Maharashtra, and West Bengal account for 97% of
the beneficiaries. Practically no benefits accrued to the tenants in the other states.
It is in the field of redistribution and consolidation of land holdings that the reforms have
met with the least success, mainly because they met with a most determined resistance
from the very substantial and politically influential landed interests, quite unlike the
handful of politically isolated intermediaries. It was not before mid-1960s that ceiling
laws could be passed in the majority of states. Even then enough loopholes remained
which enabled landlords to circumvent legislation ‘while in the remainder they had still
to pass through the various readings in the legislatures’. Even after the law, ‘the landlords
succeeded with little difficulty in circumventing the new laws making full use of the
numerous loopholes in them.’ For instance, the law allowed division among the members
of a joint family, by taking recourse to which the total holdings of landlord family
remained several times over the legal limit. ‘As experience was to show, after the
“ceiling” acts had been applied in Andhra Pradesh and Bengal, hardly any surpluses were
revealed.’ By 1992, only about two million hectares of surplus land, amounting to less
than 2% of the operated area on a pan-Indian scale with very wide regional differences,
could be distributed to some 4.76 million beneficiaries.
As the land reforms reach an impasse, a series of considerations have raised serious
doubts about their continuing relevance as to whether they are really the best way for
achieving growth with general well-being and whether they are in harmony with the
ongoing liberalisation of Indian economy. Demographic and economic forces have
proved more effective than legislation in bringing about a redistribution of land in favour
of medium and, and even more, marginal farmers. The latter, it is said, now dominate the
agrarian landscape in most of India outside Panjab and Haryana. Inequality among
landowners is no longer a key issue, as landholdings are not very skewed any more,
except in certain small pockets.
On the other hand, widespread poverty and hunger remain. In particular, the plight of the
landless or near landless, whose number has steadily grown over the decades and is
estimated to constitute almost half the agricultural population, requires urgent attention.
Above all, agricultural growth has, in general, been sluggish in India, and the Green
Revolution has failed to spread beyond a handful of states led by Panjab and Haryana,
which are now in fact producing food surpluses to feed the rest of them.
Many critics such as V. M. Dandekar argue that the ceiling and tenancy laws not only do
not have much relevance in this sorry state of affairs but also must share part of the blame
at least for perpetuating them. The most critical long-term impact of the ceiling law has
been, as pointed out by Hanumantha Rao, that it killed the land market, and thereby the
scope for investment in land, by preventing an increasing concentration in landholding
through depeasantisation. ‘The same is true’, Dandekar says, ‘of the present tenancy laws
which have practically abolished lease market in land’.
Among the alternative policy prescriptions that have been put forward, those of Dandekar
constitute the most radical departure from the prevailing policies. Dandekar advocates
exposing agriculture to the full play of market forces through either an outright abolition
or gradual relaxation of the ceiling and tenancy laws. His is essentially a plea for
unrestrained growth through modernisation of agriculture that will bring benefit to all, if
differentially.
From a similar perspective, another prescription is to encourage corporate sector to enter
agriculture for commercial production of high-value and processed agricultural products,
and earn thereby valuable foreign exchange. The corporations should set up agro-
processing units in the rural areas and help in diversifying agriculture, encourage contract
farming, and also develop infrastructural support in the area of their operation.
Once the market forces are fully unleashed and business people from outside begin to
invest in the agricultural sector, it would also become necessary to impose agricultural
income tax and agricultural holding tax. These taxes then could be used, among other
things, to build up infrastructure and provide employment in the countryside.
Expert opinion is divided on the question of employment. Some fear that modern
technology being generally labour saving and capital intensive, its introduction will
aggravate further the unemployment problem. In support, studies by S. K. Ray and others
are cited showing that the employment elasticity of output in agriculture has fallen
sharply in the post-new technology agriculture. However it does not necessarily imply an
aggravation of the problem; it just means that a growth in productivity does not lead to a
proportionate increase in employment. On the contrary, data show a threefold increase in
the number of agricultural labourers in Panjab between 1961 and 1981, the increase in
demand having to be met by large-scale migrations from eastern UP and Bihar. Fears of
increasing unemployment due to mechanization have not materialised so far. The victims
of tractorization, it has been well said, were bullocks, not labour.
In the end, the social and political costs of the policy prescriptions will need to be
carefully examined. By all reckonings, while poverty and hunger may become a thing of
the past, the distribution of income would tend to be more skewed. This may become a
cause of serious concern through the social friction that it would intensify. Ultimately, the
success or even the initiative for such policy measures would depend on the extent to
which our decision-makers believe them to be compatible with the politics of competitive
populism.
The Urban Land (Ceiling and Regulation) Act, 1976 (Act no. 33 of 1976) being the
Central Governments legislation was enacted by the Parliament of India with the view to
make provisions as to imposition of a ceiling on vacant land in urban agglomerations,
also to acquiring such land in excess of the ceiling limit, for regulating the construction of
buildings thereon. The Act make further provisions for preventing the concentration of
urban land in the hands of a few persons and speculation and profiteering therein, as such
the Act sought to provide for equitable distribution of land in urban agglomerations in
common good. The subject matter of this legislation is ‘Land’ and the same comes under
the authority of State legislature, however, with the view to ensure the uniformity in
approach, the Government of India has took initiative and certain states passed
resolutions under Article 252(1) of the Constitution of India, wherein the Parliament was
empowered to enact this Act. So far as the applicability of this legislation is concerned,
the Act under its first section says that the States of Andhra Pradesh, Gujarat, Haryana,
Himachal Pradesh, Karnataka, Maharashtra, Orissa, Punjab, Tripura, Uttar Pradesh and
West Bengal and all the Union territories are subjected to this Act and other States can
also adopt this Act by passing resolutions as aforesaid.
The provisions of section 3 of the Act provides that in respect of the territories concerned
under this Act for which the ceiling limit is provided, no persons should be entitled to
hold any vacant land in excess of that ceiling limit. Section 4 deals with such ceiling limit
for every person. Further, the section 5 of the Act says that the transferred vacant land
either by way of sale, mortgage, gift, etc. by the persons in the State to which this Act is
applicable should also be considered while calculating the extend of vacant land held by
him. And as per section 6, all persons holding such excess vacant land should file a
statement within the prescribed period before the Competent authority. Such statement
should specify the location, extent, value, etc. of such vacant land and also land over
which any building is erected. As per section 8 of the Act, the Competent authority is
required to prepare a draft statement in respect of such persons, based on the Statements
filed by them. And all such draft statements are required to serve upon the person along
with notice wherein any objection thereto should be invited and the period for making of
such objection is thirty days. And such Objections to be dealt with by the Competent
authority and pass appropriate orders thereon. As such, the Competent authority is
required to proceed for making final Statement wherein the determined vacant land held
by the person concerned in excess of the ceiling limit should be stated. After complying
all such procedure, the next move is to acquire the vacant land in excess of ceiling limit
by publishing a notification by the Competent authority. Such notification is to contain
that the concerned land will be acquired by the concerned State Government; and also
claims of interested persons can be made by them. On determination of such claims, the
Competent authority to declare by notification that the concerned land is acquired by the
State Government.
Further, section 11 being important makes provisions as to making of payments by the
State Government concerned for acquiring such vacant land, to the persons interested
therein. And for determining the disputes as to such acquisition, the persons being
aggrieved can approach to the Urban Land Tribunal with his appeal. The said Tribunal is
to be constituted by the State Government and while deciding such appeals the Tribunal
are conferred with all powers and procedure of the Civil Court dealing with the appeals
within the Code of Civil Procedure, 1908. Provisions as to second appeal have also been
provided under the Act, which should lie before the concerned High Court.
Besides all these most relevant provisions, the Act also provides for several other
provisions including, the provision empowered the competent authority to enter in the
Vacant land or land consisting building thereof for making survey and doing
measurements for the purposes of this Act. However, if any particulars respecting the
concerned land, is being concealed, etc. then persons liable thereof will be held
responsible to pay penalty.
All such lands so acquired under this Act are required to be disposed of as per provisions
of section 23 of the Act, where the State Government can allot such lands to the persons
for industrial purpose or for providing residential accommodation of approved type to the
employees of any industry. Besides this, the further provisions are also made being
relevant to the purpose of the Act, and some of those are explained. The Competent
authority is having certain other powers under the Act, which are provided under section
31 and are similar to that of certain powers of civil Court provided under provisions of
the Code of Civil Procedure, 1908. The State Government can issue necessary directions
to the Competent authority and the Central Government can give necessary directions to
the State Governments. The Competent authority is required to furnish relevant returns
and reports to the State Government concerned.
Section 38 of the Act describes certain offences under this Act and also provides for
punishment in relation thereto. Section 39 provides for offences by companies under this
Act and person liable thereof. Further, the Court taking cognizance of offences under this
Act, should proceed with, only after there is a written complaint made by the Competent
authority or authorised officer thereof and such Court should not be inferior to that of
Metropolitan Magistrate or a Judicial Magistrate of the first class. All officers who are
acting under this Act, Rules, etc. under this Act, should be treated as Public servant. The
Central Government under this Act is empowered to provide for Rules, for carrying on
the provisions of this Act and such rules to provide on matters enlisted under section 46.
Lastly, the said Government is also empowered to provide for orders removing
difficulties which can arise while giving effect to the provisions of this Act. The present
Act is, however, now repealed by the provisions of the Urban Land (Ceiling and
Regulation) Repeal Act, 1999 (Act no. 15 of 1999).