UNIT 1 - Theories of Property | Property Law - SRD Law Notes

- Kinds of Property | Property Law - SRD Law Notes

UNIT 2 – 44TH AMENDMENT

Property and The Constitution – Unit 2 Explanation
This unit delves into the various constitutional provisions surrounding property rights,
particularly focusing on the doctrine of eminent domain, the transition of property rights
in India's constitutional framework, and significant case laws that have shaped land reform
policies.
Doctrine of Eminent Domain – Expropriation
 Eminent domain refers to the power of the state to take over private property for
public use or public interest, with or without the consent of the owner, typically with
compensation.
 The doctrine rests on the principles that:
o The State's sovereignty overrides private ownership.
o Compensation must be provided for the expropriated property.
The Majority vs Minority Conundrum
 Property rights in India have long seen a tug-of-war between majority (political
interests pushing for land reform) and minority (landowners protecting their rights).
 This conflict often pits social justice measures, such as land redistribution and
agrarian reforms, against the individual property rights of landowners, leading to
multiple constitutional amendments.
Constitution Coming into Force
 The Constitution of India came into force on 26th January 1950, enshrining
fundamental rights including the right to property under Article 19(1)(f).
 However, as India embarked on land reform and redistribution, conflicts arose
between the socialist agenda and landowners' rights.
The 1st Amendment – 1951 – Agrarian Reforms and the Zamindari System
 The First Amendment was crucial in the context of agrarian reforms. It facilitated
the abolition of the zamindari system, which involved redistributing land to poor
farmers and eliminating intermediaries.
 Land redistribution laws were being struck down as violations of fundamental rights
under Articles 14 and 19.
 To overcome these challenges, Article 31A was introduced, safeguarding laws related
to the acquisition of estates from judicial scrutiny based on fundamental rights.
Article 31A – Saving of Laws Providing for Acquisition of Estates
 This article protects certain laws aimed at land acquisition, estate reform, and
public interest actions from being invalidated for violating fundamental rights like
equality (Article 14) or freedom of property (Article 19).
 These reforms allowed the government to implement agrarian reforms without the
constant threat of litigation by landowners.
Article 31B – Validation of Certain Acts and Regulations
 Article 31B shields laws listed in the Ninth Schedule from being challenged in
courts, even if they violate fundamental rights.
 The Ninth Schedule was introduced to protect land reform laws and other welfare
legislation from judicial review.
 This retrospective protection means laws already declared unconstitutional can be
validated by placing them in the Ninth Schedule, making them immune to future
challenges.
Case Law: Shankari Prasad Singh Deo v State of Bihar (1951)
 Facts: The case questioned whether Parliament could amend fundamental rights,
specifically concerning property laws.
 Issues: Whether Parliament had the power to amend the Constitution and place laws
under Articles 31A and 31B.
 Held: The Supreme Court held that Parliament was competent to amend the
Constitution under Article 368, including altering fundamental rights. Articles 31A
and 31B were valid and within the amending power of Parliament.
Case Law: State of Bihar v Maharajadhiraj Kameshwar Singh (1952)
 Facts: This case challenged the Bihar Land Reforms Act and sought compensation
for compulsory land acquisition.
 Held: The Supreme Court ruled that paying just compensation is a principle of
natural justice and part of the eminent domain doctrine. Compensation is essential
for the lawful expropriation of private property.
Perceived Misuse of the Ninth Schedule
 Over time, the Ninth Schedule has been criticized for being used to bypass judicial
review. Laws like the Gudalur Janmam Estates (Abolition and Conversion into
Ryotwari) Act, 1969, initially struck down by the Supreme Court, were later placed
in the Ninth Schedule, sparking controversy.
Case Law: Waman Rao v Union of India (1981)
 Held: The Supreme Court ruled that laws placed in the Ninth Schedule post-April
24, 1973 (the date of the Kesavananda Bharati judgment) could be challenged if
they violated the basic structure of the Constitution.
Case Law: I.R. Coelho v State of Tamil Nadu (2007)
 Held: The Supreme Court reinforced that even if a law is placed in the Ninth
Schedule, it is open to judicial review if it violates the basic structure of the
Constitution, particularly fundamental rights like Articles 14, 19, and 21.
Amendments and Property Rights: Shifting Power
 The amending powers of Parliament and the evolution of property rights
demonstrate the dynamic nature of constitutional law in India.
o Shankari Prasad v State of Bihar: Upheld Parliament’s power to amend
fundamental rights.
o IC Golak Nath v State of Punjab: Limited Parliament’s power to amend
fundamental rights.
o Kesavananda Bharati v State of Kerala: Introduced the basic structure
doctrine, protecting core features of the Constitution from amendment.
The 44th Amendment – 1978
 Right to Property was transformed from a fundamental right into a constitutional
right under Article 300A.
 While the government could still acquire property for public purposes, it was no
longer bound by the fundamental rights guarantees, provided it did so under
authority of law.

UNIT 3

Here is a breakdown of key definitions as per their respective sections in The Right of Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013 (Central Act):
1. Public Purpose (Section 2(1)):
"Public Purpose" refers to activities that require the acquisition of land by the government.
These activities include:
 Infrastructure projects such as roads, railways, and water systems.
 Educational and healthcare facilities.
 Projects for the benefit of Scheduled Castes, Scheduled Tribes, and other
disadvantaged groups.
 Urban or rural housing projects.
 Industrial corridors and infrastructure projects approved by the government.
2. Market Value (Section 26):
Market value is the value of land determined for compensation purposes under Section 26. It
considers:
 The average sale price of nearby similar land within the last three years.
 The amount reflected in an agreement for sale for the land in question.
 Additional considerations for land use, accessibility, and other factors.
3. Person Interested (Section 3(y)):
A "Person Interested" includes:
 Anyone claiming compensation for land acquired.
 Scheduled Tribes and forest dwellers who lose their forest rights due to acquisition.
 Persons with easement rights or tenancy rights under relevant state laws.
 Any person whose livelihood may be adversely affected by the acquisition.
4. Authority (Section 51):
The "Authority" refers to the Land Acquisition and Rehabilitation and Resettlement
Authority established under Section 51. This authority is responsible for overseeing disputes
related to land acquisition, compensation, and resettlement matters.
5. Affected Area (Section 3(b)):
"Affected Area" is the geographical area notified by the government for the purpose of land
acquisition under this Act.
6. Affected Family (Section 3(c)):
"Affected Family" includes:
 A family whose land or property is acquired.
 Agricultural laborers or tenants affected by the acquisition of land.
 Scheduled Tribes and forest dwellers who lose their forest rights.
 Families dependent on forests or water bodies for livelihood.
 A family member who was assigned land under a government scheme that is now
under acquisition.
 Families living in urban areas for at least three years whose livelihood is affected by
land acquisition.
7. Private Entity (Section 3(q)):
A "Private Entity" is any entity other than a government body, including:
 Proprietorships, partnerships, companies, corporations, non-profits, or any other legal
entity.
8. Cost of Acquisition (Section 3(i)):
The "Cost of Acquisition" includes:
 Compensation, including solatium (additional compensation for distress) and
enhanced compensation as ordered by the Authority or court.
 Demurrage (compensation for damage) for loss of crops or damage to land during
acquisition.
 Costs for developing infrastructure and amenities at resettlement sites.
 Administrative costs, including the cost of the Social Impact Assessment (SIA) study.
9. Requiring Body (Section 3(zb)):
"Requiring Body" refers to:
 A company, institution, or any organization for whom land is being acquired by the
government.
 The government itself, when acquiring land for its use or for transferring it to other
entities for public purposes.
10. Resettlement Area (Section 3(za)):
The "Resettlement Area" is the area where affected families, displaced due to land
acquisition, are resettled by the appropriate government. This area is designated to provide
the necessary infrastructure and amenities for those families.
These definitions provide clarity on various aspects related to land acquisition, compensation,
and resettlement under The Right of Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013.

UNIT 4

SEC 4-6 - https://youtu.be/QsJ55HguRVs?si=EUj_fZqWpplUHtci

The Right of Fair Compensation and Transparency in Land Acquisition, Rehabilitation,
and Resettlement Act, 2013
Sections 4 to 9: Determination of Social Impact and Public Purpose

Section 4: Preparation of Social Impact Assessment Study (SIA)

 Government’s Obligation: When the government plans to acquire land for a public
purpose, it must consult the local authorities like Panchayats, Gram Sabhas,
Municipalities, or Municipal Corporations in the affected areas and carry out a Social
Impact Assessment (SIA).
 Notification: The government must issue a notification of the SIA's commencement
in the local language, ensuring it's shared with local authorities, published in local
forums, and uploaded online. Relevant authorities must be adequately represented.
  Completion Timeline: The SIA should be completed within 6 months from the start
of the process. Once complete, the report should be made available to the public.
 Contents of SIA: The SIA should assess:
1. Public Purpose: Whether the proposed acquisition is for a legitimate public
purpose.
2. Affected Families: Estimate the number of families that may be affected or
displaced.
3. Affected Land: Extent of public and private lands, houses, settlements, and
other properties likely to be impacted.
4. Land Requirements: Whether the extent of land proposed for acquisition is
the minimum necessary for the project.
5. Alternate Locations: Whether alternative locations were considered but
found unfeasible.
6. Social and Environmental Impact: A study of the social impact on affected
families and environmental consequences. Cost-benefit analysis and
Environmental Impact Assessment (EIA) should be conducted simultaneously.
 Components to be Considered: The SIA should analyze the project's impact on:
o Livelihoods of affected families.
o Infrastructure such as roads, transport, sanitation, drinking water, cattle water
sources, grazing land, plantations.
o Public utilities like schools, healthcare facilities, places of worship, parks,
burial grounds, and public amenities.
 Ameliorative Measures: A Social Impact Management Plan should propose
measures to mitigate the impact on each specific component affected.

Section 5: Public Hearing

 Public Involvement: The government must hold a public hearing in the affected area,
ensuring adequate publicity about the date, time, and venue.
 Objective: The purpose of the hearing is to gather the views of affected families.
Their feedback is recorded and included in the SIA report.

Section 6: Publication of Social Impact Assessment Study

 Transparency: The final SIA report, along with the Social Impact Management Plan,
must be published in the local language and made available to local authorities. The
report must also be uploaded online.
  Environmental Impact Assessment: The Environmental Impact Assessment (EIA)
report should also be published.

Section 7: Appraisal of SIA by Expert Group

 Formation of Expert Group: The government must form an independent, multi-
disciplinary Expert Group to evaluate the SIA. The group includes:
1. Two non-official social scientists.
2. Two representatives from local authorities (Panchayat, Gram Sabha,
Municipality, or Municipal Corporation).
3. Two experts on rehabilitation or a technical expert related to the project. A
chairperson is nominated.
 Expert Group’s Role: The group evaluates whether:
1. The project serves a genuine public purpose.
2. The potential benefits of the project outweigh the social costs and adverse
impacts.
 Recommendations:
o The Expert Group must make recommendations within two months on
whether the proposed land acquisition is the minimum required and if there are
no alternative, less displacing options.
o If the Expert Group believes the project serves no public purpose or the social
costs outweigh the benefits, it must recommend the abandonment of the
project.
o The recommendations must be made public in the same manner as the SIA
report.
 Can the Government Ignore Recommendations?: While the Expert Group provides
independent assessments, the final decision rests with the government. However,
ignoring the group's recommendations without adequate justification could raise
issues of non-transparency and accountability.

Section 8: Examination of Proposals by the Government

 Obligation of the Government: The government must examine the proposals for
land acquisition and the SIA report. It must ensure:
1. The acquisition is for a legitimate public purpose.
2. The public purpose outweighs the social costs and adverse impacts.
3. The acquisition involves only the minimum land necessary.
 4. There is no unutilized land previously acquired in the area.
 Government's Decision: After considering the SIA and Expert Group
recommendations, the government must make a decision that minimizes displacement
and adverse social impacts. This decision must be published in the local language and
made available publicly.

Section 9: Exemption from Social Impact Assessment

 Urgency Provisions: Under Section 40, the government may exempt a project from
conducting a Social Impact Assessment in cases of urgency. These exemptions are
rare and typically apply to projects of national importance or emergencies.

for unit 5

https://youtu.be/9uhB3WdCTCc?si=gIJ0JzlzatPtDQiP

Section 11: Publication of Preliminary Notification and Powers of Officers

Key Provisions:
1. Issuance of Preliminary Notification:
o When the appropriate Government identifies land required or potentially
required for a public purpose, a preliminary notification must be published
with details of the land. This notification is disseminated in the following
ways:
 Official Gazette.
 Two daily newspapers, one of which must be in the regional
language.
 Local language publication in the Panchayat, Municipality, or
Municipal Corporation, as applicable, and in the offices of the
District Collector, Sub-divisional Magistrate, and Tehsil.
 Uploaded on the appropriate Government's website.
 Publication in the affected areas, in a manner as prescribed.
2. Notification to Local Bodies:
o Once the notification is issued, the concerned local bodies (Gram Sabha,
municipalities, and Autonomous Councils in Sixth Schedule areas) must be
informed of the notification in a special meeting convened for this purpose.
3. Contents of the Notification:
o The notification must include:
  A statement on the nature of the public purpose involved.
 Reasons necessitating the displacement of affected persons.
 A summary of the Social Impact Assessment (SIA) report.
 Details of the Administrator appointed for rehabilitation and
resettlement under Section 43.
4. Restrictions on Land Transactions:
o Once the preliminary notification is published, no transactions or
encumbrances (such as sales or mortgages) involving the specified land can be
made until the land acquisition proceedings are completed.
o Exemption: The Collector may grant exemptions in special circumstances
upon the landowner's application, provided reasons are recorded in writing.
o Any loss or injury caused by violating this restriction will not be
compensated by the Collector.
5. Updating Land Records:
o After issuing the preliminary notification, the Collector must undertake the
task of updating land records (as per prescribed methods) before issuing a
declaration under Section 19. This exercise must be completed within a period
of two months.

Section 12: Preliminary Survey of Land and Powers of Officers

Key Provisions:
1. Purpose:
o The purpose of this section is to empower the government to conduct a
preliminary survey of land to determine the extent of land that needs to be
acquired.
2. Powers Granted:
o Officers authorized by the government, along with their servants and
workmen, are given certain powers to carry out the necessary activities for
land acquisition:
 Surveying and taking levels of the land.
 Digging or boring into the sub-soil.
 Performing all necessary acts to ascertain whether the land is suited for
the project.
 Marking boundaries of the proposed land and setting out the intended
line of work.
  Placing marks and cutting trenches to indicate levels, boundaries, and
lines. This may involve clearing standing crops, fences, or jungle
when necessary.
3. Conditions for Survey:
o Owner’s Presence:
 The survey cannot be conducted in the absence of the landowner or a
person authorized by the landowner unless:
 The owner has been given at least 60 days' notice of the
survey to ensure they have a reasonable opportunity to be
present.
o Notice for Entry into Buildings:
 No officer can enter a building or any enclosed court or garden
attached to a dwelling-house without the consent of the occupier,
unless the occupier has been given at least 7 days' written notice.

Section 13: Payment for Damage

1. Payment for Damage:
o Officers authorized under Section 12 must pay or tender payment for any
damage caused during the survey or other related activities at the time of entry.
2. Dispute Resolution:
o If there is a dispute regarding the sufficiency of the compensation amount, the
matter must be referred to the Collector or the chief revenue officer of the
district. The decision made by the Collector or revenue officer in such disputes
shall be final.

Section 14: Lapse of Social Impact Assessment Report

 Key Provision:
o If the preliminary notification under Section 11 is not issued within 12
months from the date of appraisal of the Social Impact Assessment (SIA)
report by the Expert Group under Section 7, the SIA report lapses.
o A fresh Social Impact Assessment must be undertaken before proceeding
with land acquisition under Section 11.
 Extension of Time:
o The appropriate Government can extend the 12-month period if
circumstances justify the extension.
 o Any extension must be recorded in writing, notified, and uploaded on the
website of the concerned authority.

Section 15: Hearing of Objections

1. Right to Object:
o Interested persons in any land notified under Section 11(1) (preliminary
notification) can raise objections within 60 days from the date of notification.
Objections can be related to:
 Area and suitability of the land proposed to be acquired.
 Justification for the public purpose.
 Findings of the Social Impact Assessment report.
2. Submission and Hearing of Objections:
o The objection must be made to the Collector in writing.
o The Collector must give the objector an opportunity to be heard in person or
through an authorized representative or an Advocate.
o After hearing objections, the Collector will prepare a report and make
recommendations to the appropriate Government, along with details of
affected families and the cost of acquisition.
3. Final Decision:
o The decision of the appropriate Government on the objections raised is
final.

Relevant Case Laws:

1. Laxman Lal v. State of Rajasthan (2013):
o The State Government’s exceptional power to acquire land without hearing
objections should be exercised with great caution. The right to object under
Section 15 is an important safeguard for landowners and should not be waived
except in cases of real urgency.
2. Women's Education Trust v. State of Haryana (2013):
o Compliance with the hearing of objections under Section 5-A of the Land
Acquisition Act, 1894 (equivalent to Section 15 in the new Act) is essential
for a valid notification under Section 6 (Section 19 in the new Act).
3. Laxman Lal v. State of Rajasthan (2013):
 o Though the right to property is no longer a fundamental right, constitutional
protection remains in place. A person cannot be deprived of their property
without the authority of law.

Section 16: Preparation of Rehabilitation and Resettlement Scheme by the

Administrator
1. Publication of Preliminary Notification (Section 11):
o After the preliminary notification is published under Section 11 by the
Collector, the Administrator for Rehabilitation and Resettlement is tasked
with conducting a survey and a census of the affected families.
2. Survey and Census of Affected Families:
o The survey must include specific details such as:
 Particulars of land and immovable property being acquired from
each affected family.
 Livelihoods lost for landowners and landless people who depend on
the land being acquired.
 List of public utilities and government buildings affected or likely to
be affected.
 Amenities and infrastructure affected by the land acquisition.
 Details of any common property resources being acquired, such as
community-owned lands or utilities.
3. Draft Rehabilitation and Resettlement Scheme:
o Based on the survey, the Administrator prepares a draft Rehabilitation and
Resettlement (R&R) Scheme, which outlines:
 Entitlements for each affected landowner and landless person.
 A list of government buildings to be provided in the resettlement
area.
 Public amenities and infrastructural facilities to be made available
in the resettlement area.
4. Timeline for Implementation:
o The draft R&R scheme must specify the time limit for implementing the
resettlement and rehabilitation provisions.
5. Publicity and Discussion:
o The draft scheme is publicized in the affected area and discussed in Gram
Sabhas or Municipalities, ensuring transparency.
 6. Public Hearing:
o A public hearing is conducted with adequate publicity in the affected area,
where affected people can raise concerns and provide feedback. The hearing
must be conducted in every Gram Sabha or Municipality where more than
25% of land is being acquired.
o In Scheduled Areas, consultations with Gram Sabhas must follow the
provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996.
7. Submission to the Collector:
o After the public hearing, the Administrator submits the draft R&R Scheme,
along with a report on the objections and claims raised during the public
hearing, to the Collector.
Section 17: Review of the Rehabilitation and Resettlement Scheme
1. Collector's Review:
o The Collector reviews the draft R&R Scheme submitted by the Administrator,
in consultation with the Rehabilitation and Resettlement Committee at the
project level (constituted under Section 45).
2. Submission to Commissioner for Approval:
o The Collector then forwards the draft R&R Scheme, along with his
suggestions, to the Commissioner for Rehabilitation and Resettlement for
final approval.
Section 18: Publication of Approved Rehabilitation and Resettlement Scheme
1. Making the Scheme Public:
o Once the Commissioner approves the R&R Scheme, it must be made publicly
available in the local language and shared with:
 The Panchayat, Municipality, or Municipal Corporation of the
affected area.
 The offices of the District Collector, Sub-Divisional Magistrate, and
Tehsil.
2. Wide Publicity:
o The scheme is also published in the affected areas, ensuring that all affected
families are aware of the resettlement and rehabilitation provisions.
3. Online Publication:
o The approved R&R Scheme must be uploaded on the website of the
appropriate Government for further transparency.
Key Points of the Process:
 1. Comprehensive Survey: The process begins with a thorough survey and census of all
affected families to gather necessary details about property, livelihoods, and common
resources.
2. Drafting a Scheme: The draft R&R Scheme is based on this survey and must clearly
outline the compensation and entitlements for every affected individual or family, as
well as public facilities in the resettlement area.
3. Public Consultation: Transparency is ensured by discussing the draft scheme
publicly, with hearings in all affected areas. Special provisions are made for
Scheduled Areas, ensuring that the interests of marginalized groups are protected.
4. Review and Approval: The Collector, along with the R&R Committee, reviews the
scheme, and the Commissioner gives final approval after reviewing the suggestions.
5. Transparency in Publication: The approved scheme is published in local languages,
made available to government offices, shared in the affected areas, and published
online to ensure that all stakeholders have access to the information.
This ensures a fair, transparent, and participatory process of resettlement and
rehabilitation for those affected by land acquisition.

Section 19: Publication of Declaration and Summary of Rehabilitation and

Resettlement
1. Declaration by Government:
o If the appropriate Government, after considering reports (if any) from Section
15(2), is satisfied that land is needed for public purposes, it must issue a
declaration. This includes identifying a "resettlement area" for affected
families, under the signature of a government secretary or an authorized
officer.
o Separate declarations can be made for different parcels of land under the same
preliminary notification.
2. Publication of Summary:
o The Collector must publish a summary of the Rehabilitation and
Resettlement Scheme with the draft declaration. The declaration won't
proceed without this summary.
o The Requiring Body must deposit a portion or full cost of the land
acquisition. If not done within 12 months from the preliminary notification
(Section 11), the declaration cannot be made.
3. Staged Acquisition:
o If the project involves staged land acquisition, declarations for rehabilitation
and resettlement must match the specific acquisition stages.
4. Methods of Publication:
 o Declaration publication must occur:
 In the Official Gazette.
 In two local daily newspapers (one regional).
 In local language within relevant Panchayat/Municipality/Corporation
and local government offices.
 On the website of the appropriate Government.
 In affected areas as prescribed.
5. Content of Declaration:
o It must state the district/territory of the land, its purpose, approximate area,
and where the plan for the land can be inspected at no cost.
6. Conclusive Evidence:
o This declaration is deemed conclusive proof that the land is required for a
public purpose. The government may proceed with land acquisition under this
Act.
7. Time Limit for Declaration:
o If no declaration is made within 12 months of the preliminary notification, it is
rescinded. Time extensions can be granted for justified reasons but must be
recorded in writing and uploaded online.

Section 20: Marking, Measuring, and Planning of Land

 The Collector must ensure that the land is marked out, measured, and if no plan
exists, a plan is created. This must be done unless the land was already marked out
under Section 12.

Section 21: Notice to Persons Interested

1. Publication of Notice:
o The Collector must publish a public notice on his website and in locations
near the land stating the government's intent to take possession of the land.
The notice must invite claims for compensation, rehabilitation, and
resettlement for all interests in the land.
2. Details in Notice:
o The notice must include the specifics of the land and require interested persons
to appear in person or through an agent or advocate before the Collector. The
time for appearance must be at least 30 days but not more than 6 months from
the date of publication. The interested parties must state their claims to
 compensation, rehabilitation, and resettlement, along with objections (if any)
to measurements made under Section 20.
3. Written Statements:
o The Collector may request a written statement signed by the interested party
or their agent outlining their claims.
4. Serving Notice:
o The Collector must also serve the same notice to the land's occupier and any
known or believed persons with an interest in the land. This includes
authorized agents within the same revenue district.
5. Notice to Non-Local Parties:
o If any interested party resides outside the district and has no local agent, the
Collector must send the notice by post to their last known address.
Additionally, the notice must be published in at least two national daily
newspapers and on the Collector's website.

Section 22: Requiring Statements of Names and Interests

1. Request for Information:
o The Collector can require any interested person to submit a statement
detailing the names of all individuals with any interest in the land (such as co-
proprietors, mortgagees, tenants, etc.), including the nature of those interests.
The statement must also include any rents or profits received for the preceding
three years. This request will give the party at least 30 days to respond.
2. Legal Binding:
o Individuals asked to provide such statements are legally obligated to do so
under Sections 175 and 176 of the Indian Penal Code (IPC).

Section 23: Enquiry and Land Acquisition Award by the Collector

 Procedure for Enquiry:
o On the day set (or any adjourned date), the Collector will begin the inquiry
into any objections raised by interested parties in response to the notice under
Section 21 regarding the measurements made under Section 20.
o The inquiry also includes determining the value of the land as of the date of
the publication of the notification, as well as the respective interests of the
individuals claiming compensation, rehabilitation, and resettlement.
 Award by the Collector:
 o After completing the enquiry, the Collector shall issue an award under his
authority, which includes:
 (a) The true area of the land.
 (b) The compensation as determined under Section 27, along with the
Rehabilitation and Resettlement award under Section 31, which in
his opinion should be allowed for the land.
 (c) The apportionment of the compensation among all the persons
who are known or believed to have an interest in the land, or whose
claims the Collector has been informed of, regardless of whether or
not they appeared before him.

Relevant Case Law Under Land Acquisition Act, 1894

 Compensation:
o A post-acquisition allottee of land is neither a necessary nor proper party, and
does not have the right to be heard in matters concerning the determination of
compensation.
Case: Satish Kumar Gupta v. State of Haryana, (2017) 4 SCC 760.
 Tax Deducted at Source (TDS):
o In cases where TDS is deducted on compensation by the payer and
subsequently refunded to the recipient by the department, the refund is
considered part of the compensation.
Case: Mazdoor Sangh v. Baranagore Jute Factory Plc., (2017) 5 SCC 506.

Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013 (RFCTLARR Act) addresses the continuity and lapse of land acquisition
proceedings initiated under the previous Land Acquisition Act, 1894.

Key Provisions:
1. Subsection (1) outlines two scenarios based on whether an award has been made
under Section 11 of the 1894 Act:
o (a) No Award Made: If no award was made, the provisions of the 2013 Act,
particularly regarding compensation determination, will apply.
o (b) Award Made: If an award has been made under Section 11 of the 1894
Act, the proceedings will continue under the 1894 Act as though it has not
been repealed.
2. Subsection (2) provides for lapsing of proceedings if:
o An award was made five years or more prior to the commencement of the
2013 Act.
 o Physical possession of the land has not been taken or compensation has
not been paid.
o In such cases, the acquisition proceedings are deemed to have lapsed, and the
government may initiate fresh acquisition proceedings under the 2013 Act.
Proviso: Where compensation for the majority of land holdings has not been deposited in the
beneficiaries' accounts, all beneficiaries named in the acquisition notification under Section 4
of the 1894 Act will be entitled to compensation under the provisions of the 2013 Act.
Judicial Interpretations:
 In DDA v. Archana Khanna (2016) 12 SCC 640, it was held that where an award
was passed, but possession was not taken, the acquisition proceedings had lapsed.
 Rajiv Jain v. State of U.P. (2018) 12 SCC 513 clarified that Section 24 is not
applicable where compensation has not been paid due to a reference being sought
under Section 18 of the 1894 Act.
 Delhi Metro Rail Corpn. Ltd. v. Tarun Pal Singh (2018) 14 SCC 161:
 If an award is deemed to have been made on a certain date under the 1894 Act, the
provisions of that Act continue to govern the acquisition. Even if the acquisition was
dropped or suspended, certain periods might be excluded for determining lapsing
under Section 24(2) of the 2013 Act.
 Rameshwar v. State of Haryana (2018) 6 SCC 215:
 The Court held that a gap in time between the suspension of acquisition and the
present judgment should not be counted for determining lapsing of acquisition due to
non-payment of compensation or failure to take possession.
 State of Telangana v. D. Mahesh Kumar (2018) 15 SCC 703:
 The proviso of Section 24(2) applies only to that section and not to Section 24(1)(b).
Section 24(2) would apply if an award under Section 11 of the 1894 Act was made
five years or more before the commencement of the 2013 Act and other conditions
(such as possession not taken or compensation not paid) are met. If those conditions
are not satisfied, Section 24(1)(b) applies, and Section 24(2) with its proviso does not.
 Aligarh Development Authority v. Megh Singh (2016) 12 SCC 504:
 Section 24 of the 2013 Act covers two primary situations:
o (i) Where land acquisition proceedings were initiated under the 1894 Act but
no award was passed before the 2013 Act came into force. In this case, the
proceedings can continue, but compensation must be determined under the
2013 Act.
o (ii)(a) If an award was passed under the 1894 Act but neither possession was
taken nor compensation paid, the proceedings lapse.
o (ii)(b) If an award was passed but payment or possession did not occur within
five years prior to the 2013 Act, the proceedings lapse.
 Rattan Singh v. Union of India (2015) 16 SCC 342:
 The Court set out the sequential preconditions for a deemed lapse of acquisition
proceedings under the 1894 Act:
o (i) An award under Section 11 of the 1894 Act must be clearly established.
o (ii) The award must have been made at least five years before the
commencement of the 2013 Act (i.e., on or before 1st January 2009).
o (iii) If possession of the acquired land has not been taken or compensation has
not been paid, the proceedings are deemed to have lapsed.

25. Period within which an award shall be made:

 The Collector must make an award within 12 months from the date of publication of
the declaration under Section 19. If the award is not made within this period, the
entire land acquisition proceedings will lapse.
 Several provisos are given:
o Shares as compensation: If a Requiring Body offers shares to landowners as
compensation, the shares offered must not exceed 25% of the calculated land
value, and landowners cannot be compelled to accept shares.
o Updating market value: The Collector must take necessary steps to revise
and update the market value of the land based on the prevailing market rate
before initiating land acquisition proceedings.
o Religious or linguistic minority educational institutions: The market value
for any land acquisition related to such institutions must be determined in a
way that does not infringe upon their rights to establish and administer
institutions of their choice.
o Extension of the 12-month period: The government has the authority to
extend the 12-month period, provided there are justified circumstances. Such
a decision must be recorded in writing, notified, and uploaded on the
concerned authority's website.
 Case Law:
o In R. Indira Sharadchandra v. State of T.N., (2011) 10 SCC 344, it was
held that if landowners are not compensated within two years after the
declaration of acquisition, the entire land acquisition process will fail.
26. Determination of Market Value of Land by the Collector:
 The Collector must adopt the following criteria to determine the market value of the
land:
o (a) The market value specified in the Indian Stamp Act, 1899 for registration
of sale deeds in the area.
 o (b) The average sale price for similar land situated in the nearest village or
vicinity.
o (c) The consented compensation agreed upon in cases of acquisition for
private companies or public-private partnership projects.
o The date for determining the market value is the date of the notification
under Section 11.
 Explanations for Market Value Determination:
o Explanation 1: The average sale price is based on sale deeds or agreements
from the preceding three years.
o Explanation 2: Only the highest 50% of sale deeds or agreements within the
considered period will be used for calculating the average price.
o Explanation 3: Prior compensation payments under the Act in the same
district should not be taken into consideration when determining market value.
o Explanation 4: Any sale price that the Collector deems not indicative of the
prevailing market value may be discounted.
 Subsequent Provisions:
o The market value calculated under sub-section (1) must be multiplied by a
factor specified in the First Schedule.
o If market value cannot be determined due to:
 (a) Land transaction restrictions,
 (b) Unavailability of sale deeds or agreements, or
 (c) Absence of market value specified under the Indian Stamp Act,
then the State Government shall specify the floor price or minimum
price based on similar land in adjoining areas.

Section 27: Determination of Compensation

 Collector's Role: The Collector, after determining the market value of the land,
calculates the total compensation, including all assets attached to the land.
Section 28: Parameters for Determining Compensation
The Collector must consider various factors while determining the compensation, including:
1. Market Value: As determined under Section 26, and the award amount must align
with the First and Second Schedules.
2. Standing Crops/Trees: Any damage to crops or trees at the time of possession is
accounted for.
 3. Severance of Land: Damage caused by severing the acquired land from other land
owned by the person.
4. Injury to Property or Earnings: Any injury to other property (movable or
immovable) or loss of earnings due to acquisition.
5. Relocation Expenses: Reasonable expenses incurred if the person is forced to change
residence or place of business due to the acquisition.
6. Diminished Profits: Loss in profits of the land between the publication of the
declaration under Section 19 and the Collector's possession of the land.
7. Equity and Justice: Any other grounds in the interest of equity, justice, or benefiting
the affected families.
Section 29: Valuation of Assets Attached to Land or Building
 Expert Services: The Collector must use experts to determine the value of buildings,
trees, crops, and other assets attached to the land. These experts may include
engineers, agricultural specialists, or other relevant professionals.
Section 30: Award of Solatium
 Solatium: An additional 100% compensation (solatium) is imposed on the total
compensation amount.
o Explanation: Solatium is separate from the main compensation for land
acquisition.
 Individual Awards: The Collector issues individual awards detailing the
compensation amount and payment specifics.
 Additional Amount: Beyond market value, the Collector must also award 12%
interest per annum on the market value from the date of the Social Impact Assessment
notification (under Section 4) until the date of the award or possession, whichever is
earlier.
Section 31: Rehabilitation and Resettlement Award for Affected Families by the
Collector
1. Rehabilitation and Resettlement Awards:
o The Collector must pass awards for each affected family based on the
entitlements outlined in the Second Schedule.
2. Contents of the Award: The award must include the following details:
o Rehabilitation and resettlement amount payable to the family.
o Bank account details where the amount will be transferred.
o House site and housing details to be allotted to displaced families.
o Land allotment details for displaced families.
 o One-time subsistence and transportation allowances for displaced families.
o Payment details for cattle sheds and petty shops.
o One-time amount for artisans and small traders.
o Employment details to be provided to affected family members.
o Fishing rights if applicable.
o Annuity and other entitlements to be provided.
o Special provisions for Scheduled Castes (SCs) and Scheduled Tribes (STs).
o Provisions:
 If any of the above-listed items are not applicable to a family, it should
be marked as "not applicable."
 The appropriate Government may, through notification, increase the
rate of the rehabilitation and resettlement amount, considering inflation
and rise in the price index.
Section 32: Provision of Infrastructural Amenities in Resettlement Areas
 The Collector is responsible for ensuring that all necessary infrastructural facilities
and basic minimum amenities, as specified in the Third Schedule, are provided in
the resettlement areas established under this Act.
Section 33: Corrections to Awards by the Collector
1. Corrections by the Collector:
o The Collector may correct clerical or arithmetical errors in awards at any
time, but not later than six months from the date of the award or, if a reference
has been made under Section 64, before the reference is made.
o The correction may be done either on the Collector's own motion or upon
application by any person interested or by a local authority.
o Proviso: No correction that could prejudicially affect any person can be made
without giving that person a reasonable opportunity to make representations.
2. Notification of Correction:
o The Collector must give immediate notice of any corrections made to the
affected persons.
3. Recovery of Excess Payments:
o If any excess amount is found to have been paid as a result of the correction, it
must be refunded.
o In case of default or refusal to pay, the amount can be recovered as prescribed
by the appropriate Government.
Section 34: Adjournment of Inquiry
 The Collector may adjourn an inquiry to a later date if he deems it necessary, at his
discretion.
Section 35: Power to Summon and Enforce Attendance of Witnesses and Production of
Documents
 For inquiries under this Act, the Collector has the authority to:
o Summon and enforce the attendance of witnesses, including any interested
parties.
o Compel the production of documents.
o These powers are similar to those of a Civil Court under the Code of Civil
Procedure, 1908.
Section 36: Power to Call for Records, etc.
 The appropriate Government may, before the Collector makes an award under
Section 30, call for any records related to the proceedings (whether through inquiry or
otherwise).
o This is to ensure the legality or propriety of any findings or orders and the
regularity of the proceedings.
o Proviso: The government cannot pass any order or issue any direction that is
prejudicial to a person without giving that person a reasonable opportunity
to be heard.
Section 37: Awards of Collector to be Final
1. Finality of Awards:
o The awards filed in the Collector's office shall be final and conclusive
evidence of the:
 True area and market value of the land.
 Assets attached to the land.
 Solatium (compensation for emotional or intangible loss) determined.
 Apportionment of compensation among interested persons.
o This finality applies whether or not the interested persons appeared before the
Collector.
2. Notification of Awards:
o The Collector must give immediate notice of his awards to interested persons
who were not present (personally or through representatives) when the awards
were made.
3. Public Display of Awards:
 o The Collector is required to display a summary of the entire acquisition
proceedings, including the compensation awarded to each individual and
details of the acquired land.
o This information must be available to the public on a dedicated website.
Section 38: Power to Take Possession of Land
1. Conditions for Possession:
o The Collector can take possession of the acquired land only after ensuring that
the full payment of compensation, as well as rehabilitation and resettlement
entitlements, has been made or tendered to the entitled persons.
o Timeline for payments:
 Compensation must be paid within three months from the date of the
award under Section 30.
 Monetary rehabilitation and resettlement entitlements must be paid
within six months from the date of the award.
2. Infrastructural Entitlements:
o Components of the Rehabilitation and Resettlement Package (Second and
Third Schedules) related to infrastructural entitlements must be provided
within eighteen months from the date of the award.
3. Irrigation or Hydel Projects:
o In cases where land is acquired for irrigation or hydel projects (public
purposes), the rehabilitation and resettlement must be completed six months
prior to the submergence of the acquired land.
4. Responsibility for Displacement:
o The Collector is responsible for ensuring that the rehabilitation and
resettlement process is fully completed before displacing the affected families.
Section 39: Additional Compensation for Multiple Displacements
 The Collector must try to avoid displacing a family that has already been displaced
once due to land acquisition by the appropriate Government.
 If such families are displaced again, they are entitled to additional compensation,
equal to the compensation determined for the second or successive displacements
under this Act.
Section 40: Special Powers in Case of Urgency to Acquire Land
1. Possession in Urgent Cases:
o Collector's Authority:
  In cases of urgency, as directed by the appropriate Government, the
Collector may take possession of land needed for a public purpose
without having made an award.
 This can occur thirty days after the publication of the notice under
Section 21.
 The land will vest absolutely in the Government, free from all
encumbrances.
2. Restrictions on Urgency Powers:
o The powers under this section are restricted to:
 The minimum area required for defence of India or national security.
 Emergencies arising from natural calamities or other emergencies,
with Parliament approval.
o Notification to Occupiers:
 The Collector must give at least forty-eight hours' notice to occupiers
before taking possession of any building or part of a building.
 A longer notice may be provided to allow occupiers to remove their
movable property without unnecessary inconvenience.
3. Payment Before Possession:
o Before taking possession, the Collector must tender eighty percent of the
estimated compensation to the interested persons.
4. Exemptions from Standard Provisions:
o The appropriate Government may direct that any or all provisions from
Chapter II to Chapter VI do not apply.
o A declaration under Section 19 can be made anytime after the preliminary
notification under Section 11(1).
5. Additional Compensation:
o An additional compensation of seventy-five percent of the total
compensation, as determined under Section 27, must be paid for land acquired
under this section.
o Exceptions:
 No additional compensation is required if the project affects:
 The sovereignty and integrity of India.
 Security and strategic interests of the State.
 Relations with foreign States.
Case Law Insights
1. Urgency Provisions:
o Forming an Opinion:
 The government must form a genuine opinion that land is urgently
needed, necessitating dispensation of the enquiry under Section 5-A
(now Section 15 in the new Act).
 Urgency should not be invoked for purposes like planned development
of a city or residential schemes unless justified.
o Proof of Urgency:
 The government must prove that even a slight delay could frustrate the
public purpose.
 The mere use of the term "urgency" in a notification is insufficient.
2. Quashing of Acquisition Proceedings:
o Quashing cannot be limited to those who have not accepted the compensation.
o Proceedings can be challenged even if compensation has been accepted,
ensuring fair process for all affected parties.

Section 41: Special Provisions for Scheduled Castes and Scheduled Tribes

1. General Restrictions:
o Scheduled Areas:
 Land acquisition in Scheduled Areas is to be avoided as much as
possible.
 If necessary, such acquisition must be a demonstrable last resort.
2. Consent Requirement:
o Scheduled Areas:
 Prior consent must be obtained from the concerned Gram Sabha,
Panchayats, or Autonomous District Councils in Scheduled Areas
under the Fifth Schedule of the Constitution before issuing any
acquisition notification.
 If a Gram Sabha does not exist or is not constituted, the consent of the
Panchayats or Autonomous District Councils must be obtained.
3. Development Plan for Displacement:
o For Scheduled Castes and Scheduled Tribes:
 A Development Plan must be prepared detailing procedures for
settling land rights, restoring titles, and providing alternate resources.
  The plan should include a program for developing alternative fuel,
fodder, and non-timber forest produce resources within five years to
support tribal communities and Scheduled Castes.
4. Compensation and Resettlement:
o Scheduled Castes and Scheduled Tribes:
 At least one-third of the compensation must be paid as the first
installment. The remainder is to be paid after taking possession of the
land.
 Scheduled Tribes affected families should be resettled preferably in the
same Scheduled Area to retain their ethnic, linguistic, and cultural
identity.
 Resettlement areas predominantly inhabited by Scheduled Castes and
Scheduled Tribes will receive land for community and social
gatherings, as decided by the appropriate Government.
5. Nullification of Alienation:
o Disregard of Laws:
 Any alienation of tribal lands or lands belonging to Scheduled Castes
that disregards existing laws is null and void.
 Rehabilitation and resettlement benefits must be provided to the
original landowners.
6. Fishing Rights:
o Affected Traditional Dwellers:
 Affected Scheduled Tribes, traditional forest dwellers, and Scheduled
Castes with fishing rights in affected rivers, ponds, or dams must be
given fishing rights in the reservoir areas of irrigation or hydel
projects.
7. Additional Benefits for Relocated Families:
o Relocation Outside Districts:
 Affected Scheduled Castes and Scheduled Tribes relocated outside
their district will receive an additional twenty-five percent of their
rehabilitation and resettlement benefits in monetary terms, along with a
one-time entitlement of fifty thousand rupees.
Section 42: Reservation and Other Benefits
1. Continuity of Benefits:
o Resettlement Areas:
  All benefits, including reservation benefits available to Scheduled
Tribes and Scheduled Castes in affected areas, must continue in the
resettlement area.
2. Statutory Safeguards:
o Relocation:
 Affected Scheduled Tribes relocating outside Scheduled Areas or tribal
areas will continue to receive all statutory safeguards, entitlements, and
benefits as per this Act, regardless of whether the new area is a
Scheduled Area or tribal area.
3. Community Rights:
o Monetary Compensation:
 If community rights have been settled under the Scheduled Tribes and
Other Traditional Forest Dwellers (Recognition of Forest Rights)
Act, 2006, they must be quantified in monetary terms and paid to
individuals displaced by land acquisition, proportional to their share in
such community rights.
Section 75: Particulars of Apportionment to be Specified
This section deals with situations where there are multiple persons who have an interest in
the land being acquired and thus in the compensation amount.
1. Agreement on Apportionment:
o If these individuals agree on how the compensation should be divided among
them, this agreement is documented.
o The details of how the compensation will be split must be specified in the
award (the official decision regarding compensation).
2. Finality of the Award:
o Once the compensation amount and its apportionment are written into the
award, the award becomes conclusive evidence of the correctness of this
division.
o This means the parties cannot dispute the apportionment later, as it is legally
binding once agreed upon and recorded in the award.
Essentially, Section 75 encourages parties with a shared interest in the compensation to reach
an agreement on its division, which is then formalized in the award, making it legally binding
and non-disputable.
Section 76: Dispute as to Apportionment
This section addresses what happens if the individuals with an interest in the land cannot
agree on how the compensation should be divided or there is a dispute about who is entitled
to the compensation.
 1. When Disputes Arise:
o After the compensation amount has been determined, disputes may arise in
two common situations:
 Apportionment dispute: When the interested parties disagree on how
the compensation should be divided among them.
 Entitlement dispute: When there is uncertainty or disagreement about
who is entitled to receive the compensation or part of it.
2. Role of the Collector:
o In case of such disputes, the Collector, who oversees the compensation
process, has the authority to handle these disputes.
o Instead of resolving the dispute directly, the Collector refers the dispute to
the appropriate legal or administrative Authority for settlement. This
ensures that an impartial third party resolves the matter fairly.
In summary, Section 76 provides a mechanism to resolve disagreements over compensation
distribution. When parties cannot come to an agreement, the matter is referred to a higher
authority for a fair decision.

Section 81: Temporary Occupation of Waste or Arable Land, Procedure When

Difference as to Compensation Exists
1. Temporary Occupation for Public Purpose:
o The appropriate government may decide to temporarily occupy and use waste
or arable land (land not currently under cultivation or production) for a
public purpose.
o The occupation period cannot exceed three years.
2. Collector’s Role:
o The Collector (a government official responsible for land acquisition) is
directed to give written notice to the person(s) interested (those with legal
rights or interests in the land) explaining the purpose for which the land is
needed.
o The Collector is responsible for determining compensation for the occupation
and use of the land and for any materials taken from the land.
o Compensation can be a lump sum payment or periodical payments
(monthly or otherwise), depending on the agreement reached.
3. Disagreement on Compensation:
 o If the Collector and the interested parties disagree on the compensation
amount or its distribution, the matter must be referred to the appropriate
Authority for resolution.

Section 82: Power to Enter, Take Possession, and Compensation on Restoration

1. Entry and Possession:
o Once compensation is paid or an agreement is executed (or if the matter is
referred under Section 64 for disputes), the Collector has the authority to
enter the land and take possession. The land can then be used for the public
purpose as per the terms in the notice.
2. Restoration of Land:
o At the end of the occupation period, the Collector must provide compensation
for any damage done to the land during the term (not already covered by the
original agreement).
o The Collector must then return the land to the interested parties.
3. Permanent Unfitness:
o If the land has become permanently unfit for its previous use due to its
temporary occupation, and the landowner requests it, the government must
proceed to permanently acquire the land as though it were needed for a
public purpose.

Section 83: Dispute Over Condition of Land

 If there is a dispute between the Collector and the interested parties regarding the
condition of the land after the temporary occupation period or any other matter
related to the agreement, the issue must be referred to the Authority for resolution.

 Summary

These sections outline the procedures and guidelines for temporarily occupying waste or
arable land for public purposes, the process for determining and disputing compensation,
and the conditions for returning the land after its use. The Collector plays a central role in
managing these processes, and any disputes that arise are referred to an appropriate
authority for resolution.

unit 9
Key Definitions:

1. Building (S2(4)):
o A structure that is not a farm building.
2. Farm Building (S2(9)):
o A structure erected on agricultural land for the following purposes:
 Storage of agricultural implements, manure, fodder, or produce.
 Sheltering cattle.
 Residence for family members, servants, or tenants of the holder.
 Any other purpose integral to the cultivating arrangement.
3. Holding (S2(13)):
o A portion of land held by a holder.
4. Holder of Land (S2(12)):
o A person who is in lawful possession of the land, whether actual or not, and
can be an owner, tenant, trustee, or mortgagee.
5. Occupant (S2(23)):
o A holder who is in actual possession of unalienated land (other than a tenant
or government lessee). If a tenant is in possession, the landholder or superior
landlord is deemed the occupant.
6. Superior Holder (S2(38)):
o A land-holder entitled to receive rent or revenue from other land-holders. If
land is alienated for free of rent, the original holder becomes the superior
holder.
7. Revenue Officers (S2(31)):
o Officers appointed under the code to handle tasks related to land revenue,
including surveys, assessments, and record maintenance.

section 41 -

1. Right to Use Agricultural Land for Certain Purposes (Section 41(1)):

 A holder of agricultural land has the right to make improvements on the land for
better cultivation or convenient use. This includes erecting farm buildings,
constructing wells or tanks, or making other improvements related to farming
activities.

2. Restrictions on Building Farm Structures in Urban Areas (Section 41(2)):

 Post-Amendment Rules: After the commencement of the Maharashtra Land

Revenue Code (Amendment) Act, 1986, any person wishing to construct, renew, alter,
or add to a farm building located in certain urban or planned areas must seek
permission from the Collector.
 Urban and Planned Areas: This includes areas within:
o The limits of major cities like Mumbai, Pune, and Nagpur and their
surrounding regions (up to 8 km).
o The limits of any other Municipal Corporation and areas within 5 km of their
boundaries.
o The limits of "A" Class Municipal Councils (within 3 km of their boundaries).
 o Any region covered by a town planning scheme or designated as a new town
site under the Maharashtra Regional and Town Planning Act, 1966.

3. Collector’s Authority to Grant Permission (Section 41(3)):

 Application for Permission: The landholder must apply to the Collector for
permission to build or modify farm structures in the areas specified above.
 Limits on Construction: The total plinth area (ground coverage) of farm buildings is
restricted based on the size of the agricultural holding:
o For holdings between 0.4 hectares and 0.6 hectares, the plinth area cannot
exceed 150 square meters.
o For holdings over 0.6 hectares, the plinth area cannot exceed 1/40th of the
holding size or 400 square meters, whichever is smaller.
 If the building is used for residential purposes (for the farmer's family, servants, or
tenants), the residential area cannot exceed 150 square meters, regardless of the size
of the holding.

4. Conditions for Denial of Permission (Section 41(4)):

 The Collector will not grant permission if:

o The holding is smaller than 0.4 hectares.
o The building height exceeds 5 meters or includes more than one floor.
o More than one farm building is proposed for each farm purpose.

5. Plinth Area Definition (Explanation under Section 41(4)):

 The plinth area refers to the total floor area covered by the farm buildings. If only one
building is constructed, the area of that building is considered. If more than one
building is proposed, the plinth area includes the combined area of all the buildings.

6. Overlap with Other Laws (Section 41(5)):

 In urban areas, or where municipal councils or corporations have jurisdiction, other

building laws and rules (such as the Development Control Rules under the
Maharashtra Regional and Town Planning Act, 1966) will also apply to farm
buildings.
 Any building work must comply with these rules, especially concerning building lines
and setbacks from highways or major roads.

7. Penalties for Unauthorized Use of Land (Section 41(6)):

 If farm buildings or alterations are made in violation of these rules, the land will be
deemed to be used for non-agricultural purposes. The holder will be subject to
penalties under Sections 43, 45, or 46, as appropriate.

In essence, while agricultural landholders are permitted to make improvements or construct

farm buildings, strict regulations are imposed when these actions take place in or near urban
areas, or when the buildings exceed certain limits. The process requires permission from the
Collector, and failure to adhere to the rules results in penalties.
1. Permission for Non-Agricultural Use (Section 42)

 General Rule: Agricultural land cannot be used for any non-agricultural purpose
without prior permission from the Collector. This includes changing the land's use
from one non-agricultural purpose to another or even altering the conditions under
which permission for non-agricultural use was originally granted.
 Exemptions from Permission:
o Personal Bona Fide Residential Use in Non-Urban Areas: If someone
wants to convert their agricultural land for their personal residential use in a
non-urban area, they do not need permission from the Collector.
o Micro Enterprises and Small Commercial Use: If the land is used for small-
scale commercial purposes such as operating a shop, flour mill, or grocery
store, and the area occupied is not more than 40 square meters, no permission
is required. This also applies to micro, small, and medium food processing
industrial units (as defined in the Micro, Small and Medium Enterprises
Development Act, 2006).

However, certain areas are excluded from this exemption, such as:

o Peripheral areas of municipal corporations or councils.

o Areas within control lines of National Highways, State Highways, or Village
Roads.
o Areas designated as eco-sensitive zones by the government.
 Intimation Requirement: If someone uses the land for these exempted purposes,
they must inform the local Tahsildar (revenue officer) and Collector within 30 days
of starting the new use.
 Deemed Agricultural Use for Food Processing Units: Any land used for small and
medium food processing industrial units will still be considered to be used for
agricultural purposes, not non-agricultural, which provides some regulatory relief to
such businesses.

2. Conversion of Land in Development Areas (Section 42-A to 42-D)

42-A: No Permission Required in Development Plan Areas

 No Collector’s Permission Required: If the land is part of an approved

Development Plan under the Maharashtra Regional and Town Planning Act,
1966, the landowner doesn't need permission from the Collector to convert the land to
the use specified in the plan.
 Class I Land: For lands classified as Occupant Class I (full ownership), the
Planning Authority (responsible for urban development) can grant development
permission directly after verifying the land’s status from the revenue records.
 Class II Land: For lands classified as Occupant Class II (restricted ownership or
conditions imposed by the government), the owner must first obtain a No Objection
Certificate (NOC) from the Collector after paying Nazarana (a premium or fee for
conversion) and government dues. Once the NOC is received, the Planning
Authority can approve the change in land use.
  Failure to Inform: If the landowner does not inform the authorities of the change in
land use within 30 days, they will face a fine of ₹25,000 or 40 times the non-
agricultural assessment (NAA), whichever is higher.
 Sanad Issuance: After the landowner pays the necessary taxes, the revenue authority
is required to issue a Sanad (certificate of conversion) within 30 days. This Sanad
legally confirms the conversion from agricultural to non-agricultural use.

42-B: Conversion of Land in Final Development Plan Areas

 Automatic Conversion in Final Development Plans: Once a final Development

Plan is published, all lands in that area are deemed to be converted to the use
designated in the plan, such as residential, commercial, or industrial. No separate
permission is needed under Section 42 or Section 44 (which also deals with
conversion), as long as the necessary conversion taxes and dues are paid.
 Conversion Process: The Collector will determine the conversion tax and non-
agricultural assessment based on the new use of the land as outlined in the
development plan. The landowner will be notified of the taxes due, and upon
payment, the land will officially be considered converted.
 Occupant Class II Land: For lands under Class II occupancy, the Collector will
check the governing documents and laws to ensure that the conversion is allowed.
After the relevant dues, such as Nazarana or premium, are paid, the conversion is
completed, and a Sanad is issued.

42-C: Conversion of Land in Draft Regional Plan Areas

 Draft Regional Plans: If the land falls under an area covered by a Draft Regional
Plan, the use of the land will be deemed converted to non-agricultural once
development permission is granted under Section 18 of the Maharashtra Regional
and Town Planning Act, 1966. This happens automatically, and no further permission
under Section 42 or 44 is required, provided all the dues (conversion tax, non-
agricultural assessment, Nazarana, etc.) are paid.

42-D: Peripheral Area Land Conversion for Residential Purposes

 Deemed Conversion for Residential Use: Land situated within 200 meters of the
boundary of a village, town, or city, where it has been designated as developable land
in a Regional Plan, will be deemed converted for residential purposes.
 Process: The Collector will determine the conversion tax and other dues (Nazarana,
non-agricultural assessment) for such land. After the payment of these dues, the land
will be considered converted for non-agricultural use for residential or permissible
purposes as per the development plan.
 Occupant Class II Land: As with other sections, Class II land requires special
scrutiny to ensure the conversion is legally permissible under the conditions of the
land grant
Section 43 - Restriction on Land Use
 Regulation/Prohibition by Authorities: The Collector or Survey Officer, under State
Government rules, can regulate or prohibit certain uses of land that is assessed for
paying land revenue. This includes:
o Cultivating non-arable land assigned for public purposes.
o Using agricultural land for non-agricultural purposes like manufacturing salt.
o Excavating materials like earth, stone, or other substances from land assessed
for agriculture or building purposes.
o Eviction: If anyone uses the land for prohibited purposes, they can be evicted
summarily.
Section 44 - Procedure for Conversion of Land Use
This section outlines how a landholder or tenant can convert land use from agricultural to
non-agricultural or from one non-agricultural purpose to another.
1. Application for Conversion:
o If an occupant or tenant of agricultural land (unalienated) or non-agricultural
land wants to change its use, they need to apply to the Collector for
permission.
o Consent of the tenant or superior holder is required.
2. Processing the Application:
o The Collector must acknowledge the application within 7 days.
o If the application is incomplete or does not follow the correct procedure, the
Collector can return it.
o The Collector can approve or reject the application after conducting an
inquiry. If the change of use would harm public health, safety, or is against the
development plan, the request can be denied. Reasons for rejection must be
provided in writing.
o If the Collector does not respond within 90 days, the application is deemed
approved.
3. Informing the Authorities:
o Once permission is granted (or deemed granted), the landholder must inform
the Tahsildar about the change in land use within 30 days.
4. Penalties for Non-Compliance:
 o If the landholder fails to inform the Tahsildar within the specified time, a fine
may be imposed (up to Rs. 500 or a higher prescribed amount).
5. Issuance of Sanad (Land Deed):
o Once permission is granted, a sanad (a legal document or certificate of land
use) is issued, which formalizes the change in land use.
Section 44-A - Bona Fide Industrial Use (No Permission Required)
This section provides an exception for the conversion of agricultural or non-agricultural land
for industrial purposes without requiring formal permission, under certain conditions:
1. Conditions for Exemption from Permission:
o The land is within the industrial zone or agricultural zone (with regulations
permitting industrial use) of a development plan under laws like the
Maharashtra Regional and Town Planning Act.
o The land has not been reserved for public use, notified for acquisition, or
conflicts with any development scheme.
o The land is not located within certain distances of railways, high-voltage lines,
or reserved areas.
2. Requirements for Using Land:
o The person must have a clear title and proper access to the land.
o They must ensure no conflicts with existing development plans, acquisition
notifications, or laws, and there must be no environmental or public health
violations.
3. Intimation of Land Use:
o The landholder must inform the Tahsildar and Collector within 30 days after
the commencement of industrial use.
4. Penalties for Violations:
o If the landholder fails to provide the required information or violates any of
the conditions, they face penalties up to Rs. 10,000, along with possible
restoration of the land to its original use.
o Further penalties may be imposed for continued violations, and the Collector
can take corrective action at the violator's expense.
5. Issuance of Sanad for Industrial Use:
o Upon receiving intimation and verifying compliance, the Collector issues a
sanad within 60 days for industrial use or 90 days for an Integrated Township
Project.
Explanation of Bona Fide Industrial Use and Integrated Township Projects:
  Bona Fide Industrial Use: This term covers various industrial activities like
manufacturing, processing, power projects, and ancillary uses (e.g., housing for
workers, offices).
 Integrated Township Projects: These are projects developed under special
regulations for integrated townships under the Maharashtra Regional and Town
Planning Act.

Section 45: Penalty for Unauthorized Land Use

This section deals with penalties for using land for a purpose other than what it was originally
assessed or held for, without the necessary permission.
Key Points:
1. Land Usage Without Permission: If agricultural land is used for non-agricultural
purposes (or land meant for one non-agricultural purpose is used for another),
without permission from the Collector (under Section 44) or before the permitted
change is granted, the landowner or any person claiming through them can be
penalized.
2. Penalties:
o Non-Agricultural Assessment: The landowner must pay the non-
agricultural assessment based on the altered use of the land.
o Fines: In addition to this, the Collector may impose fines, as prescribed by the
State Government.
o Restoration of Land: The owner may be required to restore the land to its
original use or comply with the conditions under which permission was
originally granted. This could involve removing any unauthorized structures,
filling up excavations, or taking other necessary actions.
3. Failure to Comply:
o If the landowner does not take the steps required by the Collector within the
specified period, additional penalties may be imposed:
 A penalty up to ₹300 or a higher prescribed amount.
 A daily fine of up to ₹30 or more for continued non-compliance.
o The Collector may also take the necessary steps (like removing structures) at
the landowner's expense, recovering the cost as if it were unpaid land revenue.
4. Explanation: Using land for agriculture, even if it was assessed for non-agricultural
purposes, is not considered a change of use.
Section 46: Responsibility of Tenants for Unauthorized Use
This section addresses cases where a tenant or someone claiming under them uses land
unlawfully.
Key Points:
1. Tenant Liability: If a tenant or any other person using the land without the consent
of the landowner violates the provisions of Sections 42, 43, or 44 (such as
unauthorized land use), the tenant or the other person becomes responsible for any
penalties imposed on the landowner.
2. Damages: The tenant or other unauthorized user will be liable to the landowner for
any damages resulting from their actions, particularly if those actions lead to penalties
under Sections 43, 44, or 45.

Section 47: Power of Government to Exempt Lands from Penalties

The government has the authority to exempt certain lands or classes of land from the
penalties imposed by Sections 41, 42, 44, 45, and 46.
Key Points:
1. State Government Exemptions: The State Government may exempt lands or
classes of land from these sections if it is deemed necessary in the public interest to
fulfill the objectives of the Code.
2. Regularization by the Collector: The Collector has the power to regularize
unauthorized non-agricultural use of land by imposing terms and conditions as
prescribed by the government. This allows flexibility in addressing unauthorized land
use without always resorting to punitive measures.

Section 47-A: Conversion Tax for Change of Land Use

This section introduces the concept of a conversion tax when agricultural or non-agricultural
land is used for another purpose.
Key Points:
1. Imposition of Conversion Tax: An additional land revenue known as the
conversion tax is imposed when land use is changed from agriculture to non-
agriculture or from one non-agricultural purpose to another.
2. Applicability:
o Agricultural to Non-Agricultural: If agricultural land within the limits of
Mumbai Municipal Corporation (excluding Mumbai City District), any
other Municipal Corporation, or 'A' Class or 'B' Class Municipal areas is
converted to non-agricultural use (with or without permission), the landowner
is liable to pay a conversion tax.
 o Unauthorized Non-Agricultural Use: If land is used for a non-agricultural
purpose without the Collector's permission and is later regularized (under
Section 47), the landowner must pay the conversion tax.
o Industrial Use: If agricultural land is put to bona fide industrial use under
Section 44-A, the landowner is still liable to pay the conversion tax.
3. Calculation of Conversion Tax:
o The tax is generally five times the non-agricultural assessment (NAA) or
another prescribed amount, whichever is higher, based on the new land use.
4. Explanation:
o The section also defines key terms like Municipal Corporation, Class 'A' or
'B' Municipal areas, and peripheral areas to clarify the boundaries and
applicability of the conversion tax.
Sec 48 - State's Ownership of Mines and Quarries
1. Reservation of Rights:
o The State Government reserves all rights to mines and quarries, including
derelict or working mines, quarries, old dumps, pits, fields, bandhas (earthen
dams), nallas (drains), creeks, riverbeds, and other places.
o These rights are vested in the State Government, which has full authority over
their use and exploitation.
Access and Subsidiary Purposes (Sub-section 2)
 The State’s right over mines and quarries also includes:
o Access to land for mining or quarrying activities.
o The right to occupy additional land for subsidiary purposes like:
 Erecting offices.
 Housing for workers.
 Installing machinery.
 Stacking minerals and disposing of refuse.
 Constructing roads, railways, or tramlines.
 These activities are deemed necessary for the effective enjoyment of mining and
quarrying rights.
Assignment of Rights (Sub-sections 3 and 4)
1. Delegation of Rights: If the State assigns its mining rights to a person or entity, the
Collector may delegate powers (such as access and use of land) to that person.
However, the following conditions apply:
 o A notice must be served to all persons with rights in the affected land.
o Any objections from landholders must be heard before delegation.
2. Compensation: If the use of land for mining infringes on someone’s rights, the State
or its assignee must pay compensation. If parties cannot agree on the amount, it will
be determined by the Collector or a civil court under the Land Acquisition Act.
3. Payment of Compensation:
o An assignee cannot enter the land until compensation is determined and paid.
o In the case of disputes, interim permission may be granted by the Collector,
allowing entry pending the court’s decision on compensation.
Failure to Pay Compensation (Sub-section 6)
 If an assignee fails to pay compensation, the Collector may recover the amount on
behalf of the aggrieved party, treating it as an arrear of land revenue.
Penalties for Unauthorized Extraction (Sub-section 7)
1. Illegal Extraction: If anyone unlawfully extracts, removes, collects, or disposes of
minerals from mines, quarries, old dumps, or other places under State ownership, they
face severe penalties. This includes:
o A penalty of up to five times the market value of the minerals extracted.
o The penalty is imposed through a written order by the Collector or an
authorized revenue officer (like a Tahsildar).
Seizure and Confiscation (Sub-section 8)
1. Seizure of Minerals and Equipment: If unauthorized extraction occurs, the
Collector or a revenue officer may:
o Seize and confiscate the minerals, machinery, and equipment used in
unauthorized extraction.
o Confiscate any means of transport used to transport the extracted minerals.
2. Conditions for Release:
o Seized machinery or equipment can be released upon payment of a prescribed
penalty.
o The owner must also provide a personal bond, stating that the equipment will
not be used again for unauthorized extraction or transport of minerals.
Rules for Village Extraction of Minor Minerals (Sub-section 9)
 The State Government may make rules for the extraction of minor minerals by
inhabitants of villages, towns, or cities for their domestic, agricultural, or professional
use. These can be provided for a fee or free of charge.
Consent of Gram Sabha in Scheduled Areas (Sub-section 10)
  In Scheduled Areas (as per Article 244 of the Constitution), before granting any
mining lease or concessions for minor minerals, the consent of the Gram Sabha
(village assembly) is mandatory.
o Gram Sabha is defined as per the Maharashtra Village Panchayats Act.
Explanation: Minor Minerals
 Minor minerals refer to minerals in respect of which the State Government is
empowered to make rules under Section 15 of the Mines and Minerals (Regulation
and Development) Act, 1957.