land
acquisition (companies) rules, 1963
In
exercise of the powers conferred by section 55 of the Land Acquisition Act 1894
(1 of 1894), the Central Government hereby makes the following rules for the
guidance of the State Government and the Officer of the Central Government and
of the State Governments, namely :—
1. (1) These rules may be called the Land
Acquisition (Companies) Rules, 1963.
(2) These rules shall apply to acquisition of land
for all companies under Part VII of the Act.
2. In these rules,—
(i) “Act” means the Land Acquisition Act,1894
(1 of 1894); and
(ii) “Committee” means the Land Acquisition
Committee constituted under rule 3.
3. (1) For the purpose of advising the
appropriate Government in relation to acquisition of land under Part VII of the
Act the appropriate Government shall, by notification in the Official Gazette,
constitute a Committee to be called the Land Acquisition
Committee.
1[(2) The Committee shall consist of
:—
(i) the Secretaries to the Government of the
Departments of Revenue, Agriculture and Industries or such other officers of
each of the said Departments as the appropriate Government may
appoint;
(ii) such other members as the appropriate
Government may appoint for such term as that Government may, by order, specify;
and
(iii) the Secretary to the Department or any
officer nominated by him dealing with the purposes for which the company
proposes to acquire the land.]
(3) The appropriate Government shall appoint
one of the members of the Committee to be its Chairman.
(4) The Committee shall regulate its own
procedure.
(5) It shall be duty of the Committee to
advise the appropriate Government on all matters relating to or arising out of
acquisition of land under Part VII of the Act, on which it is consulted and to
tender its advice within one month from the date on which it is consulted
:
Provided that the appropriate Government may on a
request being made in this behalf of the Committee and for sufficient reasons
extend the said period to a further period not exceeding two
months.
4. (1) Whenever a company makes an application to
the appropriate Government for acquisition of any land, that Government shall
direct the Collector to submit a report to it on the following matters, namely
:—
(i) that the company has made its best
endeavour to find out lands in the locality suitable for the purpose of the
acquisition;
(ii) that the company has made all reasonable
efforts to get such lands by negotiation with the person interested therein on
payment of reasonable price and such efforts have failed;
(iii) that the land proposed to be acquired is
suitable for the purpose;
(iv) that the area of land proposed to be
acquired is not excessive;
(v) that the company is in a position to
utilise the land expeditiously; and
(vi) where the land proposed to be acquired is
good agricultural land, that no alternative suitable site can be found so as to
avoid acquisition of that land.
(2) The Collector shall, after giving the
company a reasonable opportunity, to make any representation in this behalf,
hold an enquiry into the matters referred to in sub-rule (1) and while holding
such enquiry he shall :—
(i) in any case where the land proposed to be
acquired is agricultural land, consult the Senior Agricultural Officer of the
district whether or not such land is good agricultural
land;
(ii) determine, having regard to the
provisions of sections 23 and 24 of the Act, the approximate amount of
compensation likely to be payable in respect of the land, which, in the opinion
of the Collector, should be acquired for the company; and
(iii) ascertain whether the company offered a
reasonable price (not being less than the compensation so determined), to the
persons interested in the land proposed to be acquired.
Explanation.— For the purpose of this rule “good
agricultural land” means any land which, considering the level of agricultural
production and the crop pattern of the area in which it is situated, is of
average or above average productivity and includes a garden or grove
land.
(3) As
soon as may be after holding the enquiry under sub-rule (2), the Collector shall
submit a report to the appropriate Government and a copy of the same be
forwarded by that Government to the Committee.
(4) No declaration shall be made by the
appropriate Government under section 6 of the Act unless—
(i) the appropriate Government has
consulted the Committee and has considered the report submitted under this rule
and the report, if any, submitted under section 5A of the Act;
and
(ii) the agreement under section 41 of the Act
has been executed by the company.
Notes
A notification under section 6 issued without
complying with rule 4(4) of the Land Acquisition (Companies) Rules, 1963, is
void. Any change in rules relating to procedure, applies to all pending matters.
The requirement of a report under rule 4(1) is a requirement in addition to the
requirement of a report under section 5A of the Act. The notification under
section 6 in contravention of the aforesaid rule is void.
Unless the directions enjoyed by rule 4 are
complied with, the notification under section 6 of the Act will be
invalid.
Enquiry under rule 4 and rules of natural
justice - Rules of natural
justice are not rules embodied always expressly in a statute or the rules framed
thereunder. Although rule 4 of Land Acquisition (Companies) Rules, 1963 is
silent regarding mode and method of enquiry by the Collector, he has to observe
in the interest of fair play by allowing the person interested, reasonable
opportunity of being heard and of adducing materials. Rule 4 prohibits the
Government from issuing notification under section 6 unless it has consulted the
Committee and considered the said report including that under section 5A and
unless an agreement with the company under section 41 has been
executed.
Matters to be provided in
the agreement under section 41.
5. (1) The terms of the agreement referred to in
section 41 of the Act shall include the following matters, namely
:—
(i) that the company shall not except with
the previous sanction of the appropriate Government, use the land for any
purpose other than that for which it is acquired;
(ii) that the time within which the dwelling
houses or amenities directly connected therewith shall be erected or provided or
the building or work shall be constructed or executed shall not exceed three
years from the date of transfer of the land to the
company;
(iii) that where the appropriate Government is
satisfied after such enquiry as it may deem necessary that the company was
prevented by reasons beyond its control from erecting, providing, constructing
or executing dwelling houses or amenities or any building or work within the
time specified in the agreement, the appropriate Government may extend the time
for that purpose by a period not exceeding one year at a time so however that
the total period of extension shall not exceed three
years;
(iv) that if the company commits a
breach of any of the conditions provided for in the agreement, the appropriate
Government may make an order declaring the transfer of the land to the company
as null and void whereupon the land shall revert back to the appropriate
Government and directing that an amount not exceeding one-fourth of the amount
paid by the company to the appropriate Government as the cost of acquisition
under clause (1) of section 41 of the Act shall be forfeited to the appropriate
Government as damages and the balance shall be refunded to the company, and the
order so made shall be final and binding;
(v) that if the company utilises only a
portion of the land for the purpose for which it was required and the
appropriate Government is satisfied that the company can continue to utilise the
portion of the land used by it even if the unutilised part thereof is resumed,
the appropriate Government may make an order declaring the transfer of the land
with respect to the unutilised portion thereof as null and void whereupon such
unutilised portion shall revert back to the appropriate Government and directing
that an amount not exceeding one-fourth of such portion of the amount paid by
the company as cost of acquisition under clause (1) of section 41 of the
Act as it relatable to the unutilised portion shall be forfeited to the
appropriate Government as damages and that balance of that portion shall be
refunded to the company and the order so made shall, subject to the provisions
of clause (vi), be final and binding;
(vi) that where there is any dispute
with regard to the amount relatable to the unutilised portion of the land, such
dispute shall be referred to the court within whose jurisdiction the land or any
part thereof is situated and the decision of that Court thereon shall be
final.
(2) Where the company commits a breach of any
of the terms of the agreement, the appropriate Government shall not make an
order under clause (iv) or clause (v) of sub-rule (1), unless the
company has been given an opportunity of being heard in the
matter.
(3) The appropriate Government shall consult
the committee before according any sanction under clause (i) of sub-rule
(1) or extending the time under clause (iii) or making any order under
clause (iv) or clause (v) of that sub-rule.
Additional matters which may
be provided in the agreement under section 41.
6. (1) Without prejudice to the provisions of
rule 5, the terms of agreement referred to in section 41 of the Act may also
include the following matters, namely :—
that, 2[***] before an award has been made under
section 11 of the Act, the company shall deposit with the Collector, free of
interest, such amount [being not more than two-thirds of the approximate amount
of compensation payable in respect of the land as determined under clause
(ii) of sub-rule (2) of rule 4], and within such time as the Collector
thinks fit, to specify in this behalf.
(2) Where any amount has been deposited with
the Collector under sub-rule (1), the Collector shall tender payment of the
amount so deposited to the persons interested who in the opinion of the
Collector, are entitled to receive payment of compensation under sub-section (1)
of section 31 of the Act and shall pay it to them, unless prevented by some one
or more of the contingencies mentioned in sub-section (2) of section 31 of the
Act, subject to the following conditions, namely :—
(i) the execution of an agreement by
each recipient that the amount received by him exceeds the amount of the
compensation finally awarded, the excess amount shall be recoverable from him as
an arrears of land revenue and that he shall not claim any interest under the
provisions of the Act in respect of the amount received by him under this
sub-rule; and
(ii) the execution of a bond by each
recipient with or without security as the Collector may decide undertaking to
indemnify the appropriate Government against any claim for compensation or part
thereof by any other person.
(3) If the amount deposited by the company
under sub-rule (1) or any part thereof is not paid under sub-rule (2) the
Collector shall, as soon as practicable, refund the same to the
company.
Submission of periodical
report.
7. For the purpose of ensuring that the
conditions provided for in the agreement executed by the company are complied
with the appropriate Government may direct the Collector or such other officer
as that Government may appoint for the purpose, to submit to it and to the
Committee, a periodical report, at such intervals of time as it may specify,
indicating the conditions which have been or have not been complied with as well
as the steps taken by the company towards their
compliance.
Conditions under which
sanction may be given for transfer of land.
8. Where a company
for which land has been acquired under the Act applies for the previous sanction
of the appropriate Government for the transfer of that land or any part thereof
by sale, gift, lease or otherwise, no such sanction shall be given
unless—
(i) the proposed transfer of land along
with dwelling houses, amenities, buildings or work, if any, is to some other
company or where the company is a co-operative society, such transfer is to any
or all of its members, or
(ii) where the land has been acquired
for the erection of the dwelling houses for workmen employed by the company, the
proposed transfer of the land along with dwelling houses, if any, is to such
workmen or their dependent heirs :
Provided that before giving any such sanction the
appropriate Government shall consult the Committee.
3[Special provision in relation to a
company.
9. When an
application is made to the appropriate Government for acquisition of any land by
a company, such acquisition shall ordinarily be made in accordance with the
provisions of Part VII of the Act.]
10. All rules made by the appropriate Government for the guidance of its officers with respect to acquisition of land for companies under Part VII of the Act and in force immediately before the commencement of these rules shall, to the extent of the repugnancy, cease to have effect.