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REGISTERED NO. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No. II] NEW DELHI, FRIDAY, APRIL 29. 1966/VAISAKHA 9, 1888

Separate paging is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF LAW

(Legislative Department)4

New Delhi, the 29th April, 1966/Vaisakha 9, 1888 (Saka) The following President's Act is published for general infor- mation:—

THE KERALA LAND ACQUISITION (AMENDMENT)

ACT, 1966

No. 4 OF 1966

Enacted by the President in the Seventeenth Year of the Republic of India.

An Act to amend the Kerala Land Acquisition Act, 1961.

12 of 1965.

In. exercise of the powers conferred by section 3 of the Kerala State Legislature (Delegation of Powers) Act, 1965, the President is pleased to enact as follows: —

1. (1) This Act may be called the Kerala Land Acquisition (Amendment) Act, 1966.

Short title

and

commence-

ment.

(2) It shall come into foree on such date as the Government may, by notification in the Gasrette, appoint.

2" In section 6 of the Kerala Land Acquisition Act, 1961 .^herein- after referred to as the principal Act):,—

Amend- ment of section 6.

Karala Art 21 of 1911.

(i) to sub-section (1),.the follewing p")vise⁵sfedll'be-added, namely: —

"Provided that no such declaration shall be made in respect of a land after the expiry of a period of two year* from the date of the publication of the notification under sub-section (1) of section 3 in respect of such land.";

(ii) after sub-section (2), the following sub-section shall be inserted, namely: —

" (3) Where no declaration under this section is made in respect of a land within the period ^specified in the proviso to sub-section (1), the notification under sub-section (1) of section 3 in respect of such land shall be deemed to have been cancelled."

3. In sub-section (1) of section 43 of^th.e principal Act, a##e*~ clause (a), the following clause,.shall.he-inserted, namely;

Amend- ment of section 43.

" (aa) that such acquisition is needed for the construction of some building dr work for a company which is engaged, or is taking steps for engaging itself, in any industry or work which is for a public purpose, and that the building or waoric which such company is intending to construct is meant to subserve tfeae farfaiic purpose of the industry or work for which It is, being construct- ed, or".

4. In section 44 of the principal Act,—

Amend- ment of section 44.

(a) for the words "the purpose of the proposed acquisition is to obtain land for the erection of dwelling-houses for work- men employed by the company or for the provision of amenities directly connected therewith, or that the proposed acquisition is needed for the construction of a work, and that such work is likely to prove useful to the public, or that the'proposed acquisi- tion is for a purpose calculated to promote and develop agricul- ture, industry or co-operation", the words, brackets, letters and figures "the proposed acquisition is for any of the purpose* referred to in clause (a) or clause (aa) or clause (b) or clause (c) of sub-section (2) of section 43" shall be substituted;

(h) in clause (4), the word "and" occurring at the end shall be omitted, and after that clause, the following clause shall be inserted, namely:—

" (4A) where the acquisition is for the construction of any building or work referred to in clause (aa) of sub- section (2) of section 43, the time within which, and the conditions on which, the building or work shall be construct- ed or executed; and".

5. In Part VII of the principal Act, after section 45, the following

sections shall be inserted, namely: —

Insertion of new sections 45A and 45B.

Restriction on- trans?- fer, etc. '45A. No company for which any land is acquired under this Part shall be entitled to transfer the said land or any part there- of by sale, mortgage, gift, lease or otherwise, except with the previous- sanction of the Government.

45B. Notwithstanding anything contained in this Act, no land shall bfe a"q"ired under this Part¹, except for the purpose men- tiaaed? "f*Claus5&"'fs*ro!subjection (2) of section 43, for a private company which is not a Government company.

Explanation.—"Private company" and "Government com- pany" shall have the meanings respectively assigned, to them in the Companies Act, 1956 (Central Act 1 oi 1956

Land not to be ac- quired under this Part ex- cept for certain purpose for private companies other than Govern- ment companies.

&. For rseetisns 46 to 48 of the principal Act. the following sections

shall be substituted, namely: —

'46. The provisions of th:'s Part shall apply to the acquisi- tion of land in such project area as may be specified by the Government by notification under section 47A:

substitu- tion of new sec- tions for sections 46 to 48. Provisions of this Part ap- plicable in the case of specified projects.

Provided-that such provisions shall not apply to any acquisi- tk>m of land in a project area where the notification under sub- section (2) of section 3 in respect of the acquisition is not pub- lished within three years from the date of the publication of the notification under section 47A.

47. In this Part, unless the context otherwise requires,— Defi* nitions, (i) "project area" means the area covered by one or more revenue villages or survey numbers, the whole or any

portion of which is needed or is likely to be needed for a project purpose;

(ii) "project purpose" means the purpose of execution, jexpansion or development of a project.

47A. Where the Government are of opinion that as a result of a project¹ undertaken or proposed to be undertaken by them, there is likelihood of a speculative rise in the land value in the project area, they may, by notification in the Gazette, specify the project area.

48. Whenever land is proposed to be acquired in a project area, the provisions of this Act shall apply subject to the follow- ing modifications, namely: —

Notifi-

cation de-

claring

projects

to which

the pro-

visions

of thisr

Part

shall

apply.

Acquisi-

tion of

land in

project

areas.

(2) for section 11, the following section shall be substi- tuted, namely: —

'11. On the day so fixed, or on any other day to which the enquiry has been adjourned, the Collector shall proceed to enquire into—

Enquiry

and

award by

Collector.

(a) the objections, if any, which any person interested has stated pursuant to a notice given under section 9 to the measurements made under section 8;

(b) the value of the land at the date of the publication of the notification under section 47A;

(c) the value of any improvements to the land effected after the date referred to in clause (b) and before the date of the publication of the notifica- tion under sub-section (1) of section 3;

(d) where there has been a normal rise in.land value in the locality in which the project area lies after the date of the publication of the notification under section 47A and before the date of the pub- lication of the notification under sub-section (1) of section 3, such rise in price;

(e) the valule of the land at the date of the publication of the notification under sub-section (1) of section 3; and

(f) the respective interest¹ of the persons claim- ing the compensation,

and shall make an award under his hand of—

(i) the true area of the land;

(ii) the compensation which in his opinion shall be allowed for the land; and

(iii) the apportionment of the said compensa- tion among all the persons known or believed to be interested in the land, of whom, or of whose claims, he has information, whether or not they have respectively appeared before him.

Explanation.—For the purposes of this section and clause -first of sub-section (2) of section 25, the expres- sion "land value" shall mean value of land not includ- ing improvements thereon.';

(2) in sub-section (I) of section 25, for clause first, the following clause shall be substituted, namely: —

"first, (a) the market value of the land at the date of the publication of the notification under section 47A, the value of any improvements to the land effected after that date and before the date of the publication of the notification under sub-section (1) of section 3, and, where there has been a normal rise in land value in the locality in which the project area lies after the date of the publication of the notification under section 47A and before the date of the publication of the notification under sub-section (1) of section 3, such rise in price subject to a maximum of twenty per cent, of the market value of the land at the date of the publication of the notification under section 47A, or

(b) the market value of the land at the date of the publication of the notification under sub-section (1) of section 3,

whichever is less;".'.

Validation of certain acquisi- tions.

7. Notwithstanding any judgment, decree or order of any court, every acquisition of land for a company made or purporting to have been made under Part VII of the principal Act or under the corresponding provisions of any of the Acts repealed by the princi- pal A,c$ before the, date of the commencement of this Act shall, in

so far as such acquisition is not for any of the purposes mentioned in clause (a) or clause (b) or clause (c) of sub-section (1) of section 43 of the principal Act, or the corresponding provisions of any of the Acts repealed by the principal Act, be deemed to have been made for the purpose mentioned in clause (aa) of the said sub-section, and accordingly every such acquisition and any proceeding, order, agree- ment or action in connection with such acquisition shall be, and shall be deemed always to have been as valid as if the provisions of sections 43 and 44 of the principal Act, as amended by this Act, were in force at all material times when such acquisition was made or proceeding was held or order was made or agreement was enter- ed into or action was taken.

Explanation.—In this section, "company" has the same meaning as in- clause (4) of section 2 of the principal Act.

S. RADHAKRISHNAN,

President.

S. P. SEN-VARMA,

Secy, to the Govt, of India.

Reasons for the enactment

The compensation payable for lands acquired under the pro- visions of the Kerala Land Acquisition Act, 1961, is determined on the basis of the market value of the land on the date of the publi- cation of the notification under section 3(1). The Act does not fix any maximum period within which the declaration under section 6 about the land being needed for a public purpose should be made by the Government. It frequently happens that there is consider- able delay after the preliminary notification, before the declaration under section 6 is issued, during which period the land value may go up but the land owners do not get the benefit of the rise in the land values during the interval. In order to avoid unnecessary time lag between the date of publication of the notification under section 3(2) and the date of publication of the declaration under section 6, it is considered necessary to provide that the declaration shallbe made within a period of two years from the date of publi- cation of the notification under section 3(1) and that on failure to do so,' the notification shall be deemed to have been cancelled.

2. Under the Kerala Land Acquisition Act, land may be acquired for a public purpose as also for companies. The purposes for which acquisition of land for companies may be made are however restrict- ed and they have been specified in section 43(1) of the Act. Accord- ing to clause (b) of section 43(1), .such acquisition may be made for the construction of some work which is likely to prove useful to the public. The Supreme Court of India in the case of R. L. Afora vs. State of Uttar Pradesh (AIR 1962 SC 764) held that land can be acquired for a company under section 40 (1) (b) read with section 41 of the Land Acquisition Act, 1894 (Central Act) only when the work to be constructed would be directly useful to the public and the public would be entitled to use the work as of right for its own benefit in accordance with the terms of the agreement. In order to overcome the difficulties created by the Supreme Court judgment, sections 40 and 41 of the Land Acquisition Act, 1894, were suitably amended by the Land Acquisition (Amendment) Act, 1962 (31 of 1962). Act 31 of 1962 also provides for validating all past acquisi- tions of land for companies. It is considered necessary to make similar efmendments in the Kerala Land Acquisition Act and also to validate all past acquisitions of land made in the State for com- panies.

3. Section 44A of the Land Acquisition Act, 1894, prohibits the sale, mortgage, etc., of lands acquired for companies without the previous sanction of the Government. Section 44B of that Act pro- vides that land shall be acquired for a private company only for the purpose mentioned in clause (a) of sub-section (1) of section 40, namely, construction of dwelling houses for workmen or for the pro- vision of amenities directly connected therewith. It is considered necessary to make similar provisions in the Kerala Land Acquisition Act.

4. Sections 46 to 48 of the Kerala Land Acquisition Act contain special provisions for the acquisition of land for projects. In ac- quiring lands for project purposes, it is necessary that the project should be made known to the public. It is therefore considered necessary to provide for specifying the project area by notification in the Gazette where in the opinion of the Government speculative rise in the land value takes place due to a project snonsored by the Government, and also to provide that for all acquisitions made in the project area the market value of the land on the date of publi- cation of such notification should be the basis for determining the compensation. It is also considered that provision should be made to

the effect that the notification specifying the project area should be enforced only for a period of three years from such date and that in determining the compensation, an allowance should be made for the normal rise in the land value during the period between such date and the date of publication of the notification under section 3(1), subject to a maximum of 20 per cent, of the land value on the date first mentioned.

5. The present enactment amends the Kerala Land Acquisition Act for the above purposes.

6. The Committee constituted under the proviso to sub-section (2) of section 3 of the Kerala State Legislature (Delegation of Powers) Act, 1965 (12 of 1965), has approved the enactment of this measure as a President's Act.

B. SIVARAMAN,

Secy, to the Govt, of India, Department of Agriculture.

PRINTED IN INDIA BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, M2NT0 ROAD, NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS,

DELHI, 1 9 6 6.