• Determining market value as per section 26 of New LA Act 2013

My land is situated in Visakhapatnam Urban area under acquisition as per New LA Act-2013.The concerned LAO calculated the Market Value (MV) based on the Local Market Value as fixed for Registration by the Govt.for the area where My land is situated as per s.26(1)(a) only.My claim of compensation is that he should consider the Market Value calculated based on the Av.sales price of similar type land in the nearest vicinity area to My land as per s.26.(1)*(b) on whichever is higher basis in conjunction with Explanation 1 & 2 of s.26.But, the concerned LAO refused to oblige by stating that such market value (MV) assessment as per s.26(1)(b) is possible only when market value(MV) as fixed for registration by the Govt. is not available for the local area where My land is situated as per s.26(3).But,I argue that both s,26(1) and s,26(3) are different. P;s. Provide advise
Asked 6 years ago in Property Law
Religion: Hindu

Ask a question and receive multiple answers in one hour.

Lawyers are available now to answer your questions.

6 Answers

Under section 26 of new LA act the compensation would be calculated based on minimum land value, if any, specified in the Indian Stamp Act, 1899 for the registration of sale deeds in the area, where the land is situated; or

• the average of the sale price for similar type of land being acquired, ascertained from the highest fifty per cent of the sale deeds registered during the preceding three years in the nearest village or nearest vicinity of the land being acquired.; or

• the consented amount in case the land is acquired for private companies or public- private partnership project

2) the concerned LAO stand that only the circle rate would be considered for determination of market value is misconceived and unsustainable

Ajay Sethi
Advocate, Mumbai
94718 Answers
7530 Consultations

5.0 on 5.0

1) First you have to ask collector near by village same land has been acquired as per the law so the rate of compensation can be checked.

2) If you read section 26a stick to that point otherwise rest of the part section 26 is in the favor of collector.

3) Yes they are different and calculation points. Such factor are depeding upon near other village and vicinity area,.

4) what you are talking about sale deed price should be taken as MV and if the transcation is made with public or private ltd company.

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

In my opinion the view taken by the LAO is wrong and arbitrary for very reason first of fall it is against where nature and guiding principle of the act of 2013 itself which states fair compensation. Secondly the Section 26 (1) is self explanatory the highest amount from (a), (b) or (c) whichever applicable has to be paid to the aggrieved party. Nowhere the section specifies that if 26 (1)(a) is not fulfilled then we have to go for (b) the both condition are available and the LAO has to decide the highest amount based on same as in urban areas the government circle rates are much lower then market rates and it shall cause prejudice to the aggrieved party, so aggrieved party is entitled to be compensated as mentioned under 26(1)(b) so to you should appeal to high court for the order of award amount for enhancing the amount accordingly in view of 26 (1)(B) .

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

If you are not satisfied with the compensation awarded by the LA officer, you may prefer to issue a legal notice demanding your claim as per the law which you rely upon.

Let him refuse the same quoting the relevant laws he may rely upon.

After that you can plan to to drag them to the land acquisition court.

T Kalaiselvan
Advocate, Vellore
84917 Answers
2195 Consultations

5.0 on 5.0

Hi

1) The Land Acquisition officer is wrong in his understanding of Section 26 of LA Act and you are right in claiming compensation as per Section 26(1)(b)

2) Under the Land Acquisition Act, the LAO has to mandatorily offer the highest of

a) Minimum Land Value

OR

b) Average sale price of one half of the total number of sale deeds or the agreements to sell in which the highest sale price has been mentioned

OR

c) Consented amount of compensation as agreed upon under sub-section (2) of section 2 in case of acquisition of lands for private companies or for public private partnership projects,

3) You should submit a petition to LAO with CC to Collector , asking them to pay compensation to you as per Clause 26(1)(b) of Land Acquisition, Rehabilitation And Resettlement Act, 2013

4) In the event of the LAO and/OR Collector not responding to your petition within 2 weeks from the date of issue of such notice, you may approach the High court under Article 226 and obtain a stay on land acquisition and also a direction from high court to collector to pay you compensation as per clause 26(1)(b) of Land Acquisition, Rehabilitation And Resettlement Act, 2013.

Hope this information is useful.

Section 26 of land acquisition act of the Land Acquisition, Rehabilitation And Resettlement Act, 2013 is produced here under for easy reference.

“Determination of market value of land by Collector.”

- (1) The Collector shall adopt the following criteria in assessing and determining the market value of

the land, namely:—

(a) the minimum land value, if any, specified in the Indian Stamp Act, 1899 for the registration of sale deeds or agreements to sell, as the case may be, in the area, where the land is situated; or

(b) the average sale price for similar type of land situated in the nearest village or nearest vicinity area; or

(c) consented amount of compensation as agreed upon under sub-section (2) of section 2 in case of acquisition of lands for private companies or for public private partnership projects,

whichever is higher:

Provided that the date for determination of market value shall be the date on which the notification has been issued under section 11.

Explanation 1.— The average sale price referred to in clause (b) shall be determined taking into account the sale deeds or the agreements to sell registered for similar type of area in the near village or near vicinity area during immediately preceding three years of the year in which such acquisition of land is proposed to be made.

Explanation 2.— For determining the average sale price referred to in Explanation 1, one half of the total number of sale deeds or the agreements to sell in which the highest sale price has been mentioned shall be taken into account.

Explanation 3.— While determining the market value under this section and the average sale price referred to in Explanation 1 or Explanation 2, any price paid as compensation for land acquired under the provisions of this Act on an earlier occasion in the district shall not be taken into consideration.

Explanation 4.—While determining the market value under this section and the average sale price referred to in Explanation 1 or Explanation 2, any price paid, which in the opinion of the Collector is not indicative of actual prevailing market value may be discounted for the purposes of calculating market value

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

Dear Client,

Sec 26 misunderstood by LAO, there are 3 para meter's given to determine market value of land, and compensation will be WHICH EVER IS HIGHER, adopting the criteria given u/s 26 (1) (a) ignoring (b)(c), illegal.

LAO/valuer acting as a hypothetical purchaser willing to purchase the land in open market at the prevailing price on that day, from a seller willing to sell such land at a reasonable price.

File reference u/s 18 to the para meter opted to determine land value.

Also the matter is referred to Lager Bench - where land acquisition lapse if land owner refuses to accept compensation.

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer