you would be entitled to compensation as per 2019 market value
Compensation under Land Acquisition Act 2013
My land possession was taken by BMC in yr 2014 for construction of fly over which is completed and operational now.... My self and other properties owners moved to high court against BMC in one of the case High Court odered BMC that the possession of land was taken illeagly with following acquisition proceedings .So the court ordered to BMC to initiate Fresh acquisition of land under LA act 2013 Aslo ordered to pay rental compensation elapsed yrs .My query is now during the calculation of compensation which date Market value will be considered of yr 2014 or 2019 because as of now no acquisition proceedings we're initiated its going to be a fresh acquisition...so how will be the market value calculated from which date
Asked 5 years ago in Property Law
Religion: Hindu
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12 Answers
Dear Client,
This will be the disputable point, as court has no given it`s observation in this regard and to avoid excess payment, BMC will take into account, market rate of 2014.
Well, as per the act, the date for determination of market value shall be the date on which the notification has been issued.
Hello,
- As the acquisition is taking place now, the current market value must be considered.
- You must receive rent arrears from 2014 when the acquisition was done without following proper procedure and illegally.
Previous land acquisition was cancelled by the court and hence the BMC has issued a fresh notification for the acquisition of land and hence the prevailing market value shall be taken into consideration.
Regards
Thanks to all Lawyers for answering my questions However Mr Singh I need some clarification in yr advise that date of determination for compensation will be from date of Notifications....in my case no acquisition proceedings we're followed by BMC They have acquired the land under Section 299 of BMC act by just giving notices which is applicable for open land only my land had structures on it Hence the high court said acquisition was not proper so the court ordered to BMC and state government has initiate fresh acquisition of land acquisition under LA act 2013 So now again the same questions ... since acquisition proceedings will start in 2019 afresh what will be yr for calculation of Market Aslo Sir if take into consideration that the yr 2014 as date for calculating compensation I shall be entitled for 8% annual rent on the awarded amount for last 5yrs ?
Asked 5 years ago
The previous land acquisition was held to be illegal. The BMC should have issued a notification and proceeded. It did not do so.
Therefore it was quashed.
Now a notification would be issued and the government has to proceed as oer the procedure laid down in the RFCTLARR ACT,2013.
The claimant will be entitled to the compensation which is determined on the basis of the market
value of the land determined as on the date of preliminary notification.
in your case since acquisition proceedings would start in 2019 market value has to be determined at 2019 rates
This is the issue of pre emption, where state and central act are contradict, central act will prevail. State act cannot in contravention to central act. And in your case, court itself has given specific direction that acquisition proceeding should be initiate under LA act. 2013.
In which there is specific provision, date will first date of issuance of notice i.e 2019 with rent.
On second thought, if date took of 2014 , rent still payable with compensation.
IN both case rent will be paid.
It will be calculated from the date of actual acquisition of land
The compensation has to be paid in and from the year in which the Land Acquisition proceedings has taken place whether it has been initiated after declaration of previous one as illegal or fresh.
The value for acquisition of the property shall be calculated from the date of the said acquisition only and not the current value.
Section 26 of land acquisition act of the Land Acquisition, Rehabilitation And Resettlement Act, 2013-
“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.
You are right that you will be entitled to the rent @ 8% annually a t the award amount for the last 5 years.
In my opinion, they may compute the award amount from the original date of notification because the authorities need not issue a fresh notification on this even though the acquisition process may start afresh.
You may wait for the developments and if aggrieved by their decision you can again knock the doors of high court for more remedies.
- Yes, you have rightly interpreted the law for acquisition for calculating the amount of compensation over it.
- It can’t be the case that after the court order there will be death calculation from 2019.
- As it goes then you will be losing all your right which you would have acquired if not were taken by the authority.
- You should challenge any such act/ calculation of happens to raise in your case.