• Clarification of multiplied factor of new land acquisition act

I am having a house at karimnagar dist in telangana state. My house was acquired for irrigation project under new land acquisition act 2013. My hose valuation done in 2008. As per Govt of TS norms compensation shall be calculated as per the provisions laid down under sec 26to30 read with First Schedule.The multiplication factor under item (2) of the First schedule for rural areas shall be 1.5. Our Land acquisition officer calculated my house compensation is 1. Open Land value is (847 X Rs.325) 275275 2. Structure value less 24% depreciation (3491043-837850) 2653193. 3. Solatium 2653193. 4. (i) Interest 12% AMV 19.12.2008 to 18.11.2010 Rs. 0 (ii)19.11.2010 to 18.11.2011 9% Rs. 477575 (iii)19.11.2011 to 14.9.2015 15% Rs. 3042085  Total compensation is Rs. 9101321.My question is whether calculation is correct.What is AMV 12% interest is Rs.0 and for houses multiplication factor applicable or not, why first two years 2008 to 2010 interest is not paid.Can i ask valuate my house with new SSR Rates 2015.
Asked 1 year ago in Property Law from Hyderabad, Andhra Pradesh
Religion: Hindu
In your case  there appears to be some wrong calculation and probably in  your there may be an erroneous calculation  for the compensation awarded to you, and you may be  a loser too.You can apply for re-assessment of the  compensation award and may seek additional compensation as per the revised calculation
T Kalaiselvan
Advocate, Vellore
13902 Answers
127 Consultations
5.0 on 5.0
1) you have not mentioned what is the distance of your land from urban areas 

2) in rural areas which are farthest from urban area, the multiplier factor is required to be two and when rural area covered under the project is closer to the urban area, such multiplier factor scales down to less than two and even up to one, when the land sought to be acquired for the project is closest to the urban area.

3) bombay high court has held that The basic reason which seems to be considered for providing higher multiplier factor even up to two for lands situated in rural area sought to be acquired for the project is dependence of the people on such land for their survival and livelihood, coupled with low market price of such {24} Final 4274.14 wp.odt remotely located land, as compared to land situated in urban area. A fair balance appears to have been achieved by making a provision of multiplication of the market value by the factor to be notified by the appropriate Government considering the distance of the land under acquisition in rural area from urban area, so as to provide for infrastructural needs and sustainability of agriculture and rural livelihood. For this reason, entry No.2 in the First Schedule provides for higher multiplier factor in respect of lands sought to be acquired from rural area based on their distance from urban area. Therefore, as the distance of land sought to be acquired from rural area increases from that of urban area, the multiplier factor is required to be increased suitably

3) that Section 30 of the Act of 2013 makes a provision for awarding solatium @ 100% of the total compensation which is required to be paid.

4), Section 106 thereof, makes it clear that the Central Government cannot amend or alter any of the Schedules to the said Act including the First Schedule, so as to reduce the compensation payable or for diluting the provisions of the Act relating to compensation or rehabilitation and resettlement. Section 107 of the Act of 2013, empowers the State Legislature, to enact any law to enhance or add to the entitlement enumerated under the Act, which confers higher {25} Final 4274.14 wp.odt compensation than the one payable under the Act of 2013. Thus, the State Legislature can enact any law conferring higher compensation than the one provided under the Act of 2013. Section 108 of the Act of 2013 provides an option to affected families to avail better compensation and rehabilitation and resettlement if State law or policy so provides. The thrust seems to be that the compensation cannot be lower than the one prescribed under the Act of 2013. 
Ajay Sethi
Advocate, Mumbai
23079 Answers
1212 Consultations
5.0 on 5.0
Hi
It seems  Your valuation has not been as per the existing accepted calculation of  components  ,the multiplier  used for the calculation of compensation in rural areas and listed in Schedule I of the Act.
So you should approach the collector with your complaint  for a valuation as per New SSR 2015.
 You should engage an advocate and approach and file application for the revised calculation and compensation and challenge the order by the Revenue officer.

 (AMV) is Alternative Methods of Valuation 
 


Going by the central act 
U/s 69 (1) in determining the amount of compensation to be awarded for land acquired including the Rehabilitation and Resettlement entitlements, the Authority shall take into consideration whether the Collector has followed the parameters set out under section 26 to section 30 and the provisions under the Second Schedule (The R&R entitlements). (2) In addition to the market value of the land, as above provided, the Authority shall in every case award an amount calculated at the rate of twelve percent per annum on such market value for the period from 4(2) SIA study publication to the date of award of the Collector or the date of taking possession of the land, whichever is earlier. (3) In addition to the market value of the land as above provided, the Authority shall in every case award a solatium of one hundred per cent. over the total compensation amount.(central act).

 The  compensation  is  calculated  for  land and structures such attached  to  the3  building  or  land applicable   and   the   total   of   all   considered   before considering the solatium.
In  addition  to  the  market  value  of  land,  additional 12%  per  annum be  paid  on  such  market  value 
commencing  on  and  from  the  date  of  publication  of notification of  SIA  u/s  4 (2)    in  respect  of 
land  till  award.
 The state government has made rules accordingly ,The Andhra Pradesh Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Rules, 2014 , as per this you have remedies to ask for a revised calculation of your compensation.
Thresiamma G. Mathew
Advocate, Mumbai
1315 Answers
85 Consultations
5.0 on 5.0
Andhra Pradesh Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Rules, 2014 –

rule 28 compensation 
all parties whose land or other immovable property or assets attached to the land or
building have been acquired. The multiplication factor under item(2) of the First Schedule
for rural areas shall be 1.25 other than scheduled areas and 1.50 for scheduled (tribal)
areas subject to any further notification as may be notified by Government.



2) multiplier factor is used only for land to determine market value of land 

3)the assets attached to land are determined separately and market value of the property  is determined by adding  market value to land to assets attached to land 
Ajay Sethi
Advocate, Mumbai
23079 Answers
1212 Consultations
5.0 on 5.0
Asd per the provisions of section 27 of the act referred, which is given below:
Section 27 of the Act defines the method by which market value of the land shall be computed under the proposed law. Schedule I outlines the proposed minimum compensation based on a multiple of market value. Schedule II through VI outline the resettlement and rehabilitation entitlements to land owners and livelihood losers, which shall be in addition to the minimum compensation per Schedule I.

The market value of the proposed land to be acquired, shall be set as the higher of the 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 projects.

The right to property? is no more a fundamental right but rather a constitutional/legal right/as a statutory right and in the event of breach, the remedy available to an aggrieved person is through the High Court under Article 226 of the Indian Constitution and not the Supreme Court under Article 32 of the Constitution. .State must pay compensation at the market value for such land, building or structure acquired and the same can be found in the earlier rulings when property right was a fundamental right.
The Act defines the following as land owner:  A person whose name is recorded as the owner of the land or building or part thereof, in the records of the authority concerned; 
Your question No. 2 is answered that if the multiplier factor is used for making compensation to your case, you are eligible for the same though the acquired property of yours is a building and not lands.
For your question No.1, calculation of compensation by applying the multiplier factor or not will for property situated in the distance of 26 kms from Urban area  can be answered by the authorities concerned referring to the chart or table held by them on such issues. 
T Kalaiselvan
Advocate, Vellore
13902 Answers
127 Consultations
5.0 on 5.0
Hi sir/madam, the market rate will consider u/s 26 of the New land acquistion act, 2013, it will determined on the basis of 2 km radious from your property which sale deed is higher, that sale deed is considered and determined it. 
C. V. Jadhav
Advocate, Bangalore
262 Answers
3 Consultations
3.8 on 5.0

Ask a Lawyer

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

Property Lawyers

T Kalaiselvan
Advocate, Vellore
13902 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23079 Answers
1212 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18049 Answers
445 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12027 Answers
226 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5131 Answers
54 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0
Atulay Nehra
Advocate, Noida
423 Answers
15 Consultations
4.7 on 5.0
Ajay N S
Advocate, Ernakulam
1905 Answers
19 Consultations
5.0 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2693 Answers
41 Consultations
4.9 on 5.0
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
5.0 on 5.0