• Reclaim KAIDB Acquired Land if the land is not used by the KIADB for industrial purposes

Respected Sir,

My name is Rajagopal, living in Bangalore. in 2007, KIADB has acquired our ancestor land 4 acre 31 cents for Industrial purpose. Per acre land INR 6,50,000 was awarded by the Karnataka Government at the time of acquisition. Due to corrupt KIADB officials, even after we produced the list of documents soon after we received the notice to claim the compensation, KIADB officials didn't release the compensation in 2007. We had to approach Karnataka Lokayutya to claim the compensation. After receiving the Lokayukta order in 2010, KIADB officials deposited compensation amount in 3 instalments (3 months delay in each deposit). While depositing the amount, KIADB officials didn't pay any compensation towards the building, trees, well (which is mentioned in the notice given to us by the KIADB in 2007). This amount is not paid to us till date. Most importantly, since 2007, there is no development has happened in the acquired land (apart from levelling the land and putting the fence to the acquired land, I have the evidence). Hence we want to check the possibility to reclaim our land by returning the compensation amount to KAIDB. Also, kindly let us know if TDS can be deducted to the compensation amount while paying the same to the land owners as per Land Acquisition Act
Asked 1 year ago in Property Law
Religion: Hindu

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5 Answers

In 2010, the Supreme Court had ruled that the government cannot be compelled to reconvey the land to the original owner if the same can be utilised for any public purpose other than the one for which it was acquired. In another ruling in 2016, the apex court also said that authorities can return the land to the original owner in case its transfer to a third party leads to profiteering.

“When the land sought to be acquired for a public purpose is allowed to be transferred to private persons, any administrative action or private transaction could be held to be vitiated by fraud. There is no legal sanction for such action,” it added.

In case of land acquired under the 2013 law, land that remains unutilised for five years can be returned to the original owner. Section 101 of the 2013 law says that such land “shall be returned to the original owner or owners or their legal heirs”. The law also allows for enlisting the land into a government-prescribed land bank.

In your case the compensation has not been fully paid neither the interest towards the delayed payment towards land acquired was paid despite many visits to the concerned office.

Hence you may file a writ petition before high court nd seek the reliefs as suggested. 

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

You can very well claim interest however any claim would be restricted to three years limitation from the date of last transaction or from the date the claim for interested was acknowledged by the government

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

You cannot reclaim the land by returning compensation amount to KAIDB 

 

2) merely because land is not used for purpose for which it was acquired is not ground for reclaiming land 

 

3) In the case Chandragauda Ramgonda Patil & Anr.
vs. State of Maharashtra & Ors. [(1996) 6 SCC 405],
claim of the petitioner for restitution of the possession of
the land acquired pursuant to the resolution of the State
Government was rejected. In para 2, this Court observed
thus:-
"2........ We do not think that this Court would be
justified in making direction for restitution of the
land to the erstwhile owners when the land was
taken way back and vested in the Municipality
free from all encumbrances. We are not
concerned with the validity of the notification in
either of the writ petitions. It is axiomatic that
the land acquired for a public purpose would be
utilized for any other public purpose, though use
of it was intended for the original public purpose.
It is not intended that any land which remained
should be restituted to the erstwhile
owner to whom adequate compensation was
paid according to the market value as on the
date of the notification. Under these
circumstances, the High Court was well justified
in refusing to grant relief in both the writ
petitions

Ajay Sethi
Advocate, Mumbai
99783 Answers
8145 Consultations

the compensation was paid to you in 2010 . you should have claimed interest at that time for delay in payment of compensation and not after 14 years 

t

Ajay Sethi
Advocate, Mumbai
99783 Answers
8145 Consultations

Dear Client,

The land so acquired by the government cannot be reclaimed once the landowners have accepted the compensation and it continues to remain in possession of the land acquisition authority for whatever purpose. However, if the land abates utility and no development has been undertaken or carried out on the acquired land fee, if necessary, you can file a legal case challenging the acquisition on the ground that after such a long lapse of time the purpose mentioned in the order of acquisition was not accomplished. As far as the compensation awarded relates to land, building, trees, wells etc, since you have not been paid for all these, you may approach the court and file a plaint to claim this compensation. During award of compensation, if there is a delay in making payment of the same, interest is payable at the rate of 9 per cent for the first year and 15 per cent p.a. for the subsequent periods which runs from the date the land was taken possession of till the time the compensation is paid. You can claim interest on account of the delayed compensation deposits. Interest cannot be waived and is a statutory entitlement. Payment of tax deducted under the Income-tax Act, 1961 on compensation received in respect of compulsory acquisition of urban agricultural land should be paid to the agriculturalist. There is no requirement of TDS for rural agricultural land. However, supposing the compensation is received, in such cases also, TDS is deducted as per the provisions of the Act.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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