www.legalcrystal.

com
Land Acquisition (Companies) Rules, 1963
Notification.- In exercise of the powers conferred by section 55 of the Land
Acquisition Act 1894 (1 of 1894), the Central Government hereby makes the
following rules for the guidance of the State Government and the Officer of
the Central Government and of the State Governments, namely:-
1. Short title and application.- (1) These rules may be called the Land
Acquisition (Companies) Rules, 1963.
(2) These rules shall apply to acquisition of land for all companies under Part
VII of the Act.
2. Definitions.- In these rules,-
(i) "Act means the Land Acquisition Act,1894 (1 of 1894); and
(ii) "Committee means the Land Acquisition Committee constituted under
rule 3.
3. Land Acquisition Committee.- (1) For the purpose of advising the
appropriate Government in relation to acquisition of land under Part VII of
the Act the appropriate Government shall, by notification in the Official
Gazette, constitute a Committee to be called the Land Acquisition
Committee.
(2) The Committee shall consist of :-
(i) The Secretaries to the Government of the Departments of Revenue,
Agriculture and Industries or such other officers of each of the said
Departments as the appropriate Government may appoint;
(ii) Such other members as the appropriate Government may appoint for
such term as that Government may, by order, specify; and
(iii) The Secretary to the Department or any officer nominated by him
dealing with the purposes for which the company proposes to acquire the
land.
(3) The appropriate Government shall appoint one of the members of the
Committee to be its Chairman.
(4) The Committee shall regulate its own procedure.
www.legalcrystal.com
(5) It shall be duty of the Committee to advise the appropriate Government
on all matters relating to or arising out of acquisition of land under Part VII
of the Act, on which it is consulted and to tender its advice within one month
from the date on which it is consulted :
Provided that the appropriate Government may on a request being made
in this behalf of the Committee and for sufficient reasons extend the said
period to a further period not exceeding two months.
4. Appropriate Government to be satisfied with regard to certain
matters before initiating acquisition proceedings.- (1) Whenever a
company makes an application to the appropriate Government for
acquisition of any land, that Government shall direct the Collector to submit
a report to it on the following matters, namely :-
(i) that the company has made its best endeavour to find out lands in the
locality suitable for the purpose of the acquisition;
(ii) that the company has made all reasonable efforts to get such lands by
negotiation with the person interested therein on payment of reasonable
price and such efforts have failed;
(iii) that the land proposed to be acquired is suitable for the purpose;
(iv) that the area of land proposed to be acquired is not excessive;
(v) that the company is in a position to utilise the land expeditiously; and
(vi) where the land proposed to be acquired is good agricultural land, that
no alternative suitable site can be found so as to avoid acquisition of that
land.
(2) The Collector shall, after giving the company a reasonable opportunity,
to make any representation in this behalf, hold an enquiry into the matters
referred to in sub-rule (1) and while holding such enquiry he shall :-
(i) in any case where the land proposed to be acquired is agricultural land,
consult the Senior Agricultural Officer of the district whether or not such land
is good agricultural land;
(ii) determine, having regard to the provisions of sections 23 and 24 of the
Act, the approximate amount of compensation likely to be payable in respect
of the land, which, in the opinion of the Collector, should be acquired for the
company; and
www.legalcrystal.com
(iii) ascertain whether the company offered a reasonable price (not being
less than the compensation so determined), to the persons interested in the
land proposed to be acquired.
Explanation. For the purpose of this rule "good agricultural land means
any land which, considering the level of agricultural production and the crop
pattern of the area in which it is situated, is of average or above average
productivity and includes a garden or grove land.
(3) As soon as may be after holding the enquiry under sub-rule (2), the
Collector shall submit a report to the appropriate Government and a copy of
the same be forwarded by that Government to the Committee.
(4) No declaration shall be made by the appropriate Government under
section 6 of the Act unless-
(i) the appropriate Government has consulted the Committee and has
considered the report submitted under this rule and the report, if any,
submitted under section 5A of the Act; and
(ii) the agreement under section 41 of the Act has been executed by the
company.
5. Matters to be provided in the agreement under section 41.- (1) The
terms of the agreement referred to in section 41 of the Act shall include the
following matters, namely :-
(i) that the company shall not except with the previous sanction of the
appropriate Government, use the land for any purpose other than that for
which it is acquired;
(ii) that the time within which the dwelling houses or amenities directly
connected therewith shall be erected or provided or the building or work
shall be constructed or executed shall not exceed three years from the date
of transfer of the land to the company;
(iii) that where the appropriate Government is satisfied after such enquiry as
it may deem necessary that the company was prevented by reasons beyond
its control from erecting, providing, constructing or executing dwelling
houses or amenities or any building or work within the time specified in the
agreement, the appropriate Government may extend the time for that
purpose by a period not exceeding one year at a time so however that the
total period of extension shall not exceed three years;
www.legalcrystal.com
(iv) that if the company commits a breach of any of the conditions provided
for in the agreement, the appropriate Government may make an order
declaring the transfer of the land to the company as null and void
whereupon the land shall revert back to the appropriate Government and
directing that an amount not exceeding one-fourth of the amount paid by
the company to the appropriate Government as the cost of acquisition under
clause (1) of section 41 of the Act shall be forfeited to the appropriate
Government as damages and the balance shall be refunded to the company,
and the order so made shall be final and binding;
(v) that if the company utilises only a portion of the land for the purpose for
which it was required and the appropriate Government is satisfied that the
company can continue to utilise the portion of the land used by it even if the
unutilised part thereof is resumed, the appropriate Government may make
an order declaring the transfer of the land with respect to the unutilised
portion thereof as null and void whereupon such unutilised portion shall
revert back to the appropriate Government and directing that an amount not
exceeding one-fourth of such portion of the amount paid by the company as
cost of acquisition under clause (1) of section 41 of the Act as it relatable to
the unutilised portion shall be forfeited to the appropriate Government as
damages and that balance of that portion shall be refunded to the company
and the order so made shall, subject to the provisions of clause (vi), be final
and binding;
(vi) that where there is any dispute with regard to the amount relatable to
the unutilised portion of the land, such dispute shall be referred to the court
within whose jurisdiction the land or any part thereof is situated and the
decision of that Court thereon shall be final.
(2) Where the company commits a breach of any of the terms of the
agreement, the appropriate Government shall not make an order under
clause (iv) or clause (v) of sub-rule (1), unless the company has been given
an opportunity of being heard in the matter.
(3) The appropriate Government shall consult the committee before
according any sanction under clause (i) of sub-rule (1) or extending the time
under clause (iii) or making any order under clause (iv) or clause (v) of that
sub-rule.
6. Additional matters which may be provided in the agreement under
section 41.- (1) Without prejudice to the provisions of rule 5, the terms of
agreement referred to in section 41 of the Act may also include the following
matters, namely :-
www.legalcrystal.com
that, before an award has been made under section 11 of the Act, the
company shall deposit with the Collector, free of interest, such amount being
not more than two-thirds of the approximate amount of compensation
payable in respect of the land as determined under clause (ii) of sub-rule (2)
of rule 4, and within such time as the Collector thinks fit, to specify in this
behalf.
(2) Where any amount has been deposited with the Collector under sub-rule
(1), the Collector shall tender payment of the amount so deposited to the
persons interested who in the opinion of the Collector, are entitled to receive
payment of compensation under sub-section (1) of section 31 of the Act and
shall pay it to them, unless prevented by some one or more of the
contingencies mentioned in sub-section (2) of section 31 of the Act, subject
to the following conditions, namely:-
(i) the execution of an agreement by each recipient that the amount
received by him exceeds the amount of the compensation finally awarded,
the excess amount shall be recoverable from him as an arrears of land
revenue and that he shall not claim any interest under the provisions of the
Act in respect of the amount received by him under this sub-rule; and
(ii) the execution of a bond by each recipient with or without security as the
Collector may decide undertaking to indemnify the appropriate Government
against any claim for compensation or part thereof by any other person.
(3) If the amount deposited by the company under sub-rule (1) or any part
thereof is not paid under sub-rule (2) the Collector shall, as soon as
practicable, refund the same to the company.
7. Submission of periodical report.- For the purpose of ensuring that the
conditions provided for in the agreement executed by the company are
complied with the appropriate Government may direct the Collector or such
other officer as that Government may appoint for the purpose, to submit to
it and to the Committee, a periodical report, at such intervals of time as it
may specify, indicating the conditions which have been or have not been
complied with as well as the steps taken by the company towards their
compliance.
8. Conditions under which sanction may be given for transfer of
land.- Where a company for which land has been acquired under the Act
applies for the previous sanction of the appropriate Government for the
transfer of that land or any part thereof by sale, gift, lease or otherwise, no
such sanction shall be given unless-
www.legalcrystal.com
(i) the proposed transfer of land along with dwelling houses, amenities,
buildings or work, if any, is to some other company or where the company is
a co-operative society, such transfer is to any or all of its members, or
(ii) where the land has been acquired for the erection of the dwelling houses
for workmen employed by the company, the proposed transfer of the land
along with dwelling houses, if any, is to such workmen or their dependent
heirs :
Provided that before giving any such sanction the appropriate Government
shall consult the Committee.
9. Special provision in relation to a company.- When an application is
made to the appropriate Government for acquisition of any land by a
company, such acquisition shall ordinarily be made in accordance with the
provisions of Part VII of the Act.
10. Repeal.- All rules made by the appropriate Government for the
guidance of its officers with respect to acquisition of land for companies
under Part VII of the Act and in force immediately before the
commencement of these rules shall, to the extent of the repugnancy, cease
to have effect.