Land Laws

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LAND & REAL ESTATE LAWS (505)

UNIT 1
Land is precious for any country and used by people for productivity and as a source of food, for place to
live, for wood, for place to work. In India, before colonial rule the land used to be in the hands of the
community as a whole. However during the British Raj, this was changed.
Lord Carnwallies had introduced Permanent Land Settlement for Bengal, Bihar and Orissa in 1793.
According to this the tax farmers appointed by the British rulers was converted as various Land Lords.
Under this rule they had to pay fixed commission to East India Company. Thus these intermediaries were
formed and called as Jagirdar / Jamindar.
Land is precious for any country and used by people for productivity and as a source of food, for place to
live, for wood, for place to work. In India, before colonial rule the land used to be in the hands of the
community as a whole. However during the British Raj, this was changed.
Lord Carnwallies had introduced Permanent Land Settlement for Bengal, Bihar and Orissa in 1793.
According to this the tax farmers appointed by the British rulers was converted as various Land Lords.
Under this rule they had to pay fixed commission to East India Company. Thus these intermediaries were
formed and called as Jagirdar / Jamindar.
Land reforms & Land Distribution:
In India, there was a practice of land holdings from historic times and it was distributed in a highly
unequal manner and have always been used as a source of social power. To get secure access to land for
the poor and landless, policies of land reform were implemented to benefit poorer section of society since
independence. After that a number of land reforms have been done by the government such as abolition

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of 'Zamindari' or middlemen as revenue collectors, imposing ceiling on landholdings and awarding of the
surplus land's rights to landless, and tenancy reforms (Mearns, 1998). Land reform is described as
redistribution of land from the rich to the poor. More broadly, it comprises of regulation of ownership,
operation, leasing, sales, and inheritance of land (indeed, the redistribution of land itself requires legal
changes). In an agricultural economy such as India with great dearth, and an unequal distribution, of land,
coupled with a large mass of the rural population below the poverty line, there are enthralling financial
and political opinions for land reform. Purpose of land reforms is efficient use of scarce land resource,
redistributing agricultural land in favour of the less privileged class in general & cultivating class in
particular.
Historical review of Land Reforms in India:
Land program in post-Independence India has evolved through different phases. During the Mughal
period, before the arrival of the British there were numerous changes in the system of land taxation or
revenue. Peasants continued to enjoy customary rights over land they occupied and generally could not be
evicted unless they failed to pay the required land revenue (land tax) to the state. The task of collecting
land revenue was assigned to a class of agents called zamindars (Bhaumik, 1993).
When the East India Company (EIC) established in the Seventeenth Century, the agricultural structure
underwent fundamental change. The EIC first purchased the right to receive the collected land revenue
and later, under the Permanent Settlement introduced in 1793, declared the Zamindars to be proprietors of
land in exchange for the payment of land revenue fixed in perpetuity. Zamindars, or those to whom they
sold their proprietary rights, typically delegated revenue collection to a series of middlemen. The
increasing layers of intermediaries meant that there was considerable increase in rent extracted from the
tillers and failure to pay this increased amount resulted in large-scale evictions, widespread disturbance,
and declining agricultural production (Bhaumik, 1993). The British sought to stabilize the situation
through legislated tenancy reform.
The Bengal Rent Act of 1859 placed restrictions on the power of landlords' to increase rent or evict
tenants. However, the Act only protected fixed-rent tenants and did not protect bargadars or agricultural
labourers. But it only protected those fixed-rent tenants who could prove they had cultivated the land for
12 consecutive years. Constant cultivation was difficult to prove due to poor records and the Act resulted
in an increase in evictions by Zamindars to prevent tenants from possessing land for the required time
period (Bhaumik, 1993). The 1885 Bengal Tenancy Act also sought to protect long-standing tenants, and
was similarly ineffective. During this period, another form of landholder emerged in Bengal. The Jotedars
were a rich class of peasants who reclaimed and gained control of large quantities of uncultivated forests
and wetlands outside the territory governed by the Permanent Settlement (Bhaumik, 1993). The Jotedars
refined some of this land through the direct supervision of hired labour or servants. Nevertheless, the bulk
of the Jotedars' land, like much of the land in Bengal, was cultivated by Bargadars.
Rural tensions over the dilemma of Bargadars were common in the decades prior to and after
Independence. In the 1940s, the Tebhaga movement called for a smaller crop share payment and also
created the slogan, "He who tills the land, owns the land." The movement is given credit for shaping post-
Independence land reform legislation in West Bengal (Datta, 1988). At the time of Independence, this
matter was of great significance. In the decades following independence India passed a significant body
of land reform legislation. The 1949 Constitution left the adoption and implementation of land and
tenancy reforms to state governments. This led to a lot of dissimilarity in the implementation of these
reforms across states and over time. After India Independence, the government took major step to
eradicate the systems of Jamindaris and Jagirdari, to remove intermediaries between state and peasant.

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This was the first legislature taken by almost all the states called as Abolition of Jamindari / Jagirdari
systems Act.
The main objectives of the Land Reforms:
These are as follows:

To make redistribution of Land to make a socialistic pattern of society. Such an effort will reduce the
inequalities in ownership of land.
To ensure land ceiling and take away the surplus land to be distributed among the small and marginal
farmers.
To legitimize tenancy with the ceiling limit.
To register all the tenancy with the village Panchayats.
To establish relation between tenancy and ceiling.
To remove rural poverty.
Proliferating socialist development to lessen social inequality
Empowerment of women in the traditionally male driven society.
To increase productivity of agriculture.
To see that everyone can have a right on a piece of land.
Protection of tribal by not allowing outsiders to take their land.
Land reform legislation in India is categorized in to four main sections that include abolition of
intermediaries who were rent collectors under the pre-Independence land revenue system, tenancy
regulation that attempts to improve the contractual terms faced by tenants, including crop shares and
security of tenure, a ceiling on landholdings with a view to redistributing surplus land to the landless and
lastly, attempts to consolidate disparate landholdings.
Abolition of intermediaries is generally established to be effective land reforms that has been relatively
successful. The record in terms of the other components is mixed and varies across states and over time.
Landowners naturally resisted the implementation of these reforms by directly using their political
influence and also by using various methods of evasion and coercion, which included registering their
own land under names of different relatives to bypass the ceiling, and shuffling tenants around different
plots of land, so that they would not acquire incumbency rights as stipulated in the tenancy law. The
success of land reform was driven by the political will of particular state administrations, the prominent
achievers being the left-wing administrations in Kerala and West Bengal.
Table: Land policy formulation through planning period

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Tenancy Systems of Land:
At the time of independence, there existed many types of proprietary land tenure
in the country.
1. Ryotwari: It was started in Madras since 1772 and was later extended to other states. Under this
system, the responsibility of paying land revenue to the Government was of the cultivator himself and
there was no intermediary between him and the state. The Ryot had full right regarding sale, transfer and
leasing of land and could not be evicted from the land as long as he pays the land revenue. But the
settlement of land revenue under Ryotwari system was done on temporary basis and was periodic after

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20, 30 or 40 years. It was extended to Bombay Presidency.
Mahalwari: This system was initiated by William Bentinck in Agra and Oudh and was later extended to
Madhya Pradesh and Punjab. Under this system, the village communities held the village lands
commonly and it was joint responsibility of these communities to make payments of the land revenue.
The land ownership is held as joint ownership with the village body. The land can be cultivated by
tenants who can pay cash / kind / share.
Jamindari: Lord Cornwallis gave birth to Zamindari system in India. He introduced this system for the
first time in 1793 in West Bengal and was later adopted in other states as well. Under this system, the
land was held by a person who was responsible for the payment of land revenue. They could obtain the
land mostly free of charge from the government during the British rule and it is called estate. Landlords
never cultivated the land they owned and rented them out to the cultivators. The amount of land revenue
may either be fixed once one for all when it was called permanent settlement or settlement with regard to
land revenue may only be temporary and may, therefore, be revised after every 30-40 years, as the
practice may be. The Zamindari system is known as absentee landlordism. Under this system the whole
village was under one landlord. The persons interested can work in the Jamindar's land as tenant /
labourer based on the agreement with the jamindar. The jamindari system was known to be more
exploitive, as the jaminder used to fix / hike the prices of land according to his desire.
Jagirdari: It is similar to Jamindari system. The jagirdar is powered to control the unproductive masses of
village by engaging them in agricultural activities. Because land is controlled by state in India and the
relationship between production and land tenure varies from state to state, the national policy
recommendations resulted in differing tenancy reform laws in each state.
Tenancy is completely banned in some states but completely free in others. Punjab and Haryana have not
forbidden tenancy whereas Karnataka has a near complete ban on tenancy. Some states have discussed
ownership rights on tenant cultivators except for sharecroppers, whereas West Bengal chose to provide
owner-like rights only to the sharecroppers. Tenancy reforms may have indirect effects in the form of
reduced tenancy shares if poorly implemented. Most tenancy reform laws also contained provisions
concerning the ability of tenants to surrender the land back to the landlord voluntarily. These provisions
were used by landlords to wane the impact of the laws. In most states the surrender of land falls under the
jurisdiction of the revenue authorities.
Impact of Land Reform in India:

Following ere the outcomes of Land Reforms in India.


Abolition of Jamindars and Jagirdars:

The powerful Jamindars and Jagirdars have become inexistent.


The abolition of intermediaries has stopped exploitation.
Transfer of land to peasants from intermediaries has reduced disparities.
The new proprietorship has given scope for innovation in Land Reforms.
The ex-jagirdars and ex-Jamindars have engaged themselves actively in other work thus contributing for
National Growth.
The abolishment of these systems has increased to the new land owners thus adding revenue to the state
governments.
Land Ceiling:

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Land is a source of Income in rural India land and it provides employment opportunities. Therefore it is
important for the marginal farmers, agricultural labourers, and small farmers. The concept 'ceiling on land
holdings' denotes to the legally stipulated maximum size beyond which no individual farmer or farm
household can hold any land. The objective of such ceiling is to promote economic growth with social
justice.
Land Ceiling should be imposed on all kinds of lands such as Fallow, Uncultivable, irrigated and
Cultivable land. All the mentioned are inclusive of ceiling Act. The ceiling act varies from state to state
on ceiling on two crops a year land. However in most of the places the ceiling is 18 Acres.
Land possession and social power: It is observed that the land is not only the source of production but
also for generating power in the community. In the Indian system, the land is often transferred from one
generation to another generation. However all this lack the documentation of possession of land. In this
framework, the government had made it mandatory to register all tenancy arrangements.
To summarize, Land reform is the major step of government to assist people living under adverse
conditions. It is basically redistribution of land from those who have excess of land to those who do not
possess with the objective of increasing the income and bargaining power of the rural poor. The purpose
of land reform is to help weaker section of society and do justice in land distribution. Government land
policies are implemented to make more rational use of the scarce land resources by affecting conditions
of holdings, imposing ceilings and grounds on holdings so that cultivation can be done in the most
economical manner.
INTRODUCTION
The Supreme Court of India has, in the fifty years since the commencement of the Constitution, made a
significant contribution in interpreting constitutional provisions on the right to property, directive
principles of state policy and the legislation on agrarian reforms keeping in view an inarticulate premise
of land to the tiller. The Indian agrarian reform programme is older than the Constitution. ‘Land to the
tiller’ was part of our freedom struggle. The Congress Agrarian Reforms Committee had prepared a
detailed programme on agrarian reforms. The aim was to free the agrarian system from exploitative
elements. The Permanent Settlement introduced by Lord Cornwallis in 1793 in the then territories of
Bengal, Bihar and Orissa and subsequently extended to other areas needed to be annulled. All
intermediary interests in estates between the actual cultivator and the State needed to be terminated. In the
new agrarian structure envisaged by the committee, the cultivators would hold land directly under the
State and would pay a fixed sum as land revenue. Tenants under private landlords would enjoy security of
tenure and fixity of rent.
HISTORY OF AGRARIAN REFORM
In provinces where the Congress party had come to power under the Government of India Act, 1935,
legislation on zamindari, talukdari, malgujari, jagirdari, and other intermediary tenures had been
introduced. The Act did not contain guarantee of fundamental rights.
The demand made by the All Parties Conference at Lucknow for inclusion of fundamental rights in the
new Constitution was rejected by the Simon Commission. The Joint Parliamentary Committee on the
Government of India Bill, 1935 had rejected the idea, but felt it necessary to make a suitable provision in
the Act of 1935 for protecting the interests of zamindars and other intermediary tenure holders. The
protection was contained in sections 299 and 300 of the Government of India Act, 1935. Thus when the
provinces introduced legislation for abolition of zamindaris, etc. they had to comply with the
requirements of these sections. The inter-pretation of these provisions by the Federal Court and the Privy
Council was there to support the view that the provincial legislatures by enacting suitable legislation were

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competent to annul the Permanent Settlement Regulations of 1793. The Constituent Assembly while
drafting a suitable provision on the protection of right to property as a fundamental right was aware of the
working of sections 299 and 300 of the Government of India Act, 1935 and their interpretation by the
Federal Court and the Privy Council in cases concerning legislation on land tenures.
Thus after a prolonged debate and discussion it adopted the provision contained in these sections as right
to property in article 31 of the Constitution. But the makers of the Constitution made special provision in
clauses (4) and (6) of article 31 to protect legislation on agrarian reforms that was either pending before
the provincial legislative assemblies or was on the anvil.
Soon after the Constitution come into force, the erstwhile zamindars where zamindaris had been
abolished filed writ petitions in various high courts. The High Court of Allahabad upheld the validity of
the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950. Likewise, the High Court of Nagpur
upheld the validity of the Madhya Pradesh Abolition of Proprietary Rights (Estates, Mahals, Alienated
Lands) Act, 1950.8 But the High Court of Patna declared the Bihar Land Reforms Act, 1950 as
unconstitutional for it violated of article 14, the principle prescribed for payment of compensation to
erstwhile zamindars had classified them in separate classes based on their annual net income. This
judgement was rendered on 12 March 1951. 9 This provoked a prompt reaction from the government. It
was decided to amend the Constitution so as to protect agrarian reform legislation beyond challenge.
Introducing the Constitution (First Amendment) Bill, 1951, B.R. Ambedkar, the then Union Law Minister
stated in the Statement of Objects and Reasons: The validity of agrarian reform measures passed by the
State legislatures in the last three years has, in spite of the provisions of clauses (4) and (6) of article 31,
formed the subject matter of dilatory litigation, as a result of which the implementation of these important
measures, affecting large numbers of people has been held up. The main objects of this bill are to insert
provisions fully securing the constitutional validity of Zamindari abolition laws in general and certain
specified Acts in particular. The bill when passed by Parliament became the Constitution (First
Amendment) Act, 1951. It came into force with retrospective effect from the date of commencement of
the Constitution. The amendment inserted articles 31A and 3IB and the Ninth Schedule to the
Constitution. Article 31A was in the nature of an exception to article 31. Acquisition by the State of rights
in estate shall not be deemed to be void on the ground of being inconsistent with any of the provisions of
Part III. The expressions ‘estate’ and ‘rights in relation to an estate’ were also defined therein. Article 3IB
provided for validation of Acts and Regulations included in the Ninth Schedule notwithstanding any
judgement, decree or order of any court or tribunal to the contrary. The Ninth Schedule at that time
contained a list of thirteen enactments. The Bihar Land Reforms Act, 1950 was included at serial number
one in this list. The constitutional validity of the (First Amendment) was challenged in the Supreme Court
on various grounds. A Constitution bench by a unanimous judgement and order dated 5 October 1951
upheld the validity of the impugned Act.12 Two broad propositions laid down in this judgement may be
noted. The court held that an amendment of the Constitution under article 368 is not law within the
meaning of article 13 and as such the prohibition in article 13(2) does not apply to an amendment which
takes away or abridges a fundamental right. Accordingly, the abridgement of article 31 by newly inserted
articles 31A and 3IB was upheld as valid. The court also held that the provision made in articles 31A and
3IB did not directly affect the jurisdiction of High Court and the Supreme Court and as such ratification
of the impugned amendment by not less than one half of the states was not required. This shows the
court’s anxiety to protect agrarian reform legislation against technical hurdles created by a narrow
pedantic view of a constitutional provision.

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CONSTITUTIONAL PROVISIONS ON AGRARIAN REFORM LEGISLATION
The programme of land reforms was one of the major considerations in the schemes of social and
economic restructuring of Indian society. The constitution provides fundamental rights (Part-Ill) and
Directive Principals of state policy (Part-IV). The programme of agrarian reform was formulated to
implement the directive of securing social and economic justice to those who worked on land.
The constitution of India has included the Land reform in State subjects. The Entry 18 of the State List is
related to land and rights over the land. The state governments are given the power to enact laws over
matters related to land.
The Entry 20 in the concurrent list also mandates the Central Government to fulfil its role in Social and
Economic Planning. The Planning Commission was established for suggestion of measures for land
reforms in the country. The specific articles of the constitution that pertain to land reforms are as follows:
Article 23 under fundamental rights abolished Begar or forced unpaid labour in India.
Article 38 contains the directive to the state that “State shall strive to promote the welfare of people by
securing and promoting as effectively as possible. A social order in which justice, social, economic and
political shall reform the institution of national life. And that it shall in particular, strive to minimize the
inequalities in income”
Article 39 says that “the state shall direct it policies towards securing the ownership and control of
material resources of the community and distributed them as best to sub serve the common good and at
the same time ensuring the operation of the economic system not resulting in the concentration of wealth
and means of productions to the common detriment”.
Article 48 directed the state to organize agriculture and animal husbandry on modern-scientific lines.
In the pursuance of these directives the land reforms laws aims at breaking the concentration of
ownership of land by a few big land lords. The other articles are Articles 14, 19 (1) (f) and 31 and these
are important as to the land reforms legislations.
Articles 14 “provide the state shall not deny to any person equality before law and equal protection of
laws”.
Article 19 which guarantees to all citizens a number of freedoms, including in clauses (i) (f) the right to
acquire, hold and dispose of property which has been deleted by the by forty fourth amendment Act
1978).
Article 31 guaranteed right to property and contained six clauses of which clauses (4) and (6) were
particularly designed to protect land reforms legislations.
Article 31 as originally enacted was in the following terms:
(1) No person shall be deprived of his property saved by authority of law.
(2) No property movable or immovable, including any interest in, or in any company owning and
commercial or industrial undertaking, shall be taken possession of or acquired for public purposes under
any law authorizing the taking of such possession or such acquisition unless the law provides, for
compensation for the property taken possession of acquired and either fixes the amount of the
compensation or specified the principles on which and the manner in which, the compensation is to be
determined and given.
(3) No such law as is referred to in clause (2) made by the legislation of a state shall have effect unless
such law having been reserved for the consideration of the president has received his assent.
(4) If any bill pending at the commencement of the constitution in the legislature of the state has after it
has been passed by such legislature been reserved for the consideration of the president and has received
his assent then, with standing anything in this constitution the law so assented to shall not be called in

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question in any court on the ground that it contravene the provisions of clauses (2).
(5) Nothing in clause (2) shall affect (a) the provisions to any existing law other than a law to which the
provisions of clauses
(6) Apply or (b) the provision of any law which the state may hereafter make:
(i) For the propose of imposing or leaving any tax or penalty
(ii) For promoting public health or prevention of danger to life. In pursuance if any agreement entered
into between the Dominion of Indian and the Government of any other country or otherwise with respect
to property declared by law to be evacuee property.
(6) Any law of a state enacted not more than eighteen months before the commencement of this
constitution may within three months from such commencement be submitted to the president for his
certification and thereupon, if the president by public notification so certifies it shall not be called in
question in any court on the ground that it contravened the provisions of clause (2) of this article or has
contravened the provisions of such sections (2) of the section 299 of the Government of India Act, 1935.
The provisions made in clauses (4) and (6) provide inadequate to protect the land reforms laws.

CONSTITUTIONAL AMENDMENT AND CASE LAWS


Hence the constitution (First Amendment) Act, 1951 amended article 31 and added new Articles 31
A and .31 B and also added the Ninth schedule to the constitution listing 13 states-land reforms acts and
providing that these acts would not be void merely on the ground that they infringed any of the
Fundamental rights. The article 31 A, except from the operation of any of the safeguards conferred by the
fundamental rights, law providing for acquisition of any “estate” or any right therein, but a state law
making such provision required to be submitted to the president for his assent.
In Shankari Prasad v. Union of India[1] the constitutional validity of the first amendment was challenged.
The Supreme Court upheld the Validity of the said amendment and in State of Bihar v. Kameshwar
Singh[2] the Supreme Court observed that the land reforms legislation of Bihar was in conformity with
Directive principles of state policy in order to achieve social justice. Article 31 A brought in by the
constitution (First Amendment) Act, 1951 was substituted by a more elaborate article by the constitution
(Fourth Amendment) act 1955.
The new article had the effect of taking out the protection of the fundamental rights. All those legislation
providing for and reforms measures, That is The acquisition by the State of any estate or of any rights
therein or the extinguishment or modification of any such rights that is legislation aimed at the abolition
of Jagirdars, Zaminadars and other feudal tenures.
By taking over the management of any property by the state for a limited period either in the public
interest or in order to secure the proper management of the property, such law is not void because in
consistent with or takes away rights of property.
The constitution (Seventeenth Amendment) Act, 1964 inserted a further provision laying down that where
law made provision for the acquisition of an estate, and where any land comprised in such estate was held
by anyone under personal cultivation, the law had to provide a ceiling limit acquisition could be effected
only by payment of compensation not less in amount than the market value. It also amended the definition
of the term “estate” to include land under Ryotwari settlement of as well as land held or let for purpose of
agriculture of ancillary purposes. The expression land has not been defined. It was to be deducted with
reference to the meaning attached to the term “estate”. The Supreme Court took a very liberal stand and
proved itself as an active agent of social change. As the definition of an estate in the law relating to land
tenures in the different local areas may differ, it is difficult to assign any meaning to the words “its local

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equivalent” when the estate itself has no fixed meaning.
In Karimbil v. State of Kerala[3] the Supreme Court made it clear that the definition of the term estate
was not satisfactory. The provision in Article 31 A (1) (a) is not adequate to protect all measures of land
reforms and further amendment of the provision called for. Hence, the Constitution (Seventh
Amendment) Act, 1964 by which the definition of estate was further explained to include any land held
under Ryotwari settlement. Any land held or let for the purpose of agriculture or for purposes any
ancillary thereto, including waste land, forest land, land for posture or sites of buildings and other
structure occupied cultivators of land agricultural labourers and village artisans.
None of the amendments to give effect to the aspects of land reform could deter the landlords from
approaching the Supreme Court for questioning. The Constitutional validity of these constitutional
amendments on legislative and technical grounds alleged that these are not adopted exactly in the
Constitution in conformity with the procedure laid down in Article 368.
In Waman Rao v. Union of India[4] the validity of the Constitution (First Amendment) Act, 1951, which
brought into being in the Constitution Article 31-A and 31-B and the Ninth Schedule was questioned. The
Supreme Court declared that neither article 31-A and 31-B nor the Ninth Schedule destroyed or damaged
the basic structure of the Constitution section 31-B in regarding the variation of certain acts and
regulations.
None of the Acts, and regulations specified in the Ninth Schedule nor any of the provisions thereof shall
be deemed to be void or ever to have become void on the ground that such Act, Regulation or provision is
inconsistent with and takes away or abridges by any of the rights conferred by any provision of this part,
and not withstanding any judgement, decree or order of any court or tribunal to the country each of the
said Acts, and regulations shall, subject to the power of any competent legislature to repeal or amend it,
continue in force.
The Constitution (Twenty-fifth Amendment) Act, 1971 had inserted a new Article 31 C which provided
no law officiating social and economic reforms in the terms of Directive Principles contained in Article
39 (B) and (C) shall deem to be void for an alleged inconsistency with Fundamental Rights contained in
Article 14, 19 & 31.
Writ petitions were also filed challenging the validity of the Mysore Land Reforms Act 1961 (as amended
by Act, 14 of) 1965 which fixed the ceilings on the land holdings and conferred the ownership of surplus
land on tenants. The above writ petitions along with some other in challenging petitions were heard by
special bench consisting of eleven judges of the Supreme Court. In this case, though the amending
Articles were held valid but on different reasoning by majority.
Subba Rao C.J. held that:
The power of the parliament to amend the Constitution is derived from Article 245 and 248 and not from
Article 368 there of which only deals with procedure for amendment is a legislative process.
Amendment is law within the meaning of Article 13 of the Constitution and therefore if it takes away or
abridges the rights conferred by the part III, it is void.
iii. On the application of the doctrine of prospective over ruling that our decision has prospective
operation and therefore the said amendments will continue to be valid.
As the Constitution (Seventh Amendment) Act, holds the validity of the Punjab and Karnataka Land
Reforms Act 1961, it cannot be questioned on the ground that they offend article 13, 14 or 31 of the
constitution. After this decision the Constitution (Twenty Fourth Amendment) Act, 1971 was passed. In
article 13 after the clause (3) a new clause (4) has been inserted stating. “Nothing in this Article shall
apply to any amendment of the Constitution made under article 368”.

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The Supreme Court manifested itself as an arm of social revolution and showed the need of protecting
and preserving not only the land reforms measures against the challenges but also all the relevant
amendments of the Constitution. Even though the first and seventeenth amendments were validated by
the court by resorting to a novel doctrine of prospective overruling, by declaring that the said
amendments and the law protected by them continued to be valid notwithstanding the abridgement of
Fundamental Rights.
The Supreme Court contributed its due share in furthering the cause of agrarian reform. C.J. Subba Rao
justified the need for protecting the amendments invalidated under the Golak Nath ruling primarily
because of the concern for the land reform programmes and he observed that all these were done on the
bases of the correctness of the decisions in Shakari Prasad’s case and Sajjan Singh’s case, namely that
parliament had the power to amend the Fundamental Rights and the Acts, in regard to estates were
outside judicial scrutiny on the ground that they infringed the said rights. The agrarian structure of our
country has been revolutionized on the base of the said laws. The court held that the Fundamental Rights
are outside the amendatory process if the amendments take away or abridge any of the rights and in
Shankari Prasad’s and Sajjan Singh’s case conceded the power of the amendment over part III on an
erroneous view of article 13 (2) and Article 368 and to that extent they were not good laws. The
judgement proceeded on the following reasoning:
The Constitution incorporates an implied limitation that the fundamental Rights are out of the reach of the
parliament.
Article 368 does not contain the power to amend it merely provides procedure for amending the
Constitution.
The power to amend the Constitution should be found on the plenary legislative power of the parliament.
Amendments to the Constitution under article 368 or under other articles are made only by parliament by
following the legislative process adopted by making in laws.
The contention that the power to amend is a sovereign power and that power is supreme to the legislative
power, that does not permit any implied limitations and amendments made in exercise of that power
involve political questions which are outside the scope of judicial review cannot be accepted.
The validity of the (Twenty Fourth Amendment) came up for discussion in Keshavanda Bharti v. State of
Kerala.[5] Wherein a writ petition was field initially to challenge the validity of the Kerala Land Reforms
Act, 1963 as amended in 1969. The court held that the 24 amendment was valid and parliament had
power to amend any or all the provisions of the constitution including those relating to the fundamental
rights. And also the court held that power to amendment is subject to certain inherent limitations, and that
parliament cannot amend these provisions of the constitution which affect the basic structure or
framework of constitution.
The Minerva Mills Ltd. v. Union of India[6] Supreme Court tested the directive principles as a whole
with basic structure theory as propounded in Kesavananda Bharati Case. It is observed that “They (the
Fundamental 73 Rights in part III and the Directive Principles of State Policy in Part IV) are like a twin
formulas for achieving social revolution. The Indian Constitution is founded on the bedrock of the
balance between Part III and Part IV and one should give absolute primacy to over the other is the
harmony of the Constitution. This harmony and balance between Fundamental Rights and Directive
Principles is an essential feature of the basic structure of the Constitution. Those Rights are not an end to
them but are means to an end. The end is specified in the Part III of the Constitution.
The Constitution (Forty Second Amendment) Act, 1976, Article 31- C was amended and its protection
was extended to all the laws passed in the furtherance of any directive principles. All the Directive

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Principles were granted supremacy over the Fundamental Rights contained in Articles 14 & 19. Section
31-C says “No law giving effect to the policy of state towards securing all or any of the principles laid
down in part IV shall be deemed to be void on the ground that it is inconsistent which takes away or
abridges any of the rights conferred by Article -14 or article 19. That it is giving effect to such policy
shall be called in question in any court on the ground that it does not give effect to such a policy. Now
many Acts, passed by the parliament and the state legislature are constitutionally declared to be valid
under Article 31 (b) although they may directly infringe the right to property. As a result of various
amendments to the Constitution and by placing all land reforms laws in the Ninth Schedule of the
Constitution, it has closed the door of challenging agrarian reform legislation in courts.
The Forty-fourth amendment made Right to property is no longer a fundamental right and article 300-A
was added. The 44 Amendment removed the right to property from Part III of the chapter on Fundamental
Rights by deleting article 19 (1) (f) and 31 and by inserting article 300-A. The reasons for 44″ amendment
is as follows:
The special position sought to be given to fundamental rights, the right to property which has the occasion
for more than one amendment of the constitution would cease to be a fundamental rights and become
only a legal right. Necessary amendments for this purpose are being made to article 19 and article 31 is
being deleted. It would be ensured that the removal of property from the list of fundamental rights would
not affect the rights of minorities to establish and administer educational institutions of their choice.
Similarly, the right of persons holding land for personal cultivation and within the ceiling limit and to
receive compensation at the market value would not be affected.
Property, while ceasing to be a fundamental right would however, is given express recognition as a legal
right. Provision being made that no person shall be deprived of his property saves in accordance with law
Amendment of right to property must be interpreted, if possible so as not to violate the doctrine of the
basic structure of the constitution. The rights conformed by article 19 (1) (f) and article 31 red with the
under noted entries were so closely interwoven with the whole fabric of our constitution. Those rights
cannot be torn out without leaving a jagged hole and broken threads. The hole must be mended and the
broken threads replaced so as to harmonize other parts of our constitution. There is no longer looks upon
the right to acquire hold and dispose of property as part of the right to freedom. Further article 19(1)(f),
which conferred on citizens the rights to acquire, hold and dispose of property formed part of a group of
articles under the heading “Right to freedom”.
Finally, by article 300-A which states that no person shall be deprived of his property save by authority of
law. The deletion of article 19 (1) (f) and article 31 would at first suggest that in respect of property the
distinction made between citizen and noncitizens, the article 19(1) (f) has been eliminated. And also the
deletion of article 31 disrupts the scheme adopted by our constitution for the compulsory acquisition of
property. The 44 amendment added the following new provisions of law as to property rights.
PRESENT CONSTITUTIONAL PROVISIONS AS TO PROPERTY RIGHTS

Article 31A says that notwithstanding anything contained in article 13, no law providing for:
The acquisition by the state of any estate or of any rights there in or the extinguishment or modification of
any such rights, or
The taking over of the management of any property by the state for a limited period either in the public
interest or in order to secure the proper management of the property, or
The amalgamation of two or more corporation either in the public interest or in order to secure the proper
management of any of the corporations, or

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The extinguishment or modification of any rights of manganese of corporations or of any voting rights of
shareholders thereof, or
The extinguishment or modification of any rights acquiring by virtual of any agreement, lease or license
for the purpose of searching for or winning any mineral or mineral oil or the premature termination or
cancellation of any such agreement, lease or licence shall be deemed to be void on the ground that it is
inconsistent with or takes away or abridges any of the rights conferred by Article 14 and 19.
Provided that where such law is allow made by the legislature of a state, the provinces of this article
shall not apply there to unless such law, having been reserved for the consideration of the president, has
received has assent.
Provided further that where any law makes any provision for the acquisition by the state of any estate
and where any land comprised there in is held by a person under his personal cultivation, it shall not be
lawful for the state to acquire any portion of such land as is within the ceiling limit applicable to him
under any law for the time being in force or any building or structure standing there in or appurtenant
there to, unless the law relating to the acquisition of such land, building or structure.
CONCLUSION
The constitution of India provides Fundamental Rights (Part-Ill) and Directive Principles of State Policy
(Part-IV) for bringing social justice and upholding inherent human rights. The land reforms laws and
policies have been framed so as to implement the directive principles for securing social and economic
justice. These directives also contained in Articles 38 and 39 of the constitution. Article 38 contains the
directive to the state that it shall strive to promote the welfare of the people by securing and promoting as
effectively as possible. Article 39 says that the state shall direct it policies towards securing the ownership
and control of material resources of the community and distributed them as best to sub-serve the common
good. The Articles 14 and 19 (1) (f) provides that ‘state shall not deny to any person equality before law
or the equal protection of law’. Article 19 which guarantees to all citizens as number of freedoms like
clause (1) (f) the right to acquire, hold and dispose of property of the land. Article 31 says that no person
shall be 96 deprived of his property and save by the authority of law but this section was amended in
1951, by (first amendment to the constitution), substituting a more elaborate article so as to take out the
protection of fundamental rights all those legislation’s providing for land reforms measures.
In Waman Rao v. Union of India, Justice Subha Rao C.J. held that the power of the parliament
to amend the Constitution is derived from Article 245 and 248 not from Article 368. ii. Amendment is the
law within the meaning of Article 13. In Kesananda Bharati v. State of Kerala the Supreme Court of India
held that the 24 amendment was valid and parliament had power to amend any or all the provisions of the
Constitution even including fundamental rights. Again in Minerva Mills Ltd. v. Union of India .The same
Supreme Court held that the parliament had the power to amend any provisions of the Constitution even
including fundamental rights. The power should not be exercised so as to take away the ‘basic structure’
of the Constitution like liberty, equality, fraternity, secularism and social justice. And it also held that
there must be balance between these aspects of the Constitution while framing the policies by the state.
So directive principles are the embodiment of the ideals and aspirations of the people of India. It
constitutes the goals towards which the people expect the state to march for their attainment. The
Supreme Court also held in Golkanath v. State of Punjab that the (Part-Ill and Part-lV) of the Constitution
contained and 97 integrated scheme and even a self-contained code to characterize the relationship
between fundamental rights and directive principles. And it treated both equally important.

UNIT 2

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URBANIZATION
Ur in India began to accelerate after independence, due to the country's adoption of a mixed economy,
which gave rise to the development of the private sector. The population residing in urban areas in India,
according to the 1901 census, was 11.4%, [1] increasing to 28.53% by the 2001 census, and is now
currently 34% in 2017 according to The World Bank.[2] According to a survey by UN, in 2030 40.76%
of country's population is expected to reside in urban areas.[3] As per World Bank, India, along
with China, Indonesia, Nigeria, and the United States, will lead the world's urban population surge by
2050.[4]
Mumbai saw large-scale rural-urban migration in the 20th century.[see main] Mumbai, in 2018,
accommodates 22.1 million people, and is the largest metropolis by population in India, followed
by Delhi with 28 million inhabitants. Delhi witnessed the fastest rate of urbanisation in the world, with a
4.1% rise in population as per the censuses
Post-independence, India faced high rates of poverty, unemployment, and a stagnant economy. The
first Prime Minister of India, Pandit Jawaharlal Nehru, focused on the domain of science and
technology.[5] The mixed economy system was adopted, resulting in the growth of the Public
sector in India crippling down the development of Indian economy leading to what is popularly known as
Hindu rate of growth.[6] The South Asian region though predominantly rural (accounted for 69.9% rural
population as of 2010), has recorded much higher annual growth of urban population. India, the leading
country in South Asia has shown an unprecedented increase in the urban population in the last few
decades and its urban population has increased about 14 fold from 1901 to 2011. This growth is mainly
uneven but not skewed and not concentrated to a single city of the country. India shares most
characteristic features of urbanization in the developing countries where the rate of urbanization is faster
than the developed countries. For instance, in 1971 there were only about 150 cities whose population
was more than one lakh, now this figure has reached to 500. The urban population of India has increased
from 25.85 million in 1901 to 377.11 million in 2011.
The main causes of urbanisation in India are:
Expansion in government services, as a result of the Second World War
Migration of people during the partition of India[14][15][16]
The Industrial Revolution[citation needed]
Eleventh five-year plan that aimed at urbanisation for the economic development of India[17]
Economic opportunities are just one reason people move into cities
Infrastructure facilities in the urban areas[18]
Growth of private sector after 1990 .[19]
Growth of employment in cities is attracting people from rural areas as well as smaller cities to large
towns. According to Mckinsey India's urban population will grow from 340 million in 2008 to 590
million in 2030.
Therefore, it is being driven by economic compulsions where people move out for economic
advancements to areas offering better job opportunities.
It is also driven by land fragmentations, villages being erased due to roads and highway constructions,
dam constructions and other activities.
Agriculture is the primary source of livelihood, but it's no more profitable: Indian rural economy is
primarily based on agriculture. Indian agriculture sector accounts for 18 percent [20] of India's gross
domestic product (GDP) and it is estimated that it provides employment to 50% of the countries
workforce, but ground reality differs. Many farmers in different states of India are leaving farming,

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primarily because of high input cost and low income from agriculture. Also on the other hand with usage
of fertilizers, chemicals and hybrid seeds, land fertility is declining. This encourages many farmers to
commit suicide. In 2014, the National Crime Records Bureau of India reported 5,650 farmer suicides. As
per the figures given by central government in 2015, there were 12602 farmer suicides. This includes
8,007 farmers-cultivators and 4,595 agricultural labourers.[21] The farmer's suicide rate in India has
ranged between 1.4 and 1.8 per 100,000 total populations, over a 10-year period through 2005. Thus
people (including farmers) are migrating to cities.
Consequences of urbanization in India[edit]

Crowded housing and polluted waterway in Mumbai


Rapid rise in urban population, in India, is leading to many problems like increasing slums, decrease
in standard of living in urban areas, also causing environmental damage.[22]
The Industrial Revolution of the 18th century caused countries like the United States and the United
Kingdom to become superpowers, but conditions elsewhere are worsening. India's urban growth rate is
2.07%; seemingly insignificant compared to Rwanda, with 7.6%. India has around 300 million people
living in metropolitan areas.[23] This has greatly increased housing issues: with overcrowded cities,
many people are forced to live in unsafe conditions, such as illegal buildings. Water lines, roads and
electricity are lacking in quality, resulting in a decline in living standards. It is also contributing to the
issues presented by pollution.[citation needed]
Urbanization also results in a disparity in the market, owing to the large demands of the growing
population and the primary sector struggling to cope.[24]
It could be argued that urbanization impacts the migrants themselves on multiple levels. Networks of
friends and family become support systems during the initial transformation phase and the struggle to find
work in a fast-paced environment. Their struggles may take months, or even years, to adjust to the new
surrounds in order to find a stable job. Migrants are responsible for supporting both themselves in the city
and the family left at home.
Some of the positive effects resulting from rural to urban migration occur in the agrarian communities
from which migrants came. Family members left at home, usually the elderly and young, are eased out of
financial pressures as their relatives work to provide higher standards of living for their dependants. Their
quality of life is often additionally improved by the provisions that the migrant sends back.
On the other hand, rural to urban migration poses a big challenge for developing cities due to migrant
populations flocking in. How will cities support it in terms of resources, land and space?
Cities offer solutions in terms of high rise buildings (affordable housing), metros (affordable transport),
affordable schooling, established local clinics, water ATMs and many new initiatives. However, the
problems include:
1. National Institution for Transforming India [NITI Ayog], has released report ‘Composite Water
Management Index’ in June 2018 and stated that 21 cities (including Delhi, Mumbai, and Chennai) in

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India would run out of groundwater by 2020.[25]
2. The latest database of Numbeo lists three Indian cities among the top 10 cities of the world for having
worst traffic conditions. These cities include Mumbai, Pune and Kolkata.[26]
3. Population growth and rapid urbanization are combining to create huge challenges for Indian cities.
According to McKinsey,[27] the country's cities are expected to grow from 340 million people in 2008 to
a whopping 590 million in 2030 and this growth will be very rapid. Meeting demand for urban services in
these cities will require US$1.1 trillion in capital investment over the next 20 years. Without the right
design and planning, this massive urban growth could exacerbate existing problems of congestion,
pollution, and traffic safety.
4. Delhi is now considered the most polluted city in the world, according to the Brookings Institution,
while at least two-and-a-half million premature deaths are blamed on poor air quality across the country
as a whole.
5. The Economic Survey Report of India 2017-18 estimated that percentage of agricultural workers of
total work force would drop to 25.7 per cent by 2050 from 58.2 per cent in 2001. What is the cause of this
decline? People migrating to cities and adding to the unemployment in cities. It is interesting to know that
because of migration from rural pockets to urban (cities), unemployment in cities is increasing and in
rural pockets it's decreasing. As per Centre for Monitoring Indian Economy (CMIE) overall
unemployment rate of India as on 18 October 2018 is 6.9% , whereas for urban India its 7.5% and for
rural India its 6.6%.
URBAN DEVELOPMENT INSTITUTION
DDA
The Delhi Development Authority (DDA) was created in 1957 under the provisions of the Delhi
Development Act "to promote and secure the development of Delhi".[1] The DDA is responsible for
planning, development and construction of Housing Projects, Commercial Lands, Land Management as
well as providing public facilities like roads, bridges, drains, Underground water reservoir, Community
Centers, Sports Centers, Green Belts etc. within the area of National Capital Territory of New Delhi,
India.
The DDA master plan was formed in 1962 to ensure an organized and structured development of
haphazard growth of Delhi. This included identification of new land that can be developed into residential
properties and make self-contained colonies by providing ample commercial office and retail complexes
as well. The DDA master plan was revised in 1982 to formulate the Master Plan 2001 and then re-revised
in 2007 to form the Delhi Master Plan 2021. It lays down the basic infrastructure requirements for a city
estimated to have a population of 128 lakhs (12.8 million).[2]
Housing[edit]
The development of housing projects by DDA commenced in 1967 with the construction of houses and
providing the basic amenities like electricity, water supply, sewage disposal, and other infrastructure
facilities. The new projects undertaken instigate with recognition of project sites, public announcement
about the new DDA housing schemes in various categories through newspapers and other media
advertisements, formal acceptance of the applications, a transparent draw system for short-listing of the
applicants and finally allotment of the property.
Some popular DDA Housing Schemes of the past include New Pattern Registration Scheme that offers
home registration along with the property purchase, Janta Housing Registration Scheme that offers house
registrations for the economically weaker section category and Ambedkar Awas Yojana that allotted
Janta, LIG & MIG (Lower and Middle Income group)category flats to the SC/ ST registrants. The

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residential land is allotted to individual applicants, the farmers whose land is acquired for development
and group housing societies through public auction.
1985 housing scheme[edit]
The 1985 housing scheme was a scheme for people with low annual income. The scheme stated that each
person can participate by paying 3000 Rs draft on DDA account. The total cost of each house was 35000
Rs; recipients had to pay the balance of the amount within a few months. The scheme was subject to
criticism due to delays and perceived unequal treatment of applicants. After years of dispute, a new policy
was instituted in 2019 requiring submission of a 50,000 Rs draft to the Delhi Urban Shelter Improvement
Board or alternatively an appreciated reimbursement of 9000 Rs was offered.[3] [4]
DDA Housing Scheme 2019[edit]
In March 2019, DDA launched a new housing scheme, for around 18.000 flats situated in Vasant Kunj
and Narela, which got a lukewarm response from the general public in terms of applications
received.[5] Most of the flats of this scheme situated at Narela were the surrendered flats of the earlier
DDA Housing Scheme 2017. The results of the DDA Housing Scheme 2019 were announced on
23.07.2019.[6]
Land development[edit]
The Delhi Development Authority acquires land for development in Delhi. So far, over 64,354.88 acres
(260.4350 km2) of land has been acquired with successful development projects on 59,504 acres
(240.80 km2) and 30,713.95 acres (124.2949 km2) as residential land. Besides, the construction projects,
DDA land development also includes providing a lush green belt and forest area for a clean and healthy
environment by developing regional parks, neighborhood parks, district parks, play fields, and sports
complexes. dda has the authority.
Commercial properties[edit]
DDA undertakes construction, development and maintenance of commercial properties like retail shops
in local markets, shopping complexes, office complexes, makeshift industrial set ups, hospitals,
community halls, clubs, educational institutions, religious segregation centres etc. These properties are
disposed through auctions or tenders.
Sports complexes[edit]
Delhi Development Authority (DDA) aims to provide an entire network of sports facilities through sports
complexes, play fields, multi-facility gymnasiums and fitness centres, golf courses etc. DDA provides the
basic infrastructure facilities, coaching through the top sports persons in India, providing stipends and kits
and other facilities to identify and train budding sports talent in Delhi.
Besides this DDA also conducts various talent hunt schemes through its Sports Complexes in Dwarka,
Saket, Hari Nagar and other areas, including Yamuna Sports Complex and Siri Fort Sports Complex.
DDA Dwarka Sports Complex along with DDA Saket Sports Complex plans to host State Level
tournaments to provide a platform to professional and amateur sportspeople to showcase their talent.
There are two more sports complexes in East Delhi one is Chilla Sports Complex at Vasundhara Enclave
and the second is Poorvi Delhi Khel Parisar at Dilshad Garden near GTB Hospital.

HUDA

Haryana Shahari Vikas Pradhikaran (HSVP), formerly Haryana Urban Development


Authority (HUDA),[1] is the urban planning agency of

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the state of Haryana in India except Gurugram and Faridabad which has Gurugram Metropolitan
Development Authority and Faridabad Metropolitan Development Authority respectively. It was
established in 1977. The Minister of Town and Country Planning Department, Haryana is the chairman of
the authority. The headquarters of the authority is located in Panchkula, Haryana.
HSIIDC is a related government owned agency responsible for the industrial and infrastructure
development in the Haryana state.[2][3] Haryana Financial Corporation provides financial assistance for
setting up new industrial units and for the expansion and diversification of the existing
industries.[4] Various universities, educational and training institutes, including the nation's first skills
university Haryana Vishwakarma Skill University, provide the human resources to capitalise on the
finances offered by the HFC and the infrastructure created by the HSIIDC. Among the related initiatives
to boost growth, Haryana was the first state to introduce Labour Policy in 2005,[3][5] and Land Pooling
Policy in 2017.[6]
History[edit]
HUDA was established in 1977 as a statutory body of the government in 1977 under the Haryana Urban
Development Authority Act, 1977 for planned development of cities in Haryana.[7] On 1 June 2017, the
cabinet of Government of Haryana headed by the Chief Minister Manohar Lal Khattar decided to rename
it to the Haryana Shahari Vikas Pradhikaran (HSVP) because HUDA sounded similar to the surname of
former chief Minister Bhupinder Singh Hooda.[1] Due to lack of co-ordination between Urban Estates
Department and other departments of the Government of Haryana, the growth of estates started slowing
down. Besides, as the Department had to follow the financial rules and regulations of Government, the
arrangement of funds and sanction of estimates used to take a long time and the development works did
not keep pace with the required standards of physical achievements. It was also felt that being a
Government department, it was unable to raise resources from various lending institutions although there
were many financial institutions in the country to finance urban development programmes. The Urban
Estates Department was not effective in achieving its defined goals of planned urban development to the
satisfaction of the public at large. Thus, in order to over come all these difficulties and to achieve the
expeditious development of urban estates, it was felt that the Department of Urban Estates should be
converted into such a body which could take up all the development activities itself and provide various
facilities in the Urban Estates expeditiously and consequently the Haryana Urban Development Authority
came into existence on 13-01-1977 under the Haryana Urban Development Authority Act, 1977 to take
over work, responsibilities hitherto being handled by individual Government departments
Facilities[edit]
The authority is responsible for development and maintenance of the following:[8]
Residential areas
Commercial areas
Industrial areas
Institutional areas
Community buildings developed by HUDA in these areas include:[8]
Schools
Colleges
Hospitals
Police stations
Community centres
Gymkhana clubs

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Old age homes
Fire stations
Cremation grounds
Public parks
Land Pooling Policy[edit]
Haryana Land Pooling Policy (HLPP), approved in January 2018, is used by the HSVP for acquiring land
from the landlords for developing residential sectors. Landlords join the scheme voluntarily and at least
70% landowners must agree to pool their contiguous land, who receive INR50,000 per acre per year till
the land is developed. After the land is developed, the landlords also will receive 33% of the developed
residential plots in proportion to the land contributed by them to the pool, 33% will be sold by HSVP,
33% will be used for developing services such as roads and parks.[6]

NOIDA
Noida, short for New Okhla Industrial Development Authority, is a planned city[4] located in Gautam
Buddh Nagar district of the Indian state of Uttar Pradesh. It is a satellite city of Delhi and is a part of
the National Capital Region of India. As per provisional reports of Census of India, the population of
Noida in 2011 was 642,381.[5] The city is managed by New Okhla Industrial Development Authority
(NOIDA).[6] The district's administrative headquarters are in the nearby city of Greater Noida.
The city is a part of the Noida (Vidhan Sabha) constituency and Gautam Buddha Nagar (Lok
Sabha) constituency. Minister of State for Culture and Tourism Mahesh Sharma is the present Lok Sabha
MP of Gautam Buddha Nagar, while Pankaj Singh is the present MLA of Noida.[7][8]
Noida was ranked as the Best City in Uttar Pradesh and the Best City in Housing in all of India in "Best
City Awards" conducted by ABP News in 2015.[9][10] Noida replaced Mumbai as the second-
best realty destination, according to an analyst report.[11] Roads in Noida are lined by trees and it is
considered to be India's greenest city with nearly 50% green cover, the highest of any city in
India.[12][13] Noida is ranked 25th cleanest city among cities with less than 10 lakh people.[14]
History[edit]
Noida came into administrative existence on 17 April 1976 and celebrates 17 April as "Noida Day". It
was set up as part of an urbanisation thrust during the controversial Emergency period (1975–1977). The
city was created under the UP Industrial Area Development Act, 1976 by the initiatives of Sanjay
Gandhi.[15] The city has the highest per capita income in the whole National Capital Region. Noida is
classified as a special economic zone (SEZ).[16] The Noida Authority is among the richest civic bodies in
the country.[17]
Geography[edit]
Noida is located in the Gautam Buddh Nagar district of Uttar Pradesh state India. Noida is about 25
kilometres (16 mi) southeast of New Delhi, 20 kilometres (12 mi) northwest of the district headquarters -
Greater Noida and 457 kilometres (284 mi) northwest of the state capital, Lucknow. It is bound on the
west and southwest by the Yamuna River, on the north and northwest by the city of Delhi, on the
northeast by the cities of Delhi and Ghaziabad on the north-east, east and south-east by the Hindon River.
Noida falls under the catchment area of the Yamuna River, and is located on the old river bed. The soil is
rich and loamy
Demographics[edit]
As per provisional data of 2011 census, Noida had a population of 642,381 out of which the male
population was 352,577 and the female population was 289,804. The literacy rate was 88.58 percent.

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Male literacy was 92.90% and female literacy was 83.28%.[5]
Religion in Noida[18]
Religion Percent
Hinduism   90.55%
Islam   7.40%
Sikhism   0.88%
Christianity   0.46%
Others   0.71%
There are people of almost all major religions, but the majority practice Hinduism. Many famous Hindu
temples are located in the city, some of the more famous ones are the Hanuman temple in Sector 22, the
Kalibari Temple in Sector 26, the ISKCON temple in Sector 33, Shree Jagannath Temple in Sector 34,
Sai Baba Temple in Sector 61, Shiv Mandir in Sector 31, Shri Ram Mandir in Sector 36 and the Kuti
Temple at Sec 163 Mohiyapur. A Shia Jama Masjid in Sector 50 and St. Gregorios Indian Orthodox
Church in Sector 51, Mar Thoma Church in Sector 50 and St. Mary's Catholic Church in Sector 34 are
also well known.
Administration[edit]
Authority[edit]
The city's infrastructure is looked after by the NOIDA Authority, a statutory authority set-up under Uttar
Pradesh Industrial Area Development Act, 1976.[15] Authority's head is its Chairman, who is
an IAS officer, the authority's daily matters, however, are looked after by its CEO, who is also
an IAS officer. NOIDA Authority comes under the Infrastructure and Industrial Development
Department of Uttar Pradesh Government. The Chairman of NOIDA Authority is Alok Tandon and CEO
is Ritu Maheshwari.[19][20]
General Administration[edit]
The Gautam Budh Nagar district is a part of Meerut Division, headed by the Divisional Commissioner,
who is an IAS officer of high seniority, the Commissioner is the head of local government institutions
(including Municipal Corporations) in the division, is in-charge of infrastructure development in his
division, and is also responsible for maintaining law and order in the
division.[21][22][23][24][25] The District Magistrate, hence, reports to the Divisional Commissioner
of Meerut. The current Divisional Commissioner of Meerut is Anita C. Meshram (IAS).[26]
Gautam Budh Nagar district administration is headed by the District Magistrate (DM) of Gautam Budh
Nagar, who is an IAS officer. The DM is in charge of property records and revenue collection for the
central government and oversee the national elections held in the city.[21][27][28][29][30]
The District Magistrate is assisted by one Chief Development Officer, three (3) Additional District
Magistrates/ ADM (Executive, Finance & Revenue and Law & Order), and one City Magistrate. The
district has divided into three Sub-divisions named Noida Sadar, Dadri and Jewar each headed by a Sub-
Divisional Magistrate (SDM) who reports to the District Magistrate. The current DM of Gautam Buddha
Nagar (Noida) since 30 March 2020 is Suhas Lalinakere Yathiraj (IAS).
Law Enforcement[edit]
Until January 2020, Gautam Budh Nagar district used to come under Meerut Police zone and Meerut
Police range of Uttar Pradesh Police. Meerut zone is headed by an IPS officer in the rank of Additional
Director General of Police (Additional DGP), whereas Meerut range is headed by an IPS officer in the
rank of Inspector General of Police (IGP).
In January 2020, The Government of Uttar Pradesh, led by Yogi Adityanath announced that Gautam
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Buddha Nagar (Noida) and Lucknow will have Commissionerate Police system[31], headed by a
Commissioner of Police who shall directly report to the DGP of Uttar Pradesh Police. The Commissioner
of Police (Additional DGP rank) is assisted by two Additional Commissioner of Police (Deputy IGP
rank). Below them, there are seven (7) Deputy Commissioner of Police/ DCP (SP rank).
Noida[32] is divided into three (3) police zones ie Noida, Central Noida and Greater Noida, each of them
under a zonal DCP (SP rank). Apart from these three Zonal DCPs, Noida Police has four (4) other DCP
looking after Headquarters, Traffic, Crime and Women Safety. Below them, there are 16 Assistant
Commissioner of Police/ ACP (Deputy SP rank).
The current Commissioner of Noida Police is Alok Singh, an Indian Police Service (IPS) officer of 1995
batch[33].
Infrastructure
Noida stands at 17th place when it comes to cleanliness among cities in India.[34] The creation of
associated physical infrastructure is higher in Noida and Greater Noida.[35] Most of the land in Noida is
not very fertile and the agricultural output is low. It is in the flood plains of the Yamuna River on one side
and the Hindon River on the other. Many villages are visible from the Noida Expressway, beginning from
the Mahamaya flyover to Greater Noida on both sides. One end of Taj expressway terminates on Noida
Expressway near the Hindon River and the other at Agra. Up until the 1980s, these villages were flooded
every 2–3 years, resulting in people temporarily moving to other places in Noida, and even as far as
Mehrauli in Delhi. Noida is also famous for its tall buildings and comes 2nd in India after Mumbai in this
parameter.
There is always a huge amount of revenue surplus each year as they are unable to spend the entire
amount on development or on maintaining civic amenities. Lease rent and interest from builders are the
biggest contributors to Noida’s revenue. Besides, the authority gets huge revenues out of water and
property transfer charges. "The Noida authority had deposited ₹3,500 crore as fixed deposits in various
banks because of surplus funds. Noida has so much surplus funds with it that it can run the city even if it
does not take any taxes from its allottees for 5 years in a row."[36]
A 300 m (980 ft) tall skyscraper named "Spira" is under construction in Noida
Rail/Air[edit]
Noida is not connected by railways directly, but there are railway stations nearby reachable by road,
including Ghaziabad and Anand Vihar. However, New Delhi Railway Station and Old Delhi Railway
station (both accessible through Metro) are the main railway stations ones used most often by commuters
to reach Noida. The nearest airport is the Indira Gandhi International Airport in Delhi.
In June 2017, the Union Government sanctioned the construction of an international airport in Greater
Noida (Jewar) to reduce the traffic of the one in New Delhi.[53]
Bus[edit]
Noida has a bus stand at Morna village in Sector 35. There are regular buses to nearby cities like New
Delhi, Dehradun, Ghaziabad, Tappal, Khair, Aligarh Bulandshahr, Meerut, Muzaffarnagar, Haridwar etc.
Uttar Pradesh Parivahan runs local buses in the city. However, there are plannings to shift the Bus Stand
from Morna.

THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISATION,


REHABILATATION AND RESETTLEMENT ACT, 2013
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act,
2013 is also called land acquisition act 2013 and was brought to replace Land Acquisition Act of 1894,

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enacted during British era. However the act was mired into controversies mainly because of lack of
specific definition of public purpose, thereby, extending even it to the extent of establishment of business-
cum-leisure tourism infrastructure center like villas, golf course, hotels and banquet halls.
The new act seeks to establish a cohesive national law that dealt with the compensation, rehabilitation and
resettlement issues arising out of process of land acquisition. The aims and objectives of the act are:
The acquisition process is carried out in consultation with local self government and gram sabhas,
thereby, ensuring least disturbance is caused to the owners of the land and other affected families.
To ensure that fair compensation is provided to the affected families.
Make adequate provisions for the rehabilitation and resettlement.
In case of compulsory acquisition, endeavor should be made that the affected persons are made partners
in development so as to ensure a smooth rehabilitation process for them post acquisition.
The act is applicable to all the land acquisition whether done by the central or state governments except
the state of Jammu & Kashmir. The provisions of the Act does not apply to acquisitions under 13 existing
legislations including the Special Economic Zones Act, 2005, the Atomic Energy Act, 1962, the Railways
Act, 1989, etc. The Act is applicable when:
Government acquires land for its own use, hold and control, including land for Public sector
undertakings.
Government acquires land with the ultimate purpose to transfer it for the use of private companies for
stated public purpose.
Government acquires land for immediate and declared use by private companies for public purpose.

Salient Provisions of the 2013 Act


Definition of Public Purpose
Section 2(1) of the act defines ‘public purpose’ as the project which involves land acquisition for strategic
purposes or national security and defence of the country. For example-naval, military, air force, and
armed forces of the Union, including central paramilitary forces etc. Other domain which falls under
pubic purpose are-elaborate mention of infrastructure projects, projects for housing for lower income
groups or landless or to persons residing in areas affected by natural calamities or to persons displaced or
affected by reason of the implementation of any scheme undertaken by the Government.
Consent clause
When government acquires the land directly for ‘public purpose’ consent of the land owner is
not required. However, when the government acquires the land for private companies, the consent of at
least 80% of the project affected families shall be obtained through a prior informed process. In case of
acquisition of land for public-private project then the consent of at least 70% of the affected families
should be taken.
Emergency acquisition
Under this the land acquisition can be expedited if it relates to national defense, security and
rehabilitation of affected people from natural disasters or emergencies.
Limits on acquisition
The act does not allow acquisition of land under multi cropped area. The act also mandates that in case of
acquisition of multi cropped area under exceptional circumstances, an equivalent area of cultivable

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wasteland shall be developed by the state for agricultural purposes. In case of acquisition of other
agricultural land, total acquisition should not exceed the limit as specified by an appropriate authority.
These limits shall not apply to linear projects which include projects for railways, highways, major
district roads, power lines, and irrigation canals.
Compensation
It will be four times the market value of land in rural areas and twice in urban areas. The market value of
the land will be set as higher of: minimum land value, if any, specified in the Indian Stamp Act, 1899 or;
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 vicinity of the land being
acquired.
Land Acquisition, Rehabilitation and Resettlement Authority
It is established to adjudicate matters arising out of the implementation of this law. It will be established
by the state government as a “One Person” Land Acquisition, Rehabilitation and Resettlement Authority
with powers of civil court. He must be either qualified to be a District Judge or must have seven years law
practice experience.
Social Impact Assessment
Before the acquisition process starts the government has to carry out a social impact study along with
consultation involving local authorities viz. Gram Sabha, Municipality. The purpose of the study is to
make public the intended ‘public purpose’, the people affected, extent of acquisition etc. The report is
submitted to an expert committee who can after due consideration can also disapprove the project. But he
government can override the disapproval of the committee.
Provision for SC/STs
Their land will be acquired only under exceptional circumstances and that too with the prior consent of
Gram Sabha or Autonomous District Councils in fifth schedule. Moreover, development plan have to be
launched within 5 years to ensure their livelihood is not affected. Also, one-third compensation will be
provided before acquisition and rest after the process is completed.
Land left unused after acquisition
Land acquired for one purpose cannot be used for another purpose under section 99. However if the land
is rendered useless for the originally notified purpose, the appropriate government may use it for another
purpose. If the land acquired is not utilized within a period of five years from the date of taking
possession, it shall be redelivered to the original owner.
Criticisms of the Law
The key criticism of the above law is as follows:
Complex procedure for acquisition
Social impact assessment study along with approval from the expert committee etc is a long and
infeasible process, according to many business leaders. It is primarily because committee clearances in
India are inextricably intertwined with red-tapism and bureaucratic hassles. Also improper land records in
India compounded the problem. Therefore by the time all the clearances are actually obtained, the project
may lose its relevance or the project cost may significantly rise, so many businesses may simply decide to
give it up.
High cost of acquisition
The law has made the compensation too high, thus, stifling investment sentiment in the country.
Consequently various infrastructure projects failed to take off.
Consent of affected families

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Act stipulates to take the consent of affected families also for land acquisition. The term ‘affected
families’ has been defined very capaciously, so it would be a challenging task to find all affected families
and to obtain their consent for acquiring land.
Exemption to 13 acts
The government gave exemption to 13 acts only for a year i.e. upto 1st January 2015.After one year the
government has to bring amendments to withdraw this exemption but the government was not able to do
so. Thus, unless it is done the legislation cannot be implemented effectively.
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement
(Amendment) Bill, 2015
The 2015 bill was amended twice and second amendment bill was passed by the Lok Sabha but got stuck
in the Rajya Sabha. But before this amendment bill was brought, the government promulgated an
ordinance in December, 2014. Apart from bringing other changes, it was dome primarily to include those
13 acts under the legislation which were exempted under land acquisition act 2013 as discussed above.
The ordinance route was resorted as the government was not able to bring the necessary amendment due
to frequent disruptions in parliament and lack of majority of the government in the Rajya Sabha. The
changes brought by the 2015 second amendment bill as passed by the Lok Sabha are discussed below:
Exemption from certain provisions of LARR act, 2013
First, mandatory consent clause of 80% people in case of private projects and 70% in case of PPP projects
is not applicable to the newly defined five categories of land use in the 2015 bill. They are: (i) defense,
(ii) rural infrastructure, (iii) affordable housing (iv) industrial corridors (v) infrastructure projects
including Public Private Partnership (PPP) projects where the government owns the land. Second, the
government may also permit to exempt above categories of land use from Social Impact Assessment
clause and from the restrictions of acquisition of multi cropped land clause of LARR act 2013.
Earlier exempted 13 acts brought land acquisition bill, 2015
The Bill brings the compensation, rehabilitation, and resettlement provisions of these 13 laws in
consonance with the LARR Act, 2013.
Return of unutilized land

Under the LARR Act, 2013, if the acquired land remains unutilized for five years then it has to be
returned to the original owners. New provision says that the period after which unutilized land will need
to be returned will be: (i) five years, or (ii) any period specified at the time of setting up the project,
whichever is later.
Land acquisition for private hospitals and private educational institutions
LARR act, 2013 allowed acquisition of land for private hospitals and educational institutions. However
the new bill has removed this clause.
Title of private ‘company’ changed to private ‘entity
LARR act 2013 was applicable to the private companies as defines in the companies’ act 1956 or under
the Societies Registration Act, 1860. Now the bill substituted private entity in place of private company.
A ‘private entity’ is an entity other than a government entity, and includes a proprietorship, partnership,
company, corporation, non-profit organization, or other entity.
Changes to rehabilitation and resettlement
LARR 2013 calls for employment for at least one member of the family. But the amendments change
this provision to ensure compulsory employment to at least one member of such an ‘affected family of a
farm laborer’.

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Offences by the government
Under the 2013 Act, if an offence is committed by a government department, the head of the department
will be held guilty unless he can show that he had exercised due diligence to prevent the commission of
the offence. The Bill removes this section. It adds a provision to state that if an offence is committed by
a government employee, he can be prosecuted only with the prior sanction of the government.
Changes to Land Acquisition, Rehabilitation and Resettlement Authority
The Act provides for the establishment of a Land Acquisition, Rehabilitation and Resettlement (LARR)
Authority which may be approached in case a person is not satisfied with an award under the Act. The
amendments state that the LARR Authority must hold its hearing in the district where the land acquisition
is taking place, after receiving a reference from the Collector and giving notice of this reference to all
concerned parties.
Change in the time taken for acquiring land
Under the 2013 Act, the minimum time required to complete the acquisition process is 50 months. The
changes proposed in the Bill reduce this time to 42 months.
Discussion
The amendment of LARR Act, 2013 was based on the premise that it would help stalled infrastructure
projects. However, according to economic survey data 2015, out of more than 80 % projects stalled only
8% of them were due to issues in land acquisition. Rest were stuck due to lack of funds or other
bottlenecks operating in the economy. Therefore, the amendments brought were criticized to be hasty and
without any proper consultations.
Second, it is important to understand that the land is not purchased but acquired which shows that the
owner is not willing to part away from his land. So doing away with the consent clause defies all logic
especially when the five categories of land use defined can be extended to comprise any projects under
the sun. There is no rationale that why some projects require consent and other does not require consent.
Critics argue that this amendments seems to be more pro-corporate rather than pro-people
Third, the social impact assessment clause which was the most important tool to make the citizens
understand about the overall modalities of the implementation has been repealed. It is way beyond
understanding even though the government can override the disapproval of the expert committee
overseeing SIA for any land acquisition. The concerns of the delay due to SIA requires hitting the root of
the problem that is cutting red tapism etc. rather than eliminating SIA, the solution to informed consent of
land acquisition process. Fourth, the threshold of the accountability of the government employees has
been raised by requiring the prior sanction of the government.
There is no doubt that the process of land acquisition should be smooth so as to ensure smooth setting up
of development and infrastructure projects. But it is important to look into the valid concerns of the public
especially farmers otherwise it will lead to protests and increased dissatisfaction among the public.

UNIT 3
REAL ESTATE ( DEVELOPMENT AND REGULATION) BILL, 2013

Highlights of the Bill


The Bill regulates transactions between buyers and promoters of residential real estate projects. It
establishes state level regulatory authorities called Real Estate Regulatory Authorities (RERAs).
Residential real estate projects, with some exceptions, need to be registered with RERAs. Promoters
cannot book or offer these projects for sale without registering them. Real estate agents dealing in these

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projects also need to register with RERAs.
On registration, the promoter must upload details of the project on the website of the RERA. These
include the site and layout plan, and schedule for completion of the real estate project.
70% of the amount collected from buyers for a project must be maintained in a separate bank account and
must only be used for construction of that project. The state government can alter this amount to less than
70%.
The Bill establishes state level tribunals called Real Estate Appellate Tribunals. Decisions of RERAs can
be appealed in these tribunals.
Key Issues and Analysis
One may question Parliament’s jurisdiction to make laws related to real estate as “land” is in the State
List of the Constitution. However, it may be argued that the primary aim of this Bill is to regulate
contracts and transfer of property, both of which are in the Concurrent List.
Some states have enacted laws to regulate real estate projects. The Bill differs from these state laws on
several grounds. It will override the provisions of these state laws in case of any inconsistencies.
The Bill mandates that 70% of the amount collected from buyers of a project be used only for
construction of that project. In certain cases, the cost of construction could be less than 70% and the cost
of land more than 30% of the total amount collected. This implies that part of the funds collected could
remain unutilized, necessitating some financing from other sources. This could raise the project cost.
The Standing Committee examining the Bill has made several recommendations. These include: (a) the
Bill should also regulate commercial real estate, (b) smaller projects should also be covered, and (c) all
real estate agents must be required to register.
The real estate sector has some other issues such as a lengthy process for project approvals, lack of clear
land titles, and prevalence of black money. Some of these fall under the State List.
OBLIGATIONS OF THE PROMOTER/BUILDER

That the Promoter shall be obliged to make all information including the approved plans public on its web
page so provided by the Authorities. The Promoter shall not indulge in any kind of misleading advertising
of the project. In case the Promoter is found to have misled the customer/purchaser, the purchaser shall
have the right to withdraw from the Project and all amounts deposited by him towards booking of the
property shall be completely refunded to him. The major obligations of the promoter under the current
Bill is to adhere to the proposed and approved plans by Competent Authority, provide all documents such
as plans, payment schedules, information about the project being linked to the municipal amenities,
obtain completion certificate, execution of conveyance deed for transfer of title, maintain the building till
the time that the Allottees do not take over the maintenance etc.

The Promoter shall not collect any amounts from the Allottees towards booking of the properties till the
Agreement for Sale is entered into. The Promoter would be required to sign an undertaking stating therein
that he has title in the land, it is free from all encumbrances, timelines for the project shall be adhered to,
setting out the time line and that the Promoter shall be obliged to deposit 70% of the amount realised
from the Allottees from time to time in a separate account to be maintained in a scheduled Bank within 15
days of its realization and utilize the same for that project only. The Promoters shall therefore not be able
to circulate their monies for completion of their other projects thus ensuring timely completion of the
projects. The Promoter shall be required to decare its list of Real Estate Agents as well.

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If for any reason the Promoter/builder is unable to complete the project, it shall be liable to refund the
amounts to the Allottees alongwith interest in terms of clause 15 (2) of the Bill and penalty if any as
imposed by the Competent Authority. This shall however be without prejudice to its right to other
remedies. That upon completion of the project and after obtaining completion certificate or occupation
certificate as the case may be the Promoter shall handover the maintenance of the building/plot to the
Allottees. The original title certificates and the building plans shall also be handed over to the association
of the Allottees. If within a year of handing over of the property there are any structural defects or
deficiencies noticed , the Promoter shall be obliged to rectify the same without further charge and within
a reasonable time. In case of failure to do the same the Allottees shall be entitled to
compensation/damages as may be determined by the Competent Authority.

OBLIGATIONS OF THE ALLOTTEES

The Allottee shall be obliged to pay the amounts due towards the consideration of purchase of the
pot/building/apartment as agreed upon and in case of any delay in payment the same shall be payable
alongwith interest thereon as agreed between the parties. The proportionate share of Municipal taxes,
water electricity charges , ground rent, registration charges etc. shall also be payable by the Allottee.

REGULATORY AUTHORITY

Under the Bill it has been provided that the Government shall establish an authority which shall be known
as the Real Estate Regulatory Authority whose prime function would be to regulate the real estate
development and to promote the real estate sector. The Authority shall have the Power to set up a Dispute
Resolution Mechanism for amicable settlement of dispute through Mediation, conciliation etc and shall
appoint such officers as it may deem appropriate for the said purpose.

The Authority may upon a complaint made or on a suo moto complaint summon the Promoter, Allottee or
any person connected with such complaint and seek explanation in regard to the complaint so made.
While doing so the Authority shall have the same powers as a Civil Court under the Code of Civil
Procedure 1908. The authority shall also have the power to execute the orders passed by it in case the
party fails to comply.

There is no specific format prescribed under the Bill for making complaints before the Authority however
it has been provided that the Authority shall on a later date prescribe the format , fee etc for complaints,
applications etc.

Having been bestowed with the powers of a Civil Court the Legislative has exclude the Civil Courts from
interfering in such matters unless there is a specific reference from the Authorities itself.

APPELLATE TRIBUNAL

Any appeal from an order of the Regulatory Authority could be preferred before the Appellate Tribunal
within a period of 30 days in the format so prescribed from the date of receiving the order by the

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concerned party or the Competent Authority or State Government. Any delay in preferring the appeal
could be condoned upon showing good cause for such delay. The said appeal is required to be disposed
off by the Appellate Authority within 90 days failing which they shall have to record reasons for not
doing so. The said Appellate Authority would not be bound by the provisions of the CPC or the Evidence
Act and could formulate its own rules. However the Powers of the Appellate Authority would be akin to
that of a Civil Court under the CPC both in terms of deciding the appeal and execution of the
order/decree. The Appellate Authority would however be at liberty to refer the order/decree for execution
to a Civil Court of appropriate jurisdiction as if the said order/decree had been passed by the said Civil
Court.

PROSECUTION AND PENALTIES

The Bill provides for prosecution and penalties in case there is a default by the Promoter on the following
counts:

If the promoter wilfully neglects to obtain the Registration Certificate he shall be punishable with
imprisonment which may extend to 3 years or penalty which may extend to 10% of the total estimated
cost of the project or both
If the promoter contravenes any other provision of the Act he may have to pay penalty which could
extend to 5% of the total estimated cost of the project
If the promoter wilfully disobeys the orders/directions passed by the Authority he shall be liable to pay a
penalty of Rs. 1 lakh per day which may extend to 5% of the total estimated cost of the project
If the promoter wilfully disobeys the orders/directions passed by the Tribunal he shall be punishable with
imprisonment upto one year or a penalty of which may extend to 10% of the total estimated cost of the
project or both

In case of a Company all persons responsible for the day to day activities of the Company and in-charge
of the affairs of the Company shall be prosecuted unless he is able to prove that the default was not within
his knowledge. The Court before which the case is being prosecuted shall have the power to compound
the offence.

The aforementioned rules, regulations procedures and proceedings as set out in the draft Bill available in
the public domain shall be codified by the Legislature and enacted in all the States and it shall then be the
responsibility of the State to regulate the Real Estate Sector and prevent malpractices of the
Builders/Promoters. The ACT which shall come into being soon shall bring more clarity with regard to
the various forms, formats, applications, fees for applying for various approvals by the Promoters,
formats for filing complaints before the Regulatory Authority and appeal before the Appellate Authority,
and rules relating to the exercise of power by the Regulatory Authorities in States and the Appellate
Tribunal. The enactment of the Bill is most awaited by the promoters and investors as only thereafter
would it be clear whether the attempt to regulate the Real Estate Sector has a positive or a negative
impact on the real estate market.
DELHI APARTMENT OWNERSHIP ACT, 2009

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The construction of multi-storied apartment buildings in Delhi has been a constant affair throughout the
region’s history post-independence. Being the national capital, Delhi has attracted people from both
within the country and abroad, primarily because of the lucrative business and investment opportunities
on offer in this region. This has resulted in a strong demand for living in apartment buildings and
complexes.

In the past, the regular construction of apartments in Delhi used to cause avoidable litigation, as the rights
and obligations of the apartment owners and associations weren’t set in stone, legally. So in the year
1986, the Delhi apartment ownership Act was drafted and passed by the parliament.

The Act clarifies the rights and obligations of apartment owners, such as in relation to inheritance,
restrictions on transfers like mortgage and sale, and the right to common areas and facilities.

Understanding the Terms used in the Act


Administrator : An Administrator is an authority appointed to the union territory of Delhi, by the
President of India, as mandated by the Article 239 of the constitution.

Authority : An authority is one who is established or constituted under a law.


Bye-Laws : Bye-laws are laws made under the Delhi Apartment Ownership Act, 1986.

Common Areas and Facilities : Common Areas and Facilities constitutes the land on which the multi-
storied apartment building is located, the gardens, basements, cellars, parking areas, and any other such
creations, and all the structural elements like lobbies, corridors, fire escapes, and beams and columns.

Common Expenses and Common Profits : Common expenses are sums of money, lawfully assessed
against the apartment owners, which go into administration, repair, and maintenance or for modifying
common areas and facilities.

After the deduction of the common expenses, what’s left after balancing all the incomes and profits are
the common profits.
The Key Features Of The Act

Applicability of the Act

The Delhi Apartment Ownership Act, 1986 is applicable to all multi-storied apartment buildings, with at
least two stories and four units, constructed by any group housing co-operative society, person, or
authority, before or after the commencement of the Act.
The Act is applicable to the whole of the union territory of Delhi.

Bye-Laws to be framed as per administrator’s Model Laws

The bye-laws framed by any association of apartment owners should be exactly in accordance with the
model bye-laws framed by the Administrator. In case the association wishes to make any changes, the
members of the association require a prior approval from the Administrator.

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Apartments to be heritable and transferable

According to the Act, every apartment, including its common areas and facilities, will be a transferable
and heritable immovable property. The apartment owner can transfer his apartment and his share of the
non-partitioned common areas and facilities by way of lease, mortgage, sale, exchange, or gift.
Common Areas and Facilities to be used by all apartment owners for intended purposes

All common areas and facilities will be available for use by all apartment owners. The common areas and
facilities will not be divided or partitioned. Each apartment owner will use it for the purpose that it’s
intended for, without hindering or encroaching upon another apartment owner’s right to use the space.

The Common Profits and Expenses to be shared in a certain proportion

The profits will be distributed, and the expenses charged, to all the apartment owners in proportion of the
percentage of the undivided interest they hold in the common areas and facilities.

Sometimes it so happens that the apartment owner isn’t an occupant of his or her apartment. In this case,
the person currently occupying that apartment needs to pay his or her share of the common expenses.

Certain Works Are Prohibited

No apartment owner can make such changes to the structure of the apartment as would lead to the
reduction in the property value and affect the safety and soundness of the property. To do so, one would
have to acquire consent from all the apartment owners of the association.
Excavating a cellar or additional basement, or adding any material structure is the kind of works that are
prohibited.

What the Act means for the people involved?

An apartment owner can easily transfer, purchase, or gift multi-storied residential and commercial
apartments, co-operative group housing society apartments, and private apartments.

Earlier, the apartments in Delhi were monopolized by such parties as the Registrar of the Group Housing
Society, Delhi Development Authority (DDA), and the builders. With the implementation of this Act, this
monopoly comes to an end. All of the rights are now given to the associations of apartment owners.

UNIT 4

DELHI RENT CONTROL ACT


INTRO TO DELHI RENT CONTROL LEGISLATION IN DELHI 1958 AND 1966

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INTRODUCTION
Rent Delhi’s Rent Control Bill was approved by both Houses of Parliament and approved by the
President on December 31, 1958. It came into force on February 9, 1959 as the Delhi Rent Control Act
1958. It extends to areas within the limits of the New Delhi Municipal Committee and the Delhi
Cantonment Board and the Delhi Municipal Corporation for urban areas. Courts are legally bound to read
the provisions of the law harmoniously to balance the rights of the landlord and the obligations of the
tenant.
Rent control measures are needed when demand for rental property exceeds supply and tenants are
exploited by landlords. These rent control laws (RCAs), including the Rent Delhi Rent Control Act 1958,
are intended to serve two main purposes: protect the tenant from paying more than the standard rent and
protect the tenant from unilateral eviction.
A LANDLORD PERSPECTIVE
Delhi Rent Control Act 1958 is largely considered tenant-friendly and does not help the landlords cause.
Low return rates have almost made the lease a welfare activity for the landlord, and the unwillingness to
repair and maintain the property often causes the building to collapse1. Therefore, the quality of the
housing is badly hit. Prospective landlords prevent new stock supply from entering the rental market.
LIMITING RENT REVISION
Under Section 6A of the Act, the standard rent, or, if the standard rent is not determined by the provisions
of this Act in respect of any premises, the tenancy agreed between the landlord and tenant may be
increased by ten per cent every three years. The 1958 Act does not have the mechanism to bring historical
rent to the current market rate and permanently gives the tenant the luxury of paying less than Rs 3,500
per month. The law clearly states that all those who pay less will have protection. An amendment in 1988
allowed landlords to increase rent by 10 percent every three years. As a result, a tenant paying a rent of
Rs 10 in 1988 hits the ceiling of Rs 3,500 after 184 years. Even paying someone Rs 1,000 in 1988 will
cross over in 2027.
If the landlord has spent any improvements, additions or structural alterations on the premises, no
expenditure on furnishings, or any necessary or general rent for such premises, and no improvements,
additions or modifications have been made to account for determining the premises rent, he may legally
increase the standard rent annually.
DIFFICULTY IN EVICTING TENANT
The second debilitating effect of the law is the difficulty the landlord faces in removing the tenant. The
conditions under which a landlord can evict a tenant are strict and strictly monitored and can rarely rob
the landlord’s property. The Delhi Act has provisions that allow tenants to rely on the tenant after death,
which cancels the tenant’s landlord’s impossibility.
Another drawback of the rule is the mismatch between the tenant’s ability to pay rent and the type of
accommodation available. Rent control measures have significant administrative costs and extensive
approach to law enforcement. Tenants dare by law to make withdrawals and alterations in buildings
without the owner’s permission.
THE HIGH COST OF MAINTAINING THE PROPERTY
Under the regulatory regime, rents continue to remain low, while operating costs continue to rise. The
situation is even more serious in the case of older tenants who have frozen rents at a historically low
level. In the case of these old features, the need for maintenance is high. Old housing stock suffers
premature decay and decline because the landlord finds it difficult to manage.

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REMOVAL FROM COMMERCIAL PREMISES IS PERMITTED
The Delhi Rent Control Act, 1958 limits the expulsion of tenants from commercial premises because of
the commercial space in the city at that time. But that was a long time ago. Now this scenario has
undergone a sea change and a large number of buildings and courtyards are now rented out for non-
residential and commercial purposes.
The Supreme Court has held that the High Court has failed to meet this provision, reversing the full bench
ruling of the Delhi High Court, which refused to change the law in favor of landlords as it has been in
force for more than 45 years2. The 1958 Act has outlived its purpose. To eliminate this disorder and
reduce the differential approach to the law, the Supreme Court bench of Justice BN Agarwal and GS
Singhvi said landlords can now demand the removal of tenants from proven residential and commercial
premises based on individual needs.
TENANTS PERSPECTIVE
Many RCAs are products of World War I, requiring stringent rent control for soldiers in accessible
accommodation.[1] Delhi Rent Control Act 1958 has become a tool for harassing landlords over the next
four decades; in the interests of tenants and even if it works well for them.
LANDLORDS EXPLOITED STUDENTS
While many agree that the 1958 law favors tenants, a section of the tenant community appeals that the
unfunded status of the law allows landlords to exploit it. This section is for outstation students studying in
colleges in Delhi. These students who are miles away from home have no choice but to ignore the
demands of the most defenseless tenants and their landlords.
PROTECTION AGAINST EVICTION
A tenant cannot arbitrarily ask his landlord to vacate his premises. Non-payment or discretionary
withdrawals are the only two technical defaults by the tenant, which allows a landlord to take back his
property. Under the Status of Rent Control Act, tenants of a legal tenant are entitled to the same
protection against eviction as is fair to tenants.
However, eviction can now be sought and sought on bonafide requirements and can be claimed not only
for the property owner but also for his or her dependent family. Tenants claim that landlords, desperate to
evacuate their property, resort to illegal means, such as paying the reverse ‘pagree’ (interest free security
deposit), to evict them or to help organized gangs or locals. Police forcibly removed.
The Delhi Central Business District and its peripheral areas are governed by the Delhi Rent Control
(DRC) Act, 1948. Landlords under the Ancient Rent Control Act have a limit on their right to increase
monthly rent, which is 10 percent less every three years.
After the partition, Delhi saw a huge influx of migrants, which pushed the government to resettle
thousands of people. The government is cautious about the social acceptance of all these migrants and
fears of rejecting and removing tenants without prior notice from landlords.
To deal with this issue, 8 Delhi and Ajmer-Mewara Rent Control Act, 1948, thereafter 8 Delhi Rent
Control Act, 1958, established. Under these laws, tenants are entitled to protect from premature eviction.
The motivation behind the law is the protection of economically weaker sections that cannot afford a
home or apply for loans because of low credit scores.
Under this law, the government limits the rent, distorts the tenants, and makes it common interest among
investors to buy a property in Delhi.4 In 1988, the Act was amended, giving an exemption from rent
control legislation of more than Rs 3,500 per month. To this day, the law continues with the same old
rules, meaning that landlords now do not have the right to amend the lease. Furthermore, they cannot
even evict the tenant unless they are in extreme circumstances.

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COURT PETITIONS FOR SEVERAL YEARS
The total number of appeals or petitions before the district and the number of additional judges of the
Delhi High Court (HC) is over 10,000. Approximately 27.9 percent of all civil cases related to rent
control are under the DRC Act, which has not been amended for more than three decades. In 2010, a
group of three lawyers and activists challenged the image of the old provisions of the law.
In January this year, a group of landowners approached the Delhi HC bench challenging the
constitutionality of the law. This appeal argues that the property is regulated by the tenant, regardless of
the market rent, but was ultimately rejected by the court. The Repeal Committee of the Delhi Rent
Control Act pledges to take these appeals to the Supreme Court later this year, where they hope some
justice will be given to landlords.
OVERCOMING THE CHALLENGES FACED BY THE DRCA
Homeowners in areas covered by the DRCA are on the fence of renting out their property due to the lack
of consideration they can get under the law. The situation is ubiquitous. Residential and commercial
pockets of the Central District, where more than 10 percent of litigation in district courts is under the
DRC Act.
The law allows landlords to increase monthly rentals by 10 percent every three years. This is in stark
contrast to the average increase in rents in these areas over the years. When the Act was last amended, the
realization of this rate failed to yield a substantial return on investment for the landlord, since the actual
monthly rent was around Rs 10 to a maximum of Rs 1,000 in 1988. The law states that assets will be
covered under the DRC Act until the average rent reaches 3,500. Here is an analysis of how many years
the property will take to get a monthly rental 3,500, which in most cases runs for more than 50 years.
Rent as on 1988 (in Rs) Years until monthly rent amount to Rs 3,500
10 184.38
50 133.71
100 111.09
200 90.09
300 77.31
400 68.25
500 61.23
600 55.5
700 50.64
800 46.44
900 42.72
1000 39.42
Source: Petitioners appeal to the Court, January 2019
CONSEQUENCES OF THE ANCIENT RENT ACT IN RENT DELHI
The DRC law reduces the quality of housing because landlords are not interested in maintaining
properties or improving the quality of amenities, which ultimately leads to lower returns5.[2] These laws
not only limit supply but also drive out legitimate seekers of rented housing, which resolves tenants for
unregistered and unauthorized arrangements.
Deepak Chawla, DCRE Properties, South Delhi said landlords are not motivated to make any
improvement in property because of the low return under the provisions of the DRC Act and the PAGD
system. But,
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This year, the Delhi government has allowedthe legislation to increase the rent by 25 per cent to fund the
building’s landlords, especially the pagdi system and repair works, as most of these buildings are without
safety standards. The rules governing DRC law are generally favorable to the tenant, although some states
may take the consequences of the rent control authorities of other states. For example, the Tamil Nadu
government has now come up with ways to balance rent control legislation.
The state is expected to increase the rental market in this state to handle eviction disputes.
Withdrawing rent control increases property owner confidence by targeting positive rental returns and
thereby helping to unlock the potential of the rental housing market.
There have been petitions in HCs of Maharashtra, Tamil Nadu and Karnataka, calling for the
repeal of such anti- rent control laws. While some of these appeals have come to fruition, Delhi may not
be far away from establishing a favorable tenancy law for parties, tenants and landlords
CONCLUSION
The biggest downfall of the Delhi Rent Control Act is that the income from the property is
stagnant as the income of the property is stagnant .This has led to the emergence of methods such as key
money. Therefore, the law has reduced access to low-income communities for renters, not only because
of the black market in rented houses, but because they cannot pay large deposits for rented premises.
Widespread disagreement between the interests of landlords and tenants has led to an increase in
litigation under the Act. A large number of criminal cases are in disputes over rental properties.
The 1995 Act replaces the old law of 1958, which protected immigrant people from the arbitrary
rent increase of wealthy landlords. While property values have skyrocketed, landlords who adhere to rent
control regulations continue to receive lower rents. The 1995 law was passed by both Houses of
Parliament and was approved by the President, but after the tenants’ street protests, the government lost
the will to notify it.
DELHI RENT CONTROL ACT
2. Definitions. -
In this Act, unless the context otherwise requires-
(A) Basic rent", in relation to premises let out before the 2nd day of June, 1944, means the basic rent of
such premises as determined in accordance with the provisions of the Second Schedule;
(b) "Controller" means a Controller appointed under sub-section (1) of section 35 and includes an
additional Controller appointed under sub-section (2) of that section;
(c) "Fair rate" means the fair rate fixed under section 31 and includes the rate as revised under section 32;
(d) "Hotel or lodging house" means a building or part of a building where lodging with or without board
or other services is provided for a monetary consideration;
(e) "Landlord" means a person who, for the time being is receiving, or is entitled to receive, the rent of
any premises, whether on his own account or on account of or on behalf of, or for the benefit of, any other
person or as a trustee, guardian or receiver for any other person or who would so receive the rent to be
entitled to receive the rent, if the premises were let to a tenant;
(f) "Lawful increase" means an increase in rent permitted under the provisions of this Act;
(g) "Manager of a hotel" includes any person in charge of the management of the hotel;
(h) "Owner of a lodging house" means a person who receives or is entitled to receive whether on this own
account or on behalf of himself and others or as an agent or a trustee for any other person, any monetary
consideration from any person on account of board, and lodging or other services provided in the lodging
house;
( i ) "premises" means any building or part of a building which is, or is intended to be, let separately for

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use as a residence or for commercial use or for any other purpose, and includes.-
( i ) the garden, grounds and outhouses, if any, appertaining to such building or part of the building;
(ii) any furniture supplied by the landlord for use in such building or par of the building;
but does not include a room in a hotel or lodging house;
(j) "prescribed" means prescribed by rules made under this Act;
(k) "standard rent", in relation to any premises, means the standard rent referred to in section 6 or where
the standard rent has been increased under section 7, such increased rent;
[(l) (Note: Subs. by Act 18 of 1976, sec.2, for clause (1) ( w.r.e.f . 1-12-1975)) "tenant" means any person
by whom or on whose account or behalf the rent of any premises is, or, but for a special contract, would
be, payable, and includes-
( i ) a sub-tenant;
(ii) any person continuing in possession after the termination of his tenancy; and
(iii) in the event of the death of the person continuing in possession after the termination of his tenancy,
subject to the order of succession and to this clause, such of the aforesaid person’s-
(a) spouse,
(b) son or daughter, or, where there are both son and daughter, both of them,
(c) parents,
(d) daughter-in-law, being the widow of his pre-deceased son, as had been ordinarily living in the
premises with such person as a member or members of his family up to the date of his death, but does not
include,-
any person against whom an order or decree for eviction has been made, except where such decree or
order for eviction is liable to be re-opened under the proviso of section 3 of the Delhi Rent Control
(Amendment) Act, 1976 (18 of 1976);
(B) any person to whom a license, as defined by section 52 of the Indian Easements Act, 1882 (5 of
1882), has been granted.
Explanation1.-The order of succession in the event of the death of the person continuing in possession
after the termination of his tenancy shall be as follows:-
(a) firstly, his surviving spouse;
(b) secondly, his son or daughter, or both, if there is no surviving spouse, or if the surviving spouse did
not ordinarily live with the deceased person as a member of his family up to the date of his death;
(c) thirdly, his parents, if there is no surviving spouse, son or daughter or any of them, did not ordinarily
live in the premises as a member of the family of the deceased person up to the date of his death; and
(d) fourthly, his daughter-in-law, being the widow of his pre-deceased son, if there is no surviving spouse,
son, daughter or parents of the deceased person, or if such surviving spouse, son, daughter or parents, or
any of them, did not ordinarily live in the premises as a member of the family of the deceased person up
to the date of his death.
Explanation II.-If the person, who acquires, by succession, the right to continue in possession after the
termination of the tenancy, was not financially dependent on the deceased person on the date of his death,
such successor shall acquire such right for a limited period of one year; and on the expiry of that period,
or on his death, whichever is earlier, the right of such successor to continue in possession after the
termination of the tenancy shall become extinguished.
Explanation III.- For the removal of doubts, it is hereby declared that, -
(a) where, by reason of Explanation II, the right of any successor to continue in possession after the
termination of the tenancy becomes extinguished, such extinguished shall not affect the right of any other

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succession of the same category to continue in possession after the termination of the tenancy; but if there
is no other successor of the same category, the right to continue in possession after the termination of the
tenancy shall not, on such extinguishment, pass on to any other successor, specified in any lower category
or categories, as the case may be;
(b) the right of every successor, referred to in Explanation I, to continue in possession after the
termination of the tenancy, shall be personal to him and shall not, on the death of such successor, develop
on any of his heirs];
(m). "urban area" has the same meaning as in the Delhi Municipal Corporation Act, 1957 (66 of 1957).
GROUNDS OF EVICTION
14. Protection of tenant against eviction. –
(1) Notwithstanding anything to the contrary contained in any other law or contract, no order or decree
for the recovery of possession of any premises shall be made by and court or Controller in favour of the
landlord against a tenet:
Provided that the Controller may, on an application made to him in the prescribed manner, make an order
for the recovery of possession of the premises on one or more of the following grounds only, namely:-
(a) That the tenant has neither paid nor tendered the whole of the arrears of the rent legally recoverable
from him within two months of the date on which a landlord in the manner provided in section 106 of the
Transfers of
Property Act, 1882 (4 of 1882);
(b) That the tenant has, on or after the 9th day of June, 1952, sublet, assigned or otherwise without
obtaining the consent in writing of the landlord;
(c) That the tenant has used the premises for purpose other than that for which they were let-
(i) If the premises have been let on or after the 9th day of June, 1952, without obtaining the consent in
writing of the landlord; or
(ii) If the premises have been let before the said date without obtaining his corisent;
(d) That the premises were let for use as a residence and neither the tenant nor any member of his family
has been residing therein for a period of six months immediately before the date of the filing of the
application for the recovery of possession thereof;
(e) That the premises let for residential purpose are required bona fide by the landlord for occupation as a
residence for himself or for any member of his family dependent on him, if he is the owner thereof , or for
any person for whose benefit the premises are held and the landlord or such person has no other
reasonably suitable residential accommodation;
Explanation.- For the purpose of this clause, “premises let for residential purpose” include any premises
which having been let for use as a residence are, without the consent of the landlord, used incidentally for
commercial or other purposes;
(f) That the premises have become unsafe or unfit for human habitation and are required bona fide by the
landlord for carrying out repairs which cannot be carried out without the premises being vacated;
(g) That the premises are required bona fide by the landlord for the purpose building or re-building or
making thereto any substantial additions or alterations and that such building or re-building or addition or
alteration cannot be carried out without the premises being vacated;
(h) That the tenant has, whether before or after the commencement of this Act, (Note: The word “built”
omitted by Act 57 of 1988, sec.8 (w.e.f. 1-12-1988)) acquired vacant possession of, or been allotted, a
residence;
[(hh) (Note: Ins. by Act 57 of 1988, sec.8 (w.e.f. 1-12-1988)) That the tenant has, after the

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commencement of the Delhi Rent Control (Amendment) Act, 1988, built a residence and ten years have
elapsed there-after;]
(i) That the premises were let to the tenant for use as a residence by reason of his being in the service or
employment of the landlord, and that the tenant has ceased, whether before or after the commencement of
this Act, to be in such service or employment;
(j) That the tenant has, whether before or after the commencement of this Act, caused or permitted to be
caused substantial damage to the premises;
(k) That the tenant has, notwithstanding previous notice, used or dealt with the premises in a manner
contrary to any condition imposed on the landlord by the Government or the Delhi Development
Authority or the Municipal Corporation of Delhi while giving him a lease of the land on which the
premises are situate;
(i) That the landlord requires the premises in order to carry out any building work at the instance of the
Government or the Delhi Development Authority or the Municipal Corporation of Delhi in pursuance of
any improvement scheme or development scheme and that such building work cannot be carried out
without the premises being vacated.
(2) No order for the recovery of possession of any premises shall be made on the ground specified in
clause (a) of the proviso to sub-section (1) if the tenant makes payment or deposit as required by section
15:
Provided that no tenant shall be entitled to the benefit under this sub-section, if, having obtained such
benefit once in respect of any premises, he again makes a default in the payment of rent of those premises
for three consecutive months.
(3) No order for the recovery of possession in any proceeding under sub-section (1) shall be binding on
any sub-tenant referred to in section 17 who has given notice of his sub-tenancy to the landlord under the
provisions of that section, unless the sub-tenant is made a party to the proceeding and the order for
eviction is made binding on him.
(4) For the purpose of clause (b) of the proviso to sub-section (1), any premises which have been let for
being used for the purpose of business or profession shall be deemed to have been sub-let by the tenant, if
the Controller is satisfied that the tenant without obtaining the consent in writing of the landlord has, after
the 16th day of August, 1958, allowed any person is a partner of the tenant in the business or profession
but really for the purpose of sub-letting such premises to the person.
(5) No application for the recovery of possession of any premises shall lie under sub-section (1) on the
ground specified in clause (c ) of the proviso thereto, unless the landlord has given to the tenant a notice
in the prescribed manner requiring him to stop the misuse of the premises and the tenant has refused or
failed to comply with such requirement within one month of the date of service of the notice; and no
order for eviction against the tenant shall be made in such a case, unless the Controller is satisfied that the
misuse of the premises is of such a nature that it is a public nuisance or that it causes damage to the
premises or is otherwise detrimental to the interest of the landlord.
(6) Where a landlord has acquired any premises by transfer, no application for the recovery of possession
of such premises shall lie under sub-section (1), on the ground specified in clause (e ) of the proviso
thereto, unless a period of five years have elapsed from the date of the acquisition.
(7) Where an order for the recovery of possession of any premises is made on the ground specified in
clause(c ) of the proviso to sub-section (1), the landlord shall not be entitled to obtain possession thereof
before the expiration of a period of six months from the date of the order.
(8) No order for the recovery or possession of any premises shall be made on the ground specified in

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clause (g) of the proviso to sub-section (1), unless the Controller is satisfied that the proposed
reconstruction will not radically after the purpose for which the premises were let or such ramidically
alteration is in the public interest, and that the plans and estimates of such reconstruction have been
properly prepared and that necessary fund for the purpose are available with the landlord.
(9) No order for the recovery of possession of any premises shall be made on the ground specified in
clause (I) of the proviso to sub-section (1), if the Controller is of opinion that there is any bona fide
dispute as to whether the tenant has ceased to be in the service or employment of the landlord.
(10) No order for the recovery of possession of any premises shall be made on the ground specified in
clause ,(i) of the proviso to sub-second (1) if the tenant, within such time as may be specified in this
behalf by the Controller, carries out repairs to the damage caused to the satisfaction of the Controller or
pays to the landlord such amount by way of compensation as the Controller may direct .
(11) No order for the recovery of possession of any premises shall be made on the ground specified in
clause(k) of the proviso of sub-section (1), if the tenant, within such time as may be specified in this
behalf by the Controller, complies with the condition imposed on the landlord by any of the authorities
referred to in that clause or pays to that authority such amount by way of compensation as the Controller
may direct.
COMMENTS
(i) Payment of rent or monetary consideration by sub-tenant to tenant may have been made secretly, the
law does not require such payment to be proved by affirmative evidence and the court is permitted to
draw its own inference upon the facts of the case proved at the trial, including the delivery of exclusive
possession to infer that the premises were sub-let; M/s Bharat Sales Ltd. v. Life Insurance Corporation of
India, AIR 1998 SC 1240.
(ii) It is settled principle of law that if a tenanted premises is a house then it means that letting was for
residing and house means a dwelling place. If tenant gives address of his house for commercial
communication or correspondence, then it would not mean commercial user; Shri Kishan Lal v. Shri
Rajan Chand Khanna, AIR 1993 Del 1.
iii) The law is well settled that the landlord is entitled to assess the need and requirement for himself and
hisother family members. Neither the court nor the tenant can dictate to him the mode and manner in
which he should live or to prescribe for him a residential standard of their own; Devi Ram v. Ram
Kapoor, 76 (1998) DLT 637.
(iv) Sub-section (11) of section 14 enables the Controller to give an another opportunity to the tenant to
avoid an order of eviction. Where the authority concerned requires stoppage of misuser then an order to
that effect has to be passed, but where the authority merely demands compensation for misuser then only
in such a case would the Controller be justified in passing an order for payment of compensation alone;
Dr. K. Madan v. Smt. Krishnawati, AIR 1997 SC 579.
14A. Right to recover immediate possession of premises to accrue to certain persons. –
(1) Where a landlord who, being a person in occupation of any residential premises allotted to him by the
Central Government or any local authority is required, by, or in pursuance of, any general or special order
made by that Government or authority, to vacate such residential accommodation, or in default, to incur
certain obligations, on the ground that he owns, in the Union territory of Delhi, a residential
accommodation either in his own name or in the name of his wife or dependent child, there shall accrue,
on and from the date of such order, to such landlord, notwithstanding anything contained elsewhere in
this Act or in any other law for the time being in force or in any contract (whether express or implied),
custom or usage to the contrary, a right to recover immediately possession of any premises let out by him:

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Provided that nothing in this section shall be construed as conferring a right on a landlord owning, in the
Union territory of Delhi, two or more dwelling houses whether in his own name or in the name of his
wife or dependent child to recover the possession of more than one dwelling house and it shall be lawful
for such landlord to indicate the dwelling house, possession of which hi intends to recover.
(2) Notwithstanding anything contained elsewhere in this Act or in any there law for the time being in
force or in any contract, custom or usage to the contrary, where the landlord exercises the right of
recovery conferred on him by sub-section (1), no compensation shall be payable by him to the tenant or
any person claiming through or under him and no claim for such compensation shall be entertained by
any court, tribunal or other authority:
Provided that where the landlord had received,-
(a) any rent in advance from the tenant, he shall, within a period of ninety days from the date of recovery
of possession of the premises by him, refund to the tenant such amount as represents the rent payable for
the unexpired portion of the contract, agreement or lease;
(b) any other payment, he shall, within the period aforesaid, refund to the tenant a sum which shall bear
the same proportion to the total amount received as the unexpired portion of the contract or agreement, or
lease bears to the total period of contract or agreement or lease:
Provided further that, if any default is made in making any refund as aforesaid, the landlord shall be liable
to pay simple interest at the rate of six per cent. per annum on the amount which he has omitted or failed
to refund
14B. Right to recover immediate possession of premises to accrue to members of the armed forces, etc. –
(1) Where the landlord-
(a) is a released or retired person from any armed forces and the premises let out by him are required for
his own residence; or
(b) is a dependent of a member of any armed forces who had been killed in action and the premises let out
by such member are required for the residence of the family of such member, such person or, as the case
may be, the dependant may, within one year from the date of his release or retirement from such armed
forces or, as the case may be, the date of death of such member, or within a period of one year from the
date of commencement of the Delhi Rent Control (Amendment) Act, 1988, whichever is later, apply to
the Controller for recovering the immediate possession of such premises.
(2) Where the landlord is a member of any of the armed forces and has a period of less than one year
preceding the date of his retirement and the premises let out by him are required for his own residence
after his retirement, he may, at any time, within a period of one year before the date of his retirement,
apply to the Controller for recovering the immediate possession of such premises.
(3) Where the landlord referred to in sub-section (1) or sub-section (2) has let out more than one
premises, it shall be open to him to make an application under that sub-section in respect of only one of
the premises chosen by him.
Explanation.-For the purpose of this section, “armed forces” means an armed force of the Union
constituted under an Act of Parliament and includes a member of the police force constituted under
section 3 of the Delhi Police Act, 1978 (34 of 1978).
14C. Right to recover immediate possession of premises to accrue to Central Government and Delhi
Administration employees. –
(1) Where the landlord is a retired employee of the Central Government or of the Delhi Administration,
and the premises let out by him are required for his own residence, such employee may, within one year
from the date of his retirement or within a period of one year from the date of commencement of the

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Delhi Rent Control (Amendment) Act, 1988, whichever is later apply to the Controller for recovering the
immediate possession of such premises.
(2) Where the landlord is an employee of the Central Government or of the Delhi Administration and has
a period of less than one year preceding the date of his retirement and the premises let out by him are
required by him for his own residence after his retirement, he may, at any time within a period of one year
before the date of his retirement, apply to the Controller for recovering the immediate possession of such
premises.
(3) Where the landlord referred to in sub-section (1) or sub-section (2) has let out more than one
premises, it shall be open to him to make an application under that sub-section in respect of only one of
the premises chosen by him.
14D. Right to recover immediate possession of premises to accrue to a widow. –
(1) Where the landlord is a widow and the premises let out by her, or by her husband, are required by her
for her own residence, she may apply to the Controller for recovering the immediate possession of such
premises.
(2) Where the landlord referred to in sub-section (1) has let out more than one premises, it shall be open
to her to make an application under that sub-section in respect of any one of the premises chosen by her.
DISPUTE SETTLEMENT MECHANISM
35. Appointment of Controllers and Additional Controllers. –
(1) The Central Government may, by notification in the Official Gazette, appoint as many Controllers as
it thinks fit, and define the local limits within which, or the hotels and lodging houses in respect of which,
each Controller shall exercise the powers conferred, and perform the duties imposed, on Controllers by or
under this Act.
(2) The Central Government may also, by notification in the Official Gazette, appoint as many additional
Controllers as it thinks fit and an additional Controller shall perform such of the functions of the
Controller as may, subject to the control of the Central Government, be assigned to him in writing by the
Controller and in the discharge of these functions, an additional Controller shall have and shall exercise
the same powers and discharge the same duties as the Controller.
(3) A person not be qualified for appointment as a Controller or an additional Controller, unless he has for
at least five years held a judicial office in India or has for at least seven years been practicing as an
advocate or a pleader in India.
36. Powers of Controller. –
(1) the Controller may-
(a) Transfer any proceeding pending before him for disposal to any additional Controller, or
(b) Withdraw any proceeding pending before any additional Controller any dispose it of him or transfer
the proceeding for disposal to any other additional Controller.
(2) The Controller shall have the same powers as are vested in a civil court under the Code of Civil
Procedure, 1908 (5 of 1908), when trying a suit, in respect of the following matters, namely:-
(a) Summoning and enforcing the attendance of any person and examining him on oath;
(b) Requiring the discovery and production of documents;
(c) Issuing commissions for the examination of witnesses;
(d) Any other matter which may be prescribed,
And any proceeding before the Controller shall be deemed to be a judicial proceeding within the meaning
of section 193 and section 228 of the Indian Penal Code (45 of 1860), and the Controller shall be deemed
to be a civil court within the meaning of section 480 and section 482 of the Code of Criminal Procedure,

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1898 (5 of 1898).
(3) For the purposes of holding any inquiry or discharging any duty under this Act, the Controller may,-
(a) After giving not less than twenty-four hours’ notice in writing, enter and inspect or authorise any
officer subordinate to him to enter and inspect any premises at any time between sunrise and sunset; or
(b) By written order, require any person to produce for his inspection all such accounts, book or other
documents relevant to the inquiry at such time and at such place as may be specified in the order.
(4) The Controller may, if he thinks fit, appoint one or more person having special knowledge of the
matter under consideration as an assessor or assessors to advise him in the proceeding before him.
37. Procedure to be followed by Controller.-
(1) No order which prejudicially affects any person shall be made by the Controller under this Act
without giving him a reasonable opportunity of showing cause against the order proposed to be made and
until his objection, if any, and any evidence he may produce in support of the same have been considered
by the Controller.
(2) Subject to any rules that may be made under this Act, the Controller, shall, while holding an inquiry in
any proceeding before him, follow as far as may be the practice and procedure of a Court of Small
Causes, including the recording of evidence.
(3) In all proceedings before him, the Controller shall consider the question of costs and award such costs
to or against any party as the Controller considers reasonable.
38. Appeal to the Tribunal. –
(1) An appeal shall lie from every order of the Controller made under this Act [only on questions of law]
to the Rent Control Tribunal (hereinafter referred to as the Tribunal) consisting of one person only to be
appointed by the Central Government by notification in the Official Gazette:
Provided that no appeal shall lie from an order of the Controller made under section 21.
(2) An appeal under sub-section (1) shall be preferred within thirty days from the date of the order made
by the Controller:
Provided that the Tribunal may entertain the appeal after the expiry of the said period of thirty days, if
it (3) The Tribunal shall have all the power vested in a court under the Code of Civil Procedure, 1908 (5
of 1908), when hearing an appeal.
(4) Without prejudice to the provisions of sub-section (3), the Tribunal may, on an application made to it
or otherwise, by order transfer any proceeding pending before any Controller or additional Controller to
another Controller or additional Controller and the Controller or additional Controller to whom the
proceeding is so transferred may, subject to any special directions in the order of transfer, dispose of the
proceeding.
(5) A person shall not be qualified for appointment to the Tribunal, unless he is, or has been a district
judge or has for at least ten years held a judicial office in India.
38A. Additional Rent Control Tribunals. –
(1) For the expeditious disposal of appeals and applications under section 38, the Central Government
may, by notification in the Official Gazette, constitute as many Additional Rent Control Tribunals as it
deem fit and appoint to each such Additional Rent Control Tribunal (hereinafter referred to as the
Additional Tribunal) on person qualified for appointment to the Tribunal in accordance with the
provisions of sub-section (5) of that section.
(2) Notwithstanding anything contained in section 38, the Tribunal, may, by
order in writing, –
(a) Specify the appeals or classes of appeals under sub-section (1) of that section which may be preferred

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to an disposed of by each Additional Tribunal and the classes of cases in which each Additional Tribunal
may exercise the powers of the Tribunal under sub-section (4) of that section;
(b) Transfer any appeal or proceeding pending before it for disposal to, any Additional Tribunal; or
(c) Withdraw any appeal or proceeding pending before any Additional Tribunal and dispose it of itself or
transfer the appeal or proceeding for disposal to any other Additional Tribunal.
(3) The Provisions of sub-section (2) and (3) of section 38 shall apply in relation to an Additional
Tribunal as they apply in relation to the Tribunal.
38B. Power of High Court to transfer appeals, etc. –
The High Court may also, on an application made to it or otherwise, by order, transfer –
(a) any appeal or proceeding pending before the Tribunal to any Additional Tribunal; or
(b) any appeal or proceeding pending before any Additional Tribunal to the Tribunal or in any other
Additional Tribunal.
39. Section 39 omitted by Act 57 of 1988, sec.17 (w.e.f. 1-12-1988).
39. Section 39 omitted by Act 57 of 1988, sec.17 (w.e.f. 1-12-1988).
40. Amendment of orders. –
Clerical or arithmetical mistakes in any order passed by a Controller or [the Tribunal or an Additional
Tribunal] or errors arising therein from any accidental slip or omission may, at any time, be corrected by
the Controller or [the Tribunal on an Additional Tribunal] on am application received in this behalf from
any of the parties or otherwise.
41. Controller to exercise powers of a magistrate for recovery of fine. –
Any fine imposed by a Controller under this Act shall be paid by the person find witnessed such time as
may be the Controller and the Controller may, for good and sufficient reason, extend the time, and in
default of such payment, the amount shall be recoverable as a fine under the provisions of the Code of
Criminal Procedure, 1898, and the Controller shall be deemed to be a magistrate under the said code for
the purposes of such recovery.

SOCIO-ECONOMIC OFFENCES (507-F)

Unit – I: HOARDING AND PROFITEERING


a. Laws relating to maintenance of essential supplies

The Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980
was enacted on 12th February, 1980 and enforced on 5th October, 1979. The act aims to prevent un-
ethical trade practices which include black-marketing and hoarding of essential commodities, the act
lays provisions for punishment against such persons who commit either of these.

The act empowers state government or central government or an officer not below the rank of Joint

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