R JAYARAMAN

LAWS REAL ESTATE – PART I

LARAR 2013

THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND

ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013
(LAND ACQUISITION ACT, 2013) - Enacted and in force from 01.01.2014
Government acquires land for its own use, hold and control, incl. land for PSUs.
Government acquires land with the ultimate purpose to transfer it for the use of private
companies for stated public purpose. Land acquisition for strategic and development
activities for national security - for defense and defense production; Rural
infrastructure including electrification; Affordable housing and housing for poor;
industrial corridors, railway lines, roads and Infrastructure projects
Act Application - As per Sec 2 this Act will apply when:
Government acquires land for its own use, or to hold and control OR Where
Government acquires land private companies or for specified public purpose - require
prior consent of 80 % of the affected families.
Government acquires land for Public Private Partnership Projects - consent of 70% of
the affected families is obtained MORD Notification dated 9th February, 2016. IT
states "the limit of extent of land referred to in sub-section (1) of section 46 of the said
Act shall be 20 hectares in urban areas and 40 hectares in rural areas.
The rules state that rehabilitation and resettlement under the Act would apply where
a private company purchases land equal to or more than 50 acres in urban areas and
100 acres in rural areas.
As per the 2013 Act, in the Scheduled Areas (tribal areas to which the fifth schedule
of the constitution applies, no land acquisition can happen in contravention of any law
relating to land transfer, prevailing in such Scheduled Areas.
In fact any order or judgment of a High Court which has become final would also need
to be adhered to.

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DEFINATIONS
"Family" includes a person, his or her spouse, minor children, minor brothers and
minor sisters dependent on him. An adult of either gender with or without spouse or
children or dependents shall be considered as a separate family.
Widows, divorcees and women deserted by families shall be considered separate
families;
"Market value" means the value of land determined in accordance with section 26;
"Agricultural land" means land used for raising nursery, cultivation of crops, trees,
horticulture, grass, garden produce, dairying, poultry farming, sericulture, seed
farming, breeding of livestock, medicinal herbs and also open land used for the
grazing of cattle.
"Cost of acquisition" includes - solatium (payment to compensate injured feelings or
emotional pain), any enhanced compensation ordered by the Land Acquisition
Authority or the Court and interest, demurrage payable for damages caused in the
process of acquisition to the land and standing crops.
It also includes the cost of acquisition of such land and building for the settlement' of
displaced or adversely affected families and the cost of development of infrastructure
and amenities at such resettlement areas;
There are 13 other Acts which deal with acquisition and are listed in the fourth
schedule and vide a departmental notification the provision the RFCTLARR Act, 2013
will become applicable to acquisition
Limits on acquisition
The Act ban on land acquisition of multi-crop irrigated area. Acquisition permitted,
which will be subjected to an aggregated upper limit for all the projects as notified by
the State Government. In addition to the above condition, wherever multi-crop
irrigated land is acquired an equivalent area of cultivable wasteland shall be
developed by the state for agricultural purposes. In other type of agricultural land, the
total acquisition shall not exceed the limit for all the projects in a District or State as
notified by the Appropriate Authority.

These limits shall not apply to - railways, highways, major district roads, power lines,
irrigation canals.
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Notification and Acquisition including computation of Compensation Award
Chapter IV (sections 11 to 31) of the Act deals with notification for acquisition,
declaration and also computation of Compensation Award. A preliminary notification
of the proposed acquisition under section 11(1) of the 2013 Act must be published in
the following manner, namely -
a. in the Official Gazette;
b. in two daily newspapers circulating in the locality of such area of which one shall
be in the regional language;
c. in the local language in the Panchayat, Municipality or Municipal Corporation, as
the case may be and in the offices of the District Collector, the Sub-divisional
Magistrate and the Tehsil
d. uploaded on the website of the appropriate Government;
e. in the affected areas, in such manner as may be prescribed (rules provide for
announcement by beating of drums).
The date of this publication of notification shall be the date for determination of market
value
Compensation - Section 26 - Land Market Value
As per Schedule I outlines the minimum compensation based on a multiple of market
value. The market value of land to be acquired, shall be set as the higher of:
1. Minimum land value, as specified in the Indian Stamp Act, 1899, where the land is
situated;
2. Average of the sale price for similar land being acquired, ascertained from the
highest 50% of sale deeds registered during preceding three years in the nearest
village
3. Land in nearest vicinity acquired or the consented amount in case the land is
acquired for private companies or public-private partnership projects.
As per the First Schedule on Minimum Compensation for Land Owners and tenants -
determination of value

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 Compensation Manner Of Determination Of Value
Package
Component
Multiplier Factor In the case of urban areas - One in the case of rural areas -
of the one to two based on the distance of project from urban area,
Market as may be notified by the appropriate Government [Vide
Value MORD Notification dated 9TH February, 2016 S.O. 425(E) - .
[F NO.13011/04/2015-LRD]

Solatium Equivalent to one hundred percent of the market value of land

multiplied by the appropriate factor mentioned above plus
value of assets attached to land or building

Final Award In Market Value of land multiplied by the appropriate factor for
Rural/ Urban rural/ urban areas plus value of assets attached to land or
Areas building mentioned plus Solatium as above

Award for Land Acquisition - AWARD Under this Act is computed on the
elements:
1) Market value as computed above for land, building and things attached to land and
building. This is the compensation amount - Solatium which is an amount equivalent
to one hundred per cent of the market value
2) And given in addition 12% per annum on such market value computed for the period
commencing on the date of publication of the notification of the Social Impact
Assessment study and till the date of the award of the Collector or the date of taking
possession of the land, whichever is earlier
3) 25% of the total compensation can be through shares in the Requiring Body if the
projected affected family consent
A) If land is acquired for urbanization, then 20 percent of the acquired land must be
reserved for landowning project affected people and offered to them at a price equal
to cost of acquisition

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B) If a person previously displaced is being displaced again in another project from
the rehabilitation site - they will be entitled to 75% additional compensation
THE LAND ACQUISITION ACT, 1894 - ACT NO.1 OF 1894 - [AS ON 1955]
PARTI-PRELIMINARY-1. Title, extent and commencement
2. Repeal
3. Definition:- the expression “land" includes benefits to arise out of land, and things
attached to the earth or permanently fastened to anything attached to the earth; (b)
expression “person interested" (c) expression "Collector“ (d) expression "Court" (e)
expression "Company" and "appropriate Government“ (f) expression “public purpose"
(g) persons "entitled to act"
PART II-ACQUISITION
Preliminary investigation - Publication of preliminary notification and powers of officers
5. Payment for damage 5A. Hearing of objections 6. Declaration that land is required
for a public purpose 7. After declaration Collector to take order for acquisition 8. Land
to be marked out, measured and planned 9. Notice to persons interested 10. Power
to require and enforce the making of statements as to names and interests 11. Enquiry
and award by Collector 12. Award of Collector when to be final 13. Adjournment of
enquiry
14. Power to summon and enforce attendance of witnesses and production of
documents
15. Matters to be considered and neglected
Taking possession
16. Power to take possession
17. Special powers in cases of urgency
PART III-REFRENCE TO COURT AND PROCEDURE THEREON
18. Reference to Court
19. Collectors statement to the Court
20. Service of notice
21. Restriction on scope of proceedings
22. Proceedings to be in open Court
23. Matters to be considered in determining compensation
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In determining the amount of compensation to be awarded for land acquired under
this Act, the court shall take into consideration-
1. The market-value of the land at the date of the publication of the notification under
section 4, sub-section (1);
2. The damage by the person interested, by reason of the taking of any standing crops
or trees which may be on the land at the time of the Collector's taking possession
thereof;
3. The damage sustained by the person interested, at the time of the Collector's taking
possession of the land, by the reason of severing such land from his other land;
4. The damage (if any) sustained by the person interested, at the time of the
Collector's taking possession of the land, by reason of the acquisition injuriously
affecting his other property, movable or immovable, or his earnings;
5. If in the consequence of the acquisition of the land by the Collector, the person
interested is compelled to change his residence or place of business, the reasonable
expenses incidental to such change; and
6. The damage bonafide resulting from diminution (decrease) of the profits of the land
between the time of the publication of the declaration under section 6 and the time of
the Collector's taking possession of the land.
(B) In addition to the market-value of the land as above provided the Court shall in
every case award a sum of 15% on such market-value, in consideration of the
compulsory nature of the acquisition.
24. Matters to be neglected in determining compensation: But the Court shall not take
into consideration---
1. The degree of urgency which has led to the acquisition; 2. Any disinclination of
person interested to part with land acquired; 3. Any damage sustained by him, if
caused by a private person, would not render such persons liable to a suit; 4. Any
damage which is likely to be caused to the land acquired, after the date of the
publication of the declaration under section 6, by or in consequence of the use to
which it will be put;
5. Any increase to value of the land acquired likely to accrue from use to which it will
be put when acquired;
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6. Any increase to value of the other land of the person interested likely to accrue from
the use to which the land acquires will be put;
25. Rules as to amount of compensation:- (1) When the applicant has made a claim
to compensation, the amount awarded to him by the Court shall not exceed the
amount so claimed or be less than the amount awarded by the Collector under sec.11.
(2) When the applicant has refused to make such claim or has omitted without
sufficient reason (to be allowed by the Judge) to make such claim, the amount
awarded by the Court shall in no case exceed the amount awarded by the Collector.
(3) When the applicant has omitted for a sufficient reason (to be allowed by the Judge)
to make such claim, the amount awarded to him by the Court shall not less than, and
may exceed, the amount awarded by the Collector.
26. Form of awards:- Every award shall be in writing signed by the Judge, and shall
specify the amount awarded together with the grounds of awarding each of the said
amounts
27. Costs 28. Collector may be directed to pay interest on excess compensation
PART IV-APPORTIONMENT OF COMPENSATION
29. Particulars of apportionment to be specified 30. Disputes as to apportionment
PART V - PAYMENT
31. Payment of compensation or deposit of same in Court
32. Investment of money deposited in respect of lands belonging to persons in
competent to alienate
33. Investment of money deposited in other cases
34. Payment of interest
PART VI - TEMPORARY OCCUPATION OF LAND
35. Temporary occupation of waste or arable land. Procedure when difference as to
compensation exists
36. Power to enter and take possession, and compensation on restoration
37. Difference as to condition on land
PART VII-ACQUISITION OF LAND FOR COMPANIES
38. Company may be authorised to enter and survey
38A. Industrial concern to be deemed Company for certain purposes
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39. Previous consent of appropriate Government and execution of agreement
necessary
40. Previous enquiry
41. Agreement with appropriate Government
42. Publication of agreement
43. Sections 39 to 42 not to apply where Government bound by agreement
44. How agreement with Railway Company may be proved
PART VIII-MISCELLANEOUS
45. Service of notices 46. Penalty for obstructing acquisition of land 47. Magistrate to
enforce surrender 48. Completion of acquisition not compulsory, but compensation to
be awarded when not completed
49. Acquisition of part of house of building: The provisions of this Act shall not be put
in force for the purpose of acquiring a part only of any house, manufactory or other
building, if the owner desire that the whole of such house, manufactory or building
shall be so acquired: In deciding on such a reference the Court shall have regard to
the question whether the land proposed to be taken is reasonably required for the full
and unimpaired use of the house, manufactory or building.
50. Acquisition of land at cost of a local authority or Company
51. Exemption from stamp-duty and fees:- No award or agreement made under this
Act shall be chargeable with stamp-duty, and no person claiming under any such
award or agreement shall be liable to pay any fee for a copy of the same.
52. Notice in case of suits for anything done in pursuance of Act 53. Code of Civil
Procedure to apply to proceedings before Court 54. Appeals in proceedings before
Court 55. Power to make rules
BUILDING RULES & REGULATIONS OF LOCAL BODIES
MINISTRY OF URBAN DEVELOPMENT, GOVERNMENT OF INDIA
In 2004 a Model Building Bye-Laws was issued by GOI for the guidance of guidance
of the State Govts, Urban Local Bodies, Development Authorities to carry out the
mandate under the 74th Amendment of the Constitution which empowered local
bodies to prepare and enforce the Master Plan for orderly development of urban
areas. scope of master plan as defined by Town Country Planning Organisation under
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MOUD, is confined to proposals & allocation of land for various purposes - residential,
industrial, commercial, recreational, public & semipublic for guiding and regulating
development in urbanisable area over a period of time.
Zoning and Sub division regulations are a part of Development Control Regulations
(DCR) under Master Plan. They stipulate the densities of the development in various
pockets of urbanisable land through Floor Area Ratio (FAR) or Floor Space Index
(FSI), maximum ground coverage, maximum height permissible etc.
Building Byelaws is a separate document governed by the regulations given in Master
Plan that guides and controls the setting, design and construction of the buildings with
due recognition for ventilation, light and built envelope requirements from health and
sanitation perspectives.
The use, coverage, FAR setbacks, open space, height, number of dwelling units,
parking standards for residential premises on plotted development, group housing,
resettlement and up gradation and non-residential premises shall be as per the
provisions contained in Master Plan / Zonal Plan / Development Code or as per
simplified Development Promotion Regulations of the Urban Development Plan
Formulation and Implementation Guidelines and where these are silent on such
issues or which require interpretation the norms as decided by the Authority, shall
apply
Master Plan and Zoning Rules
Where the Town and Country planning Acts are operational usually the Directorate of
Town and Country Planning oversees planning and development in urban and rural
areas by way of issuance of Master Plans prepared for the urban centres and notified
rural areas by indicative Land Use Plans.
Such Directorates exist in almost all states and has a Town and Country Planning
Organisation (TCPO) under the Urban Development Department.
The Town and Country Planning Organisation (TCPO), technical arm of the Ministry
of Urban Development, Government of India, is an apex technical advisory and
consultant organisation on urban and regional planning strategies and monitoring of
central government schemes and development policies.

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But master plans may not integrate well with plans of other authorities like the
Regional Development Authority, any Mineral Area Development Authority (MADA)
or the Mines Board.
Master Plan and Zoning Rules
The Directorate of Town and Country Planning oversees planning and development
in urban and rural areas by way of Master Plans prepared for the urban centres and
notified rural areas by indicative Land Use Plans. Such Directorates exist in almost all
states.
The Town and Country Planning Organisation (TCPO), technical arm of MOUD,GOI,
is an apex body on urban and regional planning strategies and monitoring of central
government schemes and development policies.
The Zoning and Development Promotion Regulations Development Authority has
following zones
1. Residential Use Zone
2. Commercial Use Zone, including commercial along notified commercial roads; strip
commercial along roads as earmarked in the master plan and areas earmarked as
Commercial use in the Master Plan
3. Multiple Use Zone, including areas covered in Transit-Oriented Development (TOD)
zone
4. Public and Semi - Public Use Zone
5. Work Centre Use Zone
6. Open Space Use Zone - Parks, Playgrounds, Exhibition grounds, Green buffer
zone
7. Water bodies Use Zone - River, stream, Nallah, Storm Water Drains, Lakes
8. Transportation Use zone (Road, rail, Airport, Bus depots, Terminals, Workshops,
Truck terminals, Warehouses, Parking areas/Parking lots/Parking complex
9. Special Reservation Use zone
10. Sites specifically earmarked as heritage conservation - buildings and
precincts/areas rocks & hillocks/Natural heritage
11. Defense / Military lands
12. Burial grounds, Cremation grounds etc
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13. Special Area Development Plan (SADP)
Residential Use Zone
The residential areas are developed either as
(a) Plotted development or
(b) Group housing/flatted development. Density pattern i.e. (high, high medium, low
medium or low) are followed for working out development with respect to size of the
plot, no. of dwelling units on each plot, setbacks, FAR and no. of storeys / height of
building.
Municipal and social infrastructure as per the norms and standards specified in the
master plan are provided. Various sites/plots required for social and municipal
infrastructure are indicated in the layout plans.
Plotted Development -Layout plans for residential scheme are formulated
(1) Sufficient light & air in buildings when constructed
(2) Protection against noise, dust and local hazards
(3) Sufficient open space for various family needs
(4) Circulation & access is easy & safe from accident point
(5) as far as possible, plots are of regular shape and size
(6) Logically arranged in a systematic manner so as to give a regular pattern of
development in the form of row houses, detached & semi-detached houses and
regular bungalow type plots.
'Group housing means more than two buildings on a plot with one or more floors and
with one or more dwelling units in each floor.
i) Boundary roads must BE minimum width of 12 metre.
ii) FAR should be considered with reference to the width of public road abutting the
property and the FAR should be calculated after deducting the area reserved for
parks, open spaces and civic amenities.
iii) The set-backs should be provided with reference to depth and width of total plot
area.
iv) Coverage shall be with reference to total area of the layout.
v) Distance between the buildings should be a minimum of half of the height of the
tallest building.
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vi) 25% of total area is reserved for OSR spaces
vii) Access to the building blocks in the area of group housing shall be as follows:
Access Less than 100 meters Road width 6 meters
Access 100 to 200 meters Road width 9 meters
Access more than 200 meters Road width 12 meters
Other Specifications Included For: Hostel, Guest House, Boarding House And
Lodging House, Motels Community Centre, Industrial Plot, Flatted Group Industry &
Service Centre, Light And Service Industry, Extensive Industry, Hospital, Health
Centre/Nursing Home, Nursery & Primary Schools, Higher Secondary School,
College, Education And Research Centre (Large Campus-Above 8Ha.), Auditorium /
Community Hall, Religious Premises, Security Services, Police Post, Police
Station/Fire Post/Fire Station, Post And Telegraph Office, Head Post Office, Public
And Semi-Public Premises, Farm Houses, Professional Activity

RENT CONTROL ACTS

Act relating to the landlord’s / tenant’s rights to fix the fair rent or evict the tenant on
expiry of the notice of eviction. IN INDIA, Every state has its own rent control act.
Rent Control Act is common to the Landlord and Tenant, and any one of them can
approach the Rent Controller for Fixation of fair rent.
With regards to the rent payable by the tenant or for eviction, judiciary will find an
amicable solution to fair rent or for eviction of tenants. The Court takes technical
assistance from Qualified Engineers to fix the Fair rent or for building structural
stability.
These legislation are enacted to regulate rent payable be tenant. Many acts seek to
prevent it from exceeding standard rent, regulate repair and maintenance of the
property and also regulate eviction of tenants. Rent Control Acts of different states
favour the tenants.
The Rent Control Act applies on lease agreements of at least 12 months, and hence
an eleven month agreement helps landlords to take a pre-emptive measure of
avoiding filing eviction suit against tenant to claim back possession of premise.

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Sec 106 of Transfer of Property Act has limited application where ever a State level
legislation regulating rent and lease prevails.
Premises exempted from provision of Tenancy Act
Some premises are exempted from the provisions of rent control/ tenancy regulation
as per Tenancy Act. Act does not apply to any premises owned by Central or State
Government, or Government undertaking or a local authority or other statutory body.
Any tenancy created by the Central Government, or any State Government in respect
of the premises taken on lease or requisitioned by that Government. Any tenancy
where the lease with due consent of the tenant has been registered under the
Registration Act, 1908 (16 of 1908), after the commencement of this Act, and the fact
of such consent has been recorded in the instrument so registered If premise is rented
to a foreign mission or international agency;
or a tenancy created by a foreign mission or an international agency, either by way of
lease or otherwise
Section-2 of The Tamilnadu Buildings Lease And Rent Control Act 1960, building
means, any building or hut or part of the building or part of the hut are to be considered
for residential or nonresidential purposes which includes Garden, ground or out
house, if any appurtenant to such building, the hut or part of such building or hut let
or to be let out along with such building. Any furniture supplied by the Landlord for
such use of such building or hut but does not include a room in hotel or boarding
house.
Section-4 of The Tamilnadu Buildings Lease And Rent Control Act 1960, enables the
fixation of Fair rent and Principles laid down in the Act has to be followed.
Fair rent for any Residential Building shall be 9% gross return per annum on the total
cost of such building.
Fair rent for any Non Residential Building shall be 12% gross return per annum on
total cost of such building
Total cost referred to in Sub – Sections (2) & (3), shall consist of the Market Value of
site in which the building is constructed, cost of construction of building and cost of
provision of anyone or more of the amenities as per Schedule-I as on the date of
application for Fixation of fair rent.
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Market value of land in which the building is constructed and a portion up to 50%,
thereof of the vacant land to be taken into account. If any vacant land is available AS
appurtenant to such building excess portion of the vacant land, is treated as Amenity
provided in the property. The cost of provision of Amenities stipulated in the Schedule
–I shall not exceed:
In case of Residential building – 15%
In case of Non Residential building – 25% of the cost of the land in which the
building is constructed and the cost of construction of the building as determined in
this section.
The cost of the construction of the building including the cost of internal water supply,
sanitary and electrical installations shall be determined according to the Rates
adopted for the different types of buildings by the PWD of Tamilnadu Government for
the area concerned.
The depreciation are calculated for the age of the building at the rates specified in the
Schedule. (LINEAR METHOD)
In case of building having more than one floor the market value of the land has to be
proportioned to the number of floors in that building.
1. In this act, land market rate is the deciding factor in determining the value of the
property for rental purpose. In most of the cases, the market rate is substantiated by
the guideline rate and guideline rate will be the authenticated rate in a court. Though
there are many court judgments, stating that the guide line value / Circle Rate is not
the market value, in lower courts the judgment is made as per GLV only.
2. Rent will be on the petitioned date and not on valuation date. Inspection and
valuation of property may happen 1 or 2 years after filing of petition.
3. Even though the property value increases during this period, the fair rent adoption
by the courts may not be equal to market rent, since the time taken by the court for
fixing the rent may occur after years. Hence, for rent controlled properties the rate of
return on rents is low as per the Court decisions.
4. Eviction of tenant - the process is cumbersome and will get delayed. Eviction of
tenant may take a longer time, even the landlord citing reason like building

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deterioration, Non-payment of rent, Sub-letting building without due authority and
permission.
The tenant using for purpose other than for which it was leased, committing acts of
property value reduction & utility, Tenant using for immoral or illegal purpose,
nuisance TO others also attracts eviction. Also for, Even the tenant after given notice
to quit, but he may not deliver vacant possession of premises to the landlord in
accordance to such notice. Hence, the market value of the rent controlled properties
will have lesser value when compared to freehold properties and are frozen for a
longer period.
Ownership rights for rent
Ownership rights are not transferred in rental agreements. He has to pay rent
periodically and cannot pledge the property. He has no power to make improvements
in the property. He has only the right to live during the tenancy period. The Rent
Control Act will not be applicable to licensed business premises. To avoid
complications and relief from the Rent Control Act, the properties are given under the
type of leave and license as per section 52 of the Indian Easements Act, 1882. The
property right of enjoyment is not transferred to the Licensee. The value of licensed
premises will depend upon net profit of the business

The Indian Easements Act, 1882

Section 4 "Easement" defined. – An easement is a right which the owner or occupier
of certain land possesses, as such, for the beneficial enjoyment of that land, to do and
continue to do something, or to prevent and continue to prevent something being
done, in or upon, or in respect of, certain other land not his own.
Dominant and servient heritages and owners. –
The land for the beneficial enjoyment of which the right exists is called the dominant
heritage, and the owner or occupier thereof the dominant owner; the expression
"land" includes also things permanently attached to the earth; the expression
"beneficial enjoyment" includes also possible convenience, remote advantage, and
even a mere amenity; and the expression "to do something" includes removal and
appropriation by the dominant owner, for the beneficial enjoyment of the dominant
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heritage, of any part of the soil of the servient heritage, or anything growing or
subsisting thereon.
Illustrations
(a) A, as the owner of a certain house, has a right of way over his neighbour B's land
for purposes connected with the beneficial enjoyment of the house. This is an
easement.
(b) A, as the owner of a certain house, has the right to go on his neighbour B's land,
and to take water for the purposes of his household, out of a spring therein. This is an
easement.
(c) A, as owner of a certain house, has the right to conduct water from B's stream to
supply the fountains in the garden attached to the house. This is an easement.
(d) A, as owner of a certain house and farm, has the right to graze his own cattle on
B's field, or to take, for the purpose of being used in the house, by himself, his family,
guests, lodgers and servants, water or fish out of c's tank, or timber out of d's wood,
or to use, for the purpose of manuring his land, the leaves which have fallen from the
trees in e's land. These are easements.
(e) A dedicates to the public the right to occupy the surface of certain land for the
purpose of passing and re-passing. This right is not an easement.
(f) A is bound to cleanse a water course running through his land and keep it free from
obstruction for the benefit of B, a lower riparian owner. This is not an easement.
Section 5 - A continuous easement is one whose enjoyment is, or may be, continual
without act of man. A discontinuous easement is one that needs the act of man for its
enjoyment. An apparent easement is one the existence of which is shown by some
permanent sign which, upon careful inspection by a competent person, would be
visible to him.
A non-apparent easement is one that has no such sign. Illustrations
(a) A right annexed to B's house to receive light by the windows without obstruction
by his neighbour A. This is a continuous easement.
(b) A right of way annexed to a's house over B's land. This is a discontinuous
easement.

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(c) Rights annexed to A's land to lead water thither across B's land by an aqueduct
and to draw off water thence by a drain. The drain would be discovered upon careful
inspection by a person conversant with such matters. These are apparent easements.
(d) A right annexed to a's house to prevent B from building on his own land. This is a
non-apparent easement.
Section 6. - Easements for limited time or on condition.- An easement may be
permanent, or for a term of years or other limited period, or subject to periodical
interruption, or exercisable only at a certain place, or at certain times, or between
certain hours, or for a particular purpose, or on condition that it shall commence or
become void or voidable on the happening of a specified event or the performance or
non-performance of a specified Act. (Lease, license)
Section 7. Easements restrictive of certain rights. -Easements are restrictions of one
or other of the following rights (namely):-
(a) right to enjoy. -The exclusive right of every owner of immovable property (subject
to any law for the time being in force) to enjoy and dispose of the same and all
products thereof and accessions thereto.
(b) Rights to advantages arising from situation. -The right of every owner of
immovable property (subject to law for time being in force) to enjoy without
disturbance by another the natural advantages arising from its situation.
Illustrations of the Rights referred to
(a) The exclusive right of every owner of land in a town to build on such land, subject
to any municipal law for the time being in force.
(b) The right of every owner of land that the air passing thereto shall not be
unreasonably polluted by other persons.
(c) The right of every owner of a house that his physical comfort shall not be interfered
with materially and unreasonable by noise or vibration caused by any other person.
(d) The right of every owner of land to so much light and air as pass vertically thereto.
(e) The right of every owner of land that such land, in its natural condition, shall have
the support naturally rendered by the subjacent and adjacent soil of another person.
Explanation. -Land is in its natural condition when it is not excavated and not
subjected to artificial pressure; and the "subjacent and adjacent soil" mentioned in this
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illustration means such soil only as in its natural condition would support the dominant
heritage in its natural condition.
(f) The right of every owner of land that, within his own limits, the water which naturally
passes or percolates by, over or through his land shall not, before so passing or
percolating, be unreasonably polluted by other persons.
(g) The right of every owner of land to collect and dispose within his own limits of all
water under the land which does not pass in a defined channel and all water on its
surface which does not pass in a defined channel.
(h) The right of every owner of land that the water of every natural stream which
passes by, through or over his land in a defined natural channel shall be allowed by
other persons to flow within such owner's limits without interruption and without
material alteration in quantity, direction, force or temperature; the right of every owner
of land abutting on a natural lake or pond into or out of which a natural stream flows,
that the water of such lake or pond shall be allowed by other persons to remain within
such owner's limits without material alteration in quantity or temperature.
(i) Right of every owner of upper land that water naturally rising in, or falling on such
land, and not passing in defined channels, shall be allowed by owner of adjacent lower
land to run naturally thereto.
(j) right of every owner of land abutting on a natural stream, lake or pond to use and
consume its water for drinking, household purposes and watering his cattle and
sheep; and the right of every such owner to use and consume the water for irrigating
such land, and for the purposes of any manufactory situate thereon, provided that he
does not thereby cause material injury to other like owners.
Explanation. -A natural stream is a stream, whether permanent or intermittent, tide or
tide-less, on the surface of land or underground, which flows by the operation of
nature only and in a natural and known course.
Section 8. Who may impose easements? -An easement may be imposed by anyone
in the circumstances, and to the extent, in and to which he may transfer his interest in
the heritage on which the liability is to be imposed.
Illustrations

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(a) ’A’ is a tenant of B's land under lease for an unexpired term of twenty years, and
has power to transfer his interest under the lease. ‘A’ may impose an easement on
the land to continue during the time that the lease exists or for any shorter period.
Section 9. Servient owners. -Subject to the provisions of section 8, a servient owner
may impose on the servient heritage any easement that does not lessen the utility of
the existing easement. But he cannot, without the consent of the dominant owner,
impose an easement on the servient heritage which would lessen such utility.
Illustrations
(a) A has in respect of his mill, a right to the uninterrupted flow thereto, from sunrise
to noon, of the water of B's stream. B may grant to C the right to divert the water of
the stream from noon to sunset: provided that a's supply is not thereby diminished.
Section 10. - Lessor and mortgagor.-Subject to the provisions of section 8, a lessor
may impose, on the property leased, any easement that does not derogate from the
rights of the lessee as such, and a mortgagor may impose, on the property mortgaged,
any easement that does not render the security insufficient. But a lessor or mortgagor
cannot, without the consent of the lessee or mortgagee, impose any other easement
on such property, unless it be to take effect on the termination of the lease of the
redemption of the mortgage.
Explanation.-A security is insufficient within the meaning of this section unless the
value of the mortgaged property exceeds by one-third, or, if consisting of building,
exceeds by one-half, the amount for the time being due on the mortgage.
Section 52 "License" defined. -Where one person grants to another, or to a definite
number of other persons, a right to do, or continue to do, in or upon the immovable
property of the grantor, something which would, in the absence of such right, be
unlawful, and such right does not amount to an easement or an interest in the
property, the right is called a license.
53 Who may grant license.
54 Grant may be expressed or implied.
55. Accessory licenses annexed by law
56 License when transferable.
57. Grantor's duty to disclose defects
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58. Grantor's duty not to render property unsafe
59. Grantor's transferee not bound by license.
60. License when revocable.-
61. Revocation express or implied
62 License when deemed revoked
63. Licensee's rights on revocation
64. Licensee's rights on eviction
Characteristics of Licence
1) No transfer of interest:- A licence is a permission to do some act which, without
such permission, would be unlawful.
2) No interest in accretions :- A licensee has no interest in the property and therefore,
he acquires no right by accretion
3) Neither transferable nor heritable :- A licence is neither transferable; nor heritable.
4) A licence is a matter purely personal between grantor and grantee.
5) Section 52 of Easement Act does not require any consideration, material or non-
material, to be an element of the definition of licence, nor does it require that the right
under the licence must arise by way of contract or as a result of mutual promises.
6) The person who grants the license must be the owner of the property. The other
person who gets the permission must be a stranger or have no right in the property.
7) Licence creates no duties and obligations upon the person making the grant and is
therefore revocable except in certain circumstances expressly provided in the Act
itself.
8) A licence is usually revocable by grantor, except in the two cases mentioned in the
section 60 of Easement Act.
9) A subsequent transfer of the property terminates a licence.
10) A licensee cannot sue trespassers and strangers in his own name.
11) A license is terminated by death of either party.

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Real Estate Regulation & Development Act, 2016 - RERA (Real Estate
Regulatory Authority)
The Real Estate (Regulation and Development) Act, 2016 aims to regulate and
promote the real estate sector by regulating the transactions between buyers and
promoters of residential as well as commercial projects. It also has provisions for
establishing a regulatory authority at state level called "Real Estate Regulatory
Authority" (RERA) for monitoring the real estate sector and adjudicating disputes
relating to Real Estate Projects. The main aim of the Act is to protect buyers and help
investment in Real Estate Sector.
Main Objectives:
· Enhance transparency and accountability in real estate and housing transactions;
· Providing uniform regulatory environment to ensure speedy adjudication of disputes
and orderly growth of the real estate sector;
· Boosting domestic and foreign investment in the Real Estate sector;
· Promote orderly growth through efficient project execution and standardization;
· Offer single window system of clearance for real estate projects.
REGULATORY FRAMEWORK - REAL ESTATE (REGULATION AND
DEVELOPMENT) ACT, 2016
· Establish the Real Estate Regulatory Authority for regulation and promotion of the
real estate sector
· Ensure sale of plot, apartment of building, as the case may be, or sale of real estate
project, in an efficient and transparent manner
· Ensure protect the interest of consumers in the real estate sector
Establish an adjudicating mechanism for speedy dispute redressal and also to
establish the Appellate Tribunal to hear appeals from the decisions, directions or
orders of Real Estate Regulatory Authority (RERA)
· Regulates transactions between buyers and promoters of residential real estate
projects
· Establishes state level regulatory authorities called Real Estate Regulatory
Authorities (RERAs)

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· 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 projects also need to register with RERAs
· Registration, the promoter must upload details of the project on the website ofthe
RERA. These include the site and layout plan, and schedule for completion of the real
estate project
· 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
Right to Legal Representation on behalf of Client by Company Secretaries or
chartered accountants or cost accountants or legal practitioners
· Imposes stringent penalty on promoter, real estate agent and also prescribes
imprisonment.
ACT -Salient Features
· Establishment and incorporation of Real Estate Regulatory Authority (RERA) at
every State in India for monitoring and adjudicating disputes relating to real estate
projects (Section 20).
Establishment of fast track dispute resolution mechanism for settlement of real estate
disputes through dedicated adjudicating officers and Appellate Tribunal (Section 43 &
44).
· Registration of all real estate projects is made mandatory with RERA having
territorial jurisdiction over such projects. No sale in a real estate project can be made
without registration of the project with RERA (Section 3). RERA can also refuse to
register a project, if the same is not compliant with provisions of the Act. Registration
of a project can even be cancelled, in case, RERA receives any complaint and the
same is found to be correct after inquiry.
It is mandatory for a promoter to upload details of proposed project on the website of
RERA, including details of registration, types of apartments or plots booked, list of
approvals taken and the approvals which are pending subsequent to commencement
certificate, status of the project, sanction plan, layout plan etc. (Section 11).
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· RERA shall approve or reject the application for registration within 30 days, failing
which it shall be deemed to have accepted the application for registration (Section 5).
· Any promoter shall not accept a sum more than 10% of the cost of the apartment,
plot, or building, as an advance payment, from a buyer without first entering into a
written agreement for sale with such person and register the same. (Section 13)
· It has been made obligatory for promoters to deposit 70% of the money collected
from buyers for a particular project in a separate account that will cover the cost of
land and construction and the same can be withdrawn only after certification from an
engineer, an architect and a chartered accountant. [Section 4(2)(l)(D)].
It is now obligatory for all the promoters to obtain insurance in respect of title of the
land and buildings and construction of every project. (Section 16).
· The promoter shall not transfer or assign his majority rights and liabilities in respect
of a real estate project to a third party without obtaining prior written consent from at
least 2/3rd no. of Allottees, except the promoter, and without the prior written approval
of RERA [Section 15(1)].
· Both promoter and buyer are liable to pay equal rate of interest in case of any default
from either side (Section 2 (za)(i)).
· The promoter shall compensate the buyer in case any loss caused to him due to
defective title of the land, on which the project is being developed or has been
developed, in the manner as provided under this Act, and the claim for compensation
under this subsection shall not be barred by limitation provided under any law for the
time being in force. (Section 18)
· An aggrieved person may file a complaint with RERA, as the case may be, for any
violation or contravention of provisions of this Act or rules and regulations made
thereunder against any promoter, buyer or real estate agent. (Section 31)
During the pendency of enquiry, RERA can restrain any promoter, buyer or agent
from continuing with the act complained of. (Section 36)
· A person aggrieved by any direction or decision or order made by RERA or by an
adjudicating officer may prefer an appeal before the Appellate Tribunal having
jurisdiction over the matter. (Section 43)

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· If a promoter continues to violate the provisions of Section 3, he shall be punished
with imprisonment for a term which may extend to three years or fine which may
extend to 10% of the estimated cost of the project or both [Section 59(2)].
If a promoter fails to comply with orders or directions of RERA, he shall be liable to a
penalty, which may extend up to 5%, of the estimated cost of the project as
determined by the Authority (Section 63).
· If a promoter fails to comply with orders of the Appellate Tribunal, he shall be
punished with imprisonment for a term which may extend to three years or fine, which
may extend up to 10% of the estimated cost of the project, or with both (Section 64).
Where an Offence under this Act has been committed by a company, shall be deemed
to be guilty of the offence and shall be liable to be proceeded against and punished.
(Section 69)
· No civil court shall have jurisdiction to entertain any suit or proceeding in respect of
any matter which RERA or the Appellate Tribunal is empowered by or under this Act
to determine and no injunction shall be granted by any court or other authority in
respect of any action taken or to be taken in pursuance of any power conferred by or
under this Act. (Section 79)

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