Land and Real Estate Laws (LLB-505)

The object of this paper is to focus on land reforms in India, Constitutional provisions related to land reforms, Land Acquisition, Rehabilitation, and Resettlement Act,2013, Urban Real Estate Development Laws and the Provisions of the Rent Laws under the
Delhi Rent Control Act, 1958.

1. Chanderprabhu Jain College of Higher Studies & School of
Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of
India)
SEMESTER: NINTH SEMESTER
BA LLB/ BBA LLB
NAME OF THE SUBJECT: LAND LAWS
UNIT-1 (A)
LAND REFORMS IN INDIA: PRE -INDEPENDENCE
FACULTY NAME:
Ms. Shivali Rawat
Assistant Professor (SOL)

2. AGRARIAN RELATIONS IN INDIA
•InanagrariancountrylikeIndiawherethemajorityofpopulationstilllivesinits
villagesandaredirectlyorindirectlylinkedwithagricultureasameansof
livelihood,monopoliesoverownershipoflandandruralassetscontinuealongwith
caste-baseddiscriminationandoppression.
•Themonopolyoverland,creditandmarketsarevestedwithafewindividuals
leadingtoasocialformationcharacterizedbyarigidclassstructurelinkedtoland
andlandrelations.Inaddition,theagrarianrelationsinIndiahavebeenmarkedby
manystrugglesoftheoppressedclass.

3. Features of the pre-colonial Indian agrarian structure
1.Absenceofprivatepropertyinland
2.Possessionanduseoflandoncommunalbasis
3.Stateorkingastheabsoluteownerofland
4.Torridclimaticenvironment
5.Statecontrolledirrigationorpublichydraulicworks
6.Divisionofagrariansocietyintoself-sufficient,autonomousandisolatedvillage
communitiesorvillageasidylliclittlerepublics
7.Allkindsofrelationshipsorganizedaroundtheinstitutionofcasteor,toputin
differentwords,castesystemasthebasisofself-sustainingandself-producing
Indianvillagecommunities
8.Surpluslabourastributetothedespoticking
9.Absenceofclassesleadingtoservilesocialequality
10.Absenceofhereditarynobility
11.Generalslaveryorexploitationofthepeopledirectlybythedespoticstateor
king.

4. Agrarian Structure during British Raj
InBritishIndia,therewerethreemajorsystemsoflandtenure:
•ZamindariSystem/ThePermanentSettlementSystem:
Underthismeasure,theintermediary‘Zamindars’(thetaxcollectingofficialsin
earlierregime)weregrantedownershiprightoverlandfromwhichtheypreviously
onlyhadtherightstocollectrevenues.
•MahalwariSystem:
WilliamBentick,governor-generalofIndiaintroducedthissysteminPunjaband
partsofUnitedProvincesin1833.Itisasystemoflandtenureinwhichlandrights
weresettledwiththeentirevillage.Inthis,eachpeasantofthevillagewasrequired
tocontributetothetotalrevenuedemandofthevillageonthebasisofthesizeof
thelandhecultivated.

5. •RyotwariSystem:
ThomasMunrointroducedthissystemin1820andthemainfeatureofthissystem
isthetransferofownershiprightstothepeasants.MajorareaswhereRyotwari
systemwasinpracticeincludepartsofAssam,Madras,Bombay,Coorghprovinces
ofBritishIndia.SELL,Mortgage,Gift.Nomiddleman.Directtaxestogovt.

6. Thesecolonialmeasuresintroducedmoreintensiveandsystematicexploitationand
forcedthepeasantstobecomeincreasinglyinvolvedwiththemarket,evenwhen
theydidnothavethecapacitytoproducesurplus.Thesemeasuresbroughtabout
majorchangesintheagrarianstructure.Themostsignificantonesarefollowing:
•CommercializationofAgriculture(shiftfromproductionforconsumption(food
crops)toproductionformarket(cashcrops))
•CommodificationofLand
•De-industrializationoftheIndianEconomy(influxofcheapgoodsfromEngland
aftertheindustrialrevolutionresultedintothemassivepressureoncultivatable
land)
•Tenancyandlandlessnessgrewsignificantly

7. The Need for land reforms
•Toremoveunethicalagrarianrelations.
•Toconvertbarrenlandintoproductivelands.
•Tolegitimizetenancywiththeceilinglimit.
•ToregisterallthetenancywiththevillagePanchayats.
•Toremoveruralpoverty.
•Tolessensocialinequality
•Empowermentofwomeninthetraditionallymale-drivensociety.
•Toincreasetheproductivityofagriculture.

8. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
LAND REFORMS IN INDIA: POST -INDEPENDENCE

9. •Independencefromthecolonialrulemarkedthebeginningofanewphaseinthe
historyofagrarianstructure.ThemainobjectiveoftheIndianstatewasto
transformthestagnantandbackwardeconomyandtomakesurethatthebenefitsof
transformationandgrowthwerenotmonopolizedbyaparticularsectionofthe
society.KeepingthisinbackgroundthegovernmentofIndiaintroducedvarious
measures.Significantonesarefollowing:
•Landreforms:Themeasureswereamongthemostsignificanteffortsofthestate
toachievethesegoals.TheGovernmentofIndiadirecteditsstatestoabolish
intermediarytenures,regulaterentandtenancyrights,conferownershiprightson
tenants,imposeceilingsonholdings,distributethesurpluslandamongtherural
poor,andfacilitateconsolidationofholdings.Alargenumberoflegislationswere
passedbythestategovernmentsoverashortperiodoftime.
Agrarian Structure Post-independence

10. •ProvisionsforinstitutionalCredit:ThegovernmentofIndiaintroducedvarious
provisionsofInstitutionalcredittoweakentheholdoftraditionalmoneylenders
overthepeasantry.Itaskedcooperativecreditsocietiesandcommercialbanksto
lendtotheagriculturalsector.
•TheCommunityDevelopmentProgramme(CDP):Thisprogramme,whichwas
patternedonAmericanexperiences,waslaunchedon2October1952,andits
objectivewastoprovidethesubstantialincreaseinagriculturalproductionand
improvementinbasicservices,whichwouldultimatelyleadtooveralldevelopment
oftheallsectionsofagrariansocietyculturalsectoronprioritybasis.
•TheGreenRevolution:GreenRevolutionisanagriculturaldevelopmentproject
thatincludeshigheryieldingvarietyseeds(HYV)andotherfertilityenhancing
inputsi.e.chemicalfertilizer,controlledirrigationfacilitiesandpesticides.The
componentsoftheprojectconsistedofprovidingcheapinstitutionalprice
incentives,marketingandresearchfacilities.

11. AfterIndependence,theAgrarianReformsCommitteeundertheChairmanshipof
J.C.KumarapppawasappointedbyIndianNationalCongress.Thecommittee
recommendedthatallintermediariesbetweenthestateandthetillershouldbe
eliminated.Someofthestepstakenbasedontherecommendationofthe
committee:
•Intermediariesabolition
•Surpluslandredistributionamonglandlessorsemi-landlesspeasants.
•Fixationofceilingsonlandholdings
LAND REFORMS MEASURES AFTER INDEPENDENCE

12. Toabolishintermediaries,somestepsweretakenasfollows:
•Theimpositionofceilingsonlandholdings.
•TenancyReformswereundertakenduringtheSecondFiveYearPlan.
•Exceptforsomedisabledcategoriesoflandowners,leasingoutofagriculturalland
wasmadeillegal.
•Aftercontinuouspossessionoftheland,tenantswereallowedtoacquiretherightof
purchaseofthatland.
1. Intermediaries abolition

13. •BhoodanandGramdan:VinobaBhaveintroducedBhoodanmovementin1951
andfollowingthisanothermovementcalledGramdanwaslaunchedin1957to
convincelandownerstorenouncetheirlandrightssothatthelandcouldbe
redistributedequally.
•ConsolidationofHoldings:Itreferstotheredistributionofallplotsoflandin
ordertocreateonecompactblockofland.
2. Surplus land redistribution among landless or semi-
landless peasants

14. •Thegovernmentputalimitonthesizeoflandbeyondwhichnofarmhousehold
canholdanyland.
•Changesinlandstructureduetothestepstakenbythegovernment:After
Independence,anumberoflandreformmeasureswereundertakeninthe1950sand
1960s.Endofthefeudalmodeofproduction.
•Adecreaseintheareaunderthetenancy.
3. Ceilings on Land Holding

15. Variousmeasuresoflandreformsundertakensince1970areasfollows:
•EFFECTIVEREDISTRIBUTION OFSURPLUSLAND:Thesurpluslandwas
redistributedinaneffectiveandequalmanner.
•AMENDMENTS INTENANCY LAWS:Manyamendmentsweremadeto
tenancylawsbyvariousstategovernments.AndhraPradesh,InGujarat,&
Karnataka
•CHANGES INTHE AGRARIAN STRUCTURE:Evenafter
theimplementationoflandreforms,inequalityintheownershipoflandholdings
hasnotdeclinedmuchovertimeandtheproportionoflandlesshouseholds
increasedfrom9.6%in1971to11.3%inThus,theagrarianstructureseemsto
beasunequalandunproductiveasbefore.
•UPDATINGOFLANDRECORDS:Effortsforthelandrecordupdation
undertakenduringtheSeventhFiveYearPlanandtheEighthFiveYearPlan.
The failure of the first round of land reforms(1950-1960)

16. •LANDRIGHTSOFWOMEN:Itwasrecommendedintherevenueministers’
conference(1992)thatthewomenshouldbegivenequalopportunitiesinthe
distributionoflands.
•GOVERNMENT POLICY:Thegovernmentemphasizedonlandreformsfrom
theFifthFiveYearPlan.IntheNinthFiveYearPlan,itwasrealizedthatland
reformsareveryimportantinordertotackletheproblemofruralpoverty.The
NinthFiveYearPlanemphasizeson:
1.theceilingsurpluslandredistribution.
2.theimplementationoftheceilinglaweffectively.
3.providingaccessofgovernmentwastelandsandcommoncommonpropertyto
thepoor.
4.ensuringthelandrightsofwomen.
5.propertytothepoor.

17. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
LAND REFORMS -CONSTITUTIONAL AMENDMENTS

18. •Theconstitution(FirstAmendment)Act,1951
•Theconstitution(FourthAmendment)act1955.
•Theconstitution(SeventeenthAmendment)Act,1964
•TheConstitution(Twenty-fourthAmendment)Act,1967
•TheConstitution(Twenty-fifthAmendment)Act,1971
•TheConstitution(Twenty-sixthAmendment)Act,1971-MadhavraoScindia
ithadannulledtheabolitionofprivypursesofformerrulers.
•TheConstitution(Twenty-ninthAmendment)Act,1972-29thAmendment
Act,1972includedtwoKeralaActsonlandreformsintheNinthSchedule
•TheConstitution(fortysecondAmendment)Act,1976
•TheConstitution(fortyfourthAmendment)Act,1978
Agrarian Reforms: Constitutional Amendments

19. The constitution (First Amendment) Act, 1951
•Introduction
•TheFirstConstitutionAmendmentAct,1951waschallengedinthiscase.The
amendmentwaschallengedonthegroundthatitviolatesthePart-IIIofthe
constitutionandtherefore,shouldbeconsideredinvalid.TheSupremeCourtheld
thattheParliament,underArticle368,hasthepowertoamendanypartofthe
constitutionincludingfundamentalrights.TheCourtgavethesamerulingin
SajjanSinghVsStateofRajasthancasein1965.
•Therighttopropertyhasbeenacomplexandcomplicatedsubjectrightfrom
1951.TherehavebeennumerousamendmentsandSupremeCourtrulingsoverthe
years.Ontheonehand,theparliamenthastrieditsbestkeepthebalanceofpower
initsfavor,allinthenameofdevelopment,whileontheotherhand,thejudiciary
bodieshavetrieditsbesttomakesurethatinthisprocess,thefundamentalrights
ofthecommonpeoplearenotviolated,whichistheutmostresponsibilityofthe
SupremeCourt.

20. •Factsofthecase:
•InordertoabolishtheZamindarisystemwidelyprevalentinIndia,someState
GovtsenactedtheZamindariAbolitionActtoacquirehugeholdingoflandthat
laywithrichzamindars,andredistributethemamongthetenants.Butthesame
waschallengedasbeingunconstitutionalandviolativeoftheRighttoProperty
thatwasincludedintheFundamentalRights.TheActwasheld
unconstitutionalbytheHCofPatnabutwasupheldbytheHCsof
AllahabadandNagpur;wherebyeventuallythematterwasputbeforethe
SupremeCourt.
•Thelegislatureintroducedfirstamendmenttotheconstitutionthat:
Providedforthesavingoflawsprovidingforacquisitionofestates,etc.
AddedNinthSchedule(Nojudicialreviewcanbedoneiftheactputinthis
schedule)toprotectthelandreformsandotherlawsincludedinitfromthe
judicialreview.AfterArticle31,Articles31Aand31Bwereinserted.

21. •Article31(a):The1stConstitutional
Amendmentof1951,theParliamentadded
Article31atotheIndianConstitution.
Accordingtothis,thegovernmentcan
acquirethepropertyofthepeopleandby
doingso,thefundamentalrights
mentionedinArticle14and19ofIndian
Constitutionshallnotbeviolated.Inother
words,Article31aofIndianConstitution
wasimmunetoArticle14and19ofIndian
Constitutionthatprovideforrightto
equalityandtherighttofreedom
respectively.

22. •Article31(b):Thisarticleisalsotheresultofthe1stAmendmentActof
1951.ItisinreferencewiththeactsandlawsmentionedintheIXScheduleof
theIndianConstitution.TheIXScheduleofIndianConstitutionisalistof
actsandlawswhichcannotbechallengedinthecourtoflaw.Inotherwords,
anysuchactsmentionedinthisscheduleareoutofthereachoftheIndian
judiciary.Article31(b)ofIndianConstitutionstatesthattheprovisions
mentionedinArticle31(a)areimmunefromIndianjudiciaryandcannot
benulledonthebasisthattheymightviolatethefundamentalrights
mentionedinArticles14,19and31ofIndianConstitution.
•NinthSchedule:NinthSchedulepertainingtoacquisitionofprivateproperty
andcompensationpayableforsuchacquisitioncannotbechallengedina
courtoflawonthegroundthattheyviolatedthefundamentalrightsof
citizens.Thisprotectiveumbrellacoveredmorethan284lawspassedbystate
legislatureswiththeaimofregulatingthesizeoflandholdingsandabolishing
varioustenancysystems.

23. •DecisionoftheCourt:
•ItwasheldthatthepoweroftheParliamenttoamendtheConstitution
includingtheFundamentalRightsisentailedinArt368andisnot
violativeoftheprovisionsoftheConstitution.Thevalidityoftheland
reformswasupheldbytheCourt;astheydonotcurtailthepowersofthe
HighCourtunderArt.226toissuewritsforenforcementofanyoftherights
conferredbyPartIIIoroftheSupremeCourtunderArts.132and136to
entertainappealsfromordersissuingorrefusingsuchwrits.Articles31A
and31Bwereheldnotinvalidonthegroundofultravires;theCourt
declaredthatthoughthesubjectof‘Land’cameundertheStateList,the
powertoenactamendmentsoftheConstitutionlaysolelywiththe
Parliament.

24. Fourth Amendment Act, 1955
Amendments:
–Madethescaleofcompensationgiveninlieuofcompulsoryacquisitionof
privatepropertybeyondthescrutinyofcourts.
–Authorisedthestatetonationaliseanytrade.
–Amendedarticles31,35and305.
–Amendedschedule9.
–IncludedsomemoreActsintheNinthSchedule.
–ExtendedthescopeofArticle31A(savingsoflaws).

25. •ThisamendmentwaspassedtoremovethedifficultiescreatedbytheSupreme
Court'sdecisioninBelaBanerjee'scase.TheCourthadinsistedforpaymentof
compensationineverycaseofcompulsorydeprivationofpropertybythe
State.Itwasheldthatclause(1)andclause(2)ofArticle31dealwiththesame
subject,thatisdeprivationofprivateproperty.InBelaBanerjee'scasethecourt
hadheldtheword'compensation'meant'justcompensation'i.e.ajust
equivalentof'whattheownerhadbeendeprivedof'.
•TheamendmentmodifiedArticle31(2)andmadeitclearthatclause(1)and
clause(2)dealwithdifferentthingsi.e.deprivationandcompulsoryacquisition.
ThenewArticle31(2)(A)madeitclearthatthecompensationwasonly
payableinthecaseofcompulsoryacquisition,i,e,wheretheStateacquires
theownershipinpropertytaken.Theadequacyofcompensationwasalsomade
non-judicially.TheamendmentbroadenedthescopeofArticle31-Aand
includedmorestatutesintheNinthSchedule.ItalsoamendedArticle305and
empoweredtheStatetonationaliseanytrade.

26. •InStateofWestBengalv.MrsBelaBanerjeetheissuewaswhetherthe
compensationprovidedforundertheWestBengalLandDevelopmentand
PlanningAct,1948,wasincompliancewiththeprovisioninArticle31(2).For
undertheStateAct,landscouldbeacquiredmanyyearsafteritcameintoforce
butneverthelessitfixedthemarketvalueasitprevailedonDecember31,1946,
asceilingoncompensationwithoutreferencetothevalueofthelandatthetime
oftheacquisition.
•TheCalcuttaHighCourt'sdecisionthatSection8oftheActwasultravireswas
confirmedbytheSupremeCourtwhichalsoheldthatEntry42ofListIIIofthe
SeventhScheduleconferredontheLegislaturethediscretionarypowerof
layingdowntheprincipleswhichgovernthedeterminationoftheamounttobe
giventotheownerofthepropertyacquiredandArticle31(2)requiredthatsuch
principlesmustensurethatwhatisdeterminedaspayableiscompensation,that
isajustequivalentofwhattheownerhasbeendeprivedof.

27. •WhileitistruethattheLegislatureisgiventhediscretionarypoweroflaying
downtheprincipleswhichshouldgovernthedeterminationoftheamounttobe
giventotheownerforthepropertyappropriated,suchprinciplesmustensure
thatwhatisdeterminedaspayablemustbecompensation,thatisjustequivalent
ofwhattheownerhasbeendeprivedof.
•Withinthelimitsofthisbasicrequirementofthefullindemnificationofthe
expropriatedowner,theConstitutionallowsfreeplaytothelegislativeJudgment
astowhatprinciplesshouldguidethedeterminationoftheamountpayable.
•TheChiefJusticeclearlypostulatesthatthebasicrequirementisthefull
indemnificationoftheexpropriatedownerbygivinghimajustequivalentof
whathehadbeendeprivedof.Itwasfurthermadeclearthattheambitof
legislativepowerincludedthetakingintoconsiderationalltheelementsthatgo
tomakeupthetruevalueoftheappropriatedproperty.

28. •Thiswasmadejusticiable.Soineffectthedecisionlaysdownthreemain
points:—
•(i)thecompensationunderArticle31(2)shallbeajustequivalentofwhatthe
ownerhasbeendeprivedof;
•(ii)theprincipleswhichtheLegislaturecanprescribeareonlyprinciplesfor
ascertainingjustequivalentofwhattheownerwasdeprivedof;
•(iii)andifthecompensationfixedwasnotajustequivalentofwhattheownerhas
beendeprivedof;oriftheprinciplesdidnottakeintoaccountallrelevant
elementsortakeintoaccountirrelevantelementsforarrivingatajustequivalent,
thequestioninregardtheretoaisjusticiableissue.
•TheaboveviewwassubstantiallyreiteratedbytheSupremeCourtinStateof
Madrasv.NamasivayaMudalia.
•TheexpressionscompensationandprinciplesweredefinedbythiscourtinMrs
BelaBanerjeecase.

29. The constitution (Seventeenth Amendment) Act, 1964
Amendments:
•Prohibitedtheacquisitionoflandunderpersonalcultivationunlessthe
marketvalueofthelandispaidascompensation.
•Included44moreActsintheNinthSchedule

30. Sajjan Singh vs. State of Rajasthan
Factsandargumentsraisedinthecase:
•Inthiscase(SeventeenthConstitutionalAmendment)Act,1964waschallenged.
AgainthequestionofShankariPrasadCasewasraisedwhetherthefundamental
rightscanbeamendedornot.TheNinthScheduleconsistofcertainstatutes
relatingtothepropertyandthespecialityoftheNinthschedulewasthatitisnot
subjecttojudicialreviewandbecauseofthatrighttojudicialreviewwastaken
awaywhichisoneofthebasicfeaturesoftheconstitution.TheprincipleofPith
andSubstancewasappliedtothiscase.

31. Judgement:
•TheSupremeCourtheldthatthearticle368empowerstheParliamenttoamend
anyofthearticlesoftheIndianConstitution.Onceagainitwassaidthatthe
Article13isjustlimitedtotheordinarylawsnotwiththeconstitutional
amendmentwhereasthescopeofarticle368islimitedtoconstitutionallaw.
Amongthe5judgebench,2judgegivenadissentingjudgement–Mudholkar
andHidayatulah.JusticeMudholkarwasoftheopinionthatfundamental
featuresoftheConstitutioncannotbechanged.
•Accordingtohimeachandeveryconstitutionoftheworldhascertain
fundamentalfeatures.Suchfeaturesmustnotbechanged.Hewasofthe
opinionthatfundamentalfeaturesoftheConstitutionofIndiacannotbe
changed.Thus,JusticeHidayatullahbwasoftheopinionaboutmakingno
alterationsinthebasicfeaturesoftheIndianConstitution.Butaccordingtothe
majoritydecisionitwassaidthatparliamentcanamendfundamentalrightsof
thepeople.

32. Twenty Fourth Constitutional Amendment Act, 1967
Reasons:
–TwentyFourthConstitutionalAmendmentActwasbroughtinresponseto
theGolaknathruling(1967)oftheSupremeCourtwhichheldthatthe
Parliamentdoesnothavethepowertotakeawayanyfundamentalrights
throughamendmenttotheConstitution.

33. I.C. Golaknath v. State Of Punjab(1967)
•ThefamilyofHenryandWilliamGolakNathheldover500acresoffarmland
inPunjab.Inthephaseofthe1953PunjabSecurityandLandTenuresAct,thestate
governmentheldthatthebrotherscouldkeeponlythirtyacreseach,afewacres
wouldgototenantsandtherestwasdeclared'surplus'.
•ThiswaschallengedbytheGolakNathfamilyinthecourtsandthecasewas
referredtotheSupremeCourtin1965.ThefamilyfiledapetitionunderArticle32
challengingthe1953PunjabActonthegroundthatitdeniedthemtheir
constitutionalrightstoacquireandholdpropertyandpracticeanyprofession
(Articles19(1)(f)and19(1)(g))andtoequalitybeforeandequalprotectionofthe
law(Article14).

34. •Judgement
•ThejudgementreversedSupremeCourt'searlierdecisionwhichhadupheld
Parliament'spowertoamendallpartsoftheConstitution,includingPartIII
relatedtoFundamentalRights.ThejudgementleftParliamentwithnopowerto
curtailFundamentalRights.
•Therefore,allconstitutionalamendmentsthusfarwhichwerein
contraventionorwhichhadmadeanexceptiontofundamentalrightschapter
oftheConstitutionweresaidtobevoid.
•TheapexCourtruledthatParliamentcouldnotcurtailanyoftheFundamental
RightsintheConstitution.

35. •Parliamentpassedthe24thAmendmentin1967torevoketheSupremeCourt
judgement.ItamendedtheConstitutiontoprovideexpresslythatParliament
hasthepowertoamendanypartoftheConstitutionincludingtheprovisions
relatingtoFundamentalRights.Thiswasdonebyamendingarticles13and
368toexcludeamendmentsmadeunderarticle368,fromarticle13'sprohibition
ofanylawabridgingortakingawayanyoftheFundamentalRights.

36. 25th amendment of the Constitution in 1971
Amendments:
•Curtailed the fundamental right to property.
•ProvidedthatanylawmadetogiveeffecttotheDirectivePrinciplescontained
inArticle39(b)or(c)cannotbechallengedonthegroundofviolationofthe
rightsguaranteedbyArticles14,19and31.
•The25thamendmentoftheConstitutionin1971addedanewclause,Article
31CtotheConstitution.Upto1971,thepositionwasthatFundamentalRights
prevailedovertheDirectivePrinciplesofStatePolicyandthatalawenactedto
implementaDirectivePrinciplecouldnotbevalidifitconflictedwitha
FundamentalRight.
•Article31Csoughttochangethisrelationshiptosomeextentbyconferring
primacyonArticles39(b)and39(c)overArticles14,19and31.

37. •Thisarticlewasinsertedbythe25thConstitutionalAmendmenttogetover
thedifficultiesplacedbyjudicialdecisionsinthewayofgivingeffecttothe
DirectivePrinciplesinPartIV.Itprovidedimmunityfromanychallengeon
thegroundsofviolationofArticle14,19and31anylawenactedfor
implementingthedirectivesinclause(b)and(c)ofArticle39.Inthe25th
amendmentitwasfurtherprovidedthatsuchlawmadetogiveeffecttothe
policyunderArticle39(b)and(c),wouldnotbeopentojudicialreview.
However,thissecondpartwasstruckdowninKeshavanandaBhartivState
ofKerala,butrestoftheArticlewasheldvalid.
•Article39CertainprinciplesofpolicytobefollowedbytheState:The
Stateshall,inparticular,directitspolicytowardssecuring
(b)thattheownershipandcontrolofthematerialresourcesofthe
communityaresodistributedasbesttosubservethecommongood;
(c)thattheoperationoftheeconomicsystemdoesnotresultinthe
concentrationofwealthandmeansofproductiontothecommon
detriment;

38. R C Cooper v. Union of India
•TheIndiraGandhigovernmentin1969attheinstanceofthethenActing
PresidentM.HidayatullahpromulgatedtheBankingCompanies(Acquisition&
TransferofUndertaking)Ordinance,1969nationalizingthe14banks.These14
bankswerechosenonthebasisthattheyhaddepositsexceeding50crores.The
ordinancewaspromulgatedjusttwodaysbeforetheSessionofParliament.The
ordinancebroughtmorethan75%bankingsectorunderstatecontrolalong
withitsassets,liabilities,entirepaid-up-capital.
•ThecontroversialpartoftheOrdinancewasthesecondscheduleitcontained.
•Whereanamountofcompensationcouldbefixedbyanagreement;itwouldbe
determinedbysuchagreement
•Wherenosuchagreementcouldbereachedintheprovidedtime,thematter
wouldbereferredtotribunal.Thecompensationfixedbythetribunalwillbe
awardedafter10yearsfromthedatewhentheagreementfailed.
•Also,knownasBankNationalizationcase.

39. Judgment:
•2dayslaterwhenParliamentenactedtheBankingCompanies(Acquisition&
TransferofUndertaking)Act,1969withthesameprovisionsaswereinthe
Ordinance.
•Therefore,RustomCavasjeeCooperthemajorityshareholderofCentralBank
ofIndia&BankofBarodafiledawritpetitioninSupremeCourtu/a32forthe
violationofhisFundamentalRightsmentionedunderarticles14,19(1)(f)&
31(2).
•Thecourtheldthatwecannotoverlooktheviolationofcitizensofthenationon
meretechnicalities.Ifduetostateactionthefundamentalrightsofacitizenare
violatedthecourtisboundtoprohibitsuchviolation.
•Thecourtdeclaredtherelevantlawtobeunconstitutionalbyamajority,10
to1.Thecourttookthepositionthatiftheprinciplesspecifiedbylawwere
relevanttothedeterminationofcompensation,theywouldbebeyond
challenge.But,intheinstatecase,thelawfailedtoprovidetotheexpropriated
bankscompensationdeterminedaccordingtorelevantprinciples.

40. •Nocompensationwaspaidforcertainitemsofproperty,examplegoodwillofthe
banks,unexpiredleasesofpropertiesheldbythebanksetc.,themethods
specifiedtovaluelandsandbuildingswerenotrelevanttothedeterminationof
compensation.Thismeantthatfortheseitemstheexpropriatedbankswerenot
givenatruerecompenseforthelossoftheirundertakings.
•ThecourtfoundtheimpugnedactincontraventionoftheArticle31sincethe
actfailedtocomplywithsaidprovision.Thesaidprovisionprovidedthatthein
caseanypropertyisacquiredbythegovernmentthentheyhavetoprovide
compensationtothepropertyowner.Sincetherewasclearviolationofthesaid
provisiontherefore,thecourtstruckdownthesaidact.

41. •StungbytheBankNationalizationcase,Parliamentenactedthe25thamendmentin
1971.Thisamendmenteffectedseveralsignificantchangesintherelevant
constitutionalprovisionsandfurtherdilutedpropertyrights.Inthefirstplacein
article31(2)theword‘amount’wassubstitutedfor‘compensation’.

42. Kesavananda Bharati vs. state of Kerala
•ThetusslebetweenParliamentandthejudiciary
•Intheearly1970s,thegovernmentofthenPMIndiraGandhihadenactedmajor
amendmentstotheConstitution(the24th,25th,26thand29th)togetoverthe
judgmentsoftheSupremeCourtinRCCooper(1970),MadhavraoScindia
(1970)andtheearliermentionedGolaknath.
•InKesavanandaBharaticase,areliefwassoughtagainsttheKeralagovernment
vis-à-vistwostatelandreformlaws,whichimposedrestrictionsonthe
managementofreligiousproperty.
•ThecasewaschallengedunderArticle26,concerningtherighttomanage
religiouslyownedpropertywithoutgovernmentinterference.
•Questionunderlyingthecase:WasthepowerofParliamenttoamendthe
Constitutionunlimited?Inotherwords,couldParliamentalter,amend,abrogate
anypartoftheConstitutioneventotheextentoftakingawayallfundamental
rights?

43. •TheConstitutionalBenchinKesavanandaBharaticaseruledbya7-6verdictthat
ParliamentcouldamendanypartoftheConstitutionsolongasitdidnotalteror
amendthebasicstructureoressentialfeaturesoftheConstitution.
•However,thecourtdidnotdefinetheterm‘basicstructure’,andonlylistedafew
principles—federalism,secularism,democracy—asbeingitspart.
•The‘basicstructure’doctrinehassincebeeninterpretedtoinclude
•thesupremacyoftheConstitution,
•theruleoflaw,
•Independenceofthejudiciary,
•doctrineofseparationofpowers,

44. •sovereigndemocraticrepublic,
•theparliamentarysystemofgovernment,
•theprincipleoffreeandfairelections,
•welfarestate,etc.
•SinceGolaknathwasdecidedbyelevenjudges,alargerbenchwasrequiredto
testitscorrectness,andthus13judgesformedtheKesavanandabench.
•Criticsofthedoctrinehavecalleditundemocraticsinceunelectedjudgescan
strikedownaconstitutionalamendment.Atthesametime,itsproponentshave
hailedtheconceptasasafetyvalveagainstmajoritarianismandauthoritarianism.
•ThemajorityopinionwasdeliveredbyCJISMSikri,andJusticesKSHegde,A
KMukherjea,JMShelat,ANGrover,PJaganmohanReddy,andHRKhanna.
JusticesANRay,DGPalekar,KKMathew,MHBeg,SNDwivedi,andYV
Chandrachuddissented.

45. •Facts:
•KesavanandaBharatiwasthechiefplaintiffoftheEdneerMutt,amonastic
religiousinstitutionlocatedinKasaragoddistrict,Kerala.Bharatihadsome
landintheMuttwhichheowned.TheKeralastategovernmentpassedtheLand
ReformsAmendmentActin1969.AsperthisAct,thegovernmentcould
acquiresomeofthelandsthatbelongedtotheMutt.
•InMarch1970,BharatimovedtheSupremeCourt(underArticle32ofthe
Constitution)toenforcetherightsthatwereguaranteedtohimunder:1.Article
25:Righttopractice&propagatereligion2.Article26:Righttomanage
religiousaffairs3.Article14:Righttoequality4.Article19(1)(f):Freedomto
acquireproperty5.Article31:CompulsoryacquisitionofpropertyAlsoread:
RighttoFreedomofReligion(Articles25-28)
•TheKeralastategovernmentenactedanotherlaw,theKeralaLandReforms
(Amendment)Act,1971evenasthepetitionwasunderthecourt’s
consideration.

46. •Thecontentionsmadebythepetitionersbroughttotheforethevalidityofvarious
amendmentsthatwerebroughtinbytheParliamenttonullifytheeffectsof
GolaknathvStateofPunjab.Thepetitionerschallenged,inparticular,three
constitutionalamendments-24thAmendment,25thAmendmentand29th
Amendmentandtheirvalidity.
•Contentionsofthepetitioners:•PetitionerscontendedthattheParliamentcan’t
amendtheConstitutioninamannertheywantastheirpowertodothisislimited.
TheParliamentcannotmakeanamendmenttotheConstitutiontochangeitsbasic
structureaswassetforthbyJusticeMudholkarintheSajjanSinghvStateof
Rajasthancase.•Theyarguedthatthe24th&25thConstitutionalAmendments
wereviolativeoftheFundamentalRightprovidedinArticle19(1)(f).
•Contentionsoftherespondents:•TheStatesaidthattheParliament’ssupremacy
istheIndianlegalsystem’sbasicstructureandhence,ithasboundlesspowerto
amendtheConstitution.Therespondentsstressedthatinordertofulfilitssocio-
economicobligationstheunlimitedpoweroftheParliamenttoamendthe
Constitutionmustbeupheld.

47. •Judgement:
•TheSupremeCourtreviewedthedecisioninGolaknathv.StateofPunjab,and
consideredthevalidityofthe24th,25th,26thand29thamendments.Thecasewas
heardbythelargesteverConstitutionBenchof13Judges.Thebenchgaveeleven
separatejudgments,whichagreedonsomepointsanddifferedonothers.Nanabhoy
Palkhivala,assistedbyFaliNarimanandSoliSorabjee,presentedthecaseagainst
thegovernmentinbothcases.
•UnderthisSupremeCourtdeclared31Casunconstitutionalandinvalidonthe
groundthatjudicialreviewisbasicstructureandhencecannotbetakenaway.
•Bya7-6verdict,a13-judgeConstitutionBenchruledthatthe‘basicstructure’of
theConstitutionisinviolable,andcouldnotbeamendedbyParliament.
•ThebasicstructuredoctrinehassincebeenregardedasatenetofIndian
constitutionallaw.TheConstitutionalBench,whosememberssharedserious
ideologicaldifferences,ruledbya7-6verdictthatParliamentshouldberestrained
fromalteringthe‘basicstructure’oftheConstitution.

48. •ThecourtheldthatunderArticle368,whichprovidesParliamentamendingpowers,
somethingmustremainoftheoriginalConstitutionthatthenewamendmentwould
change.
•Sincethen,thecourthasbeenaddingnewfeaturestothisconcept.
•TheKesavanandajudgmentalsodefinedtheextenttowhichParliamentcould
restrictpropertyrights,inpursuitoflandreformandtheredistributionoflarge
landholdingstocultivators,overrulingpreviousdecisionsthatsuggestedthatthe
righttopropertycouldnotberestricted.Thecasewasaculminationofaseries
ofcasesrelatingtolimitationstothepowertoamendtheConstitution.

49. ‘Basicstructure’sinceKesavananda
•ThebasicstructuredoctrinewasfirstintroducedbyJusticeMudholkarinthe
SajjanSinghcase(1965).
•MajorfeatureswerenotablypropoundedbyJusticeHansRajKhannain1973.
•Theinherentambiguityofthedoctrine,aswellasthatoftheratioin
KesavanandaBharati,resultedinvariouschallengesbothtoandunderthe
doctrinebeforetheSupremeCourt.TheperiodfollowingKesavanandaBharati
wasonewherethedoctrinehasevolvedonacase-to-casebasis,resultingina
gradualexpansionofthedoctrine.
•The‘basicstructure’doctrinehassincebeeninterpretedtoincludethe
supremacyoftheConstitution,theruleoflaw,Independenceofthejudiciary,
doctrineofseparationofpowers,federalism,secularism,sovereigndemocratic
republic,theparliamentarysystemofgovernment,theprincipleoffreeandfair
elections,welfarestate,etc.
•AnexampleofitsapplicationisSRBommai(1994),whentheSupremeCourt
upheldthedismissalofthegovernmentsbythePresidentfollowingthe
demolitionoftheBabriMasjid,invokingathreattosecularismbythese
governments.

50. 42nd Amendment Act
•OurIndianConstitutionisuniqueforitscontentandspirit.TheConstitutionof
Indiadecidestheruleofthelandandistakenassupremelawoftheland.The
constituentassemblythatwasbehindformulatingourconstitutionhasalsogiven
scopeforamendmentsinitwithtime.Hence,theIndianConstitutionofwhatit
istodayhasundergonesubstantivechangesonaccountofseveralamendments.
TheactalsocalledTheConstitutionAct,1976istermedasoneofthemost
controversialactsinthehistoryofamendmentstotheIndianConstitution.It
amended/introducedvariousprovisionsgivenbelow:

51. ItwascalledasMiniconstitutionofIndiaand
wasbroughtduringnationalemergency.
•1.Preamble:ItinsertedwordsSocialist,
SecularandIntegrityinthepreamble.
•2.Legislature:LifeofLokSabhaandstate
assemblieswasextendedfrom5to6years.
•3.President:Article74wasamendedas
presidentshallactinaccordancewithadvice
bycouncilofministers.
•4.FundamentalRights:AllDPSPweregiven

52. 44th Amendment Act, 1978
•44thAmendmentAct,1978wasintroducedtoprovideadequatesafeguardsagainst
therecurrenceofthetendencytotakeoverthefundamentalrightsbythetransient
majorityinthefutureandtoensuretothepeopleaneffectivevoiceindetermining
theformofgovernmentunderwhichtheyaretolive.
•ThisactalsonullifiedvariousprovisionsthatwerebroughtintotheIndian
Constitutionasnewarticlesorasamendmentsbythe42ndAmendmentAct.
•44thAmendmentisanactthatwasintroducedintotheconstitutionby45th
AmendmentBillintheyear1978.In1976,withtheintroductionofthe42nd
AmendmentAct,therewerevariousprovisionsthatwereamendedagainstthe
willofthecitizenshence,toreversethosechangesandsafeguardtheinterests
ofthenation,44thAmendmentActwascalledintoaction.

53. •44thAmendmentmadeafewchangesintheprovisionsoftheconstitution.They
aregiveninpointsbelow:-
•Anychangesinthebasicstructureoftheconstitutioncanbemadeonlyiftheyare
approvedbythepeopleofIndiabyamajorityofvotesatareferenduminwhichat
leastfifty-onepercentoftheelectorateparticipated.Article368isbeingamended
toensurethis.
•The44thAmendmentAct1978reversedtheprovisionmadebythe42nd
amendmentactthatallowedthegovernmenttoamendtheconstitutiononits
wishbyArticle368.44thAmendmentActnullifiedthisunjustifiedpowerto
thegovernment.
•RighttoPropertywasremovedfromthelistoffundamentalrights(Article31)
andwasmadealegalrightunderArticle300A.
•ProclamationofEmergencycanbeissuedonlywhenthesecurityofIndiaor
anypartofitsterritoryisthreatenedbywarorexternalaggressionorby
armedrebellion.Internaldisturbancenotamountingtoarmedrebellionwouldnot
beagroundfortheissueofaProclamation.

54. •Anemergencycanbeproclaimedonlyonthebasisofwrittenadvicetendered
tothePresidentbytheCabinet.
•Therighttolibertyisfurtherstrengthenedbytheprovisionthatlawfor
preventivedetentioncannotauthorise,inanycase,detentionforalonger
periodthantwomonths,unlessanAdvisoryBoardhasreportedthatthereis
sufficientcauseforsuchdetention.
•Rightofthemediatoreportfreelyandwithoutcensorshiptheproceedingsin
ParliamentandtheStateLegislatures.

55. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
LAND REFORMS -CONSTITUTIONAL PROVISIONS

56. •TheIndianagrarianreformprogrammeisolderthantheConstitution.‘Landto
thetiller’waspartofourfreedomstruggle.TheCongressAgrarianReforms
Committeehadpreparedadetailedprogrammeonagrarianreforms.Theaim
wastofreetheagrariansystemfromexploitativeelements.
•ThePermanentSettlementintroducedbyLordCornwallisin1793inthethen
territoriesofBengal,BiharandOrissaandsubsequentlyextendedtoother
areasneededtobeannulled.Allintermediaryinterestsinestatesbetweenthe
actualcultivatorandtheStateneededtobeterminated.Inthenewagrarian
structureenvisagedbythecommittee,thecultivatorswouldholdlanddirectly
undertheStateandwouldpayafixedsumaslandrevenue.Tenantsunder
privatelandlordswouldenjoysecurityoftenureandfixityofrent.The
constitutionofIndiahasincludedtheLandreforminStatesubjects.
Agrarian Reforms: Constitutional Provisions

57. •TheEntry18oftheStateListisrelatedtolandandrightsovertheland.The
stategovernmentsaregiventhepowertoenactlawsovermattersrelatedto
land.
•TheEntry20intheconcurrentlistalsomandatestheCentralGovernmentto
fulfilitsroleinSocialandEconomicPlanning.
•ThePlanningCommissionwasestablishedforsuggestionofmeasuresfor
landreformsinthecountry.
•Inthepursuanceofthesedirectivesthelandreformslawsaimsatbreaking
theconcentrationofownershipoflandbyafewbiglandlords.
•TheotherarticlesareArticles14,19(1)(f)Theprogrammeoflandreforms
wasoneofthemajorconsiderationsintheschemesofsocialandeconomic
restructuringofIndiansociety.Theconstitutionprovidesfundamentalrights
(Part-Ill)andDirectivePrincipalsofstatepolicy(Part-IV).Theprogramme
ofagrarianreformwasformulatedtoimplementthedirectiveofsecuring
socialandeconomicjusticetothosewhoworkedonland.

58. •Thespecificarticlesoftheconstitutionthatpertaintolandreformsareas
follows:
•Article23underfundamentalrightsabolishedBegarorforcedunpaid
labourinIndia.
•Article38containsthedirectivetothestatethat“Stateshallstriveto
promotethewelfareofpeoplebysecuringandpromotingaseffectivelyas
possible.Asocialorderinwhichjustice,social,economicandpolitical
shallreformtheinstitutionofnationallife.Andthatitshallinparticular,
strivetominimizetheinequalitiesinincome”
•Article39saysthat“thestateshalldirectitpoliciestowardssecuringthe
ownershipandcontrolofmaterialresourcesofthecommunityand
distributedthemasbesttosubservethecommongoodandatthesame
timeensuringtheoperationoftheeconomicsystemnotresultinginthe
concentrationofwealthandmeansofproductionstothecommon
detriment”.
•Article48directedthestatetoorganizeagricultureandanimalhusbandry
onmodern-scientificlines.

59. •Inthepursuanceofthesedirectivesthelandreformslawsaimsatbreakingthe
concentrationofownershipoflandbyafewbiglandlords.Theotherarticlesare
Articles14,19(1)(f)and31andtheseareimportantastothelandreforms
legislations.
•Articles14“providethestateshallnotdenytoanypersonequalitybeforelaw
andequalprotectionoflaws”.
•Article19whichguaranteestoallcitizensanumberoffreedoms,includingin
clauses(i)(f)therighttoacquire,holdanddisposeofpropertywhichhasbeen
deletedbythebyfortyfourthamendmentAct1978).
•Article31guaranteedrighttopropertyandcontainedsixclausesofwhich
clauses(4)and(6)wereparticularlydesignedtoprotectlandreformslegislations
.Thearticleisnowabolishedandnomorevalidstandsintheconstitutionof
India.

60. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
UNIT-2 (A)
URBANIZATION

61. •Urbanizationastheimmigrationofpeopleinhugenumbersfromruraltourbanareasandthisprocess
happenduetotheconcentrationofresourcesandfacilitiesintownsandcities.
•Urbanisationistheincreaseintheproportionofpeoplelivingintownsandcities.Urbanisation
occursbecausepeoplemovefromruralareas(countryside)tourbanareas(townsandcities).This
usuallyoccurswhenacountryisstilldeveloping.
•Urbanizationispervasiveandrecentphenomenon.Inpresentglobalatmosphere,allnationsundergo
withthechallengesofenvironment,social,transportation,economyintheirrespectivecities.These
issuesarecommonlyoccurredindevelopingcountriesduetothedifferenceofdevelopmentincities
andvillages.
•Mostofcountriesfocusondevelopmentofcitiesinsteadofruralareas.Consequently,theurbanareas
areequippedwithinfrastructure,publicfacilitiesaswellasprovideemploymentopportunities
comparedtotheruralareas.Thereforeinhabitantsaremoreattractedtomigrateincitiestoavailhi
techfacilities,enhancetheirlifestylesandultimatelytheseactivitiesraisenumerousurbanization
issues.
URBANIZATION

62. •Urbanizationisrelevanttoarangeandvarietyofdisciplinesandfields,mostlyincludingurban
planning,geography,sociology,architecture,economics,andpublichealth.
•Thephenomenonhasbeencloselylinkedtomodernization,industrializationand
thesociologicalprocessofrationalization.Urbanizationcanbeseenasaspecificconditionataset
time(e.g.theproportionoftotalpopulationorareaincitiesortowns),orasanincreaseinthat
conditionovertime.
•Therefore,urbanizationcanbequantifiedeitherintermsofthelevelofurbandevelopmentrelativeto
theoverallpopulation,orastherateatwhichtheurbanproportionofthepopulationisincreasing.
•Urbanizationcreatesenormoussocial,economicandenvironmentalchanges,whichprovidean
opportunityforsustainabilitywiththe"potentialtouseresourcesmoreefficiently,tocreatemore
sustainablelanduseandtoprotectthebiodiversityofnaturalecosystems."

63. •Industrialrevolution:Industrialemploymentcatchestheattentionofpeoplefromruraltourban
areas.Intheurbanareas,peopleworkinmodernsectorintheoccupationsthatassistnational
economicdevelopment.
•Emergenceoflargemanufacturingcentres.
•Jobopportunities:Thereareamplejobopportunitiesinmegacitiesthereforevillagepeopleor
individualsfromtownfrequentlymigratetotheseareas.
•Migration:Migrationismaincauseforrapidgrowthofmega-cities.Migrationhasbeengoingon
overcenturiesanditisnormalphenomenon.Whenconsideringurbanizationrural-urbanandurban-
ruralandrural-ruralmigrationsareveryimportant.Urban-urbanmigrationmeansthatpeoplemove
fromonecitytoanother.Peoplemaymovetothecitybecausetheyareforcedbypovertyfrom
ruralcommunityortheymaybepulledbythemagnetismofcitylives.Combinationofthese
pushandpullfactorscanforcepeopletomigratetocities.
MAJOR CAUSES OF URBANIZATION

64. •Infrastructurefacilitiesintheurbanareas:Infrastructurehasvitalroleintheprocessof
urbanizationinthedevelopmentofcountries.Asagriculturebecomesmorefruitful,citiesgrowby
absorbingworkforcefromruralareas.Industryandservicesincreaseandgeneratehighervalue-added
jobs,andthisledtoeconomicgrowth.Thegeographicconcentrationofproductiveactivitiesincities
createsagglomerationeconomies,whichfurtherraisesproductivityandgrowth.Thisaugments
incomeanddemandforagriculturalproductsincities.

65. •Rapidrateofurbanization:Itisobservedthatfastrateofurbanizationwhichisincreasingeveryyear
hasneededmoregrowthofnewareasforhousing,socialamenities,commercialandotherurbanland
uses.Thesesituationsledtovariousurbanizationissuessuchasenvironmentalpollution,traffic
congestion,depletionofgreenareasanddegradationinthequalityofurbanliving.
•Degradationofenvironmentalquality:Duetourbanization,thereisenvironmentaldegradation
especiallyinthequalityofwater,airandnoise.Thedomesticwaste,industrialeffluentsandother
wastesthatweredumpeddirectlytotheriver,degradethewaterquality.Anotheraftereffectsofrapid
urbanizationistheairpollutionwhichhasalsoincreasedduetoemanationfrommotorvehicles,
industrialdevelopmentanduseofnon-environmentalfriendlyfuelsources.
PROBLEMS OF URBANIZATION

66. •Inefficienttransportationsystem:Urbanizationcreatedsevereproblemoftranspiration.Dueto
movementofpeopleintometropolitancities,thenumberofvehiclesontheroadisincreasingevery
year.
•Overcrowdingisasituationinwhichlargenumberofpeoplelivesintoolittlespace.Overcrowding
isaconsistentresultofover-populationinurbanareas.
•Declineinqualityoflivingforurbandwellers:Urbanizationismajorconcernformanagement
researchersbecauseitdeclineinqualityoflivingforurbaninhabitants.Thereisprobleminthe
provisionofhousing,especiallyforthemiddleandlowclasspeople.Thesupplyofhousingforthe
urbanpoorisstillinadequateasthecostofthesehousesisveryhightowhichlowandmiddle
incomegroupcannotafford.Thelackofhousingprovisionforthelowincomegrouphasledtothe
continuationofunlawfulresidentsettlementsinthecity.

67. •Unsuccessfulurbangovernance:Theurbanauthorityundergoeswithmultifacetedchallengesto
manageacity.Thefastspeedofurbanizationismajorchallengeswhichneedeverypartytobemore
focusedinundertakingeachandeveryresponsibilityinurbandevelopment.However,the
involvementofseveralagenciesanddepartmentsinurbanmanagementmadeitcomplicatedto
synchronizemanyactionsandresultant,itaffectstheefficiencyofthoseactions.
•Poverty,unemploymentandunderemploymentamongtheruralimmigrant,beggary,thefts,
dacoities,burglaryandothersocialsinsgowild.
•Urbanslumpisencroachingthevaluableagriculturalland.
•Healthproblemscausedduetourbanization.

68. •UrbanCrimes:IndevelopedcitiesofIndia,peoplegetconnectedwithdifferenttypesofindividuals
whodonothavesimilaritywithoneanother.Theproblemofcrimesincreaseswiththeincreasein
urbanisation.Infacttheincreasingtrendinurbancrimestendstoupsetpeaceandtranquillityofthe
citiesandmaketheminsecuretoliveinmainlyforthewomen.Violenturbancrimessuchasrape,
murder,kidnapping,dacoity,robberyaremoreprominentinthenorthern-centralpartsofthenation.
Theeconomiccrimessuchastheft,cheating,breachoftrustareincreasing.

69. Chanderprabhu Jain College of Higher Studies & School of
Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of
India)
UNIT-2 (B)
LAND ACQUISITION ACT, 2013

70. Land Acquisition Act, 2013
•Despitemanyamendments,overtheyears,toIndia’sLandAcquisitionActof1894,
therewasanabsenceofacohesivenationallawthataddressedfaircompensation
whenprivatelandisacquiredforpublicuse,andfairrehabilitationoflandowners
andthosedirectlyaffectedfromlossoflivelihoods.TheGovernmentofIndia
believedthatacombinedlawwasnecessary,onethatlegallyrequiresrehabilitation
andresettlementnecessarilyandsimultaneouslyfollowgovernmentacquisitionof
landforpublicpurposes.
•TheRighttoFairCompensationandTransparencyinLandAcquisition,
RehabilitationandResettlementAct,2013isalegislationthatregulatesland
acquisitionandprovideslaiddownrulesforgrantingcompensation,rehabilitation
andresettlementtotheaffectedpersonsinIndia.TheActhasprovisionstoprovide
faircompensationtothosewhoselandistakenaway,bringstransparencytothe
processofacquisitionoflandtosetupfactoriesorbuildings,infrastructuralprojects
andassuresrehabilitationofthoseaffected.

71. Aims and objectives:
•Toensure,inconsultationwithinstitutionsoflocalself-governmentandGram
Sabhasahumane,participative,informedandtransparentprocessforland
acquisitionforindustrialization,developmentofessentialinfrastructuralfacilities
andurbanizationwiththeleastdisturbancetotheownersofthelandandother
affectedfamilies
•Providejustandfaircompensationtotheaffectedfamilieswhoselandhasbeen
acquiredorareaffectedbysuchacquisition
•Makeadequateprovisionsforsuchaffectedpersonsfortheirrehabilitationand
resettlement
•TheActaimstoestablishthelawonlandacquisition,aswellastherehabilitation
andresettlementofthosedirectlyaffectedbythelandacquisitioninIndiaexcept
J&K.

72. The Act is applicable when:
•Governmentacquireslandforitsownuse,holdandcontrol,includinglandfor
Publicsectorundertakings.
•Governmentacquireslandwiththeultimatepurposetotransferitfortheuseof
privatecompaniesforstatedpublicpurpose.ThepurposeofLARR2013includes
public-private-partnershipprojects,butexcludeslandacquiredforstateor
nationalhighwayprojects.
•Governmentacquireslandforimmediateanddeclaredusebyprivatecompanies
forpublicpurpose.
•TheprovisionsoftheActdoesnotapplytoacquisitionsunder16existing
legislationsincludingtheSpecialEconomicZonesAct,2005,theAtomic
EnergyAct,1962,theRailwaysAct,1989,etc.

73. Definition: Public Purpose
•Section2(1)oftheactdefines‘publicpurpose’astheprojectwhichinvolves
landacquisitionforstrategicpurposesornationalsecurityanddefenceofthe
country.Forexample-naval,military,airforce,andarmedforcesoftheUnion,
includingcentralparamilitaryforcesetc.Otherdomainwhichfallsunderpubic
purposeare-elaboratementionofinfrastructureprojects,projectsforhousingfor
lowerincomegroupsorlandlessortopersonsresidinginareasaffectedby
naturalcalamitiesortopersonsdisplacedoraffectedbyreasonofthe
implementationofanyschemeundertakenbytheGovernment.
•Consentclause
•Whengovernmentacquiresthelanddirectlyfor‘publicpurpose’consentofthe
landownerisnotrequired.However,whenthegovernmentacquiresthelandfor
privatecompanies,theconsentofatleast80%oftheprojectaffectedfamilies
shallbeobtainedthroughapriorinformedprocess.Incaseofacquisitionofland
forpublic-privateprojectthentheconsentofatleast70%oftheaffectedfamilies
shouldbetaken.

74. •Emergencyacquisition
•Underthisthelandacquisitioncanbeexpeditedifitrelatestonationaldefense,
securityandrehabilitationofaffectedpeoplefromnaturaldisastersor
emergencies.
•Limitsonacquisition
Theactdoesnotallowacquisitionoflandundermulticroppedarea.Theactalso
mandatesthatincaseofacquisitionofmulticroppedareaunderexceptional
circumstances,anequivalentareaofcultivablewastelandshallbedevelopedby
thestateforagriculturalpurposes.Incaseofacquisitionofotheragriculturalland,
totalacquisitionshouldnotexceedthelimitasspecifiedbyanappropriate
authority.Theselimitsshallnotapplytolinearprojectswhichincludeprojectsfor
railways,highways,majordistrictroads,powerlines,andirrigationcanals.

75. •Compensation
Itwillbefourtimesthemarketvalueoflandinruralareasandtwicein
urbanareas.Themarketvalueofthelandwillbesetashigherof:minimumland
value,ifany,specifiedintheIndianStampAct,1899or;averageofthesaleprice
forsimilartypeoflandbeingacquired,ascertainedfromthehighestfiftypercent
ofthesaledeedsregisteredduringtheprecedingthreeyearsinthenearestvicinity
ofthelandbeingacquired.
•Section7:SocialImpactAssessment(SIA)reportsubmittedbytheExpert
Group.
•Section11:Theprocessofacquisitionbeginswiththeissuanceofpreliminary
notification,asenvisagedunderSection11ofRighttoFairCompensationand
TransparencyinLandAcquisition,RehabilitationandResettlementAct,2013.
Whenever,itappearstotheappropriateGovernmentthatlandinanyareais
requiredorlikelytoberequiredforanypublicpurpose,apreliminarynotification
underSection11inruralorurbanareasshallbepublished.

76. •Section14:providesthatwhereapreliminarynotificationundersection11isnot
issuedwithin12monthsfromthedateofappraisaloftheSocialImpact
Assessment(SIA)reportsubmittedbytheExpertGroupundersection7,then,
suchreportshallbedeemedtohavelapsedandafreshSocialImpactAssessment
shallberequiredtobeundertakenpriortoacquisitionproceedings.
•TheappropriateGovernmentshallhavethepowertoextendtheperiodoftwelve
months,ifinitsopinioncircumstancesexistjustifyingthesamebutsuchdecision
shallberecordedinwritingandthesameshallbenotifiedandbeuploadedonthe
websiteoftheauthorityconcerned.

77. •SurveyOfLand
Section12providesforthepreliminarysurveyoflandandpowerofofficersto
carryoutsuchsurvey.
ForthepurposesofenablingtheappropriateGovernmenttodeterminetheextent
oflandtobeacquired,itshallbelawfulforanyofficer,eithergenerallyor
speciallyauthorisedbysuchGovernmentinthisbehalf,andforhisservantsand
workmen,–
•(a)toenteruponandsurveyandtakelevelsofanylandinsuchlocality;
•(b)todigorboreintothesub-soil;
•(c)todoallotheractsnecessarytoascertainwhetherthelandisadaptedforsuch
purpose;
•(d)tosetouttheboundariesofthelandproposedtobetakenandtheintendedline
ofthework(ifany)proposedtobemadethereon;and

78. •
(e)tomarksuchlevels,boundariesandlinebyplacingmarksandcuttingtrenches
andwhereotherwisethesurveycannotbecompletedandthelevelstakenandthe
boundariesandlinemarked,tocutdownandclearawayanypartofanystanding
crop,fenceorjungle.
Restriction:
•Noactunderclauses(a)to(e)inrespectoflandshallbeconductedintheabsence
oftheownerofthelandorintheabsenceofanypersonauthorisedinwritingby
theowner.Suchsurveymaybeundertakenintheabsenceoftheowner,ifthe
ownerhasbeenaffordedareasonableopportunitytobepresentduringthesurvey,
bygivinganoticeofatleastsixtydayspriortothesurvey.
•InSatnamSinghvs.StateofPunjab,theCourtheldthatanoticeisnecessary
conditionprecedentfortheexerciseofthepoweroftheentry,andnon-
compliancewiththeseconditionsmaketheentryoftheofficerorhisservants
unlawful.

79. •PaymentforDamages:
Section13providesthattheofficershallatthetimeofentryundersection12pay
foranydamagecaused.Itispaymentfortheintendeddamage.
Damagemeansanyharmdonetolandduringthecourseofsurveyingitandother
actsnecessarytoascertainwhetheritiscapableofbeingadaptedforpublic
purpose.
•HearingObjections
Section15isconsistentwiththebasicprinciplethatnoman’spropertyshallbe
acquiredunlesshehasbeengivenanopportunityofbeingheard.Themain
objectiveofissuingpreliminarynotificationistocallforobjections,ifany,
againstsuchacquisitionsfromtheownersorotherswhoarehavingcertain
interestovertheproperty;givingthemanopportunitytoraisetheirclaimsagainst
themoveofthegovernmentforacquiringtheirlands.

80. •ReportontheObjections:Section15
EveryobjectionshallbemadetotheCollectorinwriting.TheCollectorshallgive
theobjectoranopportunityofbeingheardinpersonorbyanypersonauthorised
byhimorbyanAdvocateandshall,makeareporttotheappropriate
Government,containinghisrecommendationsontheobjections,togetherwiththe
recordoftheproceedingsheldbyhimalongwithaseparatereportgivingtherein
theapproximatecostoflandacquisition,particularsastothenumberofaffected
familieslikelytoberesettled,forthedecisionofthatGovernment.
Ifobjectionsaremade,theCollectorwillconsiderthoseobjectionsandmakehis
recommendationthereoninhisreporttogovernment.Ifnoobjectionsaremade,
theCollectorhasgottomakeareport.ItisthereafterthattheGovernmentis
empoweredtoproceedfurther.
Section15(3)providesthatthedecisionoftheappropriateGovernmentonthe
objectionsshallbefinal.

81. •Rehabilitation&ResettlementScheme
Section16providesforthepreparationofRehabilitationandResettlement
SchemebytheAdministrator.
UponthepublicationofthepreliminarynotificationbytheCollector,the
AdministratorforRehabilitationandResettlementshallconductasurvey
andundertakeacensusoftheaffectedfamilies,insuchmanner,whichshall
include–
(a)particularsoflandsandimmovablepropertiesbeingacquiredofeachaffected
family;
(b)livelihoodslostinrespectoflandlesswhoareprimarilydependentonthe
landsbeingacquired;
(c)alistofpublicutilitiesGovernmentbuildings,amenitiesandinfrastructural
facilitieswhichareaffectedorlikelytobeaffected,whereresettlementof
affectedfamiliesisinvolved;
(d)detailsofanycommonpropertyresourcesbeingacquired.

82. •DraftingtheScheme:
TheAdministratorshall,basedonthesurveyandcensusbefore,prepareadraft
RehabilitationandResettlementScheme.
•Review&ApprovalofScheme:
UnderSection17theCollectorshallreviewthedraftSchemesubmittedbythe
AdministratorwiththeRehabilitationandResettlementCommitteeattheproject
levelconstitutedundersection45.
TheCollectorshallsubmitthedraftRehabilitationandResettlementScheme
withhissuggestionstotheCommissionerRehabilitationandResettlementfor
approvaloftheScheme.
•IftheschemeisapprovedthentheCommissionershallunderSection18cause
theapprovedRehabilitationandResettlementSchemetobemadepublic

83. •Declaration
Afterreceiptofobjections,theconcernedauthorityshallconsiderthoseobjections,
andiffoundunsatisfactory,thenafinaldeclarationrejectingtheclaimswillbe
issued.Section19ofthenewActprovidesthatthefinaldeclarationshallbe
publishedbytheauthoritywithinaperiodof12monthsfromthedateofissuance
ofpreliminarynotificationundersection11oftheAct.
WhentheappropriateGovernmentissatisfied,thatanyparticularlandisneeded
forapublicpurpose,adeclarationshallbemadetothateffect,alongwitha
declarationofanareaidentifiedasthe“resettlementarea”forthepurposesof
rehabilitationandresettlementoftheaffectedfamilies.

84. •SummaryofScheme:
TheCollectorshallpublishasummaryoftheRehabilitationandResettlement
Schemealongwithdeclaration.Butnodeclarationunderthisshallbemade
unlessthesummaryoftheRehabilitationandResettlementSchemeis
publishedalongwithit.
Also,the‘RequiringBody’mustdepositanamount,infullorpart,asmaybe
prescribedbytheappropriateGovernmenttowardsthecostofacquisitionofthe
land.
RequiringBodyasdefinedunderSection3(zb)meansacompany,abody
corporate,aninstitution,oranyotherorganisationorpersonforwhomlandis
tobeacquiredbytheappropriateGovernment,andincludestheappropriate
Government.

85. •LapseofNotification:
Wherenodeclarationismadewithin12monthsfromthedateofpreliminary
notification,thensuchnotificationshallbedeemedtohavebeenrescinded.Provided
thatincomputingthetimeof12monthsanyperiodduringwhichtheproceedingsfor
theacquisitionofthelandwerehelduponaccountofanystayorinjunctionbythe
orderofanyCourtshallbeexcluded.TheappropriateGovernmentmaydecideto
extendtheperiodof12months,ifinitsopinioncircumstancesexistjustifyingthe
same,whichshallberecordedinwritingandnotifiedandbeuploadedonthewebsite
oftheauthorityconcerned.Thedeclarationshallbeconclusiveevidencethattheland
isrequiredforapublicpurposeandaftermakingsuchdeclaration,theappropriate
GovernmentmayacquirethelandinsuchmannerasspecifiedunderthisAct.
•PublicNotice:
UnderSection21theCollectorshallpublishthepublicnoticeonhiswebsiteand
causepublicnoticetobegivenatconvenientplacesonornearthelandtobetaken,
statingthattheGovernmentintendstotakepossessionoftheland,andthatclaimsto
compensationsandrehabilitationandresettlementforallinterestsinsuchlandmay
bemadetohim.

86. Thetimeperiodshouldnotbelessthan30daysandnotmorethan6monthsafter
thedateofpublicationofthenotice.
•StatementtoCollector:
UnderSection22theCollectormayalsorequireanyinterestedpersontomakeor
delivertohimastatementwithin30dayscontainingthenameofeveryother
personpossessinganyinterestintheland.
•AcquisitionAward
ThenewActstipulatesthattheminimumcompensationistobeamultipleofthe
totaloftheascertainedmarketvalue,plusvalueoftheassetsattachedtothe
property,plusasolatiumequalto100%ofthemarketvalueoftheproperty
includingvalueofassets.
UnderSection23theCollectorshallproceedtoenquireintotheobjectionswhich
anypersoninterestedhasstatedpursuanttoanoticegivenunderSection21and
intotherespectiveinterestsofthepersonsclaimingthecompensationand
rehabilitationandresettlement,shallmakeanaward

87. •PeriodforAward:
UnderSection25theCollectorshallmakeanawardwithinaperiodof12
monthsfromthedateofpublicationofthedeclarationandifnoawardismade
withinthatperiod,theentireproceedingsfortheacquisitionofthelandshall
lapse.
ProvidedthattheappropriateGovernmentmaytakethedecisiontoextendthe
periodof12monthsifinitsopinion,circumstancesexistjustifyingthesame
butsuchdecisionshallberecordedinwriting.

88. •Section24.Landacquisitionprocessundershallbedeemedtohavelapsedin
certaincases.–
•(1)NotwithstandinganythingcontainedinthisAct,inanycaseofland
acquisitionproceedingsinitiatedundertheLandAcquisitionAct,1894,—(a)
wherenoawardundersection11ofthesaidLandAcquisitionActhasbeenmade,
then,allprovisionsofthisActrelatingtothedeterminationofcompensationshall
apply;or(b)whereanawardundersaidsection11hasbeenmade,thensuch
proceedingsshallcontinueundertheprovisionsofthesaidLandAcquisitionAct,
asifthesaidActhasnotbeenrepealed.
•(2)Notwithstandinganythingcontainedinsub-section(1),incaseofland
acquisitionproceedingsinitiatedundertheLandAcquisitionAct,1894(1of
1894),whereanawardunderthesaidsection11hasbeenmadefiveyearsor
morepriortothecommencementofthisActbutthephysicalpossessionofthe
landhasnotbeentakenorthecompensationhasnotbeenpaidthesaid
proceedingsshallbedeemedtohavelapsedandtheappropriateGovernment,ifit
sochooses,shallinitiatetheproceedingsofsuchlandacquisitionafreshin
accordancewiththeprovisionsofthisAct:

89. •Providedthatwhereanawardhasbeenmadeandcompensationinrespectofa
majorityoflandholdingshasnotbeendepositedintheaccountofthe
beneficiaries,then,allbeneficiariesspecifiedinthenotificationforacquisition
undersection4ofthesaidLandAcquisitionAct,shallbeentitledto
compensationinaccordancewiththeprovisionsofthisAct.
•Recently,theSupremeCourtofIndiareaffirmeditsFebruary2018ruling
onSection24onlandacquisitioncompensationawardsintheIndore
DevelopmentAuthoritycase.
•Thefive-judgeBenchalsooverruledanearlier2014rulingundertheRightto
FairCompensationandTransparencyinLandAcquisition,Rehabilitation
andResettlementActof2013.

90. Background
•The2013ActreplacedtheLandAcquisitionAct,1894(1894Act)andprovides
forhighercompensationtothosedeprivedoflandbythegovernmentforboth
publicandprivatesectorprojects.Italsomandatesconsentofamajorityofland-
ownersandcontainsprovisionsforrehabilitationandresettlement.
•UnderSection24(2)ofthe2013Act,landacquisitionmadeundertheoldlawof
1894lapsesiftheawardofcompensationhadbeenmadefiveyearsbeforethe
newActcameintoforce,buthasnotbeenpaid.
•Insuchsituations,theprocesswillstartafreshunderthenewAct,
whichmandateshighercompensation.
•However,therearecasesoffarmersandlandownersrefusingcompensation
whichdelaysthepossessionbythegovernment.
•Insuchcases,thecompensationisdepositedinthegovernmenttreasuryand
accordingtooneinterpretation,theacquisitionprocessissaved.
•Thisinterpretationhasbeencontendedonthebasisthatsuchcaseswillfallunder
thenewActbecausecompensationhasnotbeenpaidtothelandowners,andthe
lapsingclauseinSection24shouldbeapplied.

91. •Ifalong-pendinglandacquisitionprocessclosesundertheoldlawandfresh
acquisitionproceedingsstartunderthenewone,theland-ownerswillbenefitand
projectproponentswillhavetopayhighercompensation.
•InthePuneMunicipalCorporationvsHarakchandMisirimalSolankicase
2014,athree-judgebenchheldthatacquisitionproceedingsinitiatedunderthe
1894Act,whichwereinitiatedfiveyearsbeforethe2013lawwasenacted(in
2014),wouldlapseifthelandinquestionwasnottakencontroloforif
compensationwasnotpaidtodisplacedfarmers.
•Thejudgmentcameasareliefforlandowners.
•However,intheIndoreDevelopmentAuthorityvsShailendra(D)Through
LRS&Orscase2018,anotherthree-judgebenchdeclaredthe2014judgment
“perincuriam”(indisregardofthelaw).
•Itheldthatifalandownerrefusestoacceptthecompensationofferedbythe
developer,theycannottakeadvantageoftheirownwrongdoingandhavethe
acquisitionproceedingslapseundertheoldlaw.
•Thisjudgementwasarelieffordevelopers.

92. KeyPoints
•Inthelatestruling,theBenchwasinterpretingSection24(2)ofthe2013Act.
•Theprovisionsaidthatifthephysicalpossessionoflandhasnotbeentakenor
thecompensationisnotpaidforfiveormoreyearspriorto1
st
January2014,
theacquisitionproceedingis“deemedtohavelapsed”.
•Thejudgmentsaidthatthecompensationwouldbeconsideredpaidifthe
amountisputintheTreasury.
•Therewasnoobligationthattheamountshouldbedepositedinthecourtinorder
tosustainthelandacquisitionproceedings.
•Thus,thereisnolapseifpossessionhasbeentakenandcompensationhasnot
beenpaid.Similarly,thereisnolapseifcompensationhasbeenpaidand
possessionnottakenoftheland.
•Further,itwasalsoheldthatSection24(2)ofthe2013Actdoesnotgiverisetoa
newcauseofactiontoquestionthelegalityofconcludedproceedingsofland
acquisition.

93. •Marketvalue
ThemarketvalueoftheproposedlandunderSection26tobeacquiredshallbe
setasthehigherof:
•theminimumlandvalue,ifany,specifiedintheIndianStampAct,1899forthe
registrationofsaledeedsinthearea,wherethelandissituated;or
•theaverageofthesalepriceforsimilartypeoflandbeingacquired,ascertained
fromthehighestfiftypercentofthesaledeedsregisteredduringthepreceding
threeyearsinthenearestvillageornearestvicinityofthelandbeingacquired.;
or
•theconsentedamountincasethelandisacquiredforprivatecompaniesor
public-privatepartnershipprojects.
Themarketvaluewouldbemultipliedbyafactorof,atleastonetotwotimes
themarketvalueforlandacquiredinruralareasandatleastonetimesthe
marketvalueforlandacquiredinurbanareas.

94. Determination of Compensation:
•TheCollectorhavingdeterminedthemarketvalueofthelandtobeacquiredshall
underSection27calculatethetotalamountofcompensationtobepaidtothe
landownerwhoselandhasbeenacquiredbyincludingallassetsattachedtothe
land.
Indeterminingtheamountofcompensationtobeawardedforlandacquired
underthisAct,theCollectorshallunderSection28takeintoconsideration–
•themarketvalueasdeterminedundersection26andtheawardamountin
accordancewiththeFirstandSecondSchedules;
•thedamagesustainedbythepersoninterested,byreasonofthetakingofany
standingcropsandtreeswhichmaybeonthelandatthetimeoftheCollector’s
takingpossessionthereof;
•thedamagesustainedbythepersoninterested,atthetimeoftheCollector’s
takingpossessionoftheland,byreasonofseveringsuchlandfromhisotherland;

95. •thedamagesustainedbythepersoninterested,atthetimeoftheCollector’s
takingpossessionoftheland,byreasonoftheacquisitioninjuriouslyaffecting
hisotherproperty,movableorimmovable,inanyothermanner,orhisearnings;
•inconsequenceoftheacquisitionofthelandbytheCollector,theperson
interestediscompelledtochangehisresidenceorplaceofbusiness,the
reasonableexpensesincidentaltosuchchange;
•thedamagebonafideresultingfromdiminutionoftheprofitsoftheland
betweenthetimeofthepublicationofthedeclarationundersection19andthe
timeoftheCollector’stakingpossessionoftheland:and
•anyothergroundwhichmaybeintheinterestofequity,justiceandbeneficialto
theaffectedfamilies.
•AwardofSolatium
•31.RehabilitationandResettlementAwardforaffectedfamiliesby
Collector.–
•(1)TheCollectorshallpassRehabilitationandResettlementAwardsforeach
affectedfamilyintermsoftheentitlementsprovidedintheSecondSchedule.

96. •(2)TheRehabilitationandResettlementAwardshallincludeallofthefollowing,
namely:—(a)rehabilitationandresettlementamountpayabletothefamily;(b)
bankaccountnumberofthepersontowhichtherehabilitationandresettlement
awardamountistobetransferred;(c)particularsofhousesiteandhousetobe
allotted,incaseofdisplacedfamilies;(d)particularsoflandallottedtothe
displacedfamilies;(e)particularsofonetimesubsistenceallowanceand
transportationallowanceincaseofdisplacedfamilies;(f)particularsofpayment
forcattleshedandpettyshops;(g)particularsofone-timeamounttoartisansand
smalltraders;(h)detailsofmandatoryemploymenttobeprovidedtothe
membersoftheaffectedfamilies;(i)particularsofanyfishingrightsthatmaybe
involved;(j)particularsofannuityandotherentitlementstobeprovided;(k)
particularsofspecialprovisionsfortheScheduledCastesandtheScheduled
Tribestobeprovided:Providedthatincaseanyofthemattersspecifiedunder
clauses(a)to(k)arenotapplicabletoanyaffectedfamilythesameshallbe
indicatedas―notapplicable:
•ProvidedfurtherthattheappropriateGovernmentmay,bynotificationincrease
therateofrehabilitationandresettlementamountpayabletotheaffectedfamilies,
takingintoaccounttheriseinthepriceindex.

97. •32.Provisionofinfrastructuralamenitiesinresettlementarea.–Inevery
resettlementareaasdefinedunderthisAct,theCollectorshallensurethe
provisionofallinfrastructuralfacilitiesandbasicminimumamenitiesspecifiedin
theThirdSchedule.
•37.AwardsofCollectorwhentobefinal.–(1)TheAwardsshallbefiledinthe
Collector‘sofficeandshall,exceptashereinafterprovided,befinaland
conclusiveevidence,asbetweentheCollectorandthepersonsinterested,whether
theyhaverespectivelyappearedbeforetheCollectorornot,ofthetrueareaand
marketvalueofthelandandtheassetsattachedthereto,solatiumsodetermined
andtheapportionmentofthecompensationamongthepersonsinterested.(2)The
Collectorshallgiveimmediatenoticeofhisawardstosuchofthepersons
interestedwhoarenotpresentpersonallyorthroughtheirrepresentativeswhen
theawardsaremade.(3)TheCollectorshallkeepopentothepublicanddisplaya
summaryoftheentireproceedingsundertakeninacaseofacquisitionofland
includingtheamountofcompensationawardedtoeachindividualalongwith
detailsofthelandfinallyacquiredunderthisActonthewebsitecreatedforthis
purpose.

98. •38.Powertotakepossessionoflandtobeacquired.–
•TheCollectorshalltakepossessionoflandafterensuringthatfullpaymentof
compensationaswellasrehabilitationandresettlemententitlementsarepaidor
tenderedtotheentitledpersonswithinaperiodofthreemonthsforthe
compensationandaperiodofsixmonthsforthemonetarypartof
rehabilitationandresettlemententitlementslistedintheSecondSchedule.
•PROCEDURE AND MANNER OFREHABILITATION AND
RESETTLEMENT
•43-47section
•NATIONALMONITORING COMMITTEE FORREHABILITATION AND
RESETTLEMENT
•48-50section

99. •ESTABLISHMENT OFLANDACQUISITION,REHABILITATION AND
RESETTLEMENT AUTHORITY
•51-74sections
•OFFENCESANDPENALTIES
•84-90

100. Chanderprabhu Jain College of Higher Studies & School of
Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
UNIT-2 (C)
SPECIAL AUTHORITIES -DDA, NOIDA & HUDA

101. DDA
•TheDelhiDevelopmentAuthority(DDA)wascreatedin1957underthe
provisionsoftheDelhiDevelopmentAct"topromoteandsecurethe
developmentofDelhi.TheDDAisresponsibleforplanning,development
andconstructionofHousingProjects,CommercialLands,LandManagement
aswellasprovidingpublicfacilitieslikeroads,bridges,drains,Underground
waterreservoir,CommunityCenters,SportsCenters,GreenBeltsetc.within
theareaofNationalCapitalTerritoryofNewDelhi,India.
InitiativestakenbyDDA:
•DDAMASTERPLANS
•DDAHOUSING
•DDALANDDEVELOPMENT
•DDASPORTSCOMPLEX
•DDACOMMERCIALPROPERTIES

102. NOIDA
•NewOkhlaIndustrialDevelopmentAuthority,isaplannedcitylocated
inGautamBuddhNagardistrictoftheIndianstateofUttarPradesh.Itisa
satellitecityofDelhiandisapartoftheNationalCapitalRegionofIndia.
•Noidacameintoadministrativeexistenceon17April1976andcelebrates17
Aprilas"NoidaDay".Itwassetupaspartofanurbanisationthrustduring
thecontroversialEmergencyperiod(1975–1977).Thecitywascreatedunder
theUPIndustrialAreaDevelopmentAct,1976bytheinitiativesofSanjay
Gandhi.
•ThecityhasthehighestpercapitaincomeinthewholeNationalCapital
Region.Noidaisclassifiedasaspecialeconomiczone(SEZ).TheNoida
Authorityisamongtherichestcivicbodiesinthecountry.

103. •OneofthelargestIndustrialTownshipsofAsiaNotveryfarfromDelhiyet
awayfromthedirt,grimeandpollution,partoftheNationalCapitalRegion,
Noidaistheindustrialfairylandofthenation.NewOkhlaIndustrial
DevelopmentAuthority-NOIDAisoneofthelargestplannedindustrial
townshipsofAsia.
•Setupin1976,withaviewtodevelopanIntegratedIndustrialTownshipfor
theindustrialgrowthofthearea,undertheUttarPradeshIndustrialArea
DevelopmentAct,itbestsymbolizesharmonybetweenhumanhabitatand
IndustrialEnterprise.

104. HUDA
•HaryanaShahariVikasPradhikaran(HSVP),formerlyHaryanaUrban
DevelopmentAuthority(HUDA),istheurbanplanningagencyof
thestateofHaryanainIndiaexceptGurugramandFaridabadwhich
hasGurugramMetropolitanDevelopmentAuthorityandFaridabad
MetropolitanDevelopmentAuthorityrespectively.Itwasestablishedin1977.
•TheMinisterofTownandCountryPlanningDepartment,Haryanais
thechairmanoftheauthority.Theheadquartersoftheauthorityislocated
inPanchkula,Haryana.
•HSIIDCisarelatedgovernmentownedagencyresponsiblefortheindustrial
andinfrastructuredevelopmentintheHaryanastate.HaryanaFinancial
Corporationprovidesfinancialassistanceforsettingupnewindustrialunits
andfortheexpansionanddiversificationoftheexistingindustries.

105. •Variousuniversities,educationalandtraininginstitutes,includingthenation'sfirstskills
universityHaryanaVishwakarmaSkillUniversity,providethehumanresourcestocapitaliseonthe
financesofferedbytheHFCandtheinfrastructurecreatedbytheHSIIDC.
•Amongtherelatedinitiativestoboostgrowth,HaryanawasthefirststatetointroduceLabourPolicy
in2005,andLandPoolingPolicyin2017.

106. Chanderprabhu Jain College of Higher Studies & School of
Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
UNIT-3 (A)
REAL ESTATE (REGULATION AND DEVELOPMENT)
ACT, 2016

107. REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
•RealEstate(RegulationandDevelopment)Act(RERA)isanactpassedbytheParliamentin2016
thatcameintoeffectfullyfrom1stMay,2017.Itseekstoprotecthome-buyersaswellashelpboost
investmentsintherealestatesectorbybringingefficiencyandtransparencyinthesale/purchaseof
realestate.TheActestablishesRealEstateRegulatoryAuthority(RERA)ineachstateforregulation
oftherealestatesectorandalsoactsasanadjudicatingbodyforspeedydisputeresolution.
•NeedfortheRERA
•Realestatesectorhadbeenlargelyunregulated,nostandardizationofbusinesspracticesand
transactions.
•Prevalenceofissueslikedelays,price,qualityofconstruction.Delaysinprojectshadbeenamajor
issueplaguingrealestatesector-hugecostoverrunduetodelays.

108. •Numerousinstanceswheredeveloperscheatedpropertybuyers.
•Nogrievanceredressalmechanism.
•Hugegenerationofblackmoneyinrealestatesector.
ObjectivesofRERA
•Enhancetransparencyandaccountabilityinrealestateandhousingtransactions.
•Boostdomesticandforeigninvestmentintherealestatesector.
•Provideuniformregulatoryenvironmenttoensurespeedyadjudicationofdisputes.
•Promoteorderlygrowththroughefficientprojectexecutionandstandardization.
•Offersinglewindowsystemofclearanceforrealestateprojects.
•Empowerandprotecttherightofhomebuyers.

109. DrawbacksoftheRealEstate(RegulatoryandDevelopment)Bill,2013
•ItdoesnotenumerateanydifferencebetweentheResidentialRealEstateandCommercialRealEstate.
•SomeprojectsintheRealEstatewithcertaininvestorsorstakeholdersdonotcomeunderthecategory
ofthisBill.Theyare:
•Governmentagencies/authoritiesatCentre,StateandMunicipallevel;
•FinancingagencieslikeBank/FinancialInstitutions
•Brokers,UnderwritersandBulkPurchasers
•Italsodoesnotprovideanytoolfortransferringthebookingduringtheconstructiontime
•Itfailstoprovideanyadditionalsecuritiesfortheretailpurchasers.

110. Key Provisions of Real Estate Regulation Act
Establishmentofstatelevelregulatoryauthorities-RealEstateRegulatoryAuthority(RERA):
•TheActprovidesforStategovernmentstoestablishmorethanoneregulatoryauthoritywiththe
followingmandate:
•Registerandmaintainadatabaseofrealestateprojects;publishitonitswebsiteforpublicviewing,
•Protectionofinterestofpromoters,buyersandrealestateagents
•Developmentofsustainableandaffordablehousing,
•RenderadvicetothegovernmentandensurecompliancewithitsRegulationsandtheAct.
•EstablishmentofRealEstateAppellateTribunal-DecisionsofRERAscanbeappealedinthese
tribunals.

111. •MandatoryRegistration:Allprojectswithplotsizeofminimum500sq.mtoreightapartmentsneed
toberegisteredwithRegulatoryAuthorities.
•Deposits:Depositing70%ofthefundscollectedfrombuyersinaseparateescrowbankaccountfor
constructionofthatprojectonly.
•Liability:Developer’sliabilitytorepairstructuraldefectsforfiveyears.
•Penalinterestincaseofdefault:Bothpromoterandbuyerareliabletopayanequalrateofinterestin
caseofanydefaultfromeitherside.
•CaponAdvancePayments:Apromotercannotacceptmorethan10%ofthecostoftheplot,
apartmentorbuildingasanadvancepaymentoranapplicationfeefromapersonwithoutfirstentering
intoanagreementforsale.
•DefinesCarpetAreaasnetusablefloorareaofflat.Buyerswillbechargedforthecarpetareaandnot
superbuilt-uparea.
•Punishment:Imprisonmentofuptothreeyearsfordevelopersanduptooneyearincaseofagentsand
buyersforviolationofordersofAppellateTribunalsandRegulatoryAuthorities.

112. Benefits of RERA:
Timelydeliveryofflats
•Developersoftenmakefalsepromisesaboutthecompletiondateoftheproject,buthardlyeverdeliver.
•Strictregulationswillbeenforcedonbuilderstoensurethatconstructionrunsontimeandflatsare
deliveredonscheduletothebuyer.
•Ifthebuilderisnotabletodelivertheflatsontime,he/shewillhavetorefundthepurchaserwith
interest.
Furnishingofaccurateprojectdetails:
•Intheconstructionstage,builderspromotetheirprojectsdefiningthevariousamenitiesandfeatures
thatwillbepartoftheproject.Butnoteverythinggoesasperplan,withseveralfeaturesmissing.
•AspertheAct,therecan'tbeanychangestoaplan.
•Andifabuilderisfoundguiltyofthis,he/shewillbepenalized10%oftheproject’scostsorfacejail
timeofuptothreeyears.

113. •Specifyingcarpetarea:
•Generally,builderssellflatsonthebasisofbuilt-inarea,whichincludesacommonpassagearea,stairs
andotherspaceswhichare20-30%morethantheactualflat’sarea.
•But,notallbuyersareawareoftheconceptofcarpetarea.
•WiththisActitwillbecomemandatorytodeclaretheactualcarpetarea.
•Allclearancesaremandatorybeforebeginningaproject:
•Buildersoftenattractbuyerswithhugediscountsandpre-launchoffers.And,thebuyer,enticedbythe
offers,doesnotbotherabouttheclearance.
•But,duetodelaysingettingclearance,thebuyerdoesnotgettheflatontime.
•ThisActensuresthatdevelopersgetalltheclearancesbeforesellingflats.

114. •Eachprojectshouldhaveaseparatebankaccount:
•Developersraisefundsthroughpre-launchoffersandusethemtopurchasesomeotherlandorinvestit
inotherprojects.
•ThisActwillmakeitcompulsorythataseparatebankaccountbemaintainedforeachproject.
•Eachtransactionwillhavetoberecorded,anddiversiontoanotherprojectwillnotbeentertained.
•Aftersalesservice:
•AsperaninterestingclauseintheAct,ifthebuyerfindsanystructuraldeficiencyinthedevelopmentof
thebuilding,thebuyercancontactthebuilderforaftersalesservice.
•But,thebuyershouldapproachthebuilderwithin5yearsofpurchasetorectifysuchdefectswithout
furthercharges.

115. Chanderprabhu Jain College of Higher Studies & School of
Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
UNIT-3 (B)
THE DELHI APARTMENT OWNERSHIP ACT,
1986

116. THE DELHI APARTMENT OWNERSHIP ACT, 1986
•Theconstructionofmulti-storiedapartmentbuildingsinDelhihasbeenaconstantaffairthroughout
theregion’shistorypost-independence.Beingthenationalcapital,Delhihasattractedpeoplefrom
bothwithinthecountryandabroad,primarilybecauseofthelucrativebusinessandinvestment
opportunitiesonofferinthisregion.Thishasresultedinastrongdemandforlivinginapartment
buildingsandcomplexes.
•Inthepast,theregularconstructionofapartmentsinDelhiusedtocauseavoidablelitigation,asthe
rightsandobligationsoftheapartmentownersandassociationsweren’tsetinstone,legally.Sointhe
year1986,theDelhiapartmentownershipActwasdraftedandpassedbytheparliament.
•TheActclarifiestherightsandobligationsofapartmentowners,suchasinrelationtoinheritance,
restrictionsontransferslikemortgageandsale,andtherighttocommonareasandfacilities.

117. ImportantTermsusedintheAct:
•Administrator:AnAdministratorisanauthorityappointedtotheunionterritoryofDelhi,bythe
PresidentofIndia,asmandatedbytheArticle239oftheconstitution.
•Authority:Anauthorityisonewhoisestablishedorconstitutedunderalaw.
•Bye-Laws:Bye-lawsarelawsmadeundertheDelhiApartmentOwnershipAct,1986.
•CommonAreasandFacilities:CommonAreasandFacilitiesconstitutesthelandonwhichthemulti-
storiedapartmentbuildingislocated,thegardens,basements,cellars,parkingareas,andanyothersuch
creations,andallthestructuralelementslikelobbies,corridors,fireescapes,andbeamsandcolumns.
•CommonExpensesandCommonProfits:Commonexpensesaresumsofmoney,lawfullyassessed
againsttheapartmentowners,whichgointoadministration,repair,andmaintenanceorformodifying
commonareasandfacilities.Afterthedeductionofthecommonexpenses,what’sleftafterbalancing
alltheincomesandprofitsarethecommonprofits.

118. The Key Features Of The Act
ApplicabilityoftheAct
•TheDelhiApartmentOwnershipAct,1986isapplicabletoallmulti-storiedapartmentbuildings,with
atleasttwostoriesandfourunits,constructedbyanygrouphousingco-operativesociety,person,or
authority,beforeorafterthecommencementoftheAct.
•TheActisapplicabletothewholeoftheunionterritoryofDelhi.
•Bye-Lawstobeframedasperadministrator’sModelLaws
•Thebye-lawsframedbyanyassociationofapartmentownersshouldbeexactlyinaccordancewiththe
modelbye-lawsframedbytheAdministrator.Incasetheassociationwishestomakeanychanges,the
membersoftheassociationrequireapriorapprovalfromtheAdministrator.

119. Apartmentstobeheritableandtransferable
•AccordingtotheAct,everyapartment,includingitscommonareasandfacilities,willbeatransferable
andheritableimmovableproperty.Theapartmentownercantransferhisapartmentandhisshareofthe
non-partitionedcommonareasandfacilitiesbywayoflease,mortgage,sale,exchange,orgift.
CommonAreasandFacilitiestobeusedbyallapartmentownersforintendedpurposes
•Allcommonareasandfacilitieswillbeavailableforusebyallapartmentowners.Thecommonareas
andfacilitieswillnotbedividedorpartitioned.Eachapartmentownerwilluseitforthepurposethat
it’sintendedfor,withouthinderingorencroachinguponanotherapartmentowner’srighttousethe
space.

120. TheCommonProfitsandExpensestobesharedinacertainproportion
•Theprofitswillbedistributed,andtheexpensescharged,toalltheapartmentownersinproportionof
thepercentageoftheundividedinteresttheyholdinthecommonareasandfacilities.
•Sometimesitsohappensthattheapartmentownerisn’tanoccupantofhisorherapartment.Inthis
case,thepersoncurrentlyoccupyingthatapartmentneedstopayhisorhershareofthecommon
expenses.
CertainWorksAreProhibited
•Noapartmentownercanmakesuchchangestothestructureoftheapartmentaswouldleadtothe
reductioninthepropertyvalueandaffectthesafetyandsoundnessoftheproperty.Todoso,onewould
havetoacquireconsentfromalltheapartmentownersoftheassociation.
•Excavatingacellaroradditionalbasement,oraddinganymaterialstructureisthekindofworksthat
areprohibited.

121. WhattheActmeansforthepeopleinvolved?
•Anapartmentownercaneasilytransfer,purchase,orgiftmulti-storiedresidentialandcommercial
apartments,co-operativegrouphousingsocietyapartments,andprivateapartments.
•Earlier,theapartmentsinDelhiweremonopolizedbysuchpartiesastheRegistraroftheGroup
HousingSociety,DelhiDevelopmentAuthority(DDA),andthebuilders.Withtheimplementationof
thisAct,thismonopolycomestoanend.Alloftherightsarenowgiventotheassociationsof
apartmentowners.

122. Chanderprabhu Jain College of Higher Studies & School of
Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
UNIT-4 (A)
INTRODUCTION TO DELHI RENT CONTROL
LEGISLATION IN DELHI: 1958 AND 1996

123. HISTORY OF DRC ACT, 1958
•IntheaftermathofthePartition,peopleuprootedfromcurrentpartsofPakistanwereforcedtoleave
theirhomesandabandonbusinessestablishments.Thegovernmentofthetimewantedtosolvethe
acuteproblemofhousingcreatedduetosuddeninfluxofrefugeesinDelhi.Itwasfeltthatiflandlords
arereadilyallowedtoevicttenants,thosecomingfromwestPakistanwouldneverbeabletosettle.
•Facedwiththeproblemofresettlingrefugees,thegovernmentimposedrestrictionsontherighttoevict
tenantsfromresidentialandnon-residentialpremises.TheDelhiandAjmer-MerwaraRentControlAct,
1947,andlaterDRCAct,1958,wereenactedtoprotecttenantsagainsteviction.Evennow,almostthe
wholeofDelhiiscoveredundertheDRCAct,includingthelimitsofthemunicipalcorporations,the
NewDelhiMunicipalCommittee(asthencalled)andtheDelhiCantonmentBoard.
•In1988,anamendmentwasmadetotheDRCActthatallowedpremiseswhoserentexceeded₹3,500
permonthtobeexcludedfromtheAct.

124. •ThreeActsgovernrent
•Atpresent,therearethreeActsgoverningrentleasesinDelhi—TransferofPropertyAct,1882;Public
Premises(EvictionofUnauthorizedOccupants)Act,1971;andtheDRCAct,1958.TheseActscreate
threedistinctclassesoflandlordsandtenantsinDelhi.
•Thefirstcompriseslandlordsandtenantsinpropertiesfetchingmorethan₹3,500permonth.
TheyaregovernedbytheTransferofPropertyAct.Inthesecases,therentandtenureoftenancycan
befreelynegotiated.
•Thesecondconsistsoflandlordsofprivatepropertiesfetchingarentoflessthan₹3,500per
month.GovernedbytheDRCAct,theselandlordscanneitherdeterminetherentnorevicttenants
exceptundercertainlimitedconditionsorgrounds.
•ThethirdclassisofpropertiesunderthePublicPremises(EvictionofUnauthorisedOccupants)
Act,1971.Aseparatesimplifiedprocedureisfollowedforevictionoftenantsorunauthorised
occupantsofsuchpremises.

125. •ThemainpurposeofintroducingtheRentControlAct,1958inIndiaistoprotecttherightsoftenants,
givethemsecurityandrestrictsthelandlordsintheirabilitytoevicttheirtenants.ThisActhasbeen
designedforeachandeverystateinIndiaseparately.Therefore,herewearediscussingsome
significantpointsoftheDelhiControlAct,1958.
•TheDelhiRentControlBillwasbeenpassedbyboththeHousesofParliamentandreceivedthe
assentofthePresidenton31stDecember,1958.Itcameintoforceon9thFebruary,1959asTheDelhi
RentControlAct,1958.ItextendstotheareasincludedwithinthelimitsoftheNewDelhiMunicipal
CommitteeandtheDelhiCantonmentBoardandtosuchurbanareaswithinthelimitsofthe
MunicipalCorporationofDelhi.Thecourtsareunderalegalcompulsiontoharmoniouslyreadthe
provisionsoftheActsoastobalancetherightsofthelandlordandtheobligationsofthetenantand
landlordtowardeachother.
•RentControlActs(RCAs),includingTheDelhiRentControlAct1958,aremeanttofulfilltwomain
purposes:

126. •protectthetenantfromhavingtopaymorethanastandardrent.
•toprotectthetenantfromarbitraryeviction.
•IftheamountofrentalbeitapropertyislessthanRs.3,500/-thentheprovisionsoftheDelhiRent
ControlAct,1958willapply;however,iftheamountofrentalbeitapropertyismorethanRs.3,500/-
then,theprovisionsoftheTransferofPropertyAct,1882willapply.Iftheamountofrentchargedis
Rs.3,500/-exact,thentheprovisionsoftheDelhiRentControlAct,1958willapply.
•Theprovisionsofthisactshallapplytoallthehotelsandlodgescoveringinthejurisdictionandthe
controllershallhavealltherightstofixthefairratetobechargedforanyboarding/lodging.

127. •Important Terms in the Act
•Landlord-A person who is either being entitled to receive the rent (trustee, guardian) or receiving the
rent on account of premises that has been lent to the tenant. (section 2(e) of Delhi Rent Control Act,
1958).
•Standard Rent-As defined under Section 6 of the Delhi Rent Control Act, 1958,
•Section 6(1) (A) (1) states that in cases of residential premises let out before the 2nd day of June, 1944
the standard rent means:
•The basic rent of the premises in case it does not exceed Rs. 600 per annum.
•In case the basic rent of the premises exceeds Rs. 600 per annum, then, the basic rent plus 10 percent of
such rent.

128. •Section6(1)(A)(2)statesthatincasewherethepremiseshavebeenletoutonorafterthe2nddayof
June,1944,thestandardrentmeans:
•IftherentofsuchpremiseshavebeenfixedundertheDelhiandAjmer-MerwaraRentControlAct,
1947,ortheDelhiandAjmerRentControlAct,1952.
•TherentsofixedincaseitdoesnotexceedRs.1200perannum.
•IncasetherentsofixedexceedsRs.1200,then,therenttogetherwith10percentofsuchrent.
•Ineveryothercase,therentshallbecalculatedonthebasisof10percentoftheaggregateofthe
actualcostofconstructionandthemarketvalueofthelandcomprisedinthepremisesonthedateof
thecommencementoftheconstruction.
•Section6(1)(B)(1)statesthatincasesofnonresidentialpremisesletoutbeforethe2nddayofJune,
1944thestandardrentmeans:

129. •IftherentofsuchpremiseshavebeenfixedundertheDelhiandAjmer-MerwaraRentControlAct,
1947,ortheDelhiandAjmerRentControlAct,1952.
•TherentsofixedincaseitdoesnotexceedRs.1200perannum.
•IncasetherentsofixedexceedsRs.1200,then,therenttogetherwith15percentofsuchrent.
•Ineveryothercase,therentshallbecalculatedonthebasisof10percentoftheaggregateofthe
actualcostofconstructionandthemarketvalueofthelandcomprisedinthepremisesonthedateof
thecommencementoftheconstruction.
•Thetermlandlordnotonlyincludestheownerbutalsothepersonwhocollectstherentonbehalfof
theowner,andmoreoverthisdefinitionincludesthelegalrepresentativesoftheownerofthepremises,
ashasbeenheldinthecaseofPukhrajJainv.PadmaKashyap,AIR1990SC1133.

130. •InthecaseofImtiazAliv.NasimAhmed,AIR1987Delhi36,itwasheldthatevenapersonholding
ageneralpowerofattorney,andthus,empoweredtocollecttherentonbehalfoftheownerofthe
premises,willcomewithintheambitoftheexpression‘landlord’.
•InthecaseofEmperorv.DattatrayaSitaram,AIR1948Bom239,itwasheldthat,evenaclerk
empoweredtocollectrentcomeswithintheperipheryoftheexpression‘landlord’.

131. Chanderprabhu Jain College of Higher Studies & School of
Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
UNIT-4 (B)
GROUNDS OF EVICTION UNDER THE DELHI RENT
CONTROL ACT, 1958

132. DEFINITIONS
ImportantDefinitionsundertheAct
LandlordUnderSection2(e)oftheAct,apersonwhoiseitherbeingentitledtoreceivetherent
(trustee,guardian)orreceivingtherentonaccountofpremisesthathasbeenlenttothetenant.
TenantUnderSection2(l)oftheAct“tenant”meansanypersonbywhomoronwhoseaccountor
behalftherentofanypremisesis,or,butforaspecialcontract,wouldbe,payable,andincludes-
•(i)asub-tenant;
•(ii)anypersoncontinuinginpossessionaftertheterminationofhistenancy;and
•(iii)intheeventofthedeathofthepersoncontinuinginpossessionaftertheterminationofhis
tenancy,subjecttotheorderofsuccessionandtothisclause,suchoftheaforesaidperson’s-(a)
spouse,(b)sonordaughter,or,wheretherearebothsonanddaughter,bothofthem,(c)parents,(d)
daughter-in-law,beingthewidowofhispre-deceasedson

133. GROUNDS OF EVICTION OF TENENTS
•ThemainpurposeofintroducingtheRentControlAct,1958inIndiaistoprotecttherightsoftenants,
givethemsecurityandrestrictsthelandlordsintheirabilitytoevicttheirtenants.ThisActhasbeen
designedforeachandeverystateinIndiaseparately.Therefore,herewearediscussingsome
significantpointsoftheDelhiControlAct,1958.
•Section14oftheDelhiRentControlAct,1958providesforvariousgroundsavailabletoalandlordfor
evictingatenantThelandlordcannotevictanytenantwithoutanyvalidreason.Thecircumstances
underwhichatenantcanbeevictedarementionedbelow,butinthosecasesalsothelandlordhasto
makeanapplicationtotheControllerfortherecoveryofthepossessiononthebelowmentioned
grounds:-
•Section14(1)(a)Thetenanthasneitherpaidnortenderedthewholeofthearrearsoftherentlegally
recoverablefromhimwithintwomonthsofthedateonwhichanoticeofdemandforthearrearsof
renthasbeenservedonhim.

134. •Section14(1)(b):Withoutobtainingtheconsentofthelandlordinwriting,thetenanthassub-let,
assignedorpartedwiththepossessionofthepremises.
•Section14(1)(c)Thatthetenanthasusedthepremisesforpurposeotherthanthatforwhichthey
werelet-(i)Ifthepremiseshavebeenletonorafterthe9thdayofJune,1952,withoutobtainingthe
consentinwritingofthelandlord;or(ii)Ifthepremiseshavebeenletbeforethesaiddatewithout
obtaininghisconsent;
•Section14(1)(d)Thepremiseswereletforuseasaresidenceandneitherthetenantnoranymember
ofhisfamilyhasbeenresidingthereinforaperiodofsixmonthsimmediatelybeforethedateofthe
filingoftheapplicationfortherecoveryofpossessionthereof.
•Section14(1)(e)Thatthepremisesletforresidentialpurposesarerequiredbonafidebythelandlord
foroccupationasaresidenceforhimselforforanymemberofhisfamilydependentonhim,ifheis
theownerthereof,orforanypersonforwhosebenefitthepremisesareheldandthatthelandlordor
suchpersonhasnootherreasonablysuitableresidentialaccommodation.

135. •Section14(1)(f)Thepremiseshavebecomeunsafeorunfitforhumanhabitationandarerequired
bonafidebythelandlordforcarryingoutrepairswhichcannotbecarriedoutwithoutthepremises
beingvacated.
•Section14(1)(g)Thepremisesarerequiredbonafidebythelandlordforthepurposeofbuildingor
re-buildingormakingtheretoanysubstantialadditionsoralterationsandthatsuchbuildingorre-
buildingoradditionoralterationcannotbecarriedoutwithoutthepremisesbeingvacated.
•Section14(1)(hh)Thatthetenanthas,afterthecommencementoftheDelhiRentControl
(Amendment)Act,1988,builtaresidenceandtenyearshaveelapsedthere-after;

136. •Section14(1)(i)Thepremiseswerelettothetenantforuseasaresidencebyreasonofhisbeingin
theserviceoremploymentofthelandlord,andthatthetenanthasceased,tobeinsuchserviceor
employment.
•Section14(1)(j)Thatthetenanthas,whetherbeforeorafterthecommencementofthisAct,caused
orpermittedtobecausedsubstantialdamagetothepremises;
•Section14(1)(k)Thatthetenanthas,notwithstandingpreviousnotice,usedordealtwiththepremises
inamannercontrarytoanyconditionimposedonthelandlordbytheGovernmentortheDelhi
DevelopmentAuthorityortheMunicipalCorporationofDelhiwhilegivinghimaleaseofthelandon
whichthepremisesaresituated.
•Section14(1)(l)Thelandlordrequiresthepremisesinordertocarryoutanybuildingworkatthe
instanceoftheGovernmentortheDelhiDevelopmentAuthorityortheMunicipalCorporationof
Delhiinpursuanceofanyimprovementschemeordevelopmentschemeandthatsuchbuildingwork
cannotbecarriedoutwithoutthepremisesbeingvacated.

137. LANDLORD’S PERSPECTIVE
•TheDelhiRentControlAct1958islargelyconsideredtenant-friendlyandhasn’thelpedthecauseof
landlords.
•Thelowratesofreturnactasdisincentivestorepairandmaintaintheproperty,oftenresultinginbuilding
collapse.
•Prospectivelandlordsaredeterredfromenteringtherentalmarket,preventingthesupplyofnewstock.
•Restrictingrevisionofrent-The1958Acthasnomechanismtobringthehistoricalrenttothepresent
marketrateandgivesatenanttheluxurytopaylessthanRs3,500permonthinperpetuity.An
amendmentin1988,though,allowedlandlordstoincreaserentby10percenteverythreeyears.Incase
thelandlordhasincurredanyexpenditureforanyimprovement,additionorstructuralalterationinthe
premisesandthecostoftheimprovement,additionoralterationhasnotbeentakenintoaccountin
determiningtherentofthepremises,hemaylawfullyincreasethestandardrentperyear.

138. •Difficultyinevictingtenant-Theconditionsunderwhichalandlordcanevictatenantarestringentand
strictlymonitored,andrarelycanthelandlordextricatetheproperty.
•Highcostofmaintainingproperty-Underthecontrolledregimeincaseofoldtenancieswherethe
rentshavebeenfrozenathistoricallowlevelsthecostofmaintenanceoftheseoldpropertiesishigher.
Theolderhousingstockthusfacesprematuredecayanddegradationasthelandlordfindsitdifficultto
maintainit.

139. TENANTS PERSPECTIVE
•TheDelhiRentControlAct1958wasalsomeanttoprotecttenants’interestsandalthoughithasserved
themwell,thelawbecameatooltoharasslandlordsoverthenextdecades.
•OutstationstudentsstudyingatcollegesinDelhipleadsthatthedefunctstateofthelawallowslandlords
toexploitthem.Thesestudents,milesawayfromhome,arethemostdefenselesslotoftenantsanddonot
possessanychoicebuttoheedtothedemandsoftheirlandlords.
ProtectionagainstEviction–
•Atenantcannotbearbitrarilyaskedbyalandlordtovacatehispremises.
•Onlynon-paymentofrentordiscreetsublettingarethetwotechnicaldefaultscommittedbyatenantthat
allowedalandlordtotakebackhisproperty.
•Heirsofstatutorytenantareentitledtosameprotectionagainstevictionasaffordabletotenantunderthe
DelhiRentControlAct.
•Conjointreadingofthefollowingtwocase-laws:Damadilal&Orsv.Parashram&Ors,1976(4)SCC
855andGianDeviAnandv.JeevanKumar&Ors,1985(2)SCC683,settlesthepositionoflawonthis
score,statingthat,statutorytenanciesunderboth-commercialandresidentialtenanciescanbeinherited.

140. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi –110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
UNIT-4 (C)
DISPUTE SETTLEMENT UNDER DELHI RENT
CONTROL ACT 1958

141. •ItextendstotheareasincludedwithinthelimitsoftheNewDelhi
MunicipalCommitteeandtheDelhiCantonmentBoardandtosuch
urbantitle,extentareaswithinthelimitsoftheMunicipal
CorporationofDelhiasarespecifiedintheFirstScheduleandthe
CentralGovernmentcanextendthelimitsofthisacttoanyother
urbanareabyspecifyingthroughtheNotificationintheOfficial
Gazette.
•TheproceedingsundertheprovisionsoftheDelhiRentControlAct,
1958takeplacebeforetheRentController.-CentralGovernment
appointsrentcontrollerbynotificationintheOfficialGazetteunder
•section35:CentralGovernmentappointsrentcontrollerunderDelhi
RentControlAct,1958.
•Section36:powersofcontroller.

142. 35.(1)TheCentralGovernmentmay,bynotificationintheOfficialGazette,appointasmanyControllersas
itthinksfit.anddefinethelocallimitsofwithinwhich,orthehotelsandlodginghousesinrespectof
which,eachcontrollershallexercisethepowersconferred,andperformthedutiesimposedonadditional
ControllersbyorunderthisAct.
(2)The.CentralGovernmentmayalso,bynotificationintheOfficialGazette,appointasmanyControllers
asitthinksfit,anddefinethelocallimitsControllershallperformsuchofthefunctionsoftheControlleras
may,subjecttothecontroloftheCentralGovernment,beassignedtohiminwritingbytheControllerand
inthedischargeofthesefunctions,anadditionalControllershallhaveandshallexercisethesamepowers
anddischargethesamedutiesastheController.
(3)ApersonshallnotbequalifiedforappointmentasaControlleroranadditionalController,unlesshehas
foratleastfiveyearsheldajudicialofficeinIndiaorhasforatleastsevenyearsbeenpractisingasan
advocateorapleaderinIndia.

143. 36.(1)TheControllermay-PowersofController,
(a)transferanyproceedingpendingbeforehimfordisposaltoanyadditionalController,,or
(b)withdrawanyproceedingpendingbeforeanyadditionalControlleranddisposeitofhimselfor
transfertheproceedingfordisposaltoanyotheradditionalController-
(2)TheControllershallhavethesamepowersasarevestedinacivilorcourtundertheCodeofCivil
Procedure,1908,whentryingasuit,inrespectofthefollowingmatters,namely:-.
(a)summoningandenforcingtheattendanceo:anypersonandexamininghimonoath:
(b)requiringthediscoveryandproductionofdocuments;
(c)issuingcommissionsfortheexaminationofwitnesses;
(d)anyothermatterwhichmaybeprescribed;andanyproceedingbeforetheControllershallbe
deemedtobeajudicialproceedingwithinthemeaningofsection193andsection228oftheIndian
PenalCode,andtheControllershallbedeemedtobeacivilcourtwithinthemeaning,ofsection480
andsection482oftheCodeofCriminalProcedure,1898.

144. (3)ForthepurposesofholdinganyinquiryordischarginganydutyunderthisAct,theController
may,
-(a)aftergivingnotlessthantwenty-fourhours'noticeinwriting,enterandinspectorauthoriseany
officersubordinatetohimtoenterandinspectanypremisesatanytimebetweensunriseandsunset;
or(b)bywrittenorder,requireanypersontoproduceforhisinspectionallsuchaccounts.booksor
otherdocumentsre'evanttotheinquiryatsuchtimeandatsuchplaceasmaybespecifiedinthe
order.ProceduretobefollowedbyController.
(4)TheControllermay,ifhethinksfit.appointoneormorepersonshavingspecialknowledgeofthe
matterunderconsiderationasanassessororassessorstoadvisehimintheproceedingbeforehim.

145. 37.(1)NoorderwhichprejudiciallyaffectsanypersonshallbemadebytheControllerunderthisAct
withoutgivinghimareasonableopportunityofshowingcauseagainstorderproposedtobemadeanduntil
hisobjections,ifany,andanyevidencehemayproduceeinsupportofthesamehavebeenconsideredby
theController.
2)SubjecttoanyrulesthatmaybemadeunderthisAct,theControllershall,whileholdinganinquiryin
anyproceedingbeforehim,followasfarasmaybethepracticeandprocedureofacourtofsmallcauses,
includingtherecordingofevidence.
(3)Inallproceedingsbeforehim,theControllershallconsiderthequestionofcostsandawardsuchcoststo
oragainstanypartyastheControllerconsidersreasonable.

146. 38.(1)AnappealshallliefromeveryorderoftheControllermadeunder'othethisActtoControlTribunal
hereinafterreferredtoastheTribunal)Tribunal.consistingofonepersononlytobeappointedbythe
CentralGovernmentbynotificationintheOfficialGazette.
(2)Anappealundersub-section(1)shallbepreferredwithinthirtydaysformthedateoftheordermadeby
theController:ProvidedthattheTribunalmayentertaintheappealaftertheexpiryofthesaidpcriodof
thirtydays.iI'itissatisfiedthattheappellantwaspreventedbysufficientcausefromfilingtheappealin
time.
(3)TheTribunalshallhaveallthepowersvestedinacourtundertheCodeofCivilProcedure,1908.

147. Jurisdiction
•ItextendstotheareasincludedwithinthelimitsoftheNewDelhiMunicipalCommitteeandthe
DelhiCantonmentBoardandtosuchurbantitle,extentareaswithinthelimitsoftheMunicipal
CorporationofDelhiasarespecifiedintheFirstScheduleandtheCentralGovernmentcanextend
thelimitsofthisacttoanyotherurbanareabyspecifyingthroughtheNotificationintheOfficial
Gazette.
•TheproceedingsundertheprovisionsoftheDelhiRentControlAct,1958takeplacebeforetheRent
Controller.CentralGovernmentappointsrentcontrollerbynotificationintheOfficialGazetteunder
section35ofDelhiRentControlAct,1958
•Section50oftheDelhiRentControlAct,1958barsthejurisdictionoftheCivilCourt,but
howeverstatesasfollowsbyvirtueofsub-section(4):
•“Nothinginsub-section(1)shallbeconstruedaspreventingacivilcourtfromentertaininganysuitor
proceedingforthedecisionofanyquestionoftitletoanypremisestowhichthisActappliesorany
questionastothepersonorpersonswhoareentitledtoreceivetherentofsuchpremises.”

148. •InthecaseMitterSenJainv/sShakuntalaDevi,85(2000)DLT658(SC);(2000)9SCC720,itwasheld
thatevenifanynewareaisincludedwithintheurbanareaofMunicipalCorporationofDelhi,a
furthernotificationisrequiredtobeissuedunderprovisotoSub-section(2)ofSection1oftheDelhi
RentControlAct.UnlesstheareaissospecifiedintheSchedulebyanotification,theprovisionsofthe
DelhiRentControlActcannotbemadeapplicabletothatarea.
•Itisquiteessentialtoascertainwhetherthepersontowhomtherentisdepositedisactuallythe
landlordornot.Thisisbecause,theverybasisofthejurisdictionoftherentcontrollerliesonthe
premisethatthereshouldbealandlord-tenantrelationshipexistingbetweenthepartiestothedispute.
Ifnosuchrelationshipexiststhen,itmightoustthecourtofitsjurisdictionundertheconcernedrent
controllegislation.InthecaseofGomtiDeviv.OmPrakash&Anr,15(1979)DLT291,itwasheld
thatthelandlord-tenantrelationshipcanbeprovedbyoralevidenceanddocumentaryevidenceisnot
necessary.
•CircumstanceswheretheActshallnotbeApplied[Section3,DelhiRentControlAct,1958]
toanypremisesbelongingtotheGovernment;
toanytenancyorotherlikerelationshipcreatedbyagrantfromtheGovernmentinrespectofthe
premisestakenonlease,orrequisitioned,bytheGovernment.

149. UnlawfulChargesnottobeClaimedorReceived[Section5,DelhiRentControlAct,1958]
•SubjecttotheprovisionsofthisAct,nopersonshallclaimorreceiveanyrentinexcessofthe
standardrent,notwithstandinganyagreementtothecontrary.
•Nopersonshall,inconsiderationofthegrant,renewalorcontinuanceofatenancyorsub-tenancyof
anypremises,
•claimorreceivethepaymentofanysumaspremiumorpugreeorclaimorreceiveany
considerationwhatsoever,incashorinkind,inadditiontotherent:or
•exceptwiththepreviouspermissionoftheController,claimorreceivethepaymentofanysum
exceedingonemonth'srentofsuchpremisesasrentinadvance.
•Itshallnotbelawfulforthetenantoranyotherpersonactingorpurportingtoactonbehalfofthe
tenantorasub-tenanttoclaimorreceiveanypaymentinconsiderationoftherelinquishment,
transferorassignmentofhistenancyorsub-tenancy,asthecasemaybe,ofanypremises.

150. •Nothinginthissectionshallapply-
toanypaymentmadeinpursuanceofanagreemententeredintobeforethe1stdayofJanuary,1939:
or
toanypaymentmadeunderanagreementbyanypersontoalandlordforthepurposeoffinancingthe
constructionofthewholeorpartofanypremisesonthelandbelongingto,ortakenonleaseby,the
landlord,ifoneoftheconditionsoftheagreementisthatthelandlordistolettothatpersonthewhole
orpartofthepremiseswhencompletedfortheuseofthatpersonoranymemberofhisfamily:
Providedthatsuchpaymentdoesnotexceedtheamountofagreedrentforaperiodoffiveyearsof
thewholeorpartofthepremisestobelettosuchperson.

151. LawfulincreaseofStandardRentincertainCases[Section7,DelhiRentControlAct,1958]
•Wherealandlordhasatanytime,withthewrittenapprovalofthetenantoroftheController,
incurredexpenditureforanyimprovement,additionorstructuralalterationinthepremises,not
beingexpenditureondecorationortenantablerepairsnecessaryorusualforsuchpremises,andthe
costofthatimprovement,additionoralterationhasnotbeentakenintoaccountindeterminingthe
rentofthepremises,thelandlordmaylawfullyincreasethestandardrentperyearbyanamountnot
exceedingsevenandone-halfpercent,ofsuchcost.
•Wherealandlordpaysinrespectofthepremisesanychargeforelectricityorwaterconsumedinthe
premisesoranyotherchargeleviedbyalocalauthorityhavingjurisdictionintheareawhichis
ordinarilypayablebythetenant,hemayrecoverfromthetenanttheamountsopaidbyhim;butthe
landlordshallnotrecoverfromthetenantwhetherbymeansofanincreaseinrentorotherwisethe
amountofanytaxonbuildingorlandimposedinrespectofthepremisesoccupiedbythetenant.
•

152. NoticeofIncreaseinRent[Section8,DelhiRentControlAct,1958]
•Wherealandlordwishestoincreasetherentofanypremises,heshallgivethetenantnoticeinwriting
ofhisintentiontomaketheincreaseandinsofarassuchincreaseislawfulunderthisAct,itshallbe
dueandrecoverableonlyinrespectoftheperiodofthetenancyaftertheexpiryofthirtydaysfromthe
dateonwhichthenoticeisgiven.
•Everynoticeundersub-section(1)shallbeinwritingsignedbyoronbehalfofthelandlordandgiven
inthemannerprovidedinsection106oftheTransferofPropertyAct,1882.

153. THANK YOU