Levy of betterment contribution

(1) As from such date as the State Government may, by notification, appoint, such date being not earlier than three years from the commencement of the operation of a new canal, there shall be levied on every permanent holder of land, whose land is situated within the commanded area, betterment contribution at the following rates-- (a) Rs. 140 per acre, payable in one lump sum; or (b) Rs. 224 per acre payable consecutively for twenty years, excluding the years in which recovery thereof may be postponed by the State Government in accordance with section 58-I, as under :- Rs. 8 per acre per year for the first five years; Rs. 12 per acre per year for the next fourteen years; Rs. 16 per acre for the twentieth years. (2) The betterment contribution levied under sub-section (1) may, at the option of the permanent holder, be paid by him in one lump sum within three months from the date appointed under sub-section (1) or in twenty annual instalments, the first instalment being payable within two months from the date appointed under sub-section (1) and the subsequent annual instalments being payable within one month from the date on which they would fall due for payment in each subsequent years: Provide that if the permanent holder who has under taken to pay the betterment contribution in annual instalment desires, at any time after the payment of the first or subsequent instalment, to make payment in one lump sum, he shall be required to pay per acre in full the amount equal to the difference between Rs. 140 together with interest thereon calculated at the rate of 4 1/2 per cent per annum for the period from the date appointed under sub-section (1) till the date of such payment in lump sum and the amount already paid by him by way of such instalments. (3) Any instalment of betterment contribution or part thereof which remains unpaid on the expiry of the period under sub-section (2), shall, with effect from the date on which such period expires, carry interest at the rate of six per centum: Provided that when the recovery of any instalment is postponed under section 58-I, such instalments shall not be deemed to be remaining unpaid for the purpose of this sub-section during which the recovery thereof remains postponed. (4) If the State Government is satisfied that the levy of betterment contribution is likely to cause hardship to any permanent holder or class of such holders in any commanded area, the State Government may, by notification, exempt such holder or such class of holders in such area from payment of the amount of betterment contribution in whole or in part, as may be specified in the notification, subject to such terms and conditions, if any, as the State Government may deem fit to impose. Explanation.-For the purposes of sub-section (4), the levy of betterment contribution shall be deemed to cause hardship if,- (i) as a result of new canal, the prices of land situate in a commanded area has not risen by more than fifty per centum over the prices prevailing prior to availability of irrigation facilities from such new canal; (ii) the permanent holder who having already constructed private irrigation work prior to the commencement of the operation of the new canal, on his land does not desire to avail of the irrigation facilities from such new canal.