Chapter VI Chapter VI

Acquisition and disposal of land

Power to purchase or lease by agreement.––

1. (1) The Board may enter into an agreement with any person for the acquisition from him by purchase, lease or exchange of any land which is needed for the purposes of a housing scheme, or any interest in such land, or for compensating the owners of any such right in respect of any deprivation thereof or interference therewith: Provided that the previous approval of the Government shall be obtained in case of purchase or exchange involving land worth more than rupees twenty-five thousand or lease for more that five years.
2. (2) The Board may also take necessary steps for the compulsory acquisition of any land or any interest therein required for the execution of a housing, improvement or building scheme in the manner provided in the Land Acquisition Act, 1894, and the acquisition of any land or any interest therein for the purposes of this Act shall be deemed to be acquisition for a public purpose within the meaning of the Land Acquisition Act, 1894.

Betterment charges.––

1. (1) When by the making of a housing, improvement or building scheme any land in the area comprised in the scheme will in the opinion of the Board be increased in value, the Board in framing the scheme may declare that betterment charges shall be payable by the owner of the land or any person having an interest therein in respect of the increase in value of the land from the execution of the scheme.
2. (2) such increase in value shall be amount by which the value of the land on the completion of the execution of the scheme estimated as if the land were clear of the buildings exceeds the value of the land prior to the execution of the scheme estimated in like manner and the betterment charges shall be one half of such increase in value.
3. (3) Such betterment charges shall also be leviable in respect of any land not comprised in the scheme but adjacent to the area comprised in the scheme.
4. (4) Notwithstanding anything contained in sub-section
5. (1) and (3), in respect of any land used for agricultural purposes at the time of the execution of the schemes, the betterment charges shall be leviable by the Board in accordance with such procedure as may be prescribed, only after such land is used, or converted for use, for non-agricultural purposes.

Notice to persons liable for betterment charges.––

1. (1) The Board shall give notice in the prescribed form to any person who is the owner of or has interest in the land in respect of which the betterment charges are to be levied and shall give such person an opportunity to be heard.
2. (2) After hearing such person or if such person fails to appear before the expiry of the period within which such person is required to appear before the Board without hearing such person, the Board shall proceed to assess the amount of betterment charges.
3. (3) Where the assessment of betterment charges proposed by the Board is accepted by the person concerned within the period prescribed, the assessment shall be final.
4. (4) If the person concerned does not accept the assessment proposed by the Board, the matter shall be referred to the Government.
5. (5) The Government shall, after hearing the person concerned and after holding an inquiry, if any, as may be necessary, assess the amount of the betterment charges payable by the person.

Agreement for payment of betterment charges.––

1. (1) Any person liable to pay betterment charges in respect of any land may at his option, instead of paying the same to the Board, execute an agreement with the Board to leave the payment outstanding as a charge on his interest in the land, subject to the payment in perpetuity of interest at such rate not exceeding five per cent, per annum as may be prescribed.
2. (2) Every payment due from any person in respect of betterment charges and every charge referred to in sub-section
3. (1) shall, notwithstanding anything contained in any other enactment and notwithstanding the execution of any mortgage or charge created whether before or after the commencement of this Act, be the first charge upon the interest of such person in such land.

Recovery of betterment charges.–– All sums payable in respect of any land by any person in respect of betterment charges under section 54 or by any person under an agreement under section 56 shall, together with interest, due form the date of notification, be recoverable on behalf of the Board as an arrears of land revenue.

Power to dispose of land.–– Subject to such rules as may be made by the Government under this Act, the Board may retain, lease, sell, exchange or otherwise dispose of any land, building or other property vesting in it and situate in the area comprised in any housing, improvement or building scheme sanctioned under this Act.

Disputes regarding reconstitution of plots.–– (1)

1. (a) Where by the making of a housing, improvement or building scheme, any plots comprised in the area included in the scheme are reconstituted or any person is dispossessed, the Board shall, after making such inquiry as it thinks fit, award to the person affected by such reconstitution or dispossession such compensation as it deems reasonable.
2. (b) if the person is dissatisfied with the decision of the Board in the matter, he may inform the Board accordingly within one month.
3. (c) The Board shall within thirty days thereof refer the matter to the Government

1. (2) The Government shall then after making an inquiry, if necessary, determine the amount of compensation and direct the Board to pay the same to the person entitled.