Chapter IV CEILING ON LAND HOLDINGS

(1) No person who is not a member of a family or who has no family and no family shall, except as otherwise provided in this Act, be entitled to hold, whether as land owner, landlord or tenant or as a mortgagee with possession or otherwise or partly in one capacity and partly in another, land in excess of the ceiling area.

(2) The ceiling area for a person who is not a member of a family or who has no family or for a family shall be ten units:

Provided that in the case of a family consisting of more than five members the ceiling area shall be ten units plus an additional extent of two units for every member in excess of five, so however that the ceiling area shall not exceed twenty units in the aggregate.

(2A) The ceiling area for a person who is tenant under clause (b) of sub-section (2) of section 5 shall be forty units.

(3) In the case of a family the ceiling area shall be applied to the aggregate of the lands held by all the members of the family, including the ‗stridhana‘ land.

(4) In calculating the extent of land held by a person who is not a member of a family but is a member of a joint family and also in calculating, the extent of land held by a member of a family who is also a member of a joint family, the share of such member in the lands held by a joint family shall be taken into account and aggregated with the lands, if any, held by him separately and for this purpose such share shall be deemed to be the extent of land which would be allotted to such person had there been a partition of the lands held by the joint family.

(5) In respect of lands owned or held under a private trust,— (a) where the trust is revocable by the author of the trust, such lands shall be deemed to be held by such author or his successor in interest; and (b) in other cases, such lands shall be deemed to be held by the beneficiaries of the trust in proportion to their respective interests in such trust or the income derived therefrom.

Explanation.—Where a trust is partly private and partly public this sub-section shall apply only to lands covered by that part of the assets of the trust which is relatable to the private trust.

(6) In calculating the extent of land held by a person who is not a member of a family or who has no family or by a member of a family, the share of such person or member in the lands held by a co-operative farm shall be taken into account.

(7) (a) No educational, religious or charitable institution or society or trust, of a public nature, capable of holding property, formed for an educational, religious or charitable purpose shall hold land except where the income from the land is appropriated solely for the institution or the society or the trust concerned. Where the land is so held by such institution, society or trust, the ceiling area shall be twenty units. (b) If any question arises whether the income from the land is solely appropriated for the institution, society or trust, it shall be decided by the prescribed authority. The decision of the prescribed authority shall be final. Where the prescribed authority decides that the income is not so appropriated, the land held by the institution, society or trust shall be deemed to be surplus land and the provisions of sections 66 to 76 shall, so far as may be, apply to the surrender to and vesting in the State Government of such land. The provisions of this sub-section shall have effect notwithstanding anything in this Act.

(8) (a) No sugar factory shall hold land except solely for purpose of research or seed farm or both. Where land is held by a sugar factory for such purpose the ceiling area shall be fifty units. (b) If any question arises whether any land held by a sugar factory is solely used for the purpose of research or seed farm or both, the decision of the prescribed authority shall be final and the land not held for the said purpose shall be deemed to be surplus land and the provisions of sections 66 to 76 shall, so far as may be, apply to the surrender to and vesting in the State Government of such land. The provisions of this sub-section shall have effect notwithstanding anything contained in this Act.

(9) In the case of any person holding land cultivated by plantation crops, the ceiling area in respect of other land held by him shall be determined taking into consideration, the agricultural land referred to in item (ii) of the Explanation to section 104.

(10) Notwithstanding anything in the preceeding sub-section, if any person has,— (2A) The ceiling area for a person who is tenant under clause (b) of sub-section (2) of section 5 shall be forty units. (3) In the case of a family the ceiling area shall be applied to the aggregate of the lands held by all the members of the family, including the "stridhana" land. (4) In calculating the extent of land held by a person who is not a member of a family but is a member of a joint family and also in calculating, the extent of land held by a member of a family who is also a member of a joint family, the share of such member in the lands held by a joint family shall be taken into account and aggregated with the lands, if any, held by him separately and for this purpose such share shall be deemed to be the extent of land which would be allotted to such person had there been a partition of the lands held by the joint family. (5) In respect of lands owned or held under a private trust,— (a) where the trust is revocable by the author of the trust, such lands shall be deemed to be held by such author or his successor in interest; and (b) in other cases, such lands shall be deemed to be held by the beneficiaries of the trust in proportion to their respective interests in such trust or the income derived therefrom. Explanation.—Where a trust is partly private and partly public this sub-section shall apply only to lands covered by that part of the assets of the trust which is relatable to the private trust. (6) In calculating the extent of land held by a person who is not a member of a family or who has no family or by a member of a family, the share of such person or member in the lands held by a co-operative farm shall be taken into account. (7) (a) No educational, religious or charitable institution or society or trust, of a public nature, capable of holding property, formed for an educational, religious or charitable purpose shall hold land except where the income from the land is appropriated solely for the institution or the society or the trust concerned. Where the land is so held by such institution, society or trust, the ceiling area shall be twenty units. (b) If any question arises whether the income from the land is solely appropriated for the institution, society or trust, it shall be decided by the prescribed authority. The decision of the prescribed authority shall be final. Where the prescribed authority decides that the income is not so appropriated, the land held by the institution, society or trust shall be deemed to be surplus land and the provisions of sections 66 to 76 shall, so far as may be, apply to the surrender to and vesting in the State Government of such land. The provisions of this sub-section shall have effect notwithstanding anything in this Act. (8) (a) No sugar factory shall hold land except solely for purpose of research or seed farm or both. Where land is held by a sugar factory for such purpose the ceiling area shall be fifty units. (b) If any question arises whether any land held by a sugar factory is solely used for the purpose of research or seed farm or both, the decision of the prescribed authority shall be final and the land not held for the said purpose shall be deemed to be surplus land and the provisions of sections 66 to 76 shall, so far as may be, apply to the surrender to and vesting in the State Government of such land. The provisions of this sub-section shall have effect notwithstanding anything contained in this Act. (9) In the case of any person holding land cultivated by plantation crops, the ceiling area in respect of other land held by him shall be determined taking into consideration, the agricultural land referred to in item (ii) of the Explanation to section 104. (10) Notwithstanding anything in the preceeding sub-section, if any person has,— (i) after the 18th November 1961 and before the 24th January 1971 transferred any land the extent of which if added to the other land retained by him could have been deemed to be surplus land before the date of commencement of the Amendment Act; or (ii) after the 24th January 1971 transferred any land, otherwise than by partition or by donation to the Karnataka Boodan Yagna Board established under the Karnataka Bhoodan Yagna Act, 1963 (Karnataka Act 34 of 1963) or by sale to the tenant of such land in conformity with any law for the time being in force, then in calculating the ceiling area which that person is entitled to hold, the area so transferred shall be taken into account and the land exceeding the ceiling area so calculated shall be deemed to be in excess of the ceiling area notwithstanding that the land remaining with him may not in fact be in excess of the ceiling area. If by reason of such transfer the person's holding is less than the area so calculated to be in excess of the ceiling area, then all his lands shall be deemed to be surplus land and the provisions of sections 66 to 76 shall, as far as may be, apply to the surrender to and vesting in the State Government of such excess land. Explanation.—For purposes of this sub-section the land shall be deemed to have been transferred if it has been transferred by act of parties (whether by sale, gift, mortgage with possession, exchange, lease or any other kind of disposition made inter vivos.)

Where on account of transfer, gift, purchase, exchange, mortgage with possession, lease, surrender or any other kind of transfer inter vivos or by bequest or inheritance, partition or otherwise, any land is acquired or comes into possession of any person or family after the date of commencement of the Amendment Act and in consequence thereof the total extent of land held by such person or family exceeds the ceiling area permitted under section 63, the excess land shall be deemed to be surplus land, and the provisions of sections 66 to 76 shall, as far as may be, apply to the surrender to, and vesting in, the State Government, of such excess land: Explanation.—In this section "bequest" includes,— (i) gift made in contemplation of death; and (ii) gift to take effect after the happening of any event.

The land which is in excess of the ceiling laid down in section 63 or 64 (hereinafter referred to as "surplus land") shall be surrendered to the State Government.

Where as a result of irrigation from a source constructed by the State Government, any land held by a person or if he has family, together with any member of his family or a family is converted into any other class of land and thereby the lands held by such person or family exceed the ceiling area, the land so in excess shall be deemed to be surplus land and accordingly the provisions of sections 66 to 76 shall, so far as may be, apply to the surrender to and vesting in the State Government of such excess land. Explanation.—For purposes of this section, the land shall be deemed to have been converted from the date of completion of the irrigation work notified under section 3 of the Karnataka Irrigation (Levy of Betterment Contribution and Water Rate) Act, 1957 (Karnataka Act 28 of 1957).

(1) (a) Every person who on the date of commencement of the Amendment Act holds,—

(i) ten acres or more of lands having facilities for irrigation from a source of water belonging to the State Government; or

(ii) twenty acres or more of lands on which paddy crop can be grown with the help of rain water; or

(iii) forty acres or more of lands classified as dry but not having any irrigation facilities from a source of water belonging to the State Government, shall on or before the 31st day of December 1974;

(b) every person who acquires land in excess of the extent specified in clause (a) in any manner referred to in section 64; and

(c) every person whose land is deemed to be in excess of the ceiling area under section 65A, shall, within the prescribed period, furnish a declaration to the Tahsildar within whose jurisdiction the holding of such person or the greater part thereof is situated containing the following particulars, namely:—

(i) particulars of all the lands;

(ii) particulars of the members of the family; and

(iii) such other particulars as may be prescribed.

(1A) Where a person holds different categories of land mentioned in clause (a) of sub-section (1), the total extent of lands held by such person shall, for purposes of this section, be determined by converting all categories of land into any one category in accordance with the following formula, namely:— One acre of land referred to in category (i)=two acres of land referred to in category (ii)=four acres of land referred to in category (iii).

(2) Without prejudice to the provisions of sub-section (1), the Tahsildar shall have power to issue notice requiring any person who he has reason to believe, holds land, or resides within his jurisdiction, to furnish to him a declaration of all lands held by him within such period as may be specified in the notice (not being less than thirty days from the date of service of the notice), and it shall be the duty of such person to furnish the declaration.

(3) Every declaration furnished under sub-section (1) or sub-section (2), shall be in the prescribed form; and the person furnishing the declaration shall be entitled to obtain a receipt therefor.

(4) Notwithstanding anything contained in sub-section (1), every person who had held on or after 18th November 1961 and before the commencement of the Amendment Act,—

(a) ten acres or more of lands having facilities for irrigation from a source of water belonging to the State Government; or

(b) twenty acres or more of lands on which paddy crop can be grown with the help of rain water; or

(c) forty acres or more of lands other than those specified in clauses (a) and (b), shall in respect of the land so held by him also furnish a declaration within one hundred and eighty days from the eleventh day of September 1975 to the Tahsildar within whose jurisdiction the holding of such person or a greater part thereof is or was situated containing the following particulars, namely:— (i) particulars of the land; (ii) particulars of the members of his family; (iii) particulars of lands transferred or disposed of in any manner prior to 24th January 1971 and subsequent to that date; (iv) particulars of the persons to whom lands if any, have been transferred or disposed of; (v) such other particulars as may be prescribed.

(5) The provisions of sub-sections (1A), (2) and (3) shall mutatis mutandis apply to the declarations to be furnished under sub-section (4).

Explanation.- x x x

(1) Where a person required by section 66 to furnish a declaration,—

(a) fails without reasonable cause so to do within the time specified in that section, or

(b) furnishes a declaration which he knows or has reason to believe it to be false, the Tahsildar shall issue a notice to such person asking him to show cause within fifteen days of the service thereof why a penalty which may extend to Rs. 500 may not be imposed on him. Where no reply is filed or where a reply is filed the Tahsildar is satisfied that the person has without reasonable cause failed to furnish the declaration within time or has submitted the declaration knowing or having reason to believe it to be false, he may, by order, impose the said penalty and require such person to furnish a true and correct statement complete in all particulars, within a period of one month from the date of service of the order.

(2) If such person fails to comply with the order within the time granted, the right, title and interest of such person in the land held to the extent in excess of the ceiling area shall, by way of penalty, be forfeited to the State Government and shall thereupon vest in the State Government.

(1) (a) Save as provided in section 66A, on receipt of the declaration under section 66 the Tahsildar shall,—

(i) verify the particulars contained therein as regards the survey number and the extent of the land;

(ii) determine to which class, A, B, C or D, the land belongs; and

(iii) place the declaration and the connected records before the Tribunal.

(aa) Where a portion of the holding declared before a Tahsildar is situated within the jurisdiction of another Tahsildar, the former shall send a copy of the declaration to the latter, who shall make the verification and determination specified in item (i) and (ii) of clause (a) in respect of such portion and send the copy of the declaration and the connected records to the former Tahsildar, who shall place them before the Tribunal.

(b) Thereupon and after such enquiry as may be prescribed, the Tribunal shall determine the extent of the holding and the area by which such extent exceeds the ceiling area.

(c) Where the total extent of the holding so determined by the Tribunal is equal to or less than the ceiling area, the person concerned shall be entitled to retain his entire holding; but where the total extent is more than the ceiling area, such person shall be liable to surrender such extent of land as will, after such surrender, bring the total extent of land retained by him to the extent of the ceiling area.

(d) The order of the Tribunal shall be final and shall be communicated to the person concerned and also the Tahsildar.

(1A) Where the land held by a family consist of "stridhana" land which may be surrendered, the extent of "stridhana" land to be surrendered shall in no case be more than the proportion which the extent of "stridhana" land bears to the extent of other land held by the family.

(1B) Where a person holds lands cultivated by him personally as well as lands cultivated by a tenant, the surrender of surpluas land by him shall with reference to the land cultivated by a tenant, be subject to the provision of Chapter III.

(2) The Tribunal shall serve on every person who is liable to surrender land under sub-section (1), a notice specifying therein the extent of land which he should surrender, and requiring him to file a statement in such manner and within such period as may be prescribed specifying therein the land which he proposes to surrender.

(3) If the person concerned files such declaration within the prescribed period, the Tribunal may subject to the provision of sub-section (3A) pass an order approving the surrender and the said land shall thereupon be deemed to have been surrendered by such person.

(3A) If the land proposed to be surrendered is not suitable on the ground of inaccessibility or any other ground that may be prescribed, the Tribunal may pass an order rejecting it and call upon the person concerned to file a fresh statement specifying therein other suitable land. On the filing of such statement the Tribunal shall pass an order approving such surrender and the said land shall thereupon be deemed to have been surrendered by such person. If such person fails to file a fresh statement, the Tribunal may itself select the land which shall be surrendered by such person and pass an order to that effect and thereupon the said land shall be deemed to have been surrendered by such person.

(4) If the person concerned does not file such statement within the prescribed period, the Tribunal may itself select the land which shall be surrendered by the person concerned, and pass an order to that effect; and thereupon the said land shall be deemed to have been surrendered by such person.

(5) An order under sub-section (3), (3A) or (4) relating to surrender of land shall be passed in respect of land which, as far as practicable, forms a survey number, or a recognised part of survey number of a sub-division of a survey number. (c) Where the total extent of the holding so determined by the Tribunal is equal to or less than the ceiling area, the person concerned shall be entitled to retain his entire holding; but where the total extent is more than the ceiling area, such person shall be liable to surrender such extent of land as will, after such surrender, bring the total extent of land retained by him to the extent of the ceiling area.

(d) The order of the Tribunal shall be final and shall be communicated to the person concerned and also the Tahsildar.

(1A) Where the land held by a family consist of 'stridhana' land which may be surrendered, the extent of 'stridhana' land to be surrendered shall in no case be more than the proportion which the extent of 'stridhana' land bears to the extent of other land held by the family.

(1B) Where a person holds lands cultivated by him personally as well as lands cultivated by a tenant, the surrender of surpluas land by him shall with reference to the land cultivated by a tenant, be subject to the provision of Chapter III.

(2) The Tribunal shall serve on every person who is liable to surrender land under sub-section (1), a notice specifying therein the extent of land which he should surrender, and requiring him to file a statement in such manner and within such period as may be prescribed specifying therein the land which he proposes to surrender.

(3) If the person concerned files such declaration within the prescribed period, the Tribunal may subject to the provision of sub-section (3A) pass an order approving the surrender and the said land shall thereupon be deemed to have been surrendered by such person.

(3A) If the land proposed to be surrendered is not suitable on the ground of inaccessibility or any other ground that may be prescribed, the Tribunal may pass an order rejecting it and call upon the person concerned to file a fresh statement specifying therein other suitable land. On the filing of such statement the Tribunal shall pass an order approving such surrender and the said land shall thereupon be deemed to have been surrendered by such person. If such person fails to file a fresh statement, the Tribunal may itself select the land which shall be surrendered by such person and pass an order to that effect and thereupon the said land shall be deemed to have been surrendered by such person.

(4) If the person concerned does not file such statement within the prescribed period, the Tribunal may itself select the land which shall be surrendered by the person concerned, and pass an order to that effect; and thereupon the said land shall be deemed to have been surrendered by such person.

(5) An order under sub-section (3), (3A) or (4) relating to surrender of land shall be passed in respect of land which, as far as practicable, forms a survey number, or a recognised part of survey number of a sub-division of a survey number.

(1) Every person possessing land in excess of the ceiling area, as determined under this Chapter, shall pay to the State Government for the period he was in possession or such extent of land from the date of the order determining the excess, such compensation for the use and occupation of such land as the Tribunal may determine in the prescribed manner.

(2) Any sum payable under sub-section (1) may be recovered as arrears of land revenue.

Where the land surrendered under section 67 is by an owner (other than a limited owner), the State Government may take over such land on the service of the order under section 67 and such land shall thereupon vest in the State Government free from all encumbrances.

(1) Where the land surrendered under section 67 is by a limited owner, it shall vest in the presumptive reversioner.

(2) Where as a result of the vesting of any land under sub-section (1), the total land held by the reversioner exceeds the ceiling limit specified in section 63 or 64, such reversioner shall, within a period of ninety days of such vesting furnish a declaration of his holding in the prescribed form to the Tahsildar within whose jurisdiction his holding or any part thereof is situated, and all the relevant provisions of this Act shall thereupon apply as if it were a declaration filed by him under section 66.

(3) The reversioner in whom any land vests under sub-section (1) shall be liable to pay the limited owner an annual sum equivalent to four and a half per cent of the amount payable to the owner under section 72 in respect of the land vesting in him under sub-section (1) until such time as the limited owner would have continued in possession of the land but for the surrender of the land by him.

(1) Where the land surrendered under section 67 is by an usufructuary mortgagee, the possession of the land shall (without prejudice to the rights of the tenant, if any, in occupation of the land) revert to the mortgagor in every case where, and to the extent to which the mortgagor himself is not liable to surrender the said land in accordance with the provisions of section 67.

(2) The mortgagor to whom possession of the land reverts under sub-section (1) shall be liable to pay the mortgage money due to the usufructuary mortgagee in respect of that land and the said land shall be the security for such payment.

(3) In cases where possession of the land surrendered by an usufructuary mortgagee does not revert to the mortgagor for the reason that the mortgagor is himself liable under section 67 to surrender the land held by him, the State Government may take over such land on the publication of the notification under section 73 and such land thereupon shall vest in the State Government free from all encumbrances.

(1) Where the land surrendered under section 67 is by a tenant, of a soldier or a seaman the possession of the land shall revert to the owner in every case where, and to the extent to which the owner himself is not liable to surrender such land in accordance with the provisions of section 67.

(2) The owner to whom possession of the land reverts under sub-section (1) shall be liable to pay the tenant compensation equal to one year's net income of such land.

(3) In cases where possession of the land surrendered by a tenant does not revert to the owner under sub-section (1), the State Government may take over the land on the publication of the notification under section 73 and the land shall thereupon vest in the State Government free from all encumbrances.

(1) Save as otherwise provided in this Act, the amount payable in respect of land to be taken over by the State Government under sections 68, 70, 71, shall be determined with reference to the net annual income derivable from the land in accordance with the following scale, namely:— (i) for the first sum of rupees five thousand or any portion thereof of the net annual income from the land, fifteen times such sum or portion; (ii) for the next sum of rupees five thousand or any portion thereof of the net annual income from the land, twelve times such sum or portion; (iii) for the balance of the net annual income from the land, ten times such balance: Provided that where the land taken over by the State Government is D Class land referred to in Part A of Schedule I, an amount equal to twenty times the net annual income thereof shall be payable.

(2) For the purpose of sub-section (1), the net annual income from the land shall be deemed to be the amount payable as annual rent in respect of the land as specified in section 8. But where in a land assessed as wet land or dry land, the owner has raised fruit bearing trees, the net annual income of such land for purposes of sub-section (1) shall be determined on the basis of assessment for garden land which could have been levied having regard to the nature of the fruit bearing trees.

(3) The amount under sub-section (1) shall be payable as follows:— (a) to the tenant, if any, in possession of the land, an amount equal to one year's net annual income; (b) to the owner, the balance.

(4) Where there are wells or other structures of a permanent nature on the land, constructed by the owner then, the value thereof calculated in the prescribed manner shall also be payable.

(5) Notwithstanding anything in sub-sections (1) and (4), the aggregate amount payable according to the said sub-sections shall not exceed rupees two lakhs.

(6) x x x

(1) As soon as may be after the service of the order made under section 67, the Tahsildar shall publish a notification containing the particulars of the lands vested in the State Government. (1A) After the publication of the notification under sub-section (1), the Tahsildar shall determine the amount payable in respect of the land which has vested in the State Government. (2) The provisions of sections 48B and 50 shall mutatis mutandis be applicable for determining the persons entitled to the amount and the apportionment of the amount. (3) The amount payable under sub-section (1) shall be paid in non-transferable and non-negotiable bonds carrying interest at the rate of five and a half per cent per annum and of guaranteed face value maturing within a specified period not exceeding twenty years: Provided that the amount payable under the bonds issued under this sub-section may be paid in such number of instalments not exceeding twenty as may be prescribed. (4) Notwithstanding anything in sub-section (3), on or after 1st March 1984, the balance and interest thereon payable in accordance with the said sub-section shall, in lieu of the bonds specified therein, be paid in the following manner, namely:— (a) The interest accrued at the rate of five and a half per cent per annum till 1st March, 1984 remaining unpaid shall be paid in five consecutive annual, as far as may be, equal instalments commencing from 1st March, 1984 in National Savings Certificates; (b) the whole or, as the case may be, part of the balance specified in sub-section (1), payable before 1st March, 1984 remaining unpaid shall be paid in five consecutive annual, as far as may be, equal instalments commencing from the said date in National Savings Certificates. (c) the whole or, as the case may be, part of the said balance payable on or after 1st March, 1984 shall be paid in ten consecutive annual, as far as may be, equal instalments commencing from the said date in National Savings Certificates: Provided that along with each of the instalments referred to in items (b) and (c), the interest thereon from 1st March, 1984 at the rate of five and a half per cent per annum upto the date of payment thereof shall also be paid in National Savings Certificates.

On and from the date of commencement of the Amendment Act, no person owning land in excess of the ceiling limit specified in section 63 or 64 shall alienate his holding or any part thereof by way of sale, gift, exchange or otherwise until he has furnished a declaration under section 66 and the extent of land, if any, to be surrendered in respect of that holding has been determined and an order has been passed under section 67, and any alienation made in contravention of this section shall be null and void.

Where a person either by himself or, if he has a family, or is a member of a joint family, together with any other member of the family, or joint family, holds land not exceeding the ceiling limit referred to in section 63 or 64, but subsequently the land held exceeds the ceiling limit, due to any change in the classification of the land consequent upon any improvements effected in the land by such person or of the family or due to a decrease in the number of members of the family, then, notwithstanding anything contained in this Chapter, such person shall not be required to surrender any part of the land on the ground that it is excess land.

Where under the provisions of this Chapter any land vests in the State Government, the Tahsildar may, after removing any obstruction that may be offered, forthwith take possession of the land.

(1) Surplus land vesting in the State Government under this Act, land directed to be disposed of under sub-section (3) of section 45, section 58, section 60, land vesting in the State Government under section 79A, section 79B or under any other provision of this Act, may, subject to reservation of seventy-five per cent thereof for grant to persons belonging to the Scheduled Castes and the Scheduled Tribes and subject to such restrictions and conditions as may be prescribed in this behalf, be granted by the Deputy Commissioner or any other officer authorised by the State Government in this behalf to the following persons to the extent and in the manner as may be prescribed: (i) Dispossessed tenants who are not registered as occupants; (ii) Displaced tenants having no land; (iii) Landless agricultural labourers; (iv) landless persons or other persons residing in villages in the same Panchayat area whose gross annual income does not exceed Rs. 20,000 and ex-military personnel whose gross annual income does not exceed Rs. 22,000; (v) Released bonded labourers; (vi) x x x Explanation.—(1) "Dispossessed tenant" means a person who not being member of the family of the owner was cultivating lands personally and was dispossessed between 10th September 1957 and 24th January 1971 and who is not registered as an occupant under the provisions of this Act. Explanation.—(2) "Displaced tenant" means a person who has been deprived of agricultural land on which he was a tenant, on account of,— (i) acquisition of such land under the Land Acquisition Act; or (ii) resumption of such land by a soldier or a seaman for personal cultivation. (2) The lands reserved for persons belonging to the Scheduled Castes and Scheduled Tribes shall be granted in accordance with such rules as may be prescribed. (2A) Notwithstanding anything in any law, no land granted under this section shall be transferred by the grantee or his legal representatives for a period of fifteen years from the date of the grant except by way of mortgage in favour of a financial institution and for the purposes specified in sub-section (2) of section 61. (2B) The Deputy Commissioner or the authorised officer shall forward a copy of the order granting land under this section to the concerned Sub-Registrar who shall, notwithstanding anything in the Registration Act, 1908 (Central Act 16 of 1908) or any other law, register the same. (3) Notwithstanding anything contained in sub-section (1), the State Government may, if it considers that any land vesting in it is required for any public purpose, reserve such land for such purpose.

(1) Notwithstanding anything contained in this Act, if the Deputy Commissioner, or the or any other officer authorised by the State Government in this behalf is satisfied after holding such enquiry as he deems fit, that a person,- (i) was, immediately before the first day of March, 1974 in actual possession and cultivation of any land not exceeding one unit, which has vested in the State Government under section 44; and (ii) being entitled to be registered as an occupant of such land under section 45 or 49 has failed to apply for registration of occupancy rights in respect of such land under sub-section (1) of section 48A within the period specified therein; and (iii) has continued to be in actual possession and cultivation of such land on the date of commencement of the Karnataka Land Reforms (Amendment) Act, 1997, -he may x x x grant the land to such person subject to such restrictions and conditions and in the manner, as may be prescribed. (2) The provisions of sub-sections (2A) and (2B) of section 77 and the provisions of section 78 shall apply mutatis mutandis in respect of the grant of land made under sub-section (1). Provided that the land so granted together with the land already held by such person shall not exceed 2 hectares of D class of land or its equivalent thereto.

(1) On the grant of land x x x under section 77, the grantee shall have the option to deposit with the Tribunal the purchase price of the land so granted either in a lumpsum or in such annual instalments not exceeding twenty as the Tahsildar may determine, the first instalment becoming payable within such time as may be prescribed. (2) The purchase price shall, in the case of,— (i) A Class, B Class and C Class lands referred to in Part A of Schedule I be an amount equal to fifteen times, and (ii) D Class land referred to in Part A of the said Schedule be an amount equal to twenty times the net annual income referred to in sub-section (2) of section 72 plus the amount, if any, payable under sub-section (4) of that section. (3) Where the purchase price is payable in instalments, the amount outstanding after payment of each instalment shall bear interest at the rate of five and a half per cent per annum if the purchase price is paid by the grantee out of his own funds and no interest where the money for payment of the purchase price is advanced by the State Land Development Bank or a credit agency. (4) All amounts due from the grantees shall be a first charge on the land granted and shall be recoverable as land revenue due on that land. (5) Every grantee, who is granted surplus land shall be entitled to obtain assistance from the State Land Development Bank or from a credit agency as defined in the Karnataka Agricultural Credit operations and Miscellaneous Provisions Act, 1974 (Karnataka Act 2 of 1975) for the payment of the purchase price in accordance with such rules as may be prescribed. (6) Notwithstanding anything contained in the Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959) the amount advanced to the grantee by the State Land Development Bank under sub-section (5) may be recovered by the State Government in the same manner as an arrear of land revenue and credited to the said Bank. (7) The amount advanced to a grantee by the credit agency shall be deemed to be financial assistance within the meaning of the Karnataka Agricultural Credit Operations and Miscellaneous Provisions Act, 1974 (Karnataka Act 2 of 1975) for the purpose of recovery of dues under section 12 of the said Act and the provisions thereof shall, mutatis mutandis, apply in respect of the amount so advanced.

The Tahsildar shall, subject to such rules as may be prescribed in this behalf, manage the surplus lands referred to in section 77, until they are disposed of under the said section, by making arrangements for the cultivation and protection by lease or otherwise.