Chapter V ACQUISITION OF LAND

(1) Where, on any representation from the competent authority, it appears to the Government that for the purpose of improving or developing any slum area, or for the purpose of re-developing any slum clearance area or for the purpose of rehabilitating slum dwellers, it is necessary to acquire any land within, adjoining or surrounded by any such slum area or slum clearance area, they may acquire the land by publishing in the Gazette a notice to the effect that they have decided to acquire the land in pursuance of this section: Provided that, before publishing such notice, the Government shall call upon the owner of, or any other person who, in the opinion of the Government, may be interested in, such land to show cause why it should not be acquired; and after considering the cause, if any, shown by the owner or any other person interested in the land, the Government may pass such order as they deem fit. (2) When a notice referred to in sub-section (1) is published in the Gazette, the land shall, on and from the date on which the notice is so published, vest absolutely in the Government free from all encumbrances.

Every person having any interest in any land acquired under this Act shall be entitled to receive from the Government an amount as hereinafter provided.

(1) The amount to which a person is entitled under section 15, in respect of any land acquired under this Act, shall be an amount equal to sixty times the net average monthly income actually derived from such land during the period of five consecutive years immediately preceding the date of publication of the notice referred to in section 14, such net average monthly income being calculated in the manner and in accordance with the principles set out in the Schedule. (2) The competent authority shall, after holding an inquiry in the prescribed manner, determine in accordance with the provisions of sub-section (1) the amount payable in respect of the land, and publish a notice in the Gazette specifying the amount so determined and calling upon the owner of the land and every person interested therein to intimate to it before a date specified in the notice whether such owner or person agrees to the amount so determined and, if he does not so agree, what amount he claims to be the net average monthly income actually derived from the land. (3) The competent authority shall also serve notice to the same effect as is mentioned in sub-section (2) on the owner of the land and on all such persons known or believed to be interested therein or to be entitled to act for persons so interested, as reside or have agents authorised to receive service on their behalf, within the State. (4) Any person who does not agree to the amount determined by the competent authority under sub-section (2) and claims a sum in excess of that amount may prefer an appeal to the Collector within thirty days from the date specified in the notice referred to in that sub-section. (5) Where an appeal is preferred under sub-section (4), the Collector shall, after hearing the appellant and after such further enquiry as may be necessary, pass such orders as he deems fit. (6) Any person who is aggrieved by an order passed by the Collector under sub-section (5) may prefer an appeal to the Board of Revenue within thirty days from the date of the order of the Collector, and the decision by the Board of Revenue on such appeal shall be final and shall not be questioned in any court of law. (7) Where there is any building on the land in respect of which the net average monthly income has been determined, no separate amount shall be paid in respect of such building: Provided that where the owner of the land and the owner of the building on such land are different, the competent authority shall apportion the amount between the owner of the land and the owner of the building in the same proportion as the market price of the land bears to the market price of the building on the date of acquisition. Explanation.-For the purposes of this clause, the cost of the land shall be deemed to be a sum equivalent to the amount payable in respect of the land if it were acquired under section 14 on the date of commencement of the reconstruction of the building. (4) The rent payable by a tenant in respect of any building under sub-section (3) shall, on an application made by the tenant or the owner, be determined by the authority referred to in sub-section (5): Provided that an application for determination of such rent by the owner or the tenant shall not, except for sufficient cause, be entertained by such authority after the expiry of ninety days from the completion of the work of improvement or re-erection of the building, as the case may be. (5) The authority to which the application referred to in sub-section (4) shall be made shall be,- (a) where there is a general law relating to the control of rents in force in the area in which the building is situate, the authority to whom applications may be made for fixing of rents of buildings situate in that area; and for the purpose of determining the rent under this section that authority may exercise all or any of the powers it has under the said general law; and the provisions of such law including provisions relating to appeals shall apply accordingly; (b) if there is no such law in force in that area, such authority as may be specified by rules made in this behalf by the Government, and such rules may provide for the procedure that will be followed by that authority in determining the rent and also for appeals against the decision of such authority. (6) Where the rent is finally determined under this section, then the amount of rent paid by the tenant shall be adjusted against the rent so finally determined and if the amount so paid falls short of, or is in excess of, the rent finally determined, the tenant shall pay the deficiency, or be entitled to a refund, as the case may be.

(1) After the amount has been determined under section 16, the competent authority shall on behalf of the Government tender payment of, and pay, such amount to the persons entitled thereto. (2) If the persons entitled to such amount do not consent to receive it, or if there be any dispute as to the title to receive such amount or as to the apportionment of it, the competent authority shall deposit the amount in the court of the Subordinate Judge having jurisdiction over the area and that court shall deal with the amount so deposited in the manner laid down in sections 34 and 35 of the Kerala Land Acquisition Act, 1961 (21 of 1962).

Interest shall be calculated on the amount to which a person is entitled under section 15 at the rate of four per cent per annum from the date when the land vested in the Government under sub-section (2) of section 14 until such amount shall have been paid or deposited, and shall be paid or deposited by the competent authority in the same manner as provided for the payment or deposit of such amount. (1) The Government may, by notification in the Gazette, make rules to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :- (a) the manner of authentication of notices, orders and other instruments of the competent authority; (b) the preparation of plans for the re-development of any slum area and matters to be included in such plans; (c) the form in which an application under subsection (4) of section 8 shall be made and the information to be furnished and the fees to be levied in respect of such application; (d) the manner in which inquiries may be held under sections 16 and 25; (e) the form and manner in which applications for permission under subsection (2) of section 22 shall be made and the fees to be levied in respect of such applications; (f) the procedure to be followed by the competent authority before granting or refusing to grant permission under section 22; (g) the time within which an appeal may be preferred under subsection (9) of section 12 or section 23; (h) the time within which a declaration may be filed under subsection (1) or an intimation may be sent under subsection (4) of section 25 and the fees, if any, to be levied in respect of such declaration; (i) the time within which plans, estimates and other particulars referred to in subsection (2) of section 25 may be furnished; (j) the procedure to be followed by the competent authority for fixing the provisional rent under subsection (2) of section 25; (k) the manner in which the rent provisionally determined under subsection (2) of section 25 shall be communicated to the tenants and owners; (l) the matters in respect of which provision may be made under subsection (5) of section 26; (m) fees to be levied for petitions of appeal under section 37; (n) the officers and local authorities to whom powers may be delegated under section 44; (o) any other matter which is to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions and if before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly makes any modification in the rule or decides that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

(1) The competent authority may, for the purpose of determining the amount under section 16, or apportionment thereof, require, by order, any person to furnish such information in his possession as may be specified in the order. (2) The competent authority shall, while holding inquiry under section 16, have all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), in respect of the following matters, namely:- (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of any document; (c) reception of evidence on affidavits; (d) requisitioning any public record from any court or office; (e) issuing commissions for the examination of witnesses or for local investigation.

(1) Where any land specified in sub-section (1) of section 14 has been acquired under this Act, the Government shall undertake or cause to be undertaken such measures as may be necessary for the improvement, development, clearance or re-development of the land or the erection of buildings thereon in accordance with such plan as may be approved by them: Provided that where any such land or any portion thereof is, in the opinion of the Government, unsuitable for the purposes mentioned above, on the ground that the use of the land or portion for such purposes will not be in the interest of orderly town planning, the framing of any master plan or the division of the town into different zones, or on the ground that the area of the land or portion is small, or on any other ground, the Government may use it or allow it to be used for such public purposes as they think fit. (2) Any sites or buildings on any land referred to in the proviso to sub-section (1) may be allotted or leased for the accommodation of slum dwellers and of persons of such low income groups as may be prescribed, on such terms and conditions as may be prescribed: Provided that except as otherwise provided in this Act, no portion of any land acquired under this Act shall be permanently granted, sold or alienated in favour of any person or persons. (3) For the purpose of undertaking the measures referred to in sub-section (1), the Government may either hold the land under their ownership, control and management and execute such measures themselves or through any agency on such terms and conditions as may be determined by them or transfer the land to the Corporation of the City of Trivandrum or the City of Calicut or the City of Cochin, as the case may be, or the municipal council or township committee or panchayat concerned, or to the development authority or town planning trust having jurisdiction over the area in which the land is situate, for the said purpose. (4) Where any land is transferred as provided in sub-section (3),— (a) such land shall vest in the corporation or the municipal council or the township committee or the panchayat or the development authority or the town planning trust, as the case may be; and the corporation or the municipal council or the township committee or the panchayat or the development authority or the town planning trust shall be liable to pay the cost of acquisition of the land or such portion thereof as the Government may fix in each case; and (b) the corporation or the municipal council or the township committee or the panchayat or the development authority or the town planning trust as the case may be, shall execute the measures referred to in sub-section (1) in accordance with such plans as may be approved by the Government and subject to such direction as may be given from time to time by the Government; and shall, in the use of the land and in all connected matters, be bound by the provisions of this Act. (5) Any building erected by the Government or, as the case may be, by a local authority under this section may be allotted or leased for the accommodation of slum dwellers and of persons of such low income groups as may be prescribed, on such terms and conditions as may be prescribed. (6) Notwithstanding anything contained in any law for the time being in force, or in any contract, no person to whom any building is allotted or leased under sub-section (5) for his accommodation shall sub-let that building to any other person or alienate his rights in respect of such building. (7) If the allottee or tenant of any building sub-lets that building or portion thereof or alienates his rights in respect of such building or portion of building in contravention of sub-section (6), such sub-lease or alienation shall be invalid and such building or portion of building or, as the case may be, such rights shall revert to the Government or the local authority, as the case may be.

Any person aggrieved by an order of the competent authority refusing to grant the permission referred to in sub-section (1) of section 22 may, within such time as may be prescribed, prefer an appeal to the Collector and the order of the Collector on such appeal shall, subject to the provisions of section 24, be final.

(1) Where any building in a slum area is let to a tenant after the execution of any work of improvement or after it has been re-erected, the rent of the building shall be determined in accordance with the provisions of this section. (2) Where any such building is let to a tenant, other than a tenant who is placed in possession of the building in pursuance of a direction issued under sub-section (1) of section 25, the tenant shall be liable to pay to the owner,— (a) if there is a general law relating to the control of rents in force in the area in which the building is situate and applicable to that building, the rent determined in accordance with the provisions of that law; (b) if there is no such law in force in such area, such rent as may be agreed upon between the owner and the tenant. (3) Where any such building is let to a tenant in pursuance of a direction issued under subsection (4) of section 25, the tenant shall, notwithstanding any law relating to the control of rents in force in the area, be liable to pay to the owner,— (a) if any work of improvement has been executed in relation to the building, an annual rent of a sum equivalent to the aggregate of the following amounts, namely:— (i) the annual rent the tenant was paying immediately before he vacated the building for the purpose of execution of the work of improvement; (ii) four per cent of the cost of the work of improvement; and (iii) six per cent of a sum equivalent to the amount payable in respect of any land which may have been acquired for the purpose of effecting such improvement as if such land were acquired under section 14 on the date of the commencement of the work of improvement; (b) if the building has been re-erected, an annual rent of a sum equivalent to three per cent of the aggregate cost of reconstruction of the building and the cost of the land on which the building is re-erected. Explanation.—For the purposes of this clause, the cost of the land shall be deemed to be a sum equivalent to the amount payable in respect of the land if it were acquired under section 14 on the date of commencement of the reconstruction of the building. (4) The rent payable by a tenant in respect of any building under sub-section (3) shall, on an application made by the tenant or the owner, be determined by the authority referred to in sub-section (5): Provided that an application for determination of such rent by the owner or the tenant shall not, except for sufficient cause, be entertained by such authority after the expiry of ninety days from the completion of the work of improvement or re-erection of the building, as the case may be. (5) The authority to which the application referred to in sub-section (4) shall be made shall be,— (a) where there is a general law relating to the control of rents in force in the area in which the building is situate, the authority to whom applications may be made for fixing of rents of buildings situate in that area; and for the purpose of determining the rent under this section that authority may exercise all or any of the powers it has under the said general law; and the provisions of such law including provisions relating to appeals shall apply accordingly; (b) if there is no such law in force in that area, such authority as may be specified by rules made in this behalf by the Government, and such rules may provide for the procedure that will be followed by that authority in determining the rent and also for appeals against the decision of such authority. (6) Where the rent is finally determined under this section, then the amount of rent paid by the tenant shall be adjusted against the rent so finally determined and if the amount so paid falls short of, or is in excess of, the rent finally determined, the tenant shall pay the deficiency, or be entitled to a refund, as the case may be.

(1) Notwithstanding anything contained in any law for the time being in force, or in any contract, no tenant of any building in a slum area shall, after the execution of any work of improvement in relation to that building or after it has been re-erected, sub-let that building or alienate his rights in respect of that building without the previous permission in writing of the competent authority. (2) If the tenant of any building sub-lets that building or portion thereof or alienates his right in respect of that building or portion thereof in contravention of sub-section (1), such sub-lease or alienation shall be invalid and such building or portion of building or, as the case may be, such rights shall revert to the owner of such building or portion.

Nothing in sections 22, 23 and 24 shall apply to, or in relation to, a tenant of any building in a slum area belonging to the Government or any local authority.