Obligation to acquire on refusal of permission, or on grant of permission in certain cases

(1) Where any person interested in the land aggrieved by an order in appeal under section 38 refusing to grant permission to develop the land, or granting permission subject to condition, claims — (a) that the land has become incapable of reasonably beneficial use in the existing state; or (b) in a case where permission to develop the land was granted subject to conditions that the land cannot be rendered capable of reasonably beneficial use by carrying out the permitted development in accordance with these conditions, he may, within three months and in the manner prescribed by the rules, serve on the Government a notice (hereinafter referred to as an acquisition notice) requiring the Government to acquire his interest in the land. (2) A copy of such notice shall, at the same time, be served on the Board and the Planning Authority. (3) After receiving notice under sub-section (1), the Government shall appoint a person who shall give reasonable opportunity to the person interested serving the acquisition notice, the Planning Authority and the Board, to be heard and shall submit a report, thereon to the Government; after receiving such report; the Government – (a) if satisfied that the conditions specified in clause (a) or clause (b) of sub-section (1), are not fulfilled, shall pass an order refusing to confirm the notice; (b) if satisfied that the conditions specified in clause (a) or clause (b) of sub-section (1) are fulfilled regarding the land or any part of the land, shall pass an order – (i) confirming the notice; or (ii) directing the Planning Authority to grant such permission to develop the land or grant the permission subject to such conditions as will keep the land capable of reasonably beneficial use: Provided further that the Government shall not confirm the notice if the order appealed against was passed on the ground of not complying with any provisions of this Act, rules or regulations that may be applicable. (4) If within the period of one year from the date on which an acquisition notice is served under sub-section (1) the Government has not passed any order under sub-section (3), the notice shall be deemed to have been confirmed at the expiry of that period. (5) Upon confirmation of the notice under sub-section (3) or (4), the Government shall proceed to acquire the land or that part of any land regarding which the notice has been confirmed within one year of the confirmation of the acquisition notice.