Provided further that such lapse shall not be a bar for any subsequent application for fresh permission under this Act.

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

1. (1) Where:-
   • (a) any land is designated by a plan as subject to compulsory acquisition; or
   • (b) any land is allotted by a plan for the purpose of any functions of a Government or a local authority or a statutory body, or land is designated in such plan as a site proposed to be developed for the purposes of any functions of any such Government, authority or body; or
   • (c) any land is indicated in any plan as land on which a highway is proposed to be constructed or included; or
   • (d) any land for the development of which permission is refused or is granted subject to conditions, and any owner of land referred to in clauses (a), (b),
   • (c) or
   • (d) claims:-
     • (i) that the land has become incapable of reasonably beneficial use in its existing state; or
     • (ii) where planning permission is given subject to conditions that the land cannot be rendered capable of reasonably beneficial use by carrying out of the permitted development is accordance with the conditions; or
   • (e) the owner of the land because of its designation or allocation in any plan claims that he is unable to sell it except at a lower price than that at which he might have reasonably expected to sell if it were not so designated or allocated; The owner or person affected may serve on the Government within such time and in such manner, as may be prescribed by regulations, a notice (hereinafter referred to as "the purchase notice") requiring the appropriate authority to purchase his interest in the land in accordance with the provisions of this Act.
2. (2) The purchase notice shall be accompanied by a copy of an application made by the applicant to the Authority, and of an order or decision of that Authority and of the Government, if any, in respect of which the notice is given.
3. (3) On receipt of a purchase notice, the Government shall, forthwith, call from the Authority such report or records or both, as may be necessary, which those authorities shall forward to the Government as soon as possible but later than thirty days from the date of their requisition.
4. (4) On receiving such reports or records, if the Government is satisfied that the conditions specified in sub-section
5. (1) are fulfilled and that the order or decision for permission was not duly made on the ground that the applicant did not comply with any of the provisions of this Act or rules or regulations, it may confirm the purchase notice, or direct that planning permission be granted without condition or subject to such conditions as will make the land capable of reasonably beneficial use. In any other case, it may refuse to confirm the purchase notice, but in that case, it shall give the applicant a reasonable opportunity of being heard.
6. (5) If within a period of 6
   • (six) months from the date from which the purchase notice is served, the Government does not pass any final order thereon, the notice shall be deemed to have been confirmed at the expiration of that period.
7. (6) If within 1
   • (one) year from the date of confirmation of the notice, the appropriate authority fails to make an application to acquire the land in respect of which the purchase notice has been confirmed, the reservation, designation, allotment, indication or restriction on development of the land shall be deemed to have lapsed; and thereupon the land shall be deemed to be released from the reservation designation or, as the case may be, allotment, indication or restriction and shall become available to the owner for the purpose of development otherwise permissible in the case of adjacent lands under the relevant plan.