THE LAND ACQUISITION ACT, 1894
(Act 1 of 1894) ( as amended by Parliament in 1984 ; with effect from 24-09-1984

An Act to amend the law for the acquisition of land for public purposes and for Companies
Whereas it is expedient to amend the law for the acquisition of land needed for public purposes and for Companies and for determining the amount of compensation to be made on account of such acquisition:

PART - I

Preliminary

1) Short title, extent and commencement.-

(1) This Act may be called the Land Acquisition Act, 1894.

(2) It extends to the whole of India (except the State of Jammu and Kashmir)

(3) Definitions.- In this Act, unless there is something repugnant in the subject or context,-

("(cc) the expression "corporation owned or controlled by the State" means any body corporate established by or under a Central, Provincial or State Act, and includes a Gocernment company as defined in Section 617 of the Companies Act, 1956 (1 of 1956), a society registered under the Societies Registration Act, 1860 (21 of 1860), or under and corresponding law for the time being in force in a State, being a society established or administered by Government and a co-operative society within the meaning of any law relating to co-operative societies for the time being in force in any State, being a co-operative society in which not less than fifty-one per centum of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments; ) "

(e) the expression "company" means .-

( i ) a company as defined in section 3 of the Companies Act, 1956 (1 of 1956 ), other than a Government company referred to in clause (cc);

(ii) a society registered under the Societies, Registration Act, 1860 ( 21 of 1860) , or under nay corresponding law for the time being in force in a State, other that a society referred to in clause (cc);

(iii) a co-operative society within the meaning of any law relating to co-operative societies for the time being in force in any State, other than a co-operative society referred to in clause (cc):

(ee) the expression "appropriate Government" means in relation to acquisition of land for the purposes of the Union, the Central Government, and, in relation to acquisition of land for any other purposes, the State Government;

((f) the expression "public purpose" includes -

( i ) the provision of village-sites, or the extension, planned development or improvement to existing village-sites;

(ii) the provision of land for town or rural planning;

(iii) the provision of land for planned development of land from public funds in pursuance of any scheme or policy of Government and subsequent disposal thereof in whole or in part by lease, assignment or outright sale with the object of securing further development as planned;

( iv ) the provision of land for a corporation owned or controlled by the State;

( v ) the provision of land for residential purposes to the poor or landless or to persons residing in areas affected by natural calamities, or to persons displaced or affected by reason of the implementation of any scheme undertaken by Government, any local authority or a corporation owned or controlled by the State;

( vi ) the provision of land for carrying out any educational, housing, health or slum clearance scheme sponsored by Government, or by any authority established by Government for carrying out any such scheme, or, with the prior approval of the appropriate Government, by a local authority, or a society registered under the Societies Registration Act, 1860 (21 of 1860) , or under any corresponding law for the time being in force in a State, or a co-operative society within the meaning of any law relating to co-operative societies for the time being in force in any State;

( vii ) the provision of land for any other scheme of development sponsored by Government or, with the prior approval of the appropriate Government, by a local authority;

( viii ) the provision of any premises or building for locating a public office,

"but does not include acquisition of land for companies; "

(g) the following persons shall be deemed persons "entitled to act " as and to the extent hereinafter provided (that is to say) .................................

Provided that -

(iv) no person " entitled to act " shall be competent to recieve the compensation money payable to the person for whom he is entitle to act, unless he would have been competent to alienate the land and recieve and give a good discharge for the purchase money on a voluntary sale.

Objections

5A. Hearing of Objections -

(3) For the purposes of this section, a person shall be deemed to be interested in land who would be entitled to claim an interest in compensation if the land were acquired under this Act.

11. Enquiry and award by Collector-(1) On the day so fixed, or any other day to which the enquiry has been adjourned, the Collector shall proceed to enquire into the objections (if any) which any person interested has stated pursuant to a a notice given under section 9 to the measurements made under section 8, and into the value of the land and at the date of the publication of the notification under section 4, sub-section (1), and into the respective interests of the persons claiming the compensation, and shall make an award under his hand of:-

(i) the true area of the land;

(ii) the compensation which in his opinion should be allowed for the land; and

(iii) the apportionment of the said compensation among all the persons known or believed to be interested int he land, of whom, or of whose claims, he has information, whether or not they have respectively appeared before him:

(Provided that no award shall be made by the Collector under this sub-section without the previous approval of the appropriate Government or of such officer as the appropriate Government may authorise int his behalf:

Provided further that it shall be competent for the Appropriate Government to direct that the Collector may make such award without such approval in such class of cases as the Appropriate Government may specify in this behalf;)

(2) Notwithstanding anything contained in sub-section (1), if at any stage of the proceedings, the Collector is satisfied that all the persons interested int he land who appeared before him have agreed in writing on the matters to be included in the award of the Collector in the form prescribed by rules made by the appropriate Government, he may, without making further enquiry, make an award according to the terms of such agreement.

(3) The determination of compensation for any land under sub-section (2) shall not, in anyway affect the determination of compensation in respect of other lands in the same locality or elsewhere in accordance with the other provisions of this Act.

(4) Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908), no agreement made under sub-section (2) shall be liable to registration under that Act.

Taking Possession

16) Power to take possession:- When the Collector has made an award under section 11, he may take possession of the land, which shall thereupon vest absolutely in the Government, free from all encumbrances.

PART-V Payment

31) Payment of compensation or deposit of same in Court:- (1) On making an award under section 11, the Collecotr shall tender payment of the compensation awarded by him tothe persons interested entitled thereto according tothe award, and shall pay it tothem unless prevented by some one or more of the contingencies mentioned inthe next sub-section.

(2) If they shall not consent to receive it, or if there be no person competent to alienate the land, or if there be any dispute as to the title to receive the compensation or as to the apportionment of it, the Collector shall deposit the amount of the compensation in the court to which a referenc under section 18 would be submitted:

Provided that any person admitted to be interested may receive such payment under protest as to the sufficiency of the amount:

Provided also that no person who has received the amount otherwise than under protest shall be entitled to make any application under section 18:

Provided also that nothing herein contained shall affect the liability of any person, who may receive the whole or any part of any compensation awarded under this Act, to pay the same to the person lawfully entitled thereof.

(3) Notwithstanding anything in this section, the Collecor may, with the sanction of appropriate Government instead of awarding a money compensation in respect of any land, make any arrangement with a person having a limited interest in such land, either by the grant of other lands in exchange, the remission of land revenue on other lands held under the same title, or in such other way as may be equitable having regard to the interest of the parties concerned.

(4) Nothing in the last foregoing sub-section shall be construed to interfere with or limit the power of the Collector to enter into any arrangement with any person interested int he land and competent to contract in respect thereof.

PART VII

Acquisition of Land For Companies
Section 39:Previous consent of appropriate Government and Execution of agreement necessary:-
The Provisions of Sections 6 tp 16 (both inclusive) and Sections 18 to 37(both inclusive) shall not be put in force in order to acquire land for any company,(under this part) unless with the previous consent of the appropriate Government , nor unless the company shall have excuted the agreement herinafter mentioned.

Section 40.Previous Enquiry.--
{1} Such consent shall not be given unless the appropriate Government be satisfied, either on the report of the collector under section 5A, sub-section(2), or by an enquiry held as herinafter provided,--
(a) that the purpose of the acquisition is to obtain land for the erection of dwelling-houses for workmen emplyed by the company or for the provision of amenties directly connected therewith, or
(aa) that such acquisition is needed for the construction of some building or work for a company which is engaged or is taking steps for engaging itself in any industry or work which is for a public purpose, or
(b) that such acquisition is needed for the construction of some work and that such work is likely to prove useful to the public.
(2) Such enquiry shall be held by such officer and at such time and place as the appropriate Government shall appoint.
(3) Such officermay summon and enforce the attendance of witnesses and compel the production of documents by the
same means ands, as far as possible, in the same manner as is provided by the (code of Civil Procedure, 1908) (5 of 1908) in the case of civil court.

Section 41. Agreement with appropriate Government.-
 If the appropriate Government is satisfied after considering the report, if any, of the Collector under section 5A, sub-section(2), or on the report of the officer making an inquiry under section 40 that the proposed acquisition is for any of the purposes referred to in clause (a) or clause(aa) or clause(b) of sub-section (1) od section 40, it shall require the company to enter into an agreement with the appropriate Government, providing to the satisfaction of the appropriate Government for the following matters, namely,-
(1) the payment to the appropriate Government of the cost of the acquisition;
(2) the transfer, on such payment, of the land to the company;
(3) the term on which the land shall be held by the company;
(4) where the acquistion is for the purpose of errecting dwelling-houses or the provision of amenities connected therewith, the time within which, the condition on which and the manner in which the dwelling -houses or amenties shall be erected or provided;
(4A) where the acquisition is for the construction of any building oe work for a company qhich is engaged or is taking steps for engaging itself in any industry or work which is dor a public purpose, the time within which and the conditions on which the building or work shall be constructed or executed; and
(5) Where the acquisition is for the construction of any other work the time within which and the conditions on which
the work shall be executed and maintained, and the terms on which the public shall be entitled to use the work.

Section 44A
Restriction on transfer, etc.
 No company for which any land is acquired under this part shall be entitled to transfer the said land or any part therof by sale, mortage, gift lease or otherwise except with the previous sanction of the appropriate Government.

Section 50
Acquisition of land at cost of a local authority or company.--
 (1) where the provisions of this act are put in force for the purpose of acquiring land at the cost of any fund collected or managed by a local authority or of any company, the chareges of any incidental to such acquisition shall be defrayed from or by such fund or company.
(2) In any case proceeding held before a Collector or Court in such cases the local authority or company concernedmay appear and adduce evidence for the purpose of determining the amount of compensation.
Provided that no such local authority or company shall be entitled to demand a reference under section 18.

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