Land and Real Estate Laws (LLB-505)

Chanderprabhu Jain College of Higher Studies & School of
Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of
India)
SEMESTER: NINTH SEMESTER
BA LLB/ BBA LLB
NAME OF THE SUBJECT: LAND LAWS
UNIT-1 (A)
LAND REFORMS IN INDIA: PRE- INDEPENDENCE
FACULTY NAME:
Ms. Shivali Rawat
Assistant Professor (SOL)

AGRARIAN RELATIONS IN INDIA
• In an agrarian country like India where the majority of population still lives in its
villages and are directly or indirectly linked with agriculture as a means of
livelihood, monopolies over ownership of land and rural assets continue along with
caste-based discrimination and oppression.
• The monopoly over land, credit and markets are vested with a few individuals
leading to a social formation characterized by a rigid class structure linked to land
and land relations. In addition, the agrarian relations in India have been marked by
many struggles of the oppressed class.

Features of the pre-colonial Indian agrarian structure
1. Absence of private property in land
2. Possession and use of land on communal basis
3. State or king as the absolute owner of land
4. Torrid climatic environment
5. State controlled irrigation or public hydraulic works
6. Division of agrarian society into self-sufficient, autonomous and isolated village
communities or village as idyllic little republics
7. All kinds of relationships organized around the institution of caste or, to put in
different words, caste system as the basis of self-sustaining and self-producing
Indian village communities
8. Surplus labour as tribute to the despotic king
9. Absence of classes leading to servile social equality
10. Absence of hereditary nobility
11. General slavery or exploitation of the people directly by the despotic state or
king.

Agrarian Structure during British Raj
In British India, there were three major systems of land tenure:
• Zamindari System/The Permanent Settlement System :
Under this measure, the intermediary ‘Zamindars’ (the tax collecting officials in
earlier regime) were granted ownership right over land from which they previously
only had the rights to collect revenues.
• Mahalwari System:
William Bentick, governor-general of India introduced this system in Punjab and
parts of United Provinces in 1833. It is a system of land tenure in which land rights
were settled with the entire village. In this, each peasant of the village was required
to contribute to the total revenue demand of the village on the basis of the size of
the land he cultivated.

• Ryotwari System:
Thomas Munro introduced this system in 1820 and the main feature of this system
is the transfer of ownership rights to the peasants. Major areas where Ryotwari
system was in practice include parts of Assam, Madras, Bombay, Coorgh provinces
of British India. SELL, Mortgage, Gift. No middleman. Direct taxes to govt.

These colonial measures introduced more intensive and systematic exploitation and
forced the peasants to become increasingly involved with the market, even when
they did not have the capacity to produce surplus. These measures brought about
major changes in the agrarian structure. The most significant ones are following:
• Commercialization of Agriculture (shift from production for consumption (food
crops) to production for market (cash crops))
• Commodification of Land
• De-industrialization of the Indian Economy (influx of cheap goods from England
after the industrial revolution resulted into the massive pressure on cultivatable
land)
• Tenancy and landlessness grew significantly

The Need for land reforms
• To remove unethical agrarian relations.
• To convert barren land into productive lands.
• To legitimize tenancy with the ceiling limit.
• To register all the tenancy with the village Panchayats.
• To remove rural poverty.
• To lessen social inequality
• Empowerment of women in the traditionally male-driven society.
• To increase the productivity of agriculture.

Chanderprabhu Jain College of Higher Studies & School of Law
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
LAND REFORMS IN INDIA: POST- INDEPENDENCE

• Independence from the colonial rule marked the beginning of a new phase in the
history of agrarian structure. The main objective of the Indian state was to
transform the stagnant and backward economy and to make sure that the benefits of
transformation and growth were not monopolized by a particular section of the
society. Keeping this in background the government of India introduced various
measures. Significant ones are following:
• Land reforms: The measures were among the most significant efforts of the state
to achieve these goals. The Government of India directed its states to abolish
intermediary tenures, regulate rent and tenancy rights, confer ownership rights on
tenants, impose ceilings on holdings, distribute the surplus land among the rural
poor, and facilitate consolidation of holdings. A large number of legislations were
passed by the state governments over a short period of time.
Agrarian Structure Post-independence

• Provisions for institutional Credit: The government of India introduced various
provisions of Institutional credit to weaken the hold of traditional moneylenders
over the peasantry. It asked cooperative credit societies and commercial banks to
lend to the agricultural sector.
• The Community Development Programme (CDP): This programme, which was
patterned on American experiences, was launched on 2 October 1952, and its
objective was to provide the substantial increase in agricultural production and
improvement in basic services, which would ultimately lead to overall development
of the all sections of agrarian societycultural sector on priority basis.
• The Green Revolution: Green Revolution is an agricultural development project
that includes higher yielding variety seeds (HYV) and other fertility enhancing
inputs i.e. chemical fertilizer, controlled irrigation facilities and pesticides. The
components of the project consisted of providing cheap institutional price
incentives, marketing and research facilities.

After Independence, the Agrarian Reforms Committee under the Chairmanship of
J.C. Kumarapppa was appointed by Indian National Congress. The committee
recommended that all intermediaries between the state and the tiller should be
eliminated. Some of the steps taken based on the recommendation of the
committee:
• Intermediaries abolition
• Surplus land redistribution among landless or semi-landless peasants.
• Fixation of ceilings on land holdings
LAND REFORMS MEASURES AFTER INDEPENDENCE

To abolish intermediaries, some steps were taken as follows:
• The imposition of ceilings on land holdings.
• Tenancy Reforms were undertaken during the Second Five Year Plan.
• Except for some disabled categories of landowners, leasing out of agricultural land
was made illegal.
• After continuous possession of the land, tenants were allowed to acquire the right of
purchase of that land.
1. Intermediaries abolition

• Bhoodan and Gramdan: Vinoba Bhave introduced Bhoodan movement in 1951
and following this another movement called Gramdan was launched in 1957 to
convince landowners to renounce their land rights so that the land could be
redistributed equally.
• Consolidation of Holdings: It refers to the redistribution of all plots of land in
order to create one compact block of land.
2. Surplus land redistribution among landless or semi-
landless peasants

• The government put a limit on the size of land beyond which no farm household
can hold any land.
• Changes in land structure due to the steps taken by the government: After
Independence, a number of land reform measures were undertaken in the1950s and
1960s.End of the feudal mode of production.
• A decrease in the area under the tenancy.
3. Ceilings on Land Holding

Various measures of land reforms undertaken since 1970 are as follows:
• EFFECTIVE REDISTRIBUTION OF SURPLUS LAND: The surplus land was
redistributed in an effective and equal manner.
• AMENDMENTS IN TENANCY LAWS: Many amendments were made to
tenancy laws by various state governments. Andhra Pradesh, In Gujarat, &
Karnataka
• CHANGES IN THE AGRARIAN STRUCTURE: Even after
the implementation of land reforms, inequality in the ownership of land holdings
has not declined much over time and the proportion of landless households
increased from 9.6 % in 1971 to 11.3% in Thus, the agrarian structure seems to
be as unequal and unproductive as before.
• UPDATING OF LAND RECORDS: Efforts for the land record updation
undertaken during the Seventh Five Year Plan and the Eighth Five Year Plan.
The failure of the first round of land reforms (1950- 1960)

• LAND RIGHTS OF WOMEN: It was recommended in the revenue ministers’
conference (1992) that the women should be given equal opportunities in the
distribution of lands.
• GOVERNMENT POLICY: The government emphasized on land reforms from
the Fifth Five Year Plan. In the Ninth Five Year Plan, it was realized that land
reforms are very important in order to tackle the problem of rural poverty. The
Ninth Five Year Plan emphasizes on:
1. the ceiling surplus land redistribution.
2. the implementation of the ceiling law effectively.
3. providing access of government wastelands and common common property to
the poor.
4. ensuring the land rights of women.
5. property to the poor.

LAND REFORMS- CONSTITUTIONALAMENDMENTS

• The constitution (First Amendment) Act, 1951
• The constitution (Fourth Amendment) act 1955.
• The constitution (Seventeenth Amendment) Act, 1964
• The Constitution (Twenty-fourth Amendment) Act, 1967
• The Constitution (Twenty-fifth Amendment) Act, 1971
• The Constitution (Twenty-sixth Amendment) Act, 1971- Madhavrao Scindia
it had annulled the abolition of privy purses of former rulers.
• The Constitution (Twenty-ninth Amendment) Act, 1972- 29th Amendment
Act, 1972 included two Kerala Acts on land reforms in the Ninth Schedule
• The Constitution (forty second Amendment) Act, 1976
• The Constitution (forty fourth Amendment) Act, 1978
Agrarian Reforms: Constitutional Amendments

The constitution (First Amendment) Act, 1951
• Introduction
• The First Constitution Amendment Act, 1951 was challenged in this case. The
amendment was challenged on the ground that it violates the Part-III of the
constitution and therefore, should be considered invalid. The Supreme Court held
that the Parliament, under Article 368, has the power to amend any part of the
constitution including fundamental rights. The Court gave the same ruling in
Sajjan Singh Vs State of Rajasthan case in 1965.
• The right to property has been a complex and complicated subject right from
1951.There have been numerous amendments and Supreme Court rulings over the
years. On the one hand, the parliament has tried its best keep the balance of power
in its favor, all in the name of development, while on the other hand, the judiciary
bodies have tried its best to make sure that in this process, the fundamental rights
of the common people are not violated, which is the utmost responsibility of the
Supreme Court.

• Facts of the case:
• In order to abolish the Zamindari system widely prevalent in India, some State
Govts enacted the Zamindari Abolition Act to acquire huge holding of land that
lay with rich zamindars, and redistribute them among the tenants. But the same
was challenged as being unconstitutional and violative of the Right to Property
that was included in the Fundamental Rights. The Act was held
unconstitutional by the HC of Patna but was upheld by the HCs of
Allahabad and Nagpur; whereby eventually the matter was put before the
Supreme Court.
• The legislature introduced first amendment to the constitution that:
 Provided for the saving of laws providing for acquisition of estates, etc.
 Added Ninth Schedule (No judicial review can be done if the act put in this
schedule)to protect the land reforms and other laws included in it from the
judicial review. After Article 31, Articles 31A and 31B were inserted.

• Article 31(a): The 1st Constitutional
Amendment of 1951, the Parliament added
Article 31a to the Indian Constitution.
According to this, the government can
acquire the property of the people and by
doing so, the fundamental rights
mentioned in Article 14 and 19 of Indian
Constitution shall not be violated. In other
words, Article 31a of Indian Constitution
was immune to Article 14 and 19 of Indian
Constitution that provide for right to
equality and the right to freedom

• Article 31(b): This article is also the result of the 1st Amendment Act of
1951. It is in reference with the acts and laws mentioned in the IX Schedule of
the Indian Constitution. The IX Schedule of Indian Constitution is a list of
acts and laws which cannot be challenged in the court of law. In other words,
any such acts mentioned in this schedule are out of the reach of the Indian
judiciary. Article 31(b) of Indian Constitution states that the provisions
mentioned in Article 31(a) are immune from Indian judiciary and cannot
be nulled on the basis that they might violate the fundamental rights
mentioned in Articles 14, 19 and 31 of Indian Constitution.
• Ninth Schedule: Ninth Schedule pertaining to acquisition of private property
and compensation payable for such acquisition cannot be challenged in a
court of law on the ground that they violated the fundamental rights of
citizens. This protective umbrella covered more than 284 laws passed by state
legislatures with the aim of regulating the size of land holdings and abolishing
various tenancy systems.

• Decision of the Court:
• It was held that the power of the Parliament to amend the Constitution
including the Fundamental Rights is entailed in Art 368 and is not
violative of the provisions of the Constitution. The validity of the land
reforms was upheld by the Court; as they do not curtail the powers of the
High Court under Art. 226 to issue writs for enforcement of any of the rights
conferred by Part III or of the Supreme Court under Arts. 132 and 136 to
entertain appeals from orders issuing or refusing such writs. Articles 31A
and 31B were held not invalid on the ground of ultra vires; the Court
declared that though the subject of ‘Land’ came under the State List, the
power to enact amendments of the Constitution lay solely with the
Parliament.

Fourth Amendment Act, 1955
Amendments:
– Made the scale of compensation given in lieu of compulsory acquisition of
private property beyond the scrutiny of courts.
– Authorised the state to nationalise any trade.
– Amended articles 31, 35 and 305.
– Amended schedule 9.
– Included some more Acts in the Ninth Schedule.
– Extended the scope of Article 31 A (savings of laws).

• This amendment was passed to remove the difficulties created by the Supreme
Court's decision in Bela Banerjee's case. The Court had insisted for payment of
compensation in every case of compulsory deprivation of property by the
State. It was held that clause (1) and clause (2) of Article 31 deal with the same
subject, that is deprivation of private property. In Bela Banerjee's case the court
had held the word 'compensation' meant 'just compensation' i.e. a just
equivalent of 'what the owner had been deprived of'.
• The amendment modified Article 31 (2) and made it clear that clause (1) and
clause (2) deal with different things i.e. deprivation and compulsory acquisition.
The new Article 31 (2) (A) made it clear that the compensation was only
payable in the case of compulsory acquisition, i,e, where the State acquires
the ownership in property taken. The adequacy of compensation was also made
non-judicially. The amendment broadened the scope of Article 31-A and
included more statutes in the Ninth Schedule. It also amended Article 305 and
empowered the State to nationalise any trade.

• In State of West Bengal v. Mrs Bela Banerjee the issue was whether the
compensation provided for under the West Bengal Land Development and
Planning Act, 1948, was in compliance with the provision in Article 31(2). For
under the State Act, lands could be acquired many years after it came into force
but nevertheless it fixed the market value as it prevailed on December 31, 1946,
as ceiling on compensation without reference to the value of the land at the time
of the acquisition.
• The Calcutta High Court's decision that Section 8 of the Act was ultra vires was
confirmed by the Supreme Court which also held that Entry 42 of List III of the
Seventh Schedule conferred on the Legislature the discretionary power of
laying down the principles which govern the determination of the amount to be
given to the owner of the property acquired and Article 31(2) required that such
principles must ensure that what is determined as payable is compensation, that
is a just equivalent of what the owner has been deprived of.

• While it is true that the Legislature is given the discretionary power of laying
down the principles which should govern the determination of the amount to be
given to the owner for the property appropriated, such principles must ensure
that what is determined as payable must be compensation, that is just equivalent
of what the owner has been deprived of.
• Within the limits of this basic requirement of the full indemnification of the
expropriated owner, the Constitution allows free play to the legislative Judgment
as to what principles should guide the determination of the amount payable.
• The Chief Justice clearly postulates that the basic requirement is the full
indemnification of the expropriated owner by giving him a just equivalent of
what he had been deprived of. It was further made clear that the ambit of
legislative power included the taking into consideration all the elements that go
to make up the true value of the appropriated property.

• This was made justiciable. So in effect the decision lays down three main
points:—
• (i) the compensation under Article 31(2) shall be a just equivalent of what the
owner has been deprived of;
• (ii) the principles which the Legislature can prescribe are only principles for
ascertaining just equivalent of what the owner was deprived of;
• (iii) and if the compensation fixed was not a just equivalent of what the owner has
been deprived of; or if the principles did not take into account all relevant
elements or take into account irrelevant elements for arriving at a just equivalent,
the question in regard thereto a is justiciable issue.
• The above view was substantially reiterated by the Supreme Court in State of
Madras v. Namasivaya Mudalia.
• The expressions compensation and principles were defined by this court in Mrs
Bela Banerjee case.

The constitution (Seventeenth Amendment) Act, 1964
Amendments:
• Prohibited the acquisition of land under personal cultivation unless the
market value of the land is paid as compensation.
• Included 44 more Acts in the Ninth Schedule

Sajjan Singh vs. State of Rajasthan
Facts and arguments raised in the case:
• In this case (Seventeenth Constitutional Amendment) Act, 1964 was challenged.
Again the question of Shankari Prasad Case was raised whether the fundamental
rights can be amended or not. The Ninth Schedule consist of certain statutes
relating to the property and the speciality of the Ninth schedule was that it is not
subject to judicial review and because of that right to judicial review was taken
away which is one of the basic features of the constitution. The principle of Pith
and Substance was applied to this case.

Judgement:
• The Supreme Court held that the article 368 empowers the Parliament to amend
any of the articles of the Indian Constitution. Once again it was said that the
Article 13 is just limited to the ordinary laws not with the constitutional
amendment whereas the scope of article 368 is limited to constitutional law.
Among the 5 judge bench, 2 judge given a dissenting judgement – Mudholkar
and Hidayatulah. Justice Mudholkar was of the opinion that fundamental
features of the Constitution cannot be changed.
• According to him each and every constitution of the world has certain
fundamental features. Such features must not be changed. He was of the
opinion that fundamental features of the Constitution of India cannot be
changed. Thus, Justice Hidayatullahb was of the opinion about making no
alterations in the basic features of the Indian Constitution. But according to the
majority decision it was said that parliament can amend fundamental rights of
the people.

Twenty Fourth Constitutional Amendment Act, 1967
Reasons:
– Twenty Fourth Constitutional Amendment Act was brought in response to
the Golaknath ruling (1967) of the Supreme Court which held that the
Parliament does not have the power to take away any fundamental rights
through amendment to the Constitution.

I.C. Golaknath v. State Of Punjab (1967)
• The family of Henry and William Golak Nath held over 500 acres of farmland
in Punjab. In the phase of the 1953 Punjab Security and Land Tenures Act, the state
government held that the brothers could keep only thirty acres each, a few acres
would go to tenants and the rest was declared 'surplus'.
• This was challenged by the Golak Nath family in the courts and the case was
referred to the Supreme Court in 1965. The family filed a petition under Article 32
challenging the 1953 Punjab Act on the ground that it denied them their
constitutional rights to acquire and hold property and practice any profession
(Articles 19(1)(f) and 19(1)(g)) and to equality before and equal protection of the
law (Article 14).

• Judgement
• The judgement reversed Supreme Court's earlier decision which had upheld
Parliament's power to amend all parts of the Constitution, including Part III
related to Fundamental Rights. The judgement left Parliament with no power to
curtail Fundamental Rights.
• Therefore, all constitutional amendments thus far which were in
contravention or which had made an exception to fundamental rights chapter
of the Constitution were said to be void.
• The apex Court ruled that Parliament could not curtail any of the Fundamental
Rights in the Constitution.

• Parliament passed the 24th Amendment in 1967 to revoke the Supreme Court
judgement. It amended the Constitution to provide expressly that Parliament
has the power to amend any part of the Constitution including the provisions
relating to Fundamental Rights. This was done by amending articles 13 and
368 to exclude amendments made under article 368, from article 13's prohibition
of any law abridging or taking away any of the Fundamental Rights.

25th amendment of the Constitution in 1971
Amendments:
• Curtailed the fundamental right to property.
• Provided that any law made to give effect to the Directive Principles contained
in Article 39 (b) or (c) cannot be challenged on the ground of violation of the
rights guaranteed by Articles 14, 19 and 31.
• The 25th amendment of the Constitution in 1971 added a new clause, Article
31C to the Constitution. Up to 1971, the position was that Fundamental Rights
prevailed over the Directive Principles of State Policy and that a law enacted to
implement a Directive Principle could not be valid if it conflicted with a
Fundamental Right.
• Article 31C sought to change this relationship to some extent by conferring
primacy on Articles 39(b) and 39(c) over Articles 14, 19 and 31.

• This article was inserted by the 25th Constitutional Amendment to get over
the difficulties placed by judicial decisions in the way of giving effect to the
Directive Principles in Part IV. It provided immunity from any challenge on
the grounds of violation of Article 14, 19 and 31 any law enacted for
implementing the directives in clause (b) and (c) of Article 39. In the 25th
amendment it was further provided that such law made to give effect to the
policy under Article 39(b) and (c), would not be open to judicial review.
However, this second part was struck down in Keshavananda Bharti v State
of Kerala , but rest of the Article was held valid.
• Article 39 Certain principles of policy to be followed by the State: The
State shall, in particular, direct its policy towards securing
 (b) that the ownership and control of the material resources of the
community are so distributed as best to subserve the common good;
 (c) that the operation of the economic system does not result in the
concentration of wealth and means of production to the common
detriment;

R C Cooper v. Union of India
• The Indira Gandhi government in 1969 at the instance of the then Acting
President M. Hidayatullah promulgated the Banking Companies (Acquisition &
Transfer of Undertaking) Ordinance, 1969 nationalizing the 14 banks. These 14
banks were chosen on the basis that they had deposits exceeding 50 crores. The
ordinance was promulgated just two days before the Session of Parliament. The
ordinance brought more than 75% banking sector under state control along
with its assets, liabilities, entire paid-up-capital.
• The controversial part of the Ordinance was the second schedule it contained.
• Where an amount of compensation could be fixed by an agreement; it would be
determined by such agreement
• Where no such agreement could be reached in the provided time, the matter
would be referred to tribunal. The compensation fixed by the tribunal will be
awarded after 10 years from the date when the agreement failed.
• Also, known as Bank Nationalization case.

Judgment:
• 2 days later when Parliament enacted the Banking Companies (Acquisition &
Transfer of Undertaking) Act, 1969 with the same provisions as were in the
Ordinance.
• Therefore, Rustom Cavasjee Cooper the majority shareholder of Central Bank
of India & Bank of Baroda filed a writ petition in Supreme Court u/a 32 for the
violation of his Fundamental Rights mentioned under articles 14, 19(1)(f) &
31(2).
• The court held that we cannot overlook the violation of citizens of the nation on
mere technicalities. If due to state action the fundamental rights of a citizen are
violated the court is bound to prohibit such violation.
• The court declared the relevant law to be unconstitutional by a majority, 10
to 1. The court took the position that if the principles specified by law were
relevant to the determination of compensation, they would be beyond
challenge. But, in the instate case, the law failed to provide to the expropriated
banks compensation determined according to relevant principles.

• No compensation was paid for certain items of property, example goodwill of the
banks, unexpired leases of properties held by the banks etc., the methods
specified to value lands and buildings were not relevant to the determination of
compensation. This meant that for these items the expropriated banks were not
given a true recompense for the loss of their undertakings.
• The court found the impugned act in contravention of the Article 31 since the
act failed to comply with said provision. The said provision provided that the in
case any property is acquired by the government then they have to provide
compensation to the property owner. Since there was clear violation of the said
provision therefore, the court struck down the said act.

• Stung by the Bank Nationalization case, Parliament enacted the 25th amendment in
1971. This amendment effected several significant changes in the relevant
constitutional provisions and further diluted property rights. In the first place in
article 31(2) the word ‘amount’ was substituted for ‘compensation’.

Kesavananda Bharati vs. state of Kerala
• The tussle between Parliament and the judiciary
• In the early 1970s, the government of then PM Indira Gandhi had enacted major
amendments to the Constitution (the 24th, 25th, 26th and 29th) to get over the
judgments of the Supreme Court in RC Cooper (1970), Madhavrao Scindia
(1970) and the earlier mentioned Golaknath.
• In Kesavananda Bharati case, a relief was sought against the Kerala government
vis-à-vis two state land reform laws, which imposed restrictions on the
management of religious property.
• The case was challenged under Article 26, concerning the right to manage
religiously owned property without government interference.
• Question underlying the case: Was the power of Parliament to amend the
Constitution unlimited? In other words, could Parliament alter, amend, abrogate
any part of the Constitution even to the extent of taking away all fundamental
rights?

• The Constitutional Bench in Kesavananda Bharati case ruled by a 7-6 verdict that
Parliament could amend any part of the Constitution so long as it did not alter or
amend the basic structure or essential features of the Constitution.
• However, the court did not define the term ‘basic structure’, and only listed a few
principles — federalism, secularism, democracy — as being its part.
• The ‘basic structure’ doctrine has since been interpreted to include
• the supremacy of the Constitution,
• the rule of law,
• Independence of the judiciary,
• doctrine of separation of powers,

• sovereign democratic republic,
• the parliamentary system of government,
• the principle of free and fair elections,
• welfare state, etc.
• Since Golaknath was decided by eleven judges, a larger bench was required to
test its correctness, and thus 13 judges formed the Kesavananda bench.
• Critics of the doctrine have called it undemocratic since unelected judges can
strike down a constitutional amendment. At the same time, its proponents have
hailed the concept as a safety valve against majoritarianism and authoritarianism.
• The majority opinion was delivered by CJI S M Sikri, and Justices K S Hegde, A
K Mukherjea, J M Shelat, A N Grover, P Jaganmohan Reddy, and H R Khanna.
Justices A N Ray, D G Palekar, K K Mathew, M H Beg, S N Dwivedi, and Y V
Chandrachud dissented.

• Facts:
• Kesavananda Bharati was the chief plaintiff of the Edneer Mutt, a monastic
religious institution located in Kasaragod district, Kerala. Bharati had some
land in the Mutt which he owned. The Kerala state government passed the Land
Reforms Amendment Act in 1969. As per this Act, the government could
acquire some of the lands that belonged to the Mutt.
• In March 1970, Bharati moved the Supreme Court (under Article 32 of the
Constitution) to enforce the rights that were guaranteed to him under: 1. Article
25: Right to practice & propagate religion 2. Article 26: Right to manage
religious affairs 3. Article 14: Right to equality 4. Article 19(1)(f): Freedom to
acquire property 5. Article 31: Compulsory acquisition of property Also read:
Right to Freedom of Religion (Articles 25 - 28)
• The Kerala state government enacted another law, the Kerala Land Reforms
(Amendment) Act, 1971 even as the petition was under the court’s
consideration.

• The contentions made by the petitioners brought to the fore the validity of various
amendments that were brought in by the Parliament to nullify the effects of
Golaknath v State of Punjab. The petitioners challenged, in particular, three
constitutional amendments - 24th Amendment, 25th Amendment and 29th
Amendment and their validity.
• Contentions of the petitioners: • Petitioners contended that the Parliament can’t
amend the Constitution in a manner they want as their power to do this is limited.
The Parliament cannot make an amendment to the Constitution to change its basic
structure as was set forth by Justice Mudholkar in the Sajjan Singh v State of
Rajasthan case. • They argued that the 24th & 25th Constitutional Amendments
were violative of the Fundamental Right provided in Article 19(1)(f).
• Contentions of the respondents: • The State said that the Parliament’s supremacy
is the Indian legal system’s basic structure and hence, it has boundless power to
amend the Constitution. The respondents stressed that in order to fulfil its socio-
economic obligations the unlimited power of the Parliament to amend the
Constitution must be upheld.

• Judgement:
• The Supreme Court reviewed the decision in Golaknath v. State of Punjab, and
considered the validity of the 24th, 25th, 26th and 29th amendments. The case was
heard by the largest ever Constitution Bench of 13 Judges. The bench gave eleven
separate judgments, which agreed on some points and differed on others. Nanabhoy
Palkhivala, assisted by Fali Nariman and Soli Sorabjee, presented the case against
the government in both cases.
• Under this Supreme Court declared 31 C as unconstitutional and invalid on the
ground that judicial review is basic structure and hence cannot be taken away.
• By a 7-6 verdict, a 13-judge Constitution Bench ruled that the ‘basic structure’ of
the Constitution is inviolable, and could not be amended by Parliament.
• The basic structure doctrine has since been regarded as a tenet of Indian
constitutional law. The Constitutional Bench, whose members shared serious
ideological differences, ruled by a 7-6 verdict that Parliament should be restrained
from altering the ‘basic structure’ of the Constitution.

• The court held that under Article 368, which provides Parliament amending powers,
something must remain of the original Constitution that the new amendment would
change.
• Since then, the court has been adding new features to this concept.
• The Kesavananda judgment also defined the extent to which Parliament could
restrict property rights, in pursuit of land reform and the redistribution of large
landholdings to cultivators, overruling previous decisions that suggested that the
right to property could not be restricted. The case was a culmination of a series
of cases relating to limitations to the power to amend the Constitution.

‘Basic structure’ since Kesavananda
• The basic structure doctrine was first introduced by Justice Mudholkar in the
Sajjan Singh case (1965).
• Major features were notably propounded by Justice Hans Raj Khanna in 1973.
• The inherent ambiguity of the doctrine, as well as that of the ratio in
Kesavananda Bharati, resulted in various challenges both to and under the
doctrine before the Supreme Court. The period following Kesavananda Bharati
was one where the doctrine has evolved on a case-to-case basis, resulting in a
gradual expansion of the doctrine.
• The ‘basic structure’ doctrine has since been interpreted to include the
supremacy of the Constitution, the rule of law, Independence of the judiciary,
doctrine of separation of powers, federalism, secularism, sovereign democratic
republic, the parliamentary system of government, the principle of free and fair
elections, welfare state, etc.
• An example of its application is SR Bommai (1994), when the Supreme Court
upheld the dismissal of the governments by the President following the
demolition of the Babri Masjid, invoking a threat to secularism by these
governments.

42nd Amendment Act
• Our Indian Constitution is unique for its content and spirit. The Constitution of
India decides the rule of the land and is taken as supreme law of the land. The
constituent assembly that was behind formulating our constitution has also given
scope for amendments in it with time. Hence, the Indian Constitution of what it
is today has undergone substantive changes on account of several amendments.
The act also called The Constitution Act, 1976 is termed as one of the most
controversial acts in the history of amendments to the Indian Constitution. It
amended/ introduced various provisions given below:

It was called as Mini constitution of India and
was brought during national emergency.
• 1. Preamble: It inserted words Socialist,
Secular and Integrity in the preamble.
• 2. Legislature: Life of Lok Sabha and state
assemblies was extended from 5 to 6 years.
• 3. President: Article 74 was amended as
president shall act in accordance with advice
by council of ministers.

44th Amendment Act, 1978
• 44th Amendment Act, 1978 was introduced to provide adequate safeguards against
the recurrence of the tendency to take over the fundamental rights by the transient
majority in the future and to ensure to the people an effective voice in determining
the form of government under which they are to live.
• This act also nullified various provisions that were brought into the Indian
Constitution as new articles or as amendments by the 42nd Amendment Act.
• 44th Amendment is an act that was introduced into the constitution by 45th
Amendment Bill in the year 1978. In 1976, with the introduction of the 42nd
Amendment Act, there were various provisions that were amended against the
will of the citizens hence, to reverse those changes and safeguard the interests
of the nation, 44th Amendment Act was called into action.

• 44th Amendment made a few changes in the provisions of the constitution. They
are given in points below :-
• Any changes in the basic structure of the constitution can be made only if they are
approved by the people of India by a majority of votes at a referendum in which at
least fifty-one per cent of the electorate participated. Article 368 is being amended
to ensure this.
• The 44th Amendment Act 1978 reversed the provision made by the 42nd
amendment act that allowed the government to amend the constitution on its
wish by Article 368. 44th Amendment Act nullified this unjustified power to
the government.
• Right to Property was removed from the list of fundamental rights (Article 31)
and was made a legal right under Article 300A.
• Proclamation of Emergency can be issued only when the security of India or
any part of its territory is threatened by war or external aggression or by
armed rebellion. Internal disturbance not amounting to armed rebellion would not
be a ground for the issue of a Proclamation.

• An emergency can be proclaimed only on the basis of written advice tendered
to the President by the Cabinet.
• The right to liberty is further strengthened by the provision that law for
preventive detention cannot authorise, in any case, detention for a longer
period than two months, unless an Advisory Board has reported that there is
sufficient cause for such detention.
• Right of the media to report freely and without censorship the proceedings in
Parliament and the State Legislatures.

LAND REFORMS- CONSTITUTIONAL PROVISIONS

• The Indian agrarian reform programme is older than the Constitution. ‘Land to
the tiller’ was part of our freedom struggle. The Congress Agrarian Reforms
Committee had prepared a detailed programme on agrarian reforms. The aim
was to free the agrarian system from exploitative elements.
• The Permanent Settlement introduced by Lord Cornwallis in 1793 in the then
territories of Bengal, Bihar and Orissa and subsequently extended to other
areas needed to be annulled. All intermediary interests in estates between the
actual cultivator and the State needed to be terminated. In the new agrarian
structure envisaged by the committee, the cultivators would hold land directly
under the State and would pay a fixed sum as land revenue. Tenants under
private landlords would enjoy security of tenure and fixity of rent. The
constitution of India has included the Land reform in State subjects.
Agrarian Reforms: Constitutional Provisions

• The Entry 18 of the State List is related to land and rights over the land. The
state governments are given the power to enact laws over matters related to
land.
• The Entry 20 in the concurrent list also mandates the Central Government to
fulfil its role in Social and Economic Planning.
• The Planning Commission was established for suggestion of measures for
land reforms in the country.
• In the pursuance of these directives the land reforms laws aims at breaking
the concentration of ownership of land by a few big land lords.
• The other articles are Articles 14, 19 (1) (f) The programme of land reforms
was one of the major considerations in the schemes of social and economic
restructuring of Indian society. The constitution provides fundamental rights
(Part-Ill) and Directive Principals of state policy (Part-IV). The programme
of agrarian reform was formulated to implement the directive of securing
social and economic justice to those who worked on land.

• The specific articles of the constitution that pertain to land reforms are as
follows:
• Article 23 under fundamental rights abolished Begar or forced unpaid
labour in India.
• Article 38 contains the directive to the state that “State shall strive to
promote the welfare of people by securing and promoting as effectively as
possible. A social order in which justice, social, economic and political
shall reform the institution of national life. And that it shall in particular,
strive to minimize the inequalities in income”
• Article 39 says that “the state shall direct it policies towards securing the
ownership and control of material resources of the community and
distributed them as best to sub serve the common good and at the same
time ensuring the operation of the economic system not resulting in the
concentration of wealth and means of productions to the common
detriment”.
• Article 48 directed the state to organize agriculture and animal husbandry
on modern-scientific lines.

• In the pursuance of these directives the land reforms laws aims at breaking the
concentration of ownership of land by a few big land lords. The other articles are
Articles 14, 19 (1) (f) and 31 and these are important as to the land reforms
legislations.
• Articles 14 “provide the state shall not deny to any person equality before law
and equal protection of laws”.
• Article 19 which guarantees to all citizens a number of freedoms, including in
clauses (i) (f) the right to acquire, hold and dispose of property which has been
deleted by the by forty fourth amendment Act 1978).
• Article 31 guaranteed right to property and contained six clauses of which
clauses (4) and (6) were particularly designed to protect land reforms legislations
. The article is now abolished and no more valid stands in the constitution of
India.

UNIT-2 (A)
URBANIZATION

• Urbanization as the immigration of people in huge numbers from rural to urban areas and this process
happen due to the concentration of resources and facilities in towns and cities.
• Urbanisation is the increase in the proportion of people living in towns and cities. Urbanisation
occurs because people move from rural areas (countryside) to urban areas (towns and cities). This
usually occurs when a country is still developing.
• Urbanization is pervasive and recent phenomenon. In present global atmosphere, all nations undergo
with the challenges of environment, social, transportation, economy in their respective cities. These
issues are commonly occurred in developing countries due to the difference of development in cities
and villages.
• Most of countries focus on development of cities instead of rural areas. Consequently, the urban areas
are equipped with infrastructure, public facilities as well as provide employment opportunities
compared to the rural areas. Therefore inhabitants are more attracted to migrate in cities to avail hi
tech facilities, enhance their lifestyles and ultimately these activities raise numerous urbanization
issues.
URBANIZATION

• Urbanization is relevant to a range and variety of disciplines and fields, mostly including urban
planning, geography, sociology, architecture, economics, and public health.
• The phenomenon has been closely linked to modernization, industrialization and
the sociological process of rationalization. Urbanization can be seen as a specific condition at a set
time (e.g. the proportion of total population or area in cities or towns), or as an increase in that
condition over time.
• Therefore, urbanization can be quantified either in terms of the level of urban development relative to
the overall population, or as the rate at which the urban proportion of the population is increasing.
• Urbanization creates enormous social, economic and environmental changes, which provide an
opportunity for sustainability with the "potential to use resources more efficiently, to create more
sustainable land use and to protect the biodiversity of natural ecosystems."

• Industrial revolution: Industrial employment catches the attention of people from rural to urban
areas. In the urban areas, people work in modern sector in the occupations that assist national
economic development.
• Emergence of large manufacturing centres.
• Job opportunities: There are ample job opportunities in mega cities therefore village people or
individuals from town frequently migrate to these areas.
• Migration: Migration is main cause for rapid growth of mega-cities. Migration has been going on
over centuries and it is normal phenomenon. When considering urbanization rural-urban and urban-
rural and rural-rural migrations are very important. Urban-urban migration means that people move
from one city to another. People may move to the city because they are forced by poverty from
rural community or they may be pulled by the magnetism of city lives. Combination of these
push and pull factors can force people to migrate to cities.
MAJOR CAUSES OF URBANIZATION

• Infrastructure facilities in the urban areas: Infrastructure has vital role in the process of
urbanization in the development of countries. As agriculture becomes more fruitful, cities grow by
absorbing workforce from rural areas. Industry and services increase and generate higher value-added
jobs, and this led to economic growth. The geographic concentration of productive activities in cities
creates agglomeration economies, which further raises productivity and growth. This augments
income and demand for agricultural products in cities.

• Rapid rate of urbanization: It is observed that fast rate of urbanization which is increasing every year
has needed more growth of new areas for housing, social amenities, commercial and other urban land
uses. These situations led to various urbanization issues such as environmental pollution, traffic
congestion, depletion of green areas and degradation in the quality of urban living.
• Degradation of environmental quality: Due to urbanization, there is environmental degradation
especially in the quality of water, air and noise. The domestic waste, industrial effluents and other
wastes that were dumped directly to the river, degrade the water quality. Another after effects of rapid
urbanization is the air pollution which has also increased due to emanation from motor vehicles,
industrial development and use of non-environmental friendly fuel sources.
PROBLEMS OF URBANIZATION

• Inefficient transportation system: Urbanization created severe problem of transpiration. Due to
movement of people into metropolitan cities, the number of vehicles on the road is increasing every
year.
• Overcrowding is a situation in which large number of people lives in too little space. Overcrowding
is a consistent result of over-population in urban areas.
• Decline in quality of living for urban dwellers: Urbanization is major concern for management
researchers because it decline in quality of living for urban inhabitants. There is problem in the
provision of housing, especially for the middle and low class people. The supply of housing for the
urban poor is still inadequate as the cost of these houses is very high to which low and middle
income group cannot afford. The lack of housing provision for the low income group has led to the
continuation of unlawful resident settlements in the city.

• Unsuccessful urban governance: The urban authority undergoes with multifaceted challenges to
manage a city. The fast speed of urbanization is major challenges which need every party to be more
focused in undertaking each and every responsibility in urban development. However, the
involvement of several agencies and departments in urban management made it complicated to
synchronize many actions and resultant, it affects the efficiency of those actions.
• Poverty, unemployment and under employment among the rural immigrant, beggary, thefts,
dacoities, burglary and other social sins go wild.
• Urban slump is encroaching the valuable agricultural land.
• Health problems caused due to urbanization.

• Urban Crimes: In developed cities of India, people get connected with different types of individuals
who do not have similarity with one another. The problem of crimes increases with the increase in
urbanisation. In fact the increasing trend in urban crimes tends to upset peace and tranquillity of the
cities and make them insecure to live in mainly for the women. Violent urban crimes such as rape,
murder, kidnapping, dacoity, robbery are more prominent in the northern-central parts of the nation.
The economic crimes such as theft, cheating, breach of trust are increasing.

Law
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of
India)
UNIT-2 (B)
LAND ACQUISITION ACT, 2013

Land Acquisition Act, 2013
• Despite many amendments, over the years, to India’s Land Acquisition Act of 1894,
there was an absence of a cohesive national law that addressed fair compensation
when private land is acquired for public use, and fair rehabilitation of land owners
and those directly affected from loss of livelihoods. The Government of India
believed that a combined law was necessary, one that legally requires rehabilitation
and resettlement necessarily and simultaneously follow government acquisition of
land for public purposes.
• The Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013 is a legislation that regulates land
acquisition and provides laid down rules for granting compensation, rehabilitation
and resettlement to the affected persons in India. The Act has provisions to provide
fair compensation to those whose land is taken away, brings transparency to the
process of acquisition of land to set up factories or buildings, infrastructural projects
and assures rehabilitation of those affected.

Aims and objectives:
• To ensure, in consultation with institutions of local self-government and Gram
Sabhas a humane, participative, informed and transparent process for land
acquisition for industrialization, development of essential infrastructural facilities
and urbanization with the least disturbance to the owners of the land and other
affected families
• Provide just and fair compensation to the affected families whose land has been
acquired or are affected by such acquisition
• Make adequate provisions for such affected persons for their rehabilitation and
resettlement
• The Act aims to establish the law on land acquisition, as well as the rehabilitation
and resettlement of those directly affected by the land acquisition in India except
J&K.

The Act is applicable when:
• Government acquires land for its own use, hold and control, including land for
Public sector undertakings.
• Government acquires land with the ultimate purpose to transfer it for the use of
private companies for stated public purpose. The purpose of LARR 2013 includes
public-private-partnership projects, but excludes land acquired for state or
national highway projects.
• Government acquires land for immediate and declared use by private companies
for public purpose.
• The provisions of the Act does not apply to acquisitions under 16 existing
legislations including the Special Economic Zones Act, 2005, the Atomic
Energy Act, 1962, the Railways Act, 1989, etc.

Definition: Public Purpose
• Section 2(1) of the act defines ‘public purpose’ as the project which involves
land acquisition for strategic purposes or national security and defence of the
country. For example-naval, military, air force, and armed forces of the Union,
including central paramilitary forces etc. Other domain which falls under pubic
purpose are-elaborate mention of infrastructure projects, projects for housing for
lower income groups 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 the Government.
• Consent clause
• When government acquires the land directly for ‘public purpose’ consent of the
land owner is not required. However, when the government acquires the land for
private companies, the consent of at least 80% of the project affected families
shall be obtained through a prior informed process. In case of acquisition of land
for public-private project then the consent of at least 70% of the affected families
should be taken.

• Emergency acquisition
• Under this the land acquisition can be expedited if it relates to national defense,
security and rehabilitation of affected people from natural disasters or
emergencies.
• Limits on acquisition
The act does not allow acquisition of land under multi cropped area. The act also
mandates that in case of acquisition of multi cropped area under exceptional
circumstances, an equivalent area of cultivable wasteland shall be developed by
the state for agricultural purposes. In case of acquisition of other agricultural land,
total acquisition should not exceed the limit as specified by an appropriate
authority. These limits shall not apply to linear projects which include projects for
railways, highways, major district roads, power lines, and irrigation canals.

• Compensation
It will be four times the market value of land in rural areas and twice in
urban areas. The market value of the land will be set as higher of: minimum land
value, if any, specified in the Indian Stamp Act, 1899 or; average of the sale price
for similar type of land being acquired, ascertained from the highest fifty per cent
of the sale deeds registered during the preceding three years in the nearest vicinity
of the land being acquired.
• Section 7 : Social Impact Assessment (SIA) report submitted by the Expert
Group.
• Section 11: The process of acquisition begins with the issuance of preliminary
notification, as envisaged under Section 11 of Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Whenever, it appears to the appropriate Government that land in any area is
required or likely to be required for any public purpose, a preliminary notification
under Section 11 in rural or urban areas shall be published.

• Section 14: provides that where a preliminary notification under section 11 is not
issued within 12 months from the date of appraisal of the Social Impact
Assessment (SIA) report submitted by the Expert Group under section 7, then,
such report shall be deemed to have lapsed and a fresh Social Impact Assessment
shall be required to be undertaken prior to acquisition proceedings.
• The appropriate Government shall have the power to extend the period of twelve
months, if in its opinion circumstances exist justifying the same but such decision
shall be recorded in writing and the same shall be notified and be uploaded on the
website of the authority concerned.

• Survey Of Land
Section 12 provides for the preliminary survey of land and power of officers to
carry out such survey.
For the purposes of enabling the appropriate Government to determine the extent
of land to be acquired, it shall be lawful for any officer, either generally or
specially authorised by such Government in this behalf, and for his servants and
workmen,–
• (a) to enter upon and survey and take levels of any land in such locality;
• (b) to dig or bore into the sub-soil;
• (c) to do all other acts necessary to ascertain whether the land is adapted for such
purpose;
• (d) to set out the boundaries of the land proposed to be taken and the intended line
of the work (if any) proposed to be made thereon; and

•
(e) to mark such levels, boundaries and line by placing marks and cutting trenches
and where otherwise the survey cannot be completed and the levels taken and the
boundaries and line marked, to cut down and clear away any part of any standing
crop, fence or jungle.
Restriction:
• No act under clauses (a) to (e) in respect of land shall be conducted in the absence
of the owner of the land or in the absence of any person authorised in writing by
the owner. Such survey may be undertaken in the absence of the owner, if the
owner has been afforded a reasonable opportunity to be present during the survey,
by giving a notice of at least sixty days prior to the survey.
• In Satnam Singh vs. State of Punjab, the Court held that a notice is necessary
condition precedent for the exercise of the power of the entry, and non-
compliance with these conditions make the entry of the officer or his servants
unlawful.

• Payment for Damages:
Section 13 provides that the officer shall at the time of entry under section 12 pay
for any damage caused. It is payment for the intended damage.
Damage means any harm done to land during the course of surveying it and other
acts necessary to ascertain whether it is capable of being adapted for public
purpose.
• Hearing Objections
Section 15 is consistent with the basic principle that no man’s property shall be
acquired unless he has been given an opportunity of being heard. The main
objective of issuing preliminary notification is to call for objections, if any,
against such acquisitions from the owners or others who are having certain
interest over the property; giving them an opportunity to raise their claims against
the move of the government for acquiring their lands.

• Report on the Objections: Section 15
Every objection shall be made to the Collector in writing. The Collector shall give
the objector an opportunity of being heard in person or by any person authorised
by him or by an Advocate and shall, make a report to the appropriate
Government, containing his recommendations on the objections, together with the
record of the proceedings held by him along with a separate report giving therein
the approximate cost of land acquisition, particulars as to the number of affected
families likely to be resettled, for the decision of that Government.
If objections are made, the Collector will consider those objections and make his
recommendation thereon in his report to government. If no objections are made,
the Collector has got to make a report. It is thereafter that the Government is
empowered to proceed further.
Section 15(3) provides that the decision of the appropriate Government on the
objections shall be final.

• Rehabilitation & Resettlement Scheme
Section 16 provides for the preparation of Rehabilitation and Resettlement
Scheme by the Administrator.
Upon the publication of the preliminary notification by the Collector, the
Administrator for Rehabilitation and Resettlement shall conduct a survey
and undertake a census of the affected families, in such manner, which shall
include–
(a) particulars of lands and immovable properties being acquired of each affected
family;
(b) livelihoods lost in respect of landless who are primarily dependent on the
lands being acquired;
(c) a list of public utilities Government buildings, amenities and infrastructural
facilities which are affected or likely to be affected, where resettlement of
affected families is involved;
(d) details of any common property resources being acquired.

• Drafting the Scheme:
The Administrator shall, based on the survey and census before, prepare a draft
Rehabilitation and Resettlement Scheme.
• Review & Approval of Scheme:
Under Section17 the Collector shall review the draft Scheme submitted by the
Administrator with the Rehabilitation and Resettlement Committee at the project
level constituted under section 45.
The Collector shall submit the draft Rehabilitation and Resettlement Scheme
with his suggestions to the Commissioner Rehabilitation and Resettlement for
approval of the Scheme.
• If the scheme is approved then the Commissioner shall under Section 18 cause
the approved Rehabilitation and Resettlement Scheme to be made public

• Declaration
After receipt of objections, the concerned authority shall consider those objections,
and if found unsatisfactory, then a final declaration rejecting the claims will be
issued. Section 19 of the new Act provides that the final declaration shall be
published by the authority within a period of 12 months from the date of issuance
of preliminary notification under section 11 of the Act.
When the appropriate Government is satisfied, that any particular land is needed
for a public purpose, a declaration shall be made to that effect, along with a
declaration of an area identified as the “resettlement area” for the purposes of
rehabilitation and resettlement of the affected families.

• Summary of Scheme:
The Collector shall publish a summary of the Rehabilitation and Resettlement
Scheme along with declaration. But no declaration under this shall be made
unless the summary of the Rehabilitation and Resettlement Scheme is
published along with it.
Also, the ‘Requiring Body’ must deposit an amount, in full or part, as may be
prescribed by the appropriate Government towards the cost of acquisition of the
land.
Requiring Body as defined under Section 3(zb) means a company, a body
corporate, an institution, or any other organisation or person for whom land is
to be acquired by the appropriate Government, and includes the appropriate
Government.

• Lapse of Notification:
Where no declaration is made within 12 months from the date of preliminary
notification, then such notification shall be deemed to have been rescinded. Provided
that in computing the time of 12 months any period during which the proceedings for
the acquisition of the land were held up on account of any stay or injunction by the
order of any Court shall be excluded. The appropriate Government may decide to
extend the period of 12 months, if in its opinion circumstances exist justifying the
same, which shall be recorded in writing and notified and be uploaded on the website
of the authority concerned. The declaration shall be conclusive evidence that the land
is required for a public purpose and after making such declaration, the appropriate
Government may acquire the land in such manner as specified under this Act.
• Public Notice:
Under Section 21 the Collector shall publish the public notice on his website and
cause public notice to be given at convenient places on or near the land to be taken,
stating that the Government intends to take possession of the land, and that claims to
compensations and rehabilitation and resettlement for all interests in such land may
be made to him.

The time period should not be less than 30 days and not more than 6 months after
the date of publication of the notice.
• Statement to Collector:
Under Section 22 the Collector may also require any interested person to make or
deliver to him a statement within 30 days containing the name of every other
person possessing any interest in the land.
• Acquisition Award
The new Act stipulates that the minimum compensation is to be a multiple of the
total of the ascertained market value, plus value of the assets attached to the
property, plus a solatium equal to 100% of the market value of the property
including value of assets.
Under Section 23 the Collector shall proceed to enquire into the objections which
any person interested has stated pursuant to a notice given under Section 21 and
into the respective interests of the persons claiming the compensation and
rehabilitation and resettlement, shall make an award

• Period for Award:
Under Section 25 the Collector shall make an award within a period of 12
months from the date of publication of the declaration and if no award is made
within that period, the entire proceedings for the acquisition of the land shall
lapse.
Provided that the appropriate Government may take the decision to extend the
period of 12 months if in its opinion, circumstances exist justifying the same
but such decision shall be recorded in writing.

• Section 24. Land acquisition process under shall be deemed to have lapsed in
certain cases.–
• (1) Notwithstanding anything contained in this Act, in any case of land
acquisition proceedings initiated under the Land Acquisition Act, 1894,— (a)
where no award under section 11 of the said Land Acquisition Act has been made,
then, all provisions of this Act relating to the determination of compensation shall
apply; or (b) where an award under said section 11 has been made, then such
proceedings shall continue under the provisions of the said Land Acquisition Act,
as if the said Act has not been repealed.
• (2) Notwithstanding anything contained in sub-section (1), in case of land
acquisition proceedings initiated under the Land Acquisition Act, 1894 (1 of
1894), where an award under the said section 11 has been made five years or
more prior to the commencement of this Act but the physical possession of the
land has not been taken or the compensation has not been paid the said
proceedings shall be deemed to have lapsed and the appropriate Government, if it
so chooses, shall initiate the proceedings of such land acquisition afresh in
accordance with the provisions of this Act:

• Provided that where an award has been made and compensation in respect of a
majority of land holdings has not been deposited in the account of the
beneficiaries, then, all beneficiaries specified in the notification for acquisition
under section 4 of the said Land Acquisition Act, shall be entitled to
compensation in accordance with the provisions of this Act.
• Recently, the Supreme Court of India reaffirmed its February 2018 ruling
on Section 24 on land acquisition compensation awards in the Indore
Development Authority case.
• The five-judge Bench also overruled an earlier 2014 ruling under the Right to
Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement Act of 2013.

Background
• The 2013 Act replaced the Land Acquisition Act, 1894 (1894 Act) and provides
for higher compensation to those deprived of land by the government for both
public and private sector projects. It also mandates consent of a majority of land-
owners and contains provisions for rehabilitation and resettlement.
• Under Section 24(2) of the 2013 Act, land acquisition made under the old law of
1894 lapses if the award of compensation had been made five years before the
new Act came into force, but has not been paid.
• In such situations, the process will start afresh under the new Act,
which mandates higher compensation.
• However, there are cases of farmers and landowners refusing compensation
which delays the possession by the government.
• In such cases, the compensation is deposited in the government treasury and
according to one interpretation, the acquisition process is saved.
• This interpretation has been contended on the basis that such cases will fall under
the new Act because compensation has not been paid to the landowners, and the
lapsing clause in Section 24 should be applied.

• If a long-pending land acquisition process closes under the old law and fresh
acquisition proceedings start under the new one, the land-owners will benefit and
project proponents will have to pay higher compensation.
• In the Pune Municipal Corporation vs Harakchand Misirimal Solanki case
2014, a three-judge bench held that acquisition proceedings initiated under the
1894 Act, which were initiated five years before the 2013 law was enacted (in
2014), would lapse if the land in question was not taken control of or if
compensation was not paid to displaced farmers.
• The judgment came as a relief for landowners.
• However, in the Indore Development Authority vs Shailendra (D) Through
LRS & Ors case 2018, another three-judge bench declared the 2014 judgment
“per incuriam” (in disregard of the law).
• It held that if a landowner refuses to accept the compensation offered by the
developer, they cannot take advantage of their own wrongdoing and have the
acquisition proceedings lapse under the old law.
• This judgement was a relief for developers.

Key Points
• In the latest ruling, the Bench was interpreting Section 24 (2) of the 2013 Act.
• The provision said that if the physical possession of land has not been taken or
the compensation is not paid for five or more years prior to 1st January 2014,
the acquisition proceeding is “deemed to have lapsed”.
• The judgment said that the compensation would be considered paid if the
amount is put in the Treasury.
• There was no obligation that the amount should be deposited in the court in order
to sustain the land acquisition proceedings.
• Thus, there is no lapse if possession has been taken and compensation has not
been paid. Similarly, there is no lapse if compensation has been paid and
possession not taken of the land.
• Further, it was also held that Section 24(2) of the 2013 Act does not give rise to a
new cause of action to question the legality of concluded proceedings of land
acquisition.

• Market value
The market value of the proposed land under Section 26 to be acquired shall be
set as the higher of:
• the minimum land value, if any, specified in the Indian Stamp Act, 1899 for the
registration of sale deeds in the area, where the land is situated; or
• the average of the sale price for similar type of land being acquired, ascertained
from the highest fifty per cent of the sale deeds registered during the preceding
three years in the nearest village or nearest vicinity of the land being acquired.;
or
• the consented amount in case the land is acquired for private companies or
public-private partnership projects.
The market value would be multiplied by a factor of, at least one to two times
the market value for land acquired in rural areas and at least one times the
market value for land acquired in urban areas.

Determination of Compensation:
• The Collector having determined the market value of the land to be acquired shall
under Section 27 calculate the total amount of compensation to be paid to the
land owner whose land has been acquired by including all assets attached to the
land.
In determining the amount of compensation to be awarded for land acquired
under this Act, the Collector shall under Section 28 take into consideration–
• the market value as determined under section 26 and the award amount in
accordance with the First and Second Schedules;
• the damage sustained by the person interested, by reason of the taking of any
standing crops and trees which may be on the land at the time of the Collector’s
taking possession thereof;
• the damage sustained by the person interested, at the time of the Collector’s
taking possession of the land, by reason of severing such land from his other land;

• the damage sustained by the person interested, at the time of the Collector’s
taking possession of the land, by reason of the acquisition injuriously affecting
his other property, movable or immovable, in any other manner, or his earnings;
• in consequence of the acquisition of the land by the Collector, the person
interested is compelled to change his residence or place of business, the
reasonable expenses incidental to such change;
• the damage bona fide resulting from diminution of the profits of the land
between the time of the publication of the declaration under section 19 and the
time of the Collector’s taking possession of the land: and
• any other ground which may be in the interest of equity, justice and beneficial to
the affected families.
• Award of Solatium
• 31. Rehabilitation and Resettlement Award for affected families by
Collector.–
• (1) The Collector shall pass Rehabilitation and Resettlement Awards for each
affected family in terms of the entitlements provided in the Second Schedule.

• (2) The Rehabilitation and Resettlement Award shall include all of the following,
namely:— (a) rehabilitation and resettlement amount payable to the family; (b)
bank account number of the person to which the rehabilitation and resettlement
award amount is to be transferred; (c) particulars of house site and house to be
allotted, in case of displaced families; (d) particulars of land allotted to the
displaced families; (e) particulars of one time subsistence allowance and
transportation allowance in case of displaced families; (f) particulars of payment
for cattle shed and petty shops; (g) particulars of one-time amount to artisans and
small traders; (h) details of mandatory employment to be provided to the
members of the affected families; (i) particulars of any fishing rights that may be
involved; (j) particulars of annuity and other entitlements to be provided; (k)
particulars of special provisions for the Scheduled Castes and the Scheduled
Tribes to be provided: Provided that in case any of the matters specified under
clauses (a) to (k) are not applicable to any affected family the same shall be
indicated as ―not applicable:
• Provided further that the appropriate Government may, by notification increase
the rate of rehabilitation and resettlement amount payable to the affected families,
taking into account the rise in the price index.

• 32. Provision of infrastructural amenities in resettlement area.–In every
resettlement area as defined under this Act, the Collector shall ensure the
provision of all infrastructural facilities and basic minimum amenities specified in
the Third Schedule.
• 37. Awards of Collector when to be final.–(1) The Awards shall be filed in the
Collector‘s office and shall, except as hereinafter provided, be final and
conclusive evidence, as between the Collector and the persons interested, whether
they have respectively appeared before the Collector or not, of the true area and
market value of the land and the assets attached thereto, solatium so determined
and the apportionment of the compensation among the persons interested. (2) The
Collector shall give immediate notice of his awards to such of the persons
interested who are not present personally or through their representatives when
the awards are made. (3) The Collector shall keep open to the public and display a
summary of the entire proceedings undertaken in a case of acquisition of land
including the amount of compensation awarded to each individual along with
details of the land finally acquired under this Act on the website created for this
purpose.

• 38. Power to take possession of land to be acquired.–
• The Collector shall take possession of land after ensuring that full payment of
compensation as well as rehabilitation and resettlement entitlements are paid or
tendered to the entitled persons within a period of three months for the
compensation and a period of six months for the monetary part of
rehabilitation and resettlement entitlements listed in the Second Schedule.
• PROCEDURE AND MANNER OF REHABILITATION AND
RESETTLEMENT
• 43-47 section
• NATIONAL MONITORING COMMITTEE FOR REHABILITATION AND
RESETTLEMENT
• 48-50 section

• ESTABLISHMENT OF LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT AUTHORITY
• 51-74 sections
• OFFENCES AND PENALTIES
• 84-90

Law
UNIT-2 (C)
SPECIALAUTHORITIES- DDA, NOIDA & HUDA

DDA
• The Delhi Development Authority (DDA) was created in 1957 under the
provisions of the Delhi Development Act "to promote and secure the
development of Delhi. The DDA is responsible for planning, development
and construction of Housing Projects, Commercial Lands, Land Management
as well as providing public facilities like roads, bridges, drains, Underground
water reservoir, Community Centers, Sports Centers, Green Belts etc. within
the area of National Capital Territory of New Delhi, India.
Initiatives taken by DDA:
• DDA MASTER PLANS
• DDA HOUSING
• DDA LAND DEVELOPMENT
• DDA SPORTS COMPLEX
• DDA COMMERCIAL PROPERTIES

NOIDA
• New Okhla Industrial Development Authority, is a planned city located
in Gautam Buddh Nagar district of the Indian state of Uttar Pradesh. It is a
satellite city of Delhi and is a part of the National Capital Region of India.
• Noida came into administrative existence on 17 April 1976 and celebrates 17
April as "Noida Day". It was set up as part of an urbanisation thrust during
the controversial Emergency period (1975–1977). The city was created under
the UP Industrial Area Development Act, 1976 by the initiatives of Sanjay
Gandhi.
• The city has the highest per capita income in the whole National Capital
Region. Noida is classified as a special economic zone (SEZ). The Noida
Authority is among the richest civic bodies in the country.

• One of the largest Industrial Townships of Asia Not very far from Delhi yet
away from the dirt, grime and pollution, part of the National Capital Region,
Noida is the industrial fairy land of the nation. New Okhla Industrial
Development Authority - NOIDA is one of the largest planned industrial
townships of Asia.
• Set up in 1976, with a view to develop an Integrated Industrial Township for
the industrial growth of the area, under the Uttar Pradesh Industrial Area
Development Act, it best symbolizes harmony between human habitat and
Industrial Enterprise.

HUDA
• Haryana Shahari Vikas Pradhikaran (HSVP), formerly Haryana Urban
Development Authority (HUDA), is the urban planning agency of
the state of Haryana in India except Gurugram and Faridabad which
has Gurugram Metropolitan Development Authority and Faridabad
Metropolitan Development Authority respectively. It was established in 1977.
• The Minister of Town and Country Planning Department, Haryana is
the chairman of the authority. The headquarters of the authority is located
in Panchkula, Haryana.
• HSIIDC is a related government owned agency responsible for the industrial
and infrastructure development in the Haryana state. Haryana Financial
Corporation provides financial assistance for setting up new industrial units
and for the expansion and diversification of the existing industries.

• Various universities, educational and training institutes, including the nation's first skills
university Haryana Vishwakarma Skill University, provide the human resources to capitalise on the
finances offered by the HFC and the infrastructure created by the HSIIDC.
• Among the related initiatives to boost growth, Haryana was the first state to introduce Labour Policy
in 2005, and Land Pooling Policy in 2017.

Law
UNIT-3 (A)
REAL ESTATE (REGULATION AND DEVELOPMENT)
ACT, 2016

REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
• Real Estate (Regulation and Development) Act (RERA) is an act passed by the Parliament in 2016
that came into effect fully from 1st May, 2017.It seeks to protect home-buyers as well as help boost
investments in the real estate sector by bringing efficiency and transparency in the sale/purchase of
real estate.The Act establishes Real Estate Regulatory Authority (RERA) in each state for regulation
of the real estate sector and also acts as an adjudicating body for speedy dispute resolution.
• Need for the RERA
• Real estate sector had been largely unregulated, no standardization of business practices and
transactions.
• Prevalence of issues like delays, price, quality of construction. Delays in projects had been a major
issue plaguing real estate sector- huge cost overrun due to delays.

• Numerous instances where developers cheated property buyers.
• No grievance redressal mechanism.
• Huge generation of black money in real estate sector.
Objectives of RERA
• Enhance transparency and accountability in real estate and housing transactions.
• Boost domestic and foreign investment in the real estate sector.
• Provide uniform regulatory environment to ensure speedy adjudication of disputes.
• Promote orderly growth through efficient project execution and standardization.
• Offer single window system of clearance for real estate projects.
• Empower and protect the right of home buyers.

Drawbacks of the Real Estate (Regulatory and Development) Bill, 2013
• It does not enumerate any difference between the Residential Real Estate and Commercial Real Estate.
• Some projects in the Real Estate with certain investors or stakeholders do not come under the category
of this Bill. They are:
• Government agencies/authorities at Centre, State and Municipal level;
• Financing agencies like Bank/Financial Institutions
• Brokers, Underwriters and Bulk Purchasers
• It also does not provide any tool for transferring the booking during the construction time
• It fails to provide any additional securities for the retail purchasers.

Key Provisions of Real Estate Regulation Act
Establishment of state level regulatory authorities- Real Estate Regulatory Authority (RERA):
• The Act provides for State governments to establish more than one regulatory authority with the
following mandate:
• Register and maintain a database of real estate projects; publish it on its website for public viewing,
• Protection of interest of promoters, buyers and real estate agents
• Development of sustainable and affordable housing,
• Render advice to the government and ensure compliance with its Regulations and the Act.
• Establishment of Real Estate Appellate Tribunal- Decisions of RERAs can be appealed in these
tribunals.

• Mandatory Registration: All projects with plot size of minimum 500 sq.mt or eight apartments need
to be registered with Regulatory Authorities.
• Deposits: Depositing 70% of the funds collected from buyers in a separate escrow bank account for
construction of that project only.
• Liability: Developer’s liability to repair structural defects for five years.
• Penal interest in case of default: Both promoter and buyer are liable to pay an equal rate of interest in
case of any default from either side.
• Cap on Advance Payments: A promoter cannot accept more than 10% of the cost of the plot,
apartment or building as an advance payment or an application fee from a person without first entering
into an agreement for sale.
• Defines Carpet Area as net usable floor area of flat. Buyers will be charged for the carpet area and not
super built-up area.
• Punishment: Imprisonment of up to three years for developers and up to one year in case of agents and
buyers for violation of orders of Appellate Tribunals and Regulatory Authorities.

Benefits of RERA:
Timely delivery of flats
• Developers often make false promises about the completion date of the project, but hardly ever deliver.
• Strict regulations will be enforced on builders to ensure that construction runs on time and flats are
delivered on schedule to the buyer.
• If the builder is not able to deliver the flats on time, he/she will have to refund the purchaser with
interest.
Furnishing of accurate project details:
• In the construction stage, builders promote their projects defining the various amenities and features
that will be part of the project. But not everything goes as per plan, with several features missing.
• As per the Act, there can't be any changes to a plan.
• And if a builder is found guilty of this, he/she will be penalized 10% of the project’s costs or face jail
time of up to three years.

• Specifying carpet area:
• Generally, builders sell flats on the basis of built-in area, which includes a common passage area, stairs
and other spaces which are 20-30% more than the actual flat’s area.
• But, not all buyers are aware of the concept of carpet area.
• With this Act it will become mandatory to declare the actual carpet area.
• All clearances are mandatory before beginning a project:
• Builders often attract buyers with huge discounts and pre-launch offers. And, the buyer, enticed by the
offers, does not bother about the clearance.
• But, due to delays in getting clearance, the buyer does not get the flat on time.
• This Act ensures that developers get all the clearances before selling flats.

• Each project should have a separate bank account:
• Developers raise funds through pre-launch offers and use them to purchase some other land or invest it
in other projects.
• This Act will make it compulsory that a separate bank account be maintained for each project.
• Each transaction will have to be recorded, and diversion to another project will not be entertained.
• After sales service:
• As per an interesting clause in the Act, if the buyer finds any structural deficiency in the development of
the building, the buyer can contact the builder for after sales service.
• But, the buyer should approach the builder within 5 years of purchase to rectify such defects without
further charges.

Law
UNIT-3 (B)
THE DELHI APARTMENT OWNERSHIPACT,
1986

THE DELHI APARTMENT OWNERSHIPACT, 1986
• The construction of multi-storied apartment buildings in Delhi has been a constant affair throughout
the region’s history post-independence. Being the national capital, Delhi has attracted people from
both within the country and abroad, primarily because of the lucrative business and investment
opportunities on offer in this region. This has resulted in a strong demand for living in apartment
buildings and complexes.
• In the past, the regular construction of apartments in Delhi used to cause avoidable litigation, as the
rights and obligations of the apartment owners and associations weren’t set in stone, legally. So in the
year 1986, the Delhi apartment ownership Act was drafted and passed by the parliament.
• The Act clarifies the rights and obligations of apartment owners, such as in relation to inheritance,
restrictions on transfers like mortgage and sale, and the right to common areas and facilities.

Important Terms used in the Act:
• Administrator: An Administrator is an authority appointed to the union territory of Delhi, by the
President of India, as mandated by the Article 239 of the constitution.
• Authority: An authority is one who is established or constituted under a law.
• Bye-Laws: Bye-laws are laws made under the Delhi Apartment Ownership Act, 1986.
• Common Areas and Facilities: Common Areas and Facilities constitutes the land on which the multi-
storied apartment building is located, the gardens, basements, cellars, parking areas, and any other such
creations, and all the structural elements like lobbies, corridors, fire escapes, and beams and columns.
• Common Expenses and Common Profits: Common expenses are sums of money, lawfully assessed
against the apartment owners, which go into administration, repair, and maintenance or for modifying
common areas and facilities. After the deduction of the common expenses, what’s left after balancing
all the incomes and profits are the common profits.

The Key Features Of The Act
Applicability of the Act
• The Delhi Apartment Ownership Act, 1986 is applicable to all multi-storied apartment buildings, with
at least two stories and four units, constructed by any group housing co-operative society, person, or
authority, before or after the commencement of the Act.
• The Act is applicable to the whole of the union territory of Delhi.
• Bye-Laws to be framed as per administrator’s Model Laws
• The bye-laws framed by any association of apartment owners should be exactly in accordance with the
model bye-laws framed by the Administrator. In case the association wishes to make any changes, the
members of the association require a prior approval from the Administrator.

Apartments to be heritable and transferable
• According to the Act, every apartment, including its common areas and facilities, will be a transferable
and heritable immovable property. The apartment owner can transfer his apartment and his share of the
non-partitioned common areas and facilities by way of lease, mortgage, sale, exchange, or gift.
Common Areas and Facilities to be used by all apartment owners for intended purposes
• All common areas and facilities will be available for use by all apartment owners. The common areas
and facilities will not be divided or partitioned. Each apartment owner will use it for the purpose that
it’s intended for, without hindering or encroaching upon another apartment owner’s right to use the
space.

The Common Profits and Expenses to be shared in a certain proportion
• The profits will be distributed, and the expenses charged, to all the apartment owners in proportion of
the percentage of the undivided interest they hold in the common areas and facilities.
• Sometimes it so happens that the apartment owner isn’t an occupant of his or her apartment. In this
case, the person currently occupying that apartment needs to pay his or her share of the common
expenses.
Certain Works Are Prohibited
• No apartment owner can make such changes to the structure of the apartment as would lead to the
reduction in the property value and affect the safety and soundness of the property. To do so, one would
have to acquire consent from all the apartment owners of the association.
• Excavating a cellar or additional basement, or adding any material structure is the kind of works that
are prohibited.

What the Act means for the people involved?
• An apartment owner can easily transfer, purchase, or gift multi-storied residential and commercial
apartments, co-operative group housing society apartments, and private apartments.
• Earlier, the apartments in Delhi were monopolized by such parties as the Registrar of the Group
Housing Society, Delhi Development Authority (DDA), and the builders. With the implementation of
this Act, this monopoly comes to an end. All of the rights are now given to the associations of
apartment owners.

Law
UNIT-4 (A)
INTRODUCTION TO DELHI RENT CONTROL
LEGISLATION IN DELHI: 1958 AND 1996

HISTORY OF DRC ACT, 1958
• In the aftermath of the Partition, people uprooted from current parts of Pakistan were forced to leave
their homes and abandon business establishments. The government of the time wanted to solve the
acute problem of housing created due to sudden influx of refugees in Delhi. It was felt that if landlords
are readily allowed to evict tenants, those coming from west Pakistan would never be able to settle.
• Faced with the problem of resettling refugees, the government imposed restrictions on the right to evict
tenants from residential and non-residential premises. The Delhi and Ajmer-Merwara Rent Control Act,
1947, and later DRC Act, 1958, were enacted to protect tenants against eviction. Even now, almost the
whole of Delhi is covered under the DRC Act, including the limits of the municipal corporations, the
New Delhi Municipal Committee (as then called) and the Delhi Cantonment Board.
• In 1988, an amendment was made to the DRC Act that allowed premises whose rent exceeded ₹3,500
per month to be excluded from the Act.

• Three Acts govern rent
• At present, there are three Acts governing rent leases in Delhi — Transfer of Property Act, 1882; Public
Premises (Eviction of Unauthorized Occupants) Act, 1971; and the DRC Act, 1958. These Acts create
three distinct classes of landlords and tenants in Delhi.
• The first comprises landlords and tenants in properties fetching more than ₹3,500 per month.
They are governed by the Transfer of Property Act. In these cases, the rent and tenure of tenancy can
be freely negotiated.
• The second consists of landlords of private properties fetching a rent of less than ₹3,500 per
month. Governed by the DRC Act, these landlords can neither determine the rent nor evict tenants
except under certain limited conditions or grounds.
• The third class is of properties under the Public Premises (Eviction of Unauthorised Occupants)
Act, 1971. A separate simplified procedure is followed for eviction of tenants or unauthorised
occupants of such premises.

• The main purpose of introducing the Rent Control Act, 1958 in India is to protect the rights of tenants,
give them security and restricts the landlords in their ability to evict their tenants. This Act has been
designed for each and every state in India separately. Therefore, here we are discussing some
significant points of the Delhi Control Act, 1958.
• The Delhi Rent Control Bill was been passed by both the Houses of Parliament and received the
assent of the President on 31st December, 1958. It came into force on 9th February, 1959 as The Delhi
Rent Control Act, 1958. It extends to the areas included within the limits of the New Delhi Municipal
Committee and the Delhi Cantonment Board and to such urban areas within the limits of the
Municipal Corporation of Delhi. The courts are under a legal compulsion to harmoniously read the
provisions of the Act so as to balance the rights of the landlord and the obligations of the tenant and
landlord toward each other.
• Rent Control Acts (RCAs), including The Delhi Rent Control Act 1958, are meant to fulfill two main
purposes:

• protect the tenant from having to pay more than a standard rent.
• to protect the tenant from arbitrary eviction.
• If the amount of rent albeit a property is less than Rs. 3,500/- then the provisions of the Delhi Rent
Control Act, 1958 will apply; however, if the amount of rent albeit a property is more than Rs. 3,500/-
then, the provisions of the Transfer of Property Act, 1882 will apply. If the amount of rent charged is
Rs. 3,500/- exact, then the provisions of the Delhi Rent Control Act, 1958 will apply.
• The provisions of this act shall apply to all the hotels and lodges covering in the jurisdiction and the
controller shall have all the rights to fix the fair rate to be charged for any boarding/lodging.

• Important Terms in the Act
• Landlord- A person who is either being entitled to receive the rent (trustee, guardian) or receiving the
rent on account of premises that has been lent to the tenant. (section 2(e) of Delhi Rent Control Act,
1958).
• Standard Rent-As defined under Section 6 of the Delhi Rent Control Act, 1958,
• Section 6(1) (A) (1) states that in cases of residential premises let out before the 2nd day of June, 1944
the standard rent means:
• The basic rent of the premises in case it does not exceed Rs. 600 per annum.
• In case the basic rent of the premises exceeds Rs. 600 per annum, then, the basic rent plus 10 percent of
such rent.

• Section 6(1) (A) (2) states that in case where the premises have been let out on or after the 2nd day of
June, 1944, the standard rent means:
• If the rent of such premises have been fixed under the Delhi and Ajmer-Merwara Rent Control Act,
1947, or the Delhi and Ajmer Rent Control Act,1952.
• The rent so fixed in case it does not exceed Rs. 1200 per annum.
• In case the rent so fixed exceeds Rs. 1200, then, the rent together with 10 percent of such rent.
• In every other case, the rent shall be calculated on the basis of 10 percent of the aggregate of the
actual cost of construction and the market value of the land comprised in the premises on the date of
the commencement of the construction.
• Section 6(1) (B) (1) states that in cases of non residential premises let out before the 2nd day of June,
1944 the standard rent means:

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