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LAND LAWS - NOTES

Land law (Karnataka State Law University)

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LAND LAWS
SYLLABUS
Land plays an important role in the lives of individuals because of which it
is elevated in the level of a constitutional status. Of late there is a shift in the
approach of the State towards land which is reflected in the laws and their
interpretation. Apart from introducing the students to the basic legal regime
applicable to land, it is important to introduce them to diverse aspects of land
dealings like land revenue, prohibition of transfer, acquisition, conversion,
compensation, rehabilitation, resettlement, etc. This course is designed
towards this end.
UNIT – I
The Right to Fair Compensation and Transparency in land
Acquisition, Rehabilitation and Resettlement Act, 2013 – Determination of
social impact and public purpose, provision to safeguard food security,
notification and acquisition, rehabilitation and resettlement award and
procedure

UNIT – II

The Right to Fair Compensation and Transparency in Land

Acquisition, Rehabilitation and Resettlement Act, 2013 – Utilisation,
conversion : National Monitoring Committee, Acquisition, Rehabilitation
and Resettlement Authority, apportionment of compensation and payment
of compensation.

UNIT – III

The Karnataka Land Revenue Act, 1964 – Revenue Officers and

their procedure, Revenue Appellate Tribunal, Appeal and Revision, Land
and Land Revenue Record of rights, realisation of land revenue.

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UNIT – IV

The Karnataka Scheduled Castes and Scheduled Tribes

(Prohibition of Transfer of Certain Lands) Act, 1978 and Rules 1979 – The
Karnataka Land Reforms Act, 1961 – General provisions regarding
tenancies, conferment of ownership on tenants, ceiling on land holdings,
restrictions on holding or transfer of agricultural lands, co-operative farms,
fragmentation and consolidation of holdings.

UNIT – V

The Real Estate (Regulation and Development) Act, 2016 –

Registration of real estate project and registration of real estate agents,
functions and duties of promoter, rights and duties of allottees, the real
estate regulatory authority, the real estate appellate tribunal, offences,
penalties and adjudication.
The Karnataka Real Estate (Regulation and Development) Rules,
2017

Books prescribed :
S.G.Biradar, Land Acquisition – A Paradigm Shift, KAS Officers’ Research
and Training Institute, Bangalore

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UNIT – I

Syllabus
The Right to Fair Compensation and Transparency in land
Acquisition, Rehabilitation and Resettlement Act, 2013 – Determination of
social impact and public purpose, provision to safeguard food security,
notification and acquisition, rehabilitation and resettlement award and
procedure

SOCIASL IMPACT STUDY

Section 4 of the Right to Fair Compensation and Transparency in

Land Acquisition, Rehabilitation and Resettlement Act, 2013, requires the
Government to study the nature and extent of loss of revenue and
livelihood that may be suffered by the affected families from the intended
acquisition.

Whenever the appropriate government intends to acquire land for a

public purpose it shall consult the Panchayats, Municipality or Municipal
Coproration:

Consultation and Studies of Social Impact

In pursuance of its development plan,

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1) the Government shall consult the Panchayat, Municipality or

Municipal Corporation at village level or ward level in the concerned
area.
2) With their help, the government shall conduct social impact
assessment study in a specialized manner.
3) Such study shall be published in the local language, in the Offices
of Deputy Commissioner, Assistant Commissioner and Tashildar
and also uploaded on the Website of the Government.
4) The Government shall complete the study within six months from
the date of commencement of it.

The Assessment study shall examine whether the proposed acquisition

of land will be of public utility and whether any other place has been
identified as an alternative, if needed.

The Social Impact Assessment Study report shall be made available to

the public in the manner prescribed under Section 6 of the Act. The
Social Impact Assessment study shall include the following. Namely,
a) Assessment as to whether the proposed acquisition serves the
public purpose
b) Estimation of affected families and the number of families among
them likely to be displaced
c) Extent of lands, public and private, houses, settlements and other
common properties likely to be affected by the proposed acquisition;
d) Whether the extent of land proposed for acquisition is the absolute
bare minimum extent needed for the project;
e) Whether land acquisition at an alternate place has been considered
and found not feasible;
f) Study of the social impact of the project, and the nature and cost of
addressing them and the impact of these costs on the overall costs
of the project vis-à-vis the benefits of the project.
g) Environmental Impact study, if any, shall also be carried out
simultaneously and shall not be contingent upon the completion of
the Social Impact Assessment Study.

The Social Impact Assessment study shall also examine the result
of the proposed project on the livelihood of the affected families, the
impact on public and community properties, civic facilities, roads, public
transport sources of portable water, water sheds, gracing land,
plantations, public utilities, food storage godown, educational facilities,
anganwadies, places of worship, power supply and funeral grounds.

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The assessment study shall also draw a Social Impact Management

Plan by proposing ameliorative (improvement) measures to minimise
adverse impact of the government projects on the livelihood of the
inhabitants in the affected areas.

Where a Preliminary Notification under Section 11 of the Act is not

issued within twelve months from the date of appraisal of the Social
Impact Assessment Report submitted by the Expert Group, such report
shall be deemed to have lapsed and a fresh Social Impact Assessment
shall be required to be undertaken prior to acquisition proceedings under
Sec.11 of the Act. The appropriate government shall have the power to
extend the period of twelve months, if in its opinion circumstances exist
justifying the same. Such decision to extend the period shall be recorded
in writing and the same shall be notified and be uploaded on the Website
of the concerned authority.

SPECIAL PROVISION TO SAFEGUARD FOOD SECURITY

OBJECTIVE

Section 10 of the Right to Fair Compensation and Transparency in

Land Acquisition, Rehabilitation and Resettlement Act, 2013, recognizes
the critical importance of preserving irrigated land for production of food
crops. This section, therefore, forbids acquisition arable (gaphplg;$ba)
land for developing its civil projects.

The Government shall not acquire any irrigated multi-cropped land

for implementing its development project. Where it becomes necessary
to do so, the government shall set limits for every district or State and
notify such land as reserved for only agricultural purposes. These lands
shall be known as “NOTIFIED LANDS”.

Such land may be acquired subject to the condition that it is being

done under exceptional circumstances as a demonstrable (ep&gpf;fj;jf;f)
last resort. Whenever multi-crop irrigated land is acquired, an equivalent
area of culturable wasteland shall be developed for agricultural purposes
or an amount equivalent to the value of the land acquired shall be
deposited with the appropriate government for investment in agriculture
for enhancing food security.

This section is not applicable in the case of projects that are linear
in nature such as those relating to railways, highways, major district roads,
irrigation canals, power lines and the like.

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PUBLICATION OF PRELIMINARY NOTIFICATION AND POWER OF

OFFICERS

Section 11 of the Right to Fair Compensation and Transparency in

Land Acquisition, Rehabilitation and Resettlement Act, 2013, is intended
to make acquisition of land by the government for public purposes open
and transparent in all respects.

Before proposing to acquire land for developing a project, the

government shall issue a preliminary notification for doing so proving
details of such land. Publication of such notice shall be made in the official
gazette, two news papers popular in the area, in the Panchayat,
Municipality or Municipal Corporation and in the offices of the District
Collector, sub-divisional Magistrate and the Thesil. The notification shall
also be uploaded on the web site in the manner as prescribed in the Rules.
The Gram Sabha at the village level, municipalities and the Autonomous
Councils shall be informed of the notification.

The Notification shall describe:

1) the nature of the proposed project,
2) Reasons for re-location of affected persons; and
3) Contents of the Social Impact Assessment Report
4) Name of the Administrator for Rehabilitation and Resettlement of
the displaced persons.

From the date of Notification, no encumbrances on such lands shall

be created by any person until the proceedings of acquisition are
completed. The bar may be lifted in special circumstances with the
prior approval of the Collector. Within two months from the date of
publication of notification, the Collector shall revise and update the
lands.

Upon determining the location for implementing its project,

the appropriate government shall have the right to entire upon a
land, survey its suitability, dig or bore into sub-soil and do all
necessary acts, to set out boundaries of the land and to clear away
any part of any standing crop, fence or jungle.

The above such acts of the government shall be performed

only in the presence of the owner of the land or his authorized agent.
To ensure his present, the owner shall be given a notice of at-least
60 days prior to such survey. Where a person who is not the owner

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is in occupation of the land, such person shall be given a notice of

at least seven days.

Protection to the owner against loss or damage:

Section 13 of the Act, the aim is to protect the owner against

any loss caused by any authorized Officer entering upon his land to
conduct survey or determine its suitability. Under this section, the
Officer of the government is responsible to compensate the owner
of the land for any damage caused to such land on account of his
entering upon it and performing any act thereon to determine its
suitability of acquisition. The District Collector is the referee where
the adequacy of compensation for loss due to damage is disputed.

Tenure of the Assessment Report :

If the process of acquisition is not commenced within twelve

months of drawing of the assessment report, such report shall be
considered as obsolete and no acquisition proceedings can be
made there after, unless the government extends the period and
justifies doing so.

Objections by the land owner:

Under Section 15 of the Act, the government shall also give

an opportunity for the land owner to present his objections to the
preliminary notification issued by it within 60 days thereof. Such
objections may relate to the area and suitability of the land and its
justification for using it for public purpose. The objection may also
relate to the findings of the social impact assessment report. The
District Collector shall record the objections and forward them along
with his comments to the government. The District Collector shall
also make a separate report on the approximate cost implied in the
acquisition of land and the number of families that may be required
to be resettled.

Any person interest in the lands may raise his objections on :

a) The area and suitability of land proposed for acquisition;
b) Justification offered for public purpose;
c) The findings of the Social Impact Assessment Report.

The decision of the appropriate government on the

objections made under Rule 15(2) shall be final.

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Duties of the Administrator for Rehabilitation and Resettlement:

Followed by the Preliminary Notification, the Administrator for

Rehabilitation and Resettlement shall conduct a survey and undertake a
census of the affected families which shall include :

a) Particulars of lands and immovable properties being acquired of

each family
b) Livelihoods lost in respect of land losers and landless whose
livelihoods are preliminarily dependent on the lands being
acquired;
c) A list of public utilities and government buildings which are
affected or likely to be affected, where resettlement of affected
families are involved;
d) Details of the amenities and infrastructural facilities which are
affected or likely to be affected,
e) Details of any common property resources being acquired.

Based on the survey and census, he shall prepare a Draft

Rehabilitation and Resettlement Schemes which include particulars of the
rehabilitation and resettlement entitlements of each land owner and
landless whose livelihoods are primarily dependent on the lands being
acquired.

The Commissioner for Rehabilitation and Resettlement shall

review the recommendations of the District Collector before
implementation.

Upon reviewing the Scheme by the Commissioner for Rehabilitation

and Resettlement, it shall be uploaded on the web site of the appropriate
government. The Commissioner shall also provide a copy of the Scheme
to the concerned Panchayat or Municipalities or Municipal Corporation as
the case may be as well as to the Offices of the District Collector, the Sub
divisional Magistrate and the Tehsil and made known in the affected
areas.

Resettlement Area:

As per Section 19 of the Act, upon identifying an area for

rehabilitation and resettlement of the affected families,
a) the appropriate government shall declare it as a “resettlement area”
b) such declarations shall be made severally in respect of different
parcels of land;

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c) every declaration shall be accompanied by the summary of the

rehabilitation and resettlement scheme.
d) Such declaration shall be made only after the Requiring Body
deposits a stated amount with the government towards costs of the
land;
e) The declaration shall be published in the Official Gazette, two news
papers and in the Panchayat or Municipalities and uploaded in the
official web site

As per Section 20 of the Act, the Collector shall thereupon cause the
land to be marked out and measure and if no plan has been made thereof,
a plan to be made of the same.

Where the government makes such declaration within twelve months

of its preliminary notification, such notifications shall be considered as
withdrawn, unless a stay or an injunction of a court is in operation.
However, the government may extend time by itself.

NOTICES TO THE PERSIBS

After preparation of Plan, as per section 21 of the Act, the District

Collector shall publish the public notice on his web site and cause public
notice to be given at convenient place on or near the land to be taken and
such notice shall state the particulars of the land so needed and require
all persons interested in the land to appear personally or by the agent or
by advocate before the District Collector at a time and place mentioned in
the Public Notice not being less than 30 days and not more than 60 days
after the date of publication. The persons who appear before the District
collector has to state the nature of the respective interests in the land and
the amount and the particulars of their claims to compensation for such
interests, their claims to rehabilitation and settlement along with the
objections and statement to be made in writing and signed by the person
appeared before the collector (Party in person, or agent or advocate). The
District Collector shall also service notice of the same to the occupier or
person interested, if any. In case any person so interested resides
elsewhere and has no such agent or advocate, the collector shall send
the notice to him by post.

ENQUIRY AND AWARD:

Under section 23 of the Act, on the day so fixed, the Collector shall
proceed to enquire into the objections which any person interested to the
measurements made and the value of the land at the date of publication

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of the notification and into the respective interests of the persons claiming
the compensation and rehabilitation and resettlement, shall make an
award:

a) True area of the land

b) The compensation as determined along with rehabilitation and
resettlement award;
c) The apportionment of the said compensation among all the persons
known or believed to be interested in the land, or who, or of whose
claims, he has information, whether or not they have respectively
appeared before him.

As per Section 25 of the Act, the District Collector shall make an award
within twelve months from the date of publication of declaration and if no
award is made within that period, the entire proceedings will be lapsed.
However, the Government shall have the power to extend the period of
twelve months, in its opinion, circumstances exist justifying the same and
such decision to extend the period shall be recorded in writing and the
same shall be notified and uploaded on the web site of the authority
concerned.

DETERMINATION OF MARKET VALUE:

Under Section 26 of the Act, (1) the District Collector shall adopt
the following criteria in assessing and determining the market value of the
land:
a) The market value, if any, for the registration of sale deeds or
agreements to sell, as the case may be in the area, where the land
is situated; or
b) The average sale price for similar type of land situated in the nearest
village or nearest vicinity area; or
c) Consented amount of compensation as agreed upon in case of
acquisition of lands for private companies or for public private
partnership projects, which ever is higher.
d) The date for determination of market value shall be the date on
which the notification has been issued under Section 11.

As per section 27 of the Act, the Collector, after determination of the

market value of the land to be acquired shall calculate the total amount of
compensation to be paid to the land owner by including all assets attached
to the land.

DETERMINATIONF OF AWARD:

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Under section 28 of the Act, the District Collector shall take into
consideration for determination of award for the land to be acquired:
Firstly, the market value determined and the award amount in
accordance with Schedule-I
Secondly, the damage sustained by the person interest, for taking of any
standing crops and
trees which may be on the land at the time of taking possession
of the land

Thirdly, the damage sustained by the person interested for reason of

severing of such land
from the other land;
Fourthly, the damage sustained by the person interested by reason of the
acquisition
injuriously affecting his other property, moveable or immovable
in any other manner
or his earnings.
Fifthly, in consequence of the acquisition of the land, the person interested
is compelled to
change his residence or place of business, the reasonable
expenses, if any, incidental
to such change;
Sixthly, the damages, bona fide resulting from diminution of the profits of
the land between the
time of the publication of the declaration;
Seventhly, any other ground which may be in the interest of equity, justice
and beneficial to
the affected families.

DETERMINATION OF VALUE ATTACHED TO LAND OR BUILDINGS:

Section 29 of the Act deals with the determination of value of things

attached to the land or building, to be acquired under the Notification.

1) The District Collector in determining the market value of the

building and other immovable property or assets attached to the
land or building which are to be acquired. For determination of
value, the Collector may use the services of a competent
engineer or any other specialists in the relevant field.
2) The Collector, for determination of value of trees and plants
attached to the land acquired, use the services of experienced

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persons in the field of agriculture, forestry, horticulture,

sericulture or any other field;
3) The collector for the purpose of assessing the value of the
standing crops damaged during the process of acquisition, may
use the services of experienced persons in the filed of agriculture,
as considered by him necessary.

AWARD OF SOLATIUM:

Under Section the Collector having determined the total

compensation to be paid, shall, to arrive at the final award, impose
“Solatium amount” equivalent to 100% of the compensation amount.

2) The Collector shall issue individual awards detailing the

particulars of compensation payable and the details of payment of the
compensation as specified in the Schedule.

3) In addition to the market value of the land provided, the Collector

shall in every case, award an amount calculated at the rate of
12% on such market value for the period commencing on and
from the date of the publication of the Notification of the Social
Impact Assessment Study in respect of such land till the date of
the award of the Collector or the date of taking possession of the
land, whichever is earlier.

REHABILITATION AND RESETTLMENT AWARD AND PROCEDURES

(RR AWARD) (SECTIONS 31 TO 37) :

The District Collector passes two types of awards, in case of land

acquisition. They are :
1) Award for Land Acquisition :
An award made in respect of every affected family whose
land is being acquired (this will include landless tenants as
well) and containing details of land acquisition as listed in
the Schedule-I.
2) Award for Rehabilitation and Resettlement Award:
An award made in respect of every affected family,
regardless of whether they may be losing land or not,
containing details of Rehabilitation and Resettlement
entitlements in the Schedule-II.
(In simple, LA award and RR award)

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The Collector shall pass Rehabilitation and Resettlement Awards for

each affected family in terms of the entitlements provided in the II
Schedule which include the following :

a) Rehabilitation and Resettlement (RR) 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 the 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
Scheduled Tribes to be provided;

In every resettlement area, the District Collectors shall ensure the

provision of all infrastructural facilities and basic minimum amenities
specified in the Schedule – III.

The District Collector may at any time, but within six months from
the date of award or before making reference to the Authority under
Section 64, by order, correct any clerical or arithmetical mistakes in either
of the awards or errors arising therein either on his own motion or on the
application of any persons interested or local authority.

Such correction shall be brought to the notice of all the persons

interested. Where any excess amount is to be paid in the result of such
corrections, the excess amount is liable to be refunded.

ENQUIRY:

The Collector may, for any cause, from time to time adjourn the
enquiry to a day fixed by him. For the purpose of enquiry, the Collector
shall have powers to summon and enforce the attendance of witnesses,
including the parties interested of any of them, and to compel the

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production of documents by the same means, and in the same manner as

is provided under the CPC. The appropriate government may at any time
before the award is made by the Collector, call for records of any
proceedings for the purpose of satisfying itself as to the legality or
propriety of any findings or order passed or as to the regularity of such
proceedings and may pass such other or issue such direction in relation
thereto as it think fit. Provided that the appropriate government shall not
pass or issue any order or direction prejudicial to any person without
affording such person a reasonable opportunity of being heard.

The awards shall be filed in the office of the District Collector and
shall be final and conclusive evidence, as between the Collector and the
persons interested, whether they have respectively appeared before him
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. The collector shall give
immediate notice of his awards to such of the persons interested who are
not present personally or through their agent or through their advocate.
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 with details of
land finally acquired.

TAKING POSSESSION OF LAND TO BE ACQUIRED:

As per Section 38 of the Act, the Collector shall take possession of

the 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 commencing
from the date of the award. Provided:
a) That the components of the Rehabilitation and
Resettlement Package in the 2nd & 3rd Schedules that relate
to infrastructural entitlements shall be provided within a
period of 18 months from the date of award;
b) That in case of acquisition of land for irrigation or hydel
project, being a public purpose, the rehabilitation and
resettlement shall be completed six
c) months prior to submergence of the lands acquired.
The District Collector shall be responsible for ensuring that the
rehabilitation and resettlement process is completed in all its aspects
before displacing the affected families.

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ADDITIONAL COMPENSATION:

Under Section 39 of the Act, the District collector shall not displace
any family which has already been displaced by the appropriate
government for the purpose of acquisition under the provisions of the Act
and if so displaced, shall pay an additional compensation equivalent to
that of the compensation determined under the Act for the 2 nd or
successive displacements.

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U N I T - II
SYLLABUS:

The Right to Fair Compensation and Transparency in Land

Acquisition, Rehabilitation and Resettlement Act, 2013 – Utilisation,
conversion : National Monitoring Committee, Acquisition, Rehabilitation
and Resettlement Authority, apportionment of compensation and payment
of compensation.

NATIONAL MONITORING COMMITTEE FOR REHABILITATION AND

RESETTLEMENT

Under Section 48 of the Act, the Central Government for national or

inter-state projects, constitute a National Monitoring Committee for
reviewing and monitoring the implementation of rehabilitation and
resettlement schemes or plans.

The Committee may, besides having representation of the

concerned Ministries and Departments of the Central and State
Governments, associate with it eminent experts from the relevant fields.
The procedures to be followed by the Committee and the allowances
payable to the experts shall be such as may be prescribed. The Central
government shall provide officers and other employees to the Committee
necessary for its efficient functioning.

The State and Union Territories shall provide all the relevant
information on the matters covered under this Act to the Committee in a
regular and timely manner and also as and when required.

ESTABLISHMENT OF THE STATE MONITORING COMMITTEE

(SEC.40) :

The State government shall constitute a State Monitoring

Committee for reviewing and monitoring the implementation of
rehabilitation and resettlement schemes or plants under this act.

The Committee may have representatives of the concerned

Ministries and Departments of the State Government, associate with it
eminent expert from the relevant fields. The procedures to be following
by the Committee and the allowances payable to the experts shall be such
as may be prescribed by the State. The State government shall also
provide such officers and other employees to the Committee as may be
necessary for its efficient functioning.

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APPORTIONMENT OF COMPENSATION AMOUNT (SEC.75 & 76) :

When there are several persons interested, if such persons agree

in the apportionment of the compensation, the particulars of such
apportionment shall be specified in the award and as between such
persons the award shall be conclusive evidence of the correctness of the
apportionment. Further, when amount of compensation has been settled,
if any dispute arises as to the apportionment of the same or any part
thereof, or as to the persons to whom the same or any part thereof
payable, the district collector may refer such dispute to the authority.

PAYMENT OF COMPENSATION (SEC. 77) :

On making award under Section 30 of the Act, the Collector shall

tender payment of the compensation awarded by him to the persons
interested entitled thereto according to the award and shall pay it to them
by depositing the amount in their bank accounts unless prevented by
some one or more of the contingencies.

If the person entitled to compensation shall not consent to

receive it, or if there be no person competent to alienate the land, of if
there be any dispute as to the title to receive the compensation or as to
the apportionment of it, the Collector shall deposit the amount of
compensation in the Authority to which a reference under Section 64
would be submitted. Provided:
a) That any person admitted to be interested may receive such
payment under protest as to the sufficiency of the amount;
b) That no person who has received the amount otherwise than
under protest shall be entitled to make any application;
c) That nothing herein contained shall affect the liability of any
person, who may receive the whole or any part of any
compensation awarded under this Act, to pay the same to the
person lawfully entitled thereto.

In the above circumstances, when the compensation money is in

the custody of the Authority, it however transpires that the compensation
awarded had no power to alienate the land, in that event, the Authority
shall :
a) Order to purchase of other lands to be held under the like title
land conditions of ownership;
b) Where such purchase cannot be made immediately, invest the
amount in approved securities and pay interest earned thereon
to the interested persons;

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c) Order all related costs to be recovered from the Collector

When the compensation amount is in the custody of the Authority

on the awardee’s own motion, or for any reason other than as specified,
on an application made by the awardee, the Authority may order that such
amount be invested in Government or other approved securities. The
Authority shall ensure that such investment would fetch the awardee the
same return, as proximately as possible, that he might have earned from
out of the acquired land.

Before taking possessions of the acquired land, the Collector shall

deposit the compensation amount with the Authority or pay the awardee,
as the case may be. Where the Collector fails to do either, he shall pay
interest at the rate of 9% p.a. from the time of taking possession until
making deposit or payment. Where such delay exceeds one year, the
Collector shall pay interest at the rate of 15% p.a. for the period of such
delay.

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U N I T - III
SYLLABUS

The Karnataka Land Revenue Act, 1964 – Revenue Officers and their
procedure, Revenue Appellate Tribunal, Appeal and Revision, Land and Land
Revenue Record of rights, realisation of land revenue

KARNATAKA LAND REVENUE ACT, 1964

PROCEDURES OF REVENUE OFFICERS:

The Act may be called as Karnataka Land Revenue Act, 1964. It

shall extend to the whole of the State of Karnataka. It shall come into
force on the 1st day of April, 1964.

REVENUE OFFICERS TO BE REVENUE COURTS;

A Revenue Officer, not below the rank of a Tahsildar while

exercising power under this Act, or any other law for the time being in
force, to inquire into or to decide any question arising, for determination
between the State Government and any person or between parties to any
proceedings shall be a Revenue Court.

The Revenue Court shall be deemed to limit or otherwise affect the

inherent power to make such orders as may be necessary for the ends
of justice or to prevent the abuse of the process of the Revenue Court.

Every Revenue Officer shall function only within his local

jurisdiction, unless his headquarters lies outside the local limits of his
jurisdiction.

The Tribunal can transfer any case arising under this Act, the
Tribunal may transfer it from any Regional Commissioner to any other
Regional Commissioner when it considers it necessary to do so. The
Regional Commissioner may transfer any case arising under this Act from
one Revenue Officer to another in the same district or another. The
Deputy Commissioner may transfer a case from his own file or from the
file of any Revenue Officer to the file of another Revenue Officers. He
may also withdraw any case from any Revenue Officer and bring it before
himself.

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FUNCTIONS OF THE REVENUE OFFICER:

1) The Revenue Officer may take evidence, summon persons to

give evidence, and call for documents.
2) The Revenue Officer shall issue summons only in writing and
shall serve them under his seal in a manner as prescribed.

SERVICE OF NOTICES:

1) The postal acknowledgement purporting to contain the

signature of the person summoned is sufficient proof of
;issue of summons. Where the postal cover containing the
summons returned un-served, any noting made thereon to
that effect by the postal department constitutes evidence of
statements contained therein.
2) Serving of notices may be made also by affixing a copy of
it to a conspicuous place on land. If the person to be
notified resides in any other district, the notice may be sent
to the Deputy Commissioner of that district. Any error in
the name or designation of the person addressed shall not
nullify the notice unless such error cause miscarriage of
justice;
3) The attendance of witness shall be procured in the manner
prescribed under CPC.
4) Where a witness is required in any case failed to comply
summons, the summoning officer may issue a bailable
warrant of arrest or order him to furnish security for
appearance or impose upon him a fine. However, the
summoning officer may exempt the witness from personal
appearance due to sickness or infirmity or any other
justifiable cause.

HEARING OF DISPUTES:

1) Enquiries are deemed to be judicial proceedings.

2) Every Revenue Court shall conduct hearing in public and
parties shall be served its due notice. Where neither party
is present at the time of pronouncement to me made in the
open court on the appointed day, the decision shall be
communicated by post to each party. If the parties are not
present at the time of hearing, the court may dismiss the
case for default.

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3) Where an exparte order is passed by the court, the

aggrieved party may apply within 30 days thereafter for
setting it aside by showing sufficient cause for non-
appearance.
4) The Revenue Officer may conduct any enquiry, not being
formal or summary, on any occasion according to the rules
prescribed by the State Government.

ENTRY INTO THE LAND OR PREMISES:

a) The Revenue Officer or his authorised representative may enter

into any land or premises for administering revenue law.
However, no person shall enter into land or premises unless the
occupier is given due notice and after having regarded to his
social and religious sentiments.
b) The Deputy commissioner may or shall evict any person
wrongfully holding possession of land by serving a notice or
removing such person or by taking such forceful steps to remove
him as become necessary.

EVICTION OF WRONGFUL POSSESSION (SEC.39)

When it is provided by this Act or any other law for the time being in
force, the Deputy commissioner may or shall evict any person wrongfully
in possession of land or where any order to deliver possession of land has
been passed against any person under this Act, such eviction shall be
made or such order shall be executed, as the case may be in the following
manner:

a) By serving a notice on the person in possession requiring him

within such time as may reasonable after receipt of the said
notice to vacant the land; and
b) If such notice is not obeyed, by removing or deputing a
subordinate officer to remove any person who may refuse to
vacate the same; and
c) If the Officer removing any such person in resisted or obstructed
by any person, the Deputy Commissioner or the Revenue Officer
shall hold a summary inquiry into the facts of the case, and if
satisfied that the resistance or obstruction still continues, may,
without prejudice to ;any proceedings to which such person may
be liable under any law for the time being in force for the
punishment of such resistance or obstruction, such steps and

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use or cause to be used in the opinion of such Officer, by

reasonably necessary for securing compliance with the Order.

APPELLATE TRIBUNAL:

As per Section 40 of the Act, the State Government shall by

notification constitute for the State of Karnataka, an Appellate Tribunal
called the Karnataka Revenue Appellate Tribunal.

The Tribunal shall consist of the following six members appointed

by the State Government :

a) A Chairman – Shall be Officer of the rank of Regional

Commissioner; and
b) Five members – Of whom , 3 shall be persons who are District
Judges; and the others shall be Officers having experience in
administration of revenue matters not below the rank of a Deputy
Commissioner.

If , by reason of any increase in the business of the Tribunal or by

reason of arrears of work therein or otherwise, it appears to the State
Government that the number of members of the Tribunal should be for the
time being increased, the State Government, may by notification appoint
persons having same qualification of members to be the Additional
Members of the Tribunal for such period the State Government specify.

The Karnataka Revenue Appellate Tribunal constituted under the

Karnataka Revenue Appellate Tribunal Act, 1957 and functioning as such
immediately prior to the commencement of this Act shall continue to
function as the Tribunal for the purposes of this Act, until a Tribunal duly
constituted in accordance with the Provision of the Act.

BUSINESS OF THE TRIBUNAL:

The Tribunal shall have the powers of Civil court and a single
member may exercise power to admit an appeal or a revision petition,
issue stay orders or pass any interlocutory orders. Under Section 41 of
the Act, the power of the Tribunal in all matters relating to appeals,
revisions and other proceedings, shall be exercised by Bench of two
members. Where a Bench comprising two or more members hears a
matters its decision shall be that of the majority. Where a Bench of two
members differs in its opinion on any point, in case, a third member shall
hear that point only and the decision shall be of majority of members.

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The headquarters of the Tribunal shall be at Bangalore. The

Tribunal may have sittings at such places as the Chairman of the Tribunal
may specify.

REVIEW POWERS:

The Tribunal may either on its own motion or on the application of

any party affected, review any order passed by itself and pass such orders
in reference thereto as it deems fit. Provided:
1) That no order shall be varied or reversed unless notice has been
given to the other parties affected; and
2) That no order affecting any question of right between private
persons shall be reviewed except on the application of the party
affected.
3) That every application for a review of the order shall be made
within a period of 90 days from the date of order.
4) That the provision in the Limitation Act, 1963 shall apply to an
application for review.

Every division of the Tribunal shall be final and shall not be called in
question in any court.

POWERS OF THE TRIBUNAL:

The Tribunal may do all or any of the following: namely,

1) Call for returns from the authorities subject to its jurisdiction;

2) Issue general directions and prescribe forms for regulating the
practice and proceedings of such authorities.

APPEAL AND REVISION (SECTION 49):

An appeal shall lie from every original order passed under this Act
or the rules made thereunder:

a) If such an order is passed by the Revenue Officer subordinate to

the Assistant Commissioner
b) If such order is passed by Assistant Commissioner, to the Deputy
Commissioner;
c) If such an order is passed by the Deputy Commissioner, to the
Tribunal;
d) If such an order is passed by the Regional Commissioner to the
Tribunal;

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e) If such an order passed by a Survey Officer below the rank of

Assistant Director to the Assistant Director of Land Records or
Assistant Director for Settlement;
f) If such an order passed by a Survey Officer of the rank of
Assistant Director to the Director of Land Records or Joint
Director for Settlement;
g) If such an order passed by the Joint Director of Land Records or
Joint Director for Settlement, to the Director of Survey and
Settlement and Land Records;
h) If such an order passed by the Director of Survey, Settlement and
Land Records, to the Tribunal.

SECOND APPEAL (Section 50)

Second appeal shall lie against any order passed in a first appeal:
1) If such an order is passed by the Assistant Commissioner to the
Deputy Commissioner
2) If such an order is passed by the Deputy Commissioner to the
Tribunal;
3) If such an order is passed by the Assistant Director or Settlement
or Assistant Director of Land Records, to the Director of Survey,
Settlement and Land Records.
4) If such an order passed by the Joint Director of Land Records or
Joint Director of Settlement or by Director of Survey, to the
Tribunal;
An order passed on Second Appeal shall be final.

LIMITATION OF APPEALS:

No appeal shall lie :

a) In case of first appeal, after the expiry of 60 days from the date of
the order appealed against; and
b) In case of second appeal, after the expiry of 90 days from the date
of order appealed against.

POWER OF THE APPELLATE AUTHORITY:

1) The appellate authority may, for reasons to be recorded in

writing, either annul, reverse, modify or confirm the order
appealed. Provided, unless :
a) The Revenue Officer from whose order the appeal is
preferred has refused admit evidence which out to have
been admitted.

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b. The Appellate Authority requires any document to be

produced or any witness to be examined to enable it to
pronounce orders, or
c. For any substantial cause the Appellate Authority allows such
evidence or document to be produced or witness to be
examined;
d. When an additional evidence is allowed to be produced, such
authority shall record the reason for its admission.
2) The Revenue Officer who has passed an order or his successor
in office , before the expiry of the period prescribed for appeal
may say for such time
3) The Appellate Authority direct that the execution of the order
appealed from, be stayed for such time as it may think fit or till
the decision of the appeal;
4) No order directing the Stay of Execution of any order shall be
passed except in accordance with the Provisions of this Section.

POWER OF REVISION (SECTION 56):

The Tribunal, any Revenue Officer not inferior in rank to an Assistant

Commissioner, and any Survey Officer not inferior in rank to the Deputy
Director of Land Records or an Assistant Settlement Officer in their
respective Departments, may call for and examine the record of any
inquiry or the proceedings of any Subordinate Officer under this Act for
the purpose of satisfying itself or himself, as to the legality of propriety of
the proceedings of such officer.
1) In any case, any decision or proceedings called for should be
modified or reversed, the Tribunal or such Officer may pass such
order as deems fit.
2) No application for revision under this section and no power of
revision on such application shall be exercised against any order
in respect of which an appeal has been preferred
3) No application for revision shall be entertained unless such
application is presented within a period four months from the date
of such order.
4) The Tribunal alone shall be competent to modify, annul or
reverse any such order under the Provisions of the Act.

LAND AND LAND REVENUE

LAND (SEC. 67 TO 79)

The government is the lawful holder of all roads, bridges, ditches,
harbours, sea beds, rivers, lakes and creeks below high water mark. High

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water mark is the point which spring tides reach during any season.
Where a claim to any such property is in dispute, the Deputy
Commissioner shall be the deciding authority.

The State government may by notification declare that the rights of

the public over any road, street, lane or path shall stand extinguished. Any
objection of the public to such declaration may be submitted by the Deputy
Commissioner to the State Government. Where necessary an affected
person shall be paid compensation.

The State Government or the Revenue Officer, as the case may be,
may apply its land or other property for the purpose of agriculture, industry
or any other public utility. The State Government or the Authorized Officer
may sell of any property belonging to the State Government by public
auction and confirm such sale within 30 days thereof.

The right to mines, minerals and mineral products shall vest in the
State Government absolutely. During survey operations, the Deputy
Commissioner may set apart lands which are a property of the State
Government and which are not in lawful occupation of any person for free
grazing by the village cattle, for forest reserves or any other public
purpose. No person shall occupy or trespass any land reserved by the
Government for special purpose or remove any natural product which is
part of its property.

Where the survey settlement has not been introduced, the occupant
of the land for the time being shall have the right to all trees except those
reserved by the Government or those, such as, sandalwood trees, which
are the lawful property of the State Government.

All trees in any land, except those reserved by the Government,

which were surveyed before the commencement of this Act stand
conceded to the person in lawful possession of such land at the point of
time. Survey after the passing of this Act shall make such trees, the
property of the occupant of such land for the time being. Occupancy of
the land granted after completion of survey shall entitle the occupant to
the right to all trees growing on that land, provided they were kept in
reserve at the time of grating permission for occupation.

The ownership of trees, brush-wood, jungle and natural products

shall vest in the State Government. The holder of such land shall preserve
or dispose of them in the manner that the State government may direct
from time to time.

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Trees standing by the road side belong to the State Government.

However, where they had stood on a private land which was acquired for
the making of the road, and were either cut down or died, the timber
thereof would be the property of such land holder.

No person shall cut down or utilize any tree or any portion thereof
when it remains the property of the government.

The privileges of the villagers or certain class of persons to cut fire-

Every piece of land, not being a fragment, whether used for

agricultural or any other purpose, shall be liable to payment of land
revenue to the State Government. However under any special contract
with the Government payment of land revenue may be exempted.

An occupant of alluvial lands or abandoned river beds may be

entitled for their temporary use, if such area is a fragment. Otherwise,
such land or island or riverbed shall belong to the government. The
individual holder is not liable to pay land revenue thereon.

Where a holder loses a part of his land, being less than half an acre,
by diluvion (ngUnts;sk; rkk;ge;jkhd) shall pay reduced land revenue. If a
holder diverts his land from non-agricultural use to agricultural use, he
shall pay land revenue as applicable for agricultural land. Land revenue,
which was being paid before the commencement of this Act, shall
continue to be payable at prescribed rates. The use of any land liable for
land revenue may be prohibited for certain stated purposes. The holder
may be evicted summarily, if he violates such prohibition.

The Deputy Commissioner shall fix the amount of revenue subject

to the maximum prescribed rates and for maximum prescribed period.
Assessment so made may be subject to special conditions or restrictions.
The Deputy Commissioner may revise the period fixed for payment of land
revenue within the prescribed period.

The Deputy Commissioner shall maintain a record for all lands

alienated under any law. When a sannad is lost or destroyed, he may
issue a certified extract from the register as a proof of title.

Liability to pay land revenue would create a charge on every part of

the land and the rights of the occupant over all trees, crops, buildings and
things attached to the land. The Tahsildar may recover the arrears of the

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land revenue by sale of occupancy or of holdings or by disposing them

otherwise.

The Thasildar shall take possession of forfeited holdings

immediately and transfer them to persons who are entitled to hold them.

RECORD OF RIGHTS (SECTION 127 TO 136)

A record of rights shall be prepared in the prescribed manner in

respect of every village and such record shall include the following
particulars:
a) The names of persons who are holders or owners, tenants of the
land
b) The nature and extent of the respective interest of such persons
c) The rent or revenue, if any, payable by or to any such persons
d) Such other particulars as may be prescribed.

The Record of Rights shall be maintained by such Officers in

such areas as prescribed and different Officers may be
prescribed for different areas. When the preparation of Record
of Rights is completed, the fact of such completion shall be
notified in the Official Gazette.

ACQUISITION OF RIGHTS TO BE REPORTED:

Where land devolves on any person through succession,

survivorship, inheritance, partition or otherwise, he shall report the event
to the Prescribed Officer of the village within three months thereof. The
guardian of a minor shall report the event where applicable. Delay in
reporting may attract a fine as penalty. The acquisition shall be registered
and entered in the Record of Rights.

Whenever a person transfer his holdings to another, the event shall

be entered in the Register of Mutations. Where the transfer is disputed,
the fact shall be recorded in the Register of Disputed Cases. The
Revenue Officer shall supply a copy of Record of Rights to every holder
and tenant. Such copy is referred as the Patta Book. The patta book shall
also show land revenue paid, crops grown on the land as contained in
Record of Rights, Tenancy and crops.

The land owner shall furnish or produce for the inspection by any
Revenue Officer such information or documents as may be within his

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knowledge or possession. On default, the holder shall pay penalty as

prescribed.

The Prescribed Officer is entitled to obtain information form any

holder for preparing or revising any map or plan of the village. The
Revenue Officer may assess and recover the cost of preparing such map
from the holder, the interested person shall get a sketch of the property
acquired by him through succession, survivorship, inheritance, partition or
by any other lawful means.

A certified copy of the Record of Rights or Register of Mutations

shall be attached to every plaint or application made to the Court.

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U N I T - IV
The Karnataka Scheduled Castes and Scheduled Tribes
(Prohibition of Transfer of Certain Lands) Act, 1978 and Rules 1979 – The
Karnataka Land Reforms Act, 1961 – General provisions regarding
tenancies, conferment of ownership on tenants, ceiling on land holdings,
restrictions on holding or transfer of agricultural lands, co-operative farms,
fragmentation and consolidation of holdings.

KARNATAKA SCHEDULED CASTES AND SCHEDULED TRIBES

(PREVENTION OF TRANSFER OF CERTAIN LANDS) ACT, 1978 :

The Act may be called as the Karnataka Scheduled Castes and

Scheduled Tribes (Prevention of transfer of Certain Lands) Act, 1978.
This Act are for giving effect to the policy of the State towards securing
the principles laid down in Article 46 of the Constitution.

PROHIBITION OF TRANSFER OF GRANTED LANDS (SEC.4) :

This Act protects the members of the Schedule Caste and

Scheduled Tribes from transfer of lands granted to them by the
Government under any scheme. The Act forbids transfer of such land by
way of gift, sale, exchange, lease, mortgage, etc. However, this Act does
not forbid transfer of granted land, if such transfer is the result of an
intestate succession or a partition among the members of the family.

Where a grantee desires to transfer a land granted by the

government, he may do so only with the previous permission of the
government. The prohibition contained in this Act, shall also extent to the
sale of the granted land in execution of a decree or order of a Civil Court
or an award or an order made by a statutory body.

RESUMPTION & RESTITUTION OF GRANTED LANDS :

Under Section 5 of this Act, the Assistant Commissioner is

empowered to take possession of the granted land wrongfully transferred
and restore it to the original grantee, as and reported to him as transferred
in contravention of this Act. The Assistant Commissioner may do so after
satisfying himself of the veracity of such information received by him or
suo motu and declare its sale as null and void. He may make such order
only after giving the informant a reasonable opportunity of presenting his
case in person.

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The Assistant Commissioner shall thereafter restore the granted

land to the original grantee or his legal heirs, as the case may be. In case
the heirs are either non-existent or untraceable, such land shall vest with
the Government as unencumbered property. In such an event, the
government may grant such land to any person belonging the Scheduled
Caste or Scheduled Tribe under any of the rules framed by it. On the
contrary, the Assistant Commissioner may, if he is so satisfied, declare
the sale as legitimate.

Any order passed by the Assistant Commissioner under the Section

becomes final, if the Deputy Commissioner also endorses it. In that event
such order is not questionable in any court of law nor would qualify for any
civil injunction. Where any person other than the original grantee or his
legal heirs, under this Act is in possession of the granted land shall
become invalid until such possession is successfully defended by him.

APPEAL TO THE DEPUTY COMMISSIONER (SECTION 5-A):

Where the Assistant Commissioner declares the sale of granted

land as null and void, the purchaser of such land may appeal against such
order before the Deputy Commissioner. He may admit such appeal, if it
is made before him within a period 3 months from the date of order
communicated to him, unless a Writ Petition has been preferred against
such order in High Court. The Deputy Commissioner shall dispose of the
appeal in the prescribed manner and the order passed by him shall be
final.

PROHIBITION OF REGISTRATION OF GRANTED LAND (SEC.6):

After commencement of this Act, no registering Officer shall accept

for registration any document relating to the transfer of , or to the creation
of any interest in, any granted land included in a list of granted lands
furnished to the registering officer except where such transfer is in
accordance with this Act or the terms of the grant of such land or the law
providing for such grant. However, the Assistant Commissioner may
transfer granted land favour the State or Central Government, a
Municipality or a bank either before or commencement of this Act. This
section empowers the Assistant Commissioner to restore a granted to the
government.

A person who acquires any granted land shall become liable to

conviction and imprisonment or fine or both. This section treats transfer
of granted land to a non-government body or to a bank without the

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permission of the government, as an offence that may be taken up suo

motu by the law enforcement authority.

PROTECTION OF ACTION TAKEN IN GOOD FAITH (SEC.9):

No suit, prosecution or other legal proceedings shall lie against any

person or officer for anything which is, in good faith done or intended to
be done in pursuance of this Act or any rules made thereunder. No suit
or other legal proceedings shall lie against the government for any
damage caused or likely to be caused or for injury suffered any or likely
to suffered by virtue of any provision of this Act or for anything which is
good faith done or intended to be done in pursuance of this Act or any
rules made thereunder.

THE KARNATAKA LAND REFORMS ACT, 1961

WHO ARE TENANTS:

As per Section 4 of the Karnataka Land Reforms Act, 1961, a person

is deemed to be a tenant who is :

i) Lawfully cultivating a land belonging to another person which the

owner is not cultivating personally;
ii) not a member of owner’s family, or
iii) a servant or hired labourer on wages payable in cash or kind but
not on crop sharing basis and not cultivating under supervision
of the owner or any member of his family; or
iv) a lender in possession of the land as a mortgagee

PROHIBITION OF LEASES (SEC. 5) :

No tenancy or lease shall be created or continued on the land after

commencement of this Act. However, this condition shall not apply to the
tenancy or lease created or continued by a soldier or a seaman within
three months be became so. This condition does not apply also to any
land situated in Uttar Karnataka and Dakshina Kannada districts owned
or occupied by persons for the purpose of agriculture for a period not
exceeding 20 years. Every lease created shall be always in writing.

Under Section 6 of the Act, no tenancy shall be ended only for the
reason of expiration of the period of tenancy.

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RESTORATION OF POSSESSION TO TENANTS (SEC.7) :

A person who is or whose predecessor was dispossessed of the

land either by termination of tenancy, or by eviction before the 10th day of
September, 1957 may seek restoration of tenancy, unless the land used
stood converted for non agricultural purpose. The Tribunal shall order
restoration if the tenant had surrendered tenancy under fraud,
misrepresentation or undue influence, or as a result of expiry of duration
of tenancy, or any illegal act of the land lord without the approval of the
court.

On receipt of an application, the Tribunal shall inquire into the

circumstances in which and the procedure under which such
dispossession took place and is satisfied that such dispossession took
place as a result of :
a) Surrender and the consent of the tenant was procured by fraud,
misrepresentation, etc., or
b) Expiry of the duration of tenancy, or
c) Any act of the landlord or any person acting on his behalf without
recourse to a court of law
The Tribunal shall order the restoration of possession of the land
and the tenancy thereof to the tenant.

Provided : That the Tribunal shall not order restoration of

possession of the land, if it is satisfied that the land on lease bona fide by
a tenant who is not a member of the family of the land owner.

As per section 8 of the Act, the rent payable in respect of any land
by the tenant shall be payable annually and such rent shall be the
aggregate of gen time of the land revenue and ten times of the water rate,
if any, payable in respect of such land.

Provided that where the rent payable by a tenant under any contract
is less than the rent, such tenant shall not be liable to pay more than such
rent and where under any contract made prior to the date of
commencement of the Amendment Act, such lesser rent is payable in
kind, the amount payable shall be calculated by converting rent in kind to
its cash equivalent in the prescribed manner.

Any dispute between the landlord and tenant in rent shall be

adjudicated by Tasildar. During the tenancy of the land, no cost of
cultivation shall be fall the landlord. The land lord shall not be entitled to
receive rent except in the form of money. All liabilities on account of land

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revenue, water rate, cess or fee payable to the government or local

authority shall be on the tenant’s account.

Where a landlord recovers rent contrary to the provisions of this Act,

he shall immediately return such excess amount to the tenant. He shall
also pay the tenant any compensation that the Tasildar may decide. The
Tasildar may also levy on the land lord a penalty not exceeding twice the
amount so recovered.

The landlord shall not levy on the tenant any amount by whatever
name called than the rent lawfully payable by him. When the government
suspends or allows remission of the entire or part of land revenue payable,
the land lord shall similarly suspend all rent payable by the tenant entirely
or partly, as the case may be. The rent payable by the tenant during such
period shall not be sued upon regardless of any suit or decree of a civil
court or authority. The tenant may apply to the Tasildar for recovery of
such amount. Where the value of the land deteriorates by flood or any
natural cause or the crops have been lost due to them, the Tasildar may,
after enquiry, reduce the rent payable on the land.

RESUMPTION OF LAND BY SOLDIER OR SEAMAN (SEC.15):

A soldier or a seaman may repossess his land after notice, if he

requires it to cultivate it personally. If he is released from the Armed
Forces and sent to reserve, he may repossess his land at any time but not
later than one year from such release. Upon death of such soldier or
seaman during service, his legal heirs may repossess his land. Where
the tenant fails to return the land to the soldier or the seaman, the Tasildar
may evict the tenant and deliver the land to the owner. However, where
the soldier or seaman has failed to issue notice as required, the leased
land shall be transferred to the government.

RESTRICTION ON TRANSFER OF RESUMED LAND (SECTION 19) :

The land lord shall not transfer the land repossessed from the tenant
to another person by sale, gift, exchange or otherwise. However, the
owner may sell the land to the tenant who under repossession had been
evicted from it. The sale price shall be as determined by the Tasildar.
Where the land had belonged to a soldier or a seaman and who had died
during service, the dependant of such person may sell such land without
intervention of the Tasildar.

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Regardless of other restrictions, the land owner may create a

mortgage, or charge on his land to raise a loan from the Government or a
financial institution or a company majorly owned by the government or its
corporation.

FAILURE TO CULTIVATION (SECTION 20) :

The land owner may evict a tenant in order to cultivate it himself or

to use it for non agricultural purposes. If he fails to use the land either
way within one year from repossession or ceases to so use it within three
years thereafter, Tasildar may transfer it to the state government as
unencumbered land. The tenant on his application made within 12
months of transfer of the land to the government shall be registered as
“occupant” and not as a “tenant”.

PROHIBITION OF SUB DIVISION, SUB LETTING AND ASSIGNMENT

(SEC. 21):

A tenant shall not be entitled to sub divide or sublet it or make

assignment of any interest therein. This condition does not apply to the
surviving members of the family of a deceased tenant. Also, if a deceased
tenant is not a member of a joint family, the prohibition does not apply to
the legal heirs or successors. In these events, each share holder shall
held his share as a separate tenant. The rent payable on a leased land
shall be apportioned among the share holders. The area allotted to each
share holders among the surviving members of successors as case may
be shall not be less than the fragment, that is, one acre. If it is less than
a fragment, the land shall not be divided by metes and bounds, but the
fruits of the land shall be enjoyed by the shareholders jointly. The
prohibition on the sub letting of the land shall not apply to a soldier or a
seaman.

EVICTION OF TENANT FOR DEFAULT (SEC.22):

A tenant may be evicted by the landlord only in the following

circumstances:

a) He has defaulted in payment of rent for two years consecutively

b) Landlord has issued notice of default every year within first three
months;
c) The tenant has committed permanent damage to the land;
d) The tenant has sub-divided, sub-let or assigned the land
unilaterally;

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e) The tenant has not cultivated the land personally for two
consecutive years;
f) The tenant has put the land for non-agricultural use.
In any event, the tenant is entitled to three months notice of eviction
in writing. The tenancy of a soldier or a seaman shall not be cancelled on
the ground of subletting.

EVICTION NOT TO BE ORDERED (SECION 23):

Where during the proceeding instituted for repossession, the tenant

pays the arrears of rent for two consecutive years the land lord is not
entitled to repossession.

RIGHTS AND LIABILITIES OF THE TENANTS:

1) Upon the death of the tenant, his legal heirs become entitled to
the tenancy on the same terms.
2) Where the tenancy is held by a soldier or a seaman, he shall not
surrender the land except to the state government under
admission made before Tasildar.
3) Where the landlord mortgages the land to the tenant cultivating
it, such tenancy is suspended for the period of mortgage. The
tenancy may continue thereafter on the same terms and
conditions.
4) Where during tenancy, the tenant would have planted trees on
the land, he shall be entitled its fruits and the wood. On the
tenancy ceasing, the landlord shall pay such compensation for
the trees as the Tasildar determined.
5) It shall be the responsibility of the tenant to maintain the boundary
marks of the land and pay the cost of their maintenance;
6) The tenant or the landowner shall, as determined by the Assistant
Commissioner shall meet the cost of construction, maintenance
or repairs of any bunds protecting the land, if such bunds are
neglected owing to a dispute between them.
7) Where the tenant at his own cost construct, maintain or repairs
in such bunds to protect the land, he may obtain an order from
Tasildar to recover such costs from the land owner;
8) For effectively using the land, the tenant may set up a farm house
on it for his occupation;
9) A permanent tenant shall be liable to pay any amount levied by
the government as betterment contribution;

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10) Any payment made by the tenant to

the landlord shall be presumed to the payment of rent due for the
year, unless he clarifies that it should not be so treated;
11) No decree or order of a civil court
shall attach to any land held by the tenant held under this Act.
12) Where a tenant has erected a
dwelling house on the land at his own expense, he cannot be
evicted from it by the land lord, unless the tenant has defaulted
the payment of rent for three consecutive years. However, he
may be evicted from that dwelling house if he has defaulted in
any manner;
13) If the landlord desires to sell the land
occupied by the tenant, and if the tenant has built a dwelling
house at his own expense thereon, the landlord shall set it only
to the tenant. The price of the land shall not exceed ten time the
amount of land revenue assessed thereon. Any sale made
breaching this conditions shall be annulled.
14) If the tenant who has set up a
dwelling house on the tenanted land desires to buy it, shall notify
the landlord accordingly. Where the landlord refuses or fails to
accept the proposal within three months, the tenant shall deposit
the purchase amount within three months with the Tasildar, who
shall then grant him a certificate of ownership.
15) The rights of tenants shall not be
curtailed by any custom or law, except as provided in this Act.

DWELLING HOUSE FOR AGRICULTURAL LABOURERS:

Where an agricultural labourer is ordinarily residing in a dwelling

house on a land and not owned by him, such house shall vest with the
State Government, subject to the following conditions:

a) If the land owner genuinely requires the dwelling house for his
own use, he shall require such occupant to shift over to another
place, which also belongs to him;
b) The owner land owner shall pay the labourer the price of the
dwelling house so vacated, if it had been set up at his own cost,
along with the cost of shifting;
c) The new dwelling place shall not be far away than one kilometre;
d) Where such labourer does not comply with the land owner’s
request, he may seek the order of the Tribunal to enforce
compliance. If the labourer does not shift to the new site, the
Tribunal shall order his eviction.

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Where the dwelling house occupied by the labourer is on a land in

an unrecorded habitation, it shall vest absolutely in the state government
and the labourer shall be registered as its owner. However, where the
labourer is residing in a portion of the house of the owner, or residing
temporarily on the land, he shall not be entitled to the benefit.

TENANT’S FIRST OPTION TO PURCHASE LAND (SEC.39):

1) If a land lord ant any time intends to sell the land by a tenant, he
shall give notice in writing of the intention to such tenant and offer
to sell the land to him. In case, the latter intends to purchase the
land, he shall intimate in writing his readiness to so within two
months from the date of receipt of such notice.
2) If there is any dispute about the reasonable price payable for the
land, either the land lord or the tenant may apply in writing to the
Tasildar to determine the reasonable price.
3) The Tasildar after giving notice to the other party and to all other
persons interested in the land and after making such inquiry as he
thinks fit, shall fix the reasonable price of the land which shall be the
average of the prices obtaining for similar lands in the locality during
the ten years immediately preceding the date on which the
application is made.
4) The tenant shall deposit with the Tasildar the amount of the price
determined within the period prescribed;
5) On deposit of the entire amount of the reasonable price, the Tasildar
shall issue a certificate in the prescribed form to the tenant declaring
him to be the purchaser of the land. The Tasildar shall also direct
that the reasonable price deposited shall be paid to the landlord.
6) If a tenant does not exercise the right of purchase in response to the
notice given to him by the land lord or fails to deposit the amount of
the price as required, such tenant shall forfeit his right of purchase,
and the landlord shall be entitled to sell such land to any other
person in accordance with the provision of this Act.
7) The forfeiture of the right to purchase any land under this section
shall not affect the other rights of the tenant in such land.

COMPENSATION FOR IMPROVEMENT MADE BY TENANT (SEC.40):

1) A tenant who has made an improvement on the land held by him

shall, if his tenancy is terminated is entitled to compensation for
such improvement. For determining the amount of

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compensation, the tenant shall apply to the Tasildar in the

prescribed form.
2) The compensation to which a tenant shall be entitled, shall be
estimated value of such improvement at the time of the
termination of his tenancy. In estimating such value regard shall
be had to :
a) The amount by which the value of the land is increased by the
improvement;
b) e present conditions of the improvement and probable
duration of its effects;
c) the labour and capital provided or spent by the tenant for the
making of the improvement; and
d) any reduction or remission of rent or other advantage allowed
to the tenant by the landlord in consideration of the
improvement including permanent fixtures.
3) If such land is subject to mortgage or other encumbrance created
by the tenant, the amount of compensation shall be applied first
for discharging such mortgage or other encumbrance and the
balance shall be paid to the tenant.

PROCEDURE FOR TAKING POSSESSION (SEC.41):

Where tenant is aggrieved by possession of land or dwelling house,

he may seek its remission within a period of two years from the Tasildar.
He may be liable to forfeit of crops, if any.

PROCEDURE FOR RECOVERY OF RENT (SEC. 42):

Except for what this act provides no legal process shall lye for
recovery of rent falling in arrears. The only course open for the land lord
for claiming for arrears of rent would be to obtain order from the Tasildar.

CONFERMENT OF OWNERSHIP ON TENANTS:

VESTING OF LAND IN THE STATE GOVERNMENT (SEC.44):

The ownerships all the tenanted lands shall become vested in the
state government on the date of commencement of this Act. All land
revenues become payable to the state government and not to the land
owner, land lord or any other person. No such land shall be liable for
attachment by any court. All compensations are receivable by the land
lord, landowner or interested person from state government as provided

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in this Act. No action by permanent, protected or other tenants against

the state government shall lie.

TENANTS TO BE REGISTERED AS OCCUPANTS (SEC. 45):

Every tenant including lawfully instituted sub-tenant, shall be entitled

to the registered as occupant, if he had been such before the date of
commencement of this Ac and who had been cultivating land personally.

a) A tenant would not be registered as an occupant, if he holds land

partly as owner or partly as tenant and the later part exceeds a
ceiling area.
b) Again, a owner who does not personally cultivate his land but holds
land as tenant in excess of ceiling area, but which he cultivates
personally, he shall be registered as occupant to the exent of the
ceiling area;’
c) Where a person holds and cultivates land personally as owner of
any land less than the ceiling area, he shall be registered as an
occupant to the extent that it will be sufficient to make his holding
equal to the ceiling area;
d) If a person is not entitled to be registered as occupant under this
section, the Deputy Commissioner may grant such land to the
persons under SC & ST subject to their being found eligible.
e) A person eligible to be a registered occupant holding land from more
than one land lord may choose the area and the location of the land
to become occupant thereof;
f) Persons whose interest in the land became extinguished shall be
paid by the government an amount determined based on net annual
income derivable from the land or all the lands as the case may be.
In any case, the aggregate amount payable shall not exceed two
lakhs.

CONSTITUTION OF TRIBUNALS:

For each Taluk, a Tribunal shall be formed comprising the Assistant

Commissioner and four nominees of State Government. The Tasildar
shall be Secretary to the Tribunal. The Tribunal shall receive grievances
from registered occupants and adjudicate in the matter. The Tasildar shall
determine the amount payable to the tenant registered as occupants of
land. The Tribunal shall have powers to pass interim orders or in respect
of the dwelling house, appoint receiver.

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DETERMINATION OF ENCUMBRANCES:

The amount payable to the registered occupants under the order

passed by the Tribunal shall duly exclude amount payable to the
mortgagee, if any. Where the total amount payable to creditors exceeds
the amount ordered to be paid by the Tribunal, the ordered amount shall
be distributed among the creditors equitably. Where the encumbrance is
under question, the Tasildar shall seek the decision of the court. Any
advance paid for lease or purchase of land shall be considered as an
encumbrance on the land.

Amount payable to any for extinguishing his rights over lands

becoming vested in the Government shall be paid in cash up to Rs.2000/-
and in bonds up to twenty years at five and half per cent. Minors, widows
and persons aged above 65 years shall be paid by way of annuity, as
applicable. Payment made to the land lord, land owner or other persons
entitled thereto shall be in full discharge. No claim shall lie with the State
government thereafter.

The tenant or sub-tenant shall pay premium on land at rates as

specified. He may obtain assistance from the State Land Development
Bank for paying premium; The state government shall create out of
premia collected from the tenants or sub-tenants a fund called Karnataka
Religious and Charitable Institutions Annuity Fund, which shall be first
credited to the consolidated fund of the state and invested thereafter as
directed by the government.

The premia payable by the tenant or sub-tenant shall be recoverable

as land revenue and shall be deposited with the Tasildar. The Tasildar
shall issue a certificate declaring tenant as occupant, which shall be
registered by the Sub Registrar. A minor within one year of attainment of
majority, a physically or mentally disabled person within one year of
recovery, a soldier and a seaman within one year from discharge of
service may exercise right as tenant. When a person leases land contrary
to the provisions of this Act, such land shall vest in the State Government.

FAILURE OF PERSONAL CULTIVATION:

When a tenant registered as occupant fails to cultivate it personally

for three consecutive years, ye may be evicted by the Tasildar. The
government may grant it to unregistered occupants or to tenants displaced
under Land Acquisition Act, or to landless agricultural labourers or
released bonded labourers. Such grantees shall not transfer the grant for

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a period of fifteen years except by mortgage in favour of a financial

institution.

No registered occupant shall within 15 years transfer his interest by

sale, gift, exchange, mortgage, lease or assignment. However such land
may be partitioned among members of a joint family. Upon contravention,
such land shall vest with the government.

Where the registered occupant or his successor has given up

personal cultivation within six years, he shall surrender it to the state
government which thereupon pay premium paid by him and depreciated
value of improvements made by him;

CELING ON LAND HOLDINGS (SEC.63 TO 83):

No person shall hold land in excess of the ceiling area. The ceiling
area shall be ten units for a person who has no family and forty units for a
tenant.

Where a person has no family of his own but is a member of a joint

family, his undivided share therein and his separate properties shall be
aggregated for determining his ceiling. In the case of a private, but
revocable, the trust land is held by the author or his successor. Where
irrevocable, trust lands are held by the beneficiaries.

Where a person with no family or is not a member of a family, his

share in a co-operative form, if any, shall be considered for determining
the ceiling. A public charitable institution cannot hold land exceeding
twenty units, unless its income is applied only for its objectives.
Otherwise, such land shall vest with the government. No sugar factory
shall hold land exceeding fifty units, unless it is applied solely for research.

Where a person hold land acquired through any legal means in

excess of the ceiling limit such excess shall vest with the government as
excess land. Excess land, called surplus land, shall vest with the State
Government. Where land held by a person falls under any other class as
a result of irrigation facility developed by the State Government and
consequently he land exceeds the ceiling area, such excess shall vest
with the state government.

Every land holder shall furnish to the Tasildar the extent of his
holdings and particulars of the members of his family, if he holds lands
exceeding the stipulated limits. Any person who fails to furnish the

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declaration of his holdings or furnishes false declaration knowingly, may

invite a penalty from the Tasildar. The excess land shall vest with the
state government, if the defaulter does not comply with the order of
penalty.

On detailed enquiry, the Tasildar shall determine the total holdings

of the person has exceeded the ceiling area and shall order demanding
its surrender to the government. For such period of time the person who
was in possession and use of excess land, such person shall pay the state
government pay compensation as determined by the Tribunal as arrears
of land revenue.

The excess land owned by a person other than a limited owner shall
vest with the state government free from all encumbrances. Land
surrendered by the limited owner shall vest in presumptive reversionary
under a declaration made by such owner to that effect. The reversionary
shall pay the owner an amount of 41/2% per annum of the value of such
land.

The mortgager surrenders excess land to a usufructuary

mortgagee. Such land shall revert to the mortgagee. Such owner shall
pay the mortgage money to such lender. Where the tenant of a soldier or
a seaman surrenders excess land, the possession reverts to the owner
when the owner himself is not liable to surrender. However, he shall pay
the tenant an amount equal to one year’s net income of the land as
reparation.

The amount payable by the government for taking over excess land
shall be based on net annual income yielded by such land. The Tasildar
shall notify and determine the amount payable to the owner for taking over
his excess land. The amount so payable shall be by way of non
transferable and non-negotiable interest carrying bonds. The owner of
excess land shall not transfer it in any manner contained in the Transfer
of Property Act before declaring the extent of such land.

Where a person or family holds land becoming excess owing to any

change in the land classification, or by the size of the family becoming
decimated such excess land is not required to be surrendered. Tasildar
may take possession of excess land after removing objections by the
owners, if any.

Where a person was in possession and actual cultivation of any land

below one unit, the Deputy Commissioner may grant land to such person

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in the prescribed manner. The grantee of surplus land may deposit the
purchase price with the Tribunal in one sum or in instalments annually.
The purchase price shall be determined by the Tasildar for different
classes of land at rates based on annual income derived from the grant
land. The grantee may obtain loan from State Land Development Bank.
The Tasildar shall monitor surplus land until they are disposed off for
cultivation.

RESTRICTIONS ON TRANSFER OF LAND (SEC. 79 TO 88):

No person shall be entitled to acquire any land if he or his own or

joint family as annual income of over Rs.25.0 lakhs from sources other
than agricultural as a owner, landlord, tenant or mortgage. His acquisition
of land exceeding this ceiling shall be null and void, except when it occurs
by inheritance or bequest.

The owner of the land shall be one who cultivates it personally. A

charitable, religious or educational institution or public society or trust, a
registered company or a co-operative society, other than a co-operative
form will not be capable of holding any land. Any person failing to abide
by the prohibition shall forfeit such land in favour of the state government.
Sale under a court decree or for recovery of land revenue, or gift,
exchange, lease, or mortgage shall be null and void, if the holder is not
an agriculturist, or not an agricultural labour, one who holds land
exceeding the ceiling area. However, the Deputy Commissioner may
waive this condition in favour of a transferee who takes up agriculture
within one year of acquiring land. If the transferee discontinues cultivation
within five years, the land shall vest in the State Government. In that
event, the owner shall be paid an amount equal to eight time the net
annual income of the land.

The expression, ‘agricultural purposes’ would include equipping

land fit for cultivation, growing crops, harvesting, improvement of land,
developing sources of irrigation, plantation, animal husbandry, dairy
farming and other types of farming.

Every form of transfer of property under this Act shall be registered

under the Indian Registration Act, 1908 along with a declaration of the
total extent of land held by he owner as also his assured income. Village
and Revenue Officer shall report any transfer occurring in contravention
of any provisions of this Act coming to his notice. The prescribed authority
shall declare any transaction with regard to land as void, if after inquiry it
appears to have contravened any of the provisions of the Act.

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CO-OPERATIVE FARMS (SECTION 89 TO 102):

A co-operative farm may be promoted as a Society by any ten or

more persons belonging to one or more village, if such villages are
adjoining one another. The promoters should be landowners or tenants
and together possessing over 50 acres of land. The Registrar of Co-
operative Societies shall be registration authority.

The promoters shall submit extracts from record of rights showing

total area long with survey numbers of lands held by each promoter. After
being satisfied that the intended Far serves best interest, would be in the
interests of all the Registrar may grant its registration under Karnataka
Co-operative Societies Act, 1959.

Upon registration of the farm, the possession of the lands of the

members shall be transferred to it for intended purposes. The possession
of the lands shall be restores to each member, if the co-operative farm is
cancelled. Where a person is admitted as a new member, the possession
of the lands held by him shall stand transferred to the farm. After its
formation, no member shall resign from its membership except on
prescribed conditions. The land held by such member shall be then
restored to him.

Upon registration, the provisions of Karnataka Co-operative

Societies Act, 1959 that do not contravene this Act and its rules shall
apply. The application made for registration of the farm shall carry with it
a draft of the bye-laws. A majority of the members by resolution or the
Registrar acting on his own, may amend the bye-laws. A right of
ownership of the member over his land would continue to vest in him after
the Farm coming to effect. Every member shall be entitled for the rights,
privileges, obligations and liabilities in respect of the Farm in accordance
with this Act and the aforesaid Act.

Every member shall contribute to the farm by way of money, labour,

agricultural implements and agricultural produce. The Farm is liable to
pay the land owner, land revenue, cess, water rate, betterment charges
and local rates. On the death of a member, his heirs would become the
members of the co-operative Farm.

The members of the Co-operative Farm may enjoy concession from

the state government in land revenue, agricultural income tax, free
technical advice, financial aid and priority in irrigation.

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THE KARNATAKA PREVENTION OF FRAGMENTATION AND

CONSOLIDATION OF HOLDINGS ACT, 1966

DETERMINATION OF STANDARD AREA AND TREATMENT OF

FRAGMENTS (SECTION 3 TO 9)

Land extending between one-half (1/2) acre and two and seven
tenth (27/10) acres (Viz. between 50 cents to 270 cents of land) under A,
B, C & D classes (A Class – ½ acre, B Class – ¾ acre, C Class – 11/4
acre and D Class – 2 7/10 acre) of land are called ‘Standard Area’. Any
area less than the Standard Area shall be referred as “Fragment”.

All fragments in a village shall be shown in the Record of Rights or

in similar records. Fragments shall neither be sold or leased by its owner
except to the owners of contiguous survey number or recognised sub-
division of a survey number. Such holder is referred as “Contiguous
Owner”. The seller shall then support the sale or lease with an affidavit
filed before the Tasildar. Fragment shall be sold or leased only to a person
cultivating land.

a) No land shall be sold, leased, partitioned or sub-divided, if it

results in creating in fragment.
b) Sale of fragment, if required to be made under a Court Order ,
may be made only after notice to the contiguous owners. Also,
no land shall be sold in such a manner that it may create a
fragment.

Where several persons hold undivided share in an agricultural land,

which requires to be partitioned, under a Court Decree or Succession,
such partition shall not result in fragment. If partition entitles a specific
share to co-sharer, which causes a fragment, he shall be compensated in
money for that share. In making partition, the co-shares may decide which
among them should get his share in the form of land or money. Where
common consent does not emerge, the receiver of compensation shall be
chosen by lot. Where a co-sharer receives a proportion in excess of his
share, he shall deposit equivalent money in the prescribed manner. If he
fails to do so, his share shall be allotted to any other co-sharer by lot. If
he fails to do so, his share shall be allotted to any other co-sharer by lot.
Such co-sharer shall pay compensation to the other members of the
partition.

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If no allottees receiving excess land pays compensation, his share

will be sold in public auction and money so received shall be paid to co-
shares who might have received less than their shares. The parties may
hit upon any other method of partition by common consent, if it does not
cause a fragment.

Prohibition fragmentation does not apply, however, to transfer land

made for public purpose.

PROCEDURE FOR CONSOLIDATION (SECTION 10 TO 22) :

The state government may declare consolidation of holdings for the

purpose of better cultivation of lands. It van cause a scheme for
consolidation after a notification. After notifying consolidation, the
government shall invite objections to the scheme, if any, and give a fair
hearing to the land holders. Thereafter, the Assistant Consolidation
Officer shall draft a scheme based on the estimated market value of all
holdings of land by inviting the owners as well as the Panchayat for their
opinion. The decision of Assistant Consolidation Officer shall be final.

The Assistant Consolidation Officer may order partition of any

holding included in the scheme, if he finds it necessary to do so. He may
also order amalgamation of a fragment with any contiguous holding, or
consolidate holdings with mutual consent of the owners.

The Assistant Consolidation Officer shall pay compensation to the owner

or recover it from him, as the case may be under the scheme of
consolidation to assist recovery, the State Government may provide loan
assistance. The scheme may amalgamate any road with any land held
by the owners and make such roads accessible for public use, after
consideration of objections received, if any. The Assistant Consolidation
Officer shall submit his recommendations under the scheme for the
decision of the Commissioner.

The Assistant Consolidation Officer may direct provision of

adequate land under the scheme for any public purpose, if the state
government agrees to pay compensation to such land holders and provide
within 30 days of the publication of the draft scheme, the Consolidation
Officer shall invite amendments therein from any person affected by the
scheme. The amended scheme so proposed shall be forwarded to the
Commissioner for confirmation.

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After duly scrutinizing the scheme submitted by the Consolidation

Officer and after inviting any further objection, if any, the Commissioner
shall confirm.

The Commissioner shall publish the scheme in the Official Gazette

after his confirmation. Within one year thereafter, the Assistant
Consolidation Officer shall put the owners in possession of the holdings
to which they are entitled and who shall pay the deposit amount of
compensation. For doing so, the Assistant Consolidation Officer shall
evict any person from any land which he is not entitled to occupy under
the Scheme.

Where under the Scheme of allotment, a holder of land has to

receive additional land, the compensation payable by him shall be suitably
reduced. Where an allottee refuses allotment, the Assistant Consolidation
Officer may allot the land to any other person who pay the value. If no
person accepts the offer, the state government may recover
compensation from the owner as arrears of land revenue or the state
government itself may purchase the land by paying its net value to the
owner.

The scheme is considered to have come into effect as soon as the

beneficiaries have been put into possession of their holdings. Upon a
certificate of transfer issued by the Assistant Consolidation Officer, he can
amend the Record of Rights of the holder accordingly. No stamp duty or
registration fees is payable for such transfer. Persons whose holdings are
affected shall bear the cost of carrying out scheme proportionately.

Compensation and other obligation payable by the affected persons

shall be recovered as arrears of land revenue together with interest.

EFFECT OF CONSOLIDATION PROCEEDINGS AND

CONSOLIDATION OF HOLDINGS (SEC. 23 & 30):

Upon the scheme coming into effect, the Consolidation Officer and
Assistant Consolidation Officer shall exercise the powers of the Assistant
Commissioner and Tasildar respectively under the Karnataka Land
Revenue Act, 1964. The Assistant Consolidation Officer shall invite all
claimants of possession under the said Act to apply for possession. He
shall place any order made by him before the Deputy commissioner for
confirmation.

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No person may transfer any holding unless approved by Assistant

Consolidation Officer. Appeal against nay order made by him may lie
before the Consolidation Officer whose order thereon shall be final. The
rights of every owner under the scheme shall be the same as had
remained in his original holding.

Where any holding included in the scheme carried a mortgage debit

or any charge other than a lease, such encumbrance shall be attached to
the holding allotted to a person under the scheme. Where there arise
dispute as regards the amount of cojpensati9h or additional
compensation, the Assistant Consolidation Officer shall refer to the
Munsif’s Court.

Where subsequent to the introduction of the scheme any clerical or

arithmetical error or omission surfaces, the Commissioner can rectify it
and publish such correction. For the purpose of this section, a mistake
relates to a clerical act and error related to a miscalculation.

If any defect in the scheme, other than clerical or arithmetical nature,

subsequently comes to the notice of the Commissioner, which requires
variation, the Commissioner shall publish a draft of such variation. Any
person affected thereby may file his objection thereto within a month
thereafter. Any scheme of consolidation of holdings may be subsequently
varied or revoked by the Commissioner by following the provisions
contained in this Act.

OTHER POWERS OF CONSOLIDATION OFFICER (SEC.31 TO35):

1) The Consolidation Officer or his Assistant shall be entitled to

enter upon, conduct survey, erect survey marks, demarcated
boundaries and do all other necessary act for giving effect to the
scheme.
2) No person shall destroy, remove or injure any survey mark
lawfully erected shall be punished with fine and be required to
restore them at his cost.
3) It shall be the duty of the Village Officer to preserve every survey
mark lawfully erected in the village.
4) The Consolidation Officer or his Assistant is empowered to
require attendance of any person and submission of any paper.
5) The Commissioner, the Consolidation Officer and Assistant
Consolidation Officer shall perform their duties under the control
of State Government.

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U N I T - V

The Real Estate (Regulation and Development) Act, 2016 –

Registration of real estate project and registration of real estate agents,
functions and duties of promoter, rights and duties of allottees, the real
estate regulatory authority, the real estate appellate tribunal, offences,
penalties and adjudication.
The Karnataka Real Estate (Regulation and Development) Rules,
2017

THE REAL ESTATE (REGULATION AND

DEVELOPMENT) ACT, 2016

REGISTRATION OF REAL ESTATE PROJECT (SEC. 4 TO 8)

JOINT LIABILITY OF PROMOTER AND BUILDER:

Prior to the passing of the Act, a person was generally recognised

by the public as a ‘promoter’, if he engaged himself in :
a) Constructing or causing construction of an independent building
or a building consisting of apartments or converting or causing
conversion of an existing building or a part thereof into
apartments, for the purpose of selling all or some of them; or
b) Developing land into plots, whether or not constructing structures
thereon for the purpose of selling them.
Where the developer and the builder were different persons, it was
only the developer who was called as the promoter and not the builder.
The builder, or the ‘contractor’, as he was called, was only the service
provider appointed by the promoter for a fee. The role of the promoter
included selling the plots or the apartments, as the case might be, but the
builder’s responsibility had remained confined to delivering the products
to the promoter under a contract and according to agreed specifications.

Under the new Act, ‘promoter’ means, where the person who
constructs or converts a building into apartments or develops a plot for
sale and the persons who sells apartments or plots are different persons,
both of them shall be deemed to be the promoters and shall be jointly
liable as such for the functions and responsibilities specified, under this
Act or the Rules and regulations made thereunder. In other words,

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1) The builder may contract to construct structures, meant for sale

to be made by the promoter or the land owner or an intermediary;
or
2) The builder may construct structures, which he intends to sell by
himself.

GROUPING OF PROJECTS FOR REGISTRATION :

Groups of projects for the purposes of registration as hereunder:

a) Those proposed for implementation in planning area;
b) Projects already on stream; and
c) Projects falling outside planning area.

APPLICATION FOR REGISTRATION OF REAL ESTATE PROJECTS

(SEC. 4)

Every promoter shall make an application to the Authority for

registration of the real estate project in such form, manner within such
time and accompanied by such fee as may be prescribed. The promoter
shall enclose the following documents along with the application referred
to – namely :
a) A brief details of his enterprise, including its name, registered
address, type of enterprise viz. whether proprietorship, society,
partnership, company, competent authority, and the particulars
of registration and the names and photos of the promoter;

b) A brief detail of the projects launched by him, in the past five

years, whether already completed or being developed, as the
case may be, including the current status of the said projects, any
delay in its completion, details of cases pending, details of type
of land and payments pending;

c) An authenticated copy of the approvals and commencement

certificate from the competent authority obtained in accordance
with the laws as may be applicable for the real estate project
mentioned in the application and where the project is proposed
to be developed in phases, an authenticated copy of the
approvals and commencement certificate from the competent
authority for each of such phases;

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d) The sanctioned plan, layout plan and specifications of the

proposed project or the phase thereof, and the whole project as
sanctioned by the competent authority;

e) The plan of development works to be executed in the proposed

project and the proposed facilities to be provided thereof
including fire fighting facilities, drinking water facilities,
emergency evacuation services, use of renewable energy;

f) The location details of the project, with clear demarcation of land

dedicated for the project along with its boundaries including the
latitude and longitude of the end points of the project;

g) Proforma of the allotment letter, agreement for sale and the

conveyance deed proposed to be signed with the allottees;

h) The number, type and the carpet area of apartment for sale in the
project along with the area of the exclusive balcony or verandah
areas and he exclusive open terrace areas apartment with the
apartment, if any;

i) The number and areas of garage for sale in the project;

j) The names and addresses of his real estate agents, if any, for
the proposed project;

k) The names and addresses of the contractors, architect, structural

engineer, if any, and other person concerned with the
development of the proposed project;

l) A declaration , supported by an affidavit, which shall be signed

by the promoter or any person authorised by the promoter
stating:

1) That he has a legal title to the land on which development is

proposed along with legally valid documents with
authentication of such title, if such land is owned by another
person;

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2) That the land is free from all encumbrances, or as the case

may be – details of the encumbrances on such land including
any rights, title, interest or name of any party in or over such
land along with details;
3) The time period within which he undertakes to complete the
project or phase thereof, as the case may be;
4) That 70% of the amount realised for the real estate project
from the allottees from time to time shall be deposited in a
separate acc9ount to be maintained in a Scheduled Bank to
cover the cost of construction and the land cost and shall be
used only for the purpose;

GRANT OF REGISTRATION (SEC. 5) :

1) On receipt of the application, the authority shall within a period of 30

days of receipt of the application,
a) Grant registration subject to the provisions of this Act and the
Rules and Regulations made thereunder and provide
1) Registration number
2) Login ID
3) Password for accessing the website of the Authority
b) Reject the application for reasons to be recorded in writing.
No application shall be rejected unless the applicant has been
given an opportunity of being heard in the matter.
2) If the authority fails to grant the registration or reject the application
as the case may be, the project shall be deemed to have been
registered and the Authority shall within a period of 7 days of the
expiry of the period of 30 days and provide Registration Number,
Login ID and Password to this Promoter for accessing the Website
of the Authority;
3) The Registration granted shall be valid for a period declared by the
Promoter in the application for registration.

EXTENSION OF REGISTRATION (SEC.6) :

The registration granted may be extended by the Authority on an

application made by the Promoter due to ‘force majeure” (Act of God) in
such form and on payment of such fee as may be prescribed. No
application for extension of registration shall be rejected unless the
applicant has been given an opportunity of being heard in the matter.

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REVOCATION OF REGISTRATION (SECTION 7):

The Authority may, on receipt of a complaint or suo motu in this

behalf or on the recommendation of the Competent Authority, revoke the
registration granted to the Promoter for undertaking his project by giving
a notice of 30 days and after being satisfied, that

a) The promoter defaults in his duties and obligations doing anything

required by or under this Act or the Rules or the Regulations
thereunder;
b) The promoter violates any of the terms of approval given by the
Competent Authority;
c) The promoter is involved in any kind of the following unfair practice
or irregularities. Unfair practice means any unjust, inequitable or
deceptive method or practice which the promoter adopts to promote
his project which may include the following :
1) Falsely stating that the building or facilities provided are of a
particular standard or grade;
2) Falsely holding out that the promoter has all necessary approvals
for the project;
3) Making false or misleading representation concerning his
services under the contract;
4) Permitting publication through print, digital or visual media or in
person, of any service that the promoter does not intend to offer;
5) Indulges in any deceitful practice.

In simple, unfair trade practices may be categorised as under:

a) False representation’
b) False offer of bargain price
c) Gift offers and prize schemes
d) Non-compliance of prescribed
standards.
The authority may at its own discretion permit registration of a
defaulting promoter to continue until completion of the project by imposing
certain terms and conditions thereon.

OBLIGATION OF AUTHORITY CONSEQUENT ON REVOCATION OF

REGISTRATION (SECTION 8):

The Authority is to arrange for completion of the project in the event

of non-extension of registration after its expiration, or its revocation before
expiration, as the case may be. The Authority shall consult the
appropriate government to take such action as it may deem fit for

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completing the remaining development works. For that purpose, the

government may engage competent authority or the association of
allottees. The Authority may determine to adopt any other means for
completing the remaining development works.

REGISTRATION OF REAL ESTATE AGENTS (SECTION 9)

No real estate agent shall facilitate the sale or purchase of or act on

behalf of any person to facilitate the sale or purchase of any plot,
apartment or building, as the case may be, in a real estate project or part
of it, being the part of the real estate project being sold by the promoter in
any planning area, without obtaining registration under this section.

Every real estate agent shall make an application to the Authority

for registration in such form, manner, within which such time and
accompanied such fee and documents as prescribed.

The Authority shall, within such period, in such manner and upon
satisfying itself of the fulfilment of such conditions, as may be prescribed:
a) Grant a single registration to the real estate agent for the entire
State or Union Territory, as the case may be;
b) Reject the application for reasons to be recorded in writing, if
such application does not conform to the provisions of the Act or
the Rules or Regulations made thereunder.
c) No application shall be rejected unless the applicant has been
given an opportunity of being heard in the matter.
Whereon on completion of the period specified, if the applicant does
not receive any communication about the deficiencies in his application or
the rejection of his application, he shall be deemed to have been
registered.

Every real estate agent who is registered as per the provisions of

this Act or the Rules and Regulations made thereunder, shall be granted
a Registration Number by the Authority, which shall be quoted by the Real
Estate Agent in every sale facilitated by him under the Act.

Every registration shall be valid for such period as may be

prescribed and shall be renewable for a period in such manner and on
payment of such fee as may be prescribed.

Where any real estate agent who has been granted registration
under this Act commits breach of any of the conditions thereof or any other
terms and conditions specified under this Act or any Rules and

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Regulations made thereunder, or where the Authority is satisfied that such

registration has been secured by the real estate agent through
misrepresentation of fraud, the Authority, may without prejudice to any
other provisions under this Act, revoke the registration or suspend the
same for such period as it thinks fit. No such revocation or suspension
shall be made by the Authority unless an opportunity of being heard has
been given to the real estate agent.

FUNCTIONS OF REAL ESTATE AGENT (SEC. 10) :

Every real estate agent registered under Section 9 of the Act, shall-

a) Not facilitate the sale or purchase of any plot, apartment or building,

as the case may be, in a real estate project or part of it, being sold
by the promoter in any planning area, which is not registered with
the Authority;
b) Maintain and preserve such books of account, records and
documents as may be prescribed;
c) Not involve himself in any unfair trade practices, namely –
1) Falsely represents that the services are of a particular standard
or grade;
2) Represents that the promoter or himself has approval or
affiliation which such promoter or himself does not have;
3) Makes a false or misleading representation concerning the
services;
4) Permitting the publication of any advertisement whether in any
newspaper or otherwise of services that are not intended to be
offered.
d) Facilitate the possession of all the information and documents, as
the allottee, is entitled to, at the time of booking of any plot,
apartment or building as the case may be;
e) Discharge such other functions as may be prescribed.

FUNCTIONS AND DUTIES OF PROMOTER (SEC. 11):

Every promoter shall, upon receiving his Login Id and password,

create his web page on the website of the Authority and enter all details
of the proposed project as per section 4(2) in all the fields as provided for
public viewing, including :
a) Details of the registration granted by the Authority;
b) Quarterly up-to-date the list of number and types of apartments
or plots as the case may be, booked;
c) Quarterly up-to-date the list of number of garages booked;

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d) Quarterly up-to-date the list of approvals taken and the approvals

which are pending subsequent to commencement certificate;
e) Quarterly up-to-date status of the project; and
f) Such other information and documents as may be specified by
the regulations made by the Authority.

The promoter has to disclose to the allottee all information on :

a) Sanctioned plans, layout plans along with specifications
approved by the Authority;
b) The stage wise time schedule of completion of the project
including the provisions for civic infrastructure like water,
sanitation and electricity.

Duties and liabilities of the Promoter are as follows:

1) The promoter shall be obliged to perform all the promises made

by him the sale agreement made by him with the allottees;
2) The promoter shall continue to be responsible for structural
defect or any other defect for a period of five years from the date
of handing over possession of the apartment or plot of buildings
3) The promoter shall within the prescribed period submit an
application to the Registrar for registration of the body of persons
who take the flats as co-operative society
4) The promoter shall join as an applicant for membership of such
proposed society;
5) The promoter may obtain the Association of Allottees registered
as Co-operative Society under the State Cooperatives societies
Act;
6) No promoter shall, after he executes the sale agreement with the
allottee, sell, mortgage or create a charge on the land, building
or part thereof related to the project;
7) The promoter is liable for a period of five years from the date of
handing over of possession for any structural defect or other
defects in workmanship, quality or provision of services or any
other obligations;
8) The promoter is also liable to pay compensation to the allottees
if any loss is caused to them due to defective title of the land;
9) The promoter shall take all necessary steps to complete his title
and convey to the body corporate of persons, who take
apartment;
10) When the price is paid in advance to
the promoter, he cannot diver or forfeit such amount for other

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purposes, including for setting it off against an alleged breach of

contract by the buyer.
11) The promoter shall obtain the
completion certificate or the occupancy certificate or both, as
applicable from the Competent authority for the allottees
individually or to the association of allottees
12) In case, the project is developed on
a leasehold land, the promoter shall obtain for the association of
allottees the lease certificate specifying the period of lease and
certifying that no dues or charges subsist on the date of delivery
of possession of the project;
13) Until the taking over of the project by
the association of allottees, the promoter shall be responsible for
the maintenance of the project.

Where an investor responds to a notice, advertisement or

prospectus issued by the promoter by making an advance or a deposit
believing the information contained therein, or going by the basis of any
model apartment, plot or building, and owing to any statement included in
the statement proving to be incorrect or false suffers thereby a loss or
damage, the promoter shall be recompense such person in the manner
as provided in the Act. If, however, such investor desires to withdraw from
the proposed project, the promoter shall return to him his entire
investment along with interest at rate as may be prescribed and the
compensation in the manner provided under this Act.

Before accepting any sum exceeding 10% of the cost of the

apartment, plot or building, as the case may be, as an advance payment
or an application fee from an investor, the promoter shall :
a) Make a written sale agreement with such person, and
b) Register the said agreement with the Sub Registrar

The Sale agreement shall be in such form as may be prescribed and

shall specify all the particulars of the project including internal and external
development works. The agreement shall also specify he manner of
payment of cost of the apartment, the date on which the possession to be
handed over, the rates of interest payable by the promoter to the allottee
and the allottee to the promoter in case of default and such other required
particulars.

The promoter shall develop and complete the proposed project in

accordance with the building plans, layout plans and specifications as
approved by the competent authorities. Section makes the promoter

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obligated to disclose or furnished the approved plans to the allottee. The

promoter shall not carry out any additions and alterations in the
sanctioned plans, layout plans and specifications and the nature of
fixtures, fittings and amenities described therein in respect of the
apartment without the previous consent of the allottee.

However, where the allottee himself desires minor additions or

alterations, the promoter may carry them out. The expression ‘minor
additions or alterations’ has been explained under the Proviso as changes
affecting the structure of the building as a whole. The promoter may make
minor changes in the sanctioned plan on his own volition, if he considers
them as necessary for architectural and structural reasons. In that event,
he may make them only if they are recommended and verified by an
authorised Architect or Engineer and after the allottees are duly intimated.

Any other alterations or additions in the sanctioned plans, layout

plans and specifications of the buildings or the common areas within the
project will require previous written consent of at least 2/3 of the allottees,
other than the promoter, who have agreed to take apartment.

As registration granted to the promoter is based on his personal

profile and capability, it is expected that the project approved by the
Authority is completed only by him. If he desires to transfer or assign his
majority rights and liabilities in respect of a real estate project to a third
party, he may not do so without obtaining prior written consent from 2/3
allottees, excluding himself, and the approval of the Authority.

Even so, such transfer shall not affect the allotment or sale of the
apartments, made by the transferor-promoter. For the purpose
determining such number, allottee taking up more units than one, either
in his own name or in the names of the members of his family or
associates shall be counted as single.

Upon transfer, the transferee-promoter shall independently comply

with all the pending obligations under this Act and its rules and regulations
and the obligations pending under the sale agreement made by the
transferor-promoter with the allottees. The transfer shall not cause the
project to be delayed for the reason by the transferee-promoter. In that
event, the transferee-promoter shall be liable for the consequences of the
breach or delay, as the case may be.

The promoter shall make arrangements for the insurance of the title
of the land and building comprising the project and the constructions

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thereof. He shall pay the premium and charges in respect of such

insurance before transferring it to the association of the allottees. The
sale agreement made by the promoter within the allottees shall provide
for the allottees to be named as beneficiaries in the Policy, which , upon
completion of the project, shall stand transferred to the benefit of the
association of allottees to whom the promoter shall deliver the Insurance
Policy.

Upon completion of the project, the promoter shall deliver

possession and title of the plot or apartment or building as the case may
be, to the allottees and the undivided proportion common areas to the
association of the allottees, the Competent Authority, as the case may be.
In both cases, the promoter shall execute and deliver a registered
conveyance deed to the allottees or the association of the allottees or the
Competent Authority, as the case may be. He shall deliver the other title
documents pertaining to the sanctioned plan to the association of allottees
or the Competent Authority as the case may be, within the time prescribed
under the local laws or, in the absence of local laws in this regard, within
three months from the date of issue of occupancy certificate.

IMPORTANT DOCUMENTS TO BE DELIVERED BY THE PROMOTER

TO THE ALLOTTEE :

1. Title deed
2. Khata/Patta Certificate or extract
3. Mutation Register extract
4. Power of Attorney
5. Conversion Certificate (from Agricultural to non-agricultural land)
6. Tax paid and Betterment Charges Receipt
7. Copy of Building Plan
8. Layout/Building approval, No objection Certificate or Intimation of
disapproval
9. Sale agreement ( also called as Purchase Agreement)
10. Allotment letter
11. Commencement Certificate
12. Completion Certificate
13. Sale Deed (Purchase Deed)
14. Possession letter
15. Occupancy Certificate.

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Where the promoter fails or defaults in delivering to the

allottee the land, building or apartment, according to the terms stated in
the sale agreement due to :
a) Discontinuance of his business as a developer, or
b) Suspension or revocation of the registration, or
c) Any other reason,
he shall return to such allottee on his demand the amount received from
him in respect of the said property. The allottee’s demand for return of
money shall be without prejudice to any other remedy available to him.
The promoter shall also be liable to pay him interest on the amount at the
State Bank of India’s highest Marginal Cost of Lending rate plus 2% for
the period of delay or default on his part in delivery. However, it is open
for the allottee to continue his application notwithstanding.
Where the title to the land, on which the project is being developed
or has been developed, is found to be defective, the promoter shall pay
the allottee compensation as stipulated under the Act and Rules framed
thereunder. Such right of the allottee to receive compensation is not
barred by limitation under any law being in force. The obligation of the
promoter shall be without prejudice to any other remedy available that
may be lawfully available to the allottee so aggrieved.
RIGHTS AND DUTIES OF ALLOTTEES (SEC.19):
This section stands as the backbone of the entire Act and highlights
the objective of the law, which is to protect the allottee against the
machinations of spurious promoters of real estates, of whom, no doubt,
there has been plenty. Under this Section, the rights of allottees are:
a) Information concerning the project
b) Know the schedule of its completion
c) Claim possession of property, together with related documents,
after completion of the project; and
d) Refund of money paid, along with interest and compensation, in the
event of default, delay or failure on the part of the Promoter to deliver
property in the terms of the sale agreement.
Equally, every allottee shall make all payments in the manner and
within the time as specified in the sale agreement participate in the
formation of an association or society or cooperative society or a
federation of the allottees take possession of the property within two

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months of issue of occupancy certificate and participate towards

registration of the conveyance.
The allottees are entitled to obtain information relating to sanctioned
plans, layout plans along with the specifications, as approved by the
competent authority and other information as provided in the Act or the
Rules and Regulations made thereunder or the agreement for sale signed
with the Promoter. The allottee shall be entitled to know stage-wise time
schedule of completion of the project, including the amenities that make
the unit habitable that conform to the terms and conditions of the sale
agreement. The allottee and the association of allottees shall be entitled
to claim possession of their properties.
Where the promoter fails to comply or is unable to give possession
of the apartment in accordance with the terms of agreement for sale or
due to discontinuance of his business as a developer on account of
suspension or revocation of his registration, the allottee may claim from
the promoter the refund of the amount, along with interest at SBI’s highest
marginal cost of lending plus 2% under Rule 16 of the Central Rules,
2017 of the Act, besides compensation in the manner as provided under
this Act.
The allottee is entitled to have necessary documents and plans of the
project and shall be liable to pay necessary payments relating to
registration of his allotted property in the project and periodic charges
associated with it. Any delay in such payment shall attract interest at rate
as stated in Rule 16 referred above, unless reduced by the mutual
agreement of the parties.
Every allottee shall participate towards the formation of an
association or society or cooperative society of the allottees or a
federation of the same and take physical possession of his allotted
property within two months of the occupancy certificate issued for it and
participate towards registration of the conveyance deed thereof.

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ESTABLISHMENT AND INCORPORATION OF REAL ESTATE

REGULATORY AUTHORITY (SECTION 20 TO 40):
ESTABLISHMENT OF AUTHORITY(SEC.20):
The appropriate government shall by Gazette Notification establish
an authority to be called “The Real Estate Regulatory Authority” to perform
the duties of enforcing and regulating the provisions of the Act by
exercising powers conferred under the Act. The appropriate government
of two or more State or Union Territories may establish a single such
Authority, or more than one such Authority in a State or Union Territory.
The authority shall be :
a) Corporate body
b) Perpetual succession
c) Common seal
d) Powers to acquire, hold and dispose of property
e) Powers to contract
f) Powers to sue or to be sued by the said name
COMPOSITION OF AUTHORITY (SEC. 21):
The authority shall consist of a Chairperson and not less than two
whole time Members to be appointed by the appropriate government.
QUALIFICATIONS OF CHAIRPERSON AND MEMBERS (SEC.22):
The Chairperson and other Members of the Authority shall be
appointed by the appropriate government on the recommendations of a
Selection Committee consisting of the Chief Justice of the High Court or
his nominee, the Secretary of the Department dealing with Housing and
the Law Secretary from amongst persons having adequate knowledge
and professional experience of least 20 years in case of the Chairperson
and 15 years in case of the Members in Urban Development, housing,
real estate development, infrastructure, economics, technical experts
from relevant fields, planning, law, commerce, accountancy, industry,
management, social service, public affairs or administration
A person who is, or has been, in the service of the State Government
shall not be appointed as a Chairperson unless such person has held the
post of Additional Secretary to the Central Government or any equivalent
post in the Central/State government.
A person who is, or has been, in the service of the State Government
shall not be appointed as a member unless such person has held the post
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of Secretary to the State Government or any equivalent post in the

State/Central government.
TERM OF OFFICE (SEC. 23):
1) The term of office of both the Chairman and the Members shall be
five years or the age of 65 years whichever is earlier;
2) They shall not be eligible for appointment for any further term
thereafter;
3) Both of them shall not have any financial or other interest in any field
of activity;
4) The appropriate government shall satisfy itself that they do not have
any financial or other interest that may prejudice his functions.
SALARY AND ALLOWANCES (SEC.24):
The appropriate government shall prescribe the salary, allowances
and benefits for the Chairperson and the Members in the Authority. They
shall not be varied to their disadvantage during their tenure of service.
The Chairperson or a Member may relinquish his office by giving in
writing to the appropriate government, notice of not less than 3 months,
of may be removed from his office in accordance with the provisions of
this Act. The vacancy occurring in the office of the Chairperson or
Member shall be filled within 3 months through the process prescribed
under Rule 17 of the Central Rules, 2017 of the Act.

ADMINISTRATIVE POWERS (Sec. 25 & Rule 19 of Central Rules, 2017):

Besides presiding over the meeting of the Authority held from time to
time, the Chairperson shall direct, supervise and steer the functions of the
Authority, and shall be vested with superintending and administrative
powers necessary therefor.
Under Rule 19 of the Central Rules 2017, the administrative powers
of the Chairperson is prescribed as follows:
a) All matters pertaining to staff strength, wages and salaries and
personal policies with prior approval from the state government;
b) All matters pertaining to creation and abolition of posts with prior
approval of the state government.
c) All matters pertaining to appointments, promotions and confirmation
for all posts with prior approval of the State government;

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d) Acceptance of resignation by any Member, Officer or employee

e) Officiating against sanctioned posts;
f) Authorisation of tours to be undertaken by any Member, Officer or
employee within and outside India and allowances to be granted for
the same;
g) All matters in relation to reimbursement of medical claims;
h) All matter in relation to grant or rejection of leaves;
i) Permission of hiring of vehicles for official use;
j) Nominations for attending seminars, conferences and training;
k) Permission for invitation of guests to carry out training courses;
l) All matters pertaining to staff welfare expenses;
m) Sanction for write-off of capital assets which due to normal wear and
tear have become unserviceable
n) All matters relating to disciplinary action against any Member,
Officer or employee;
o) Such other powers that may be required for the efficient functioning
of the Authority and enforcement of the provisions of the Act.
REMOVAL OF CHAIRPERSON AND MEMBERS FROM OFFICE
(SEC.26)
The appropriate government shall be empowered to remove the
Chairperson or a Member from his office when he is adjudged insolvent
or convicted for moral turpitude or has become physically or mentally
incapable of functioning in his assigned role. Where the Chairperson or a
Member has acquired such financial or other interest as is likely be affect
prejudicially his functions or has so abused his position as to render his
continuance in office prejudicial to the public interest, he may be removed
by the appropriate government only based on an enquiry conducted by a
Judge of the High Court and after being given a reasonable opportunity of
being heard in respect of those charged.
RESTRICTIONS ON CHAIRPERSON OR MEMBER ON POST
EMPLOYMENT (SEC. 27) :
After his term of office or removal therefrom, the Chairperson or a
Member shall not enter into any employment in, or connected with the
management or administration of any person or organisation which has
been associated with any work with the Authority. However, he may not
be barred from employment under the Government or a Statutory
Authority, which is not a promoter under this Act. He shall not act for or
on behalf of any person or organisation or a case to which the Authority is

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a party and with respect of which the Chairperson or such Member had,
before cessation office, acted for or proved advice to, the Authority. He
shall also not reveal information that he might have obtained in the
capacity of having held such office or use it to give advice to any person
or organisation, nor shall he serve as a director on the board of any
company, which had dealings with the Authority during his tenure.
OFFICERS AND OTHER EMPLOYEES (SEC. 28):
The appropriate government may, in consultation with the Authority
appoint officers and employees as it considers necessary for the efficient
functioning of the Authority, and prescribe their salaries, allowances and
terms of service.

FUNCTIONS OF THE AUTHORITY:

MEETINGS OF THE AUTHORITY (SEC. 29):
The Authority shall hold hits meetings such place and such ties as
it considers necessary and shall lay down the quorum and procedures
therefor. All decisions at such meetings shall be based on majority votes
of Members present and voting. In the event of a tie, the Chairman, or his
absence the Presiding Member shall exercise his second or casting vote.
The Authority shall dispose of all questions referred to it within a period of
sixty days from the date of its receipt and in the event of not being able to
do so, shall record in writing its reasons therefor.
The proceedings of the Authority shall not be affected by a vacancy
of the office of the Chairperson or a Member caused in its constitution or
the occurrence of a procedural irregularity.
FILING OF COMPLAINTS WITH THE AUTHORITY (SEC. 31):
The aggrieved person may file before the Authority or the
Adjudicating Officer, as the case may be, for any violation or contravention
of this Act or its Rules or the Regulations made thereunder. The complaint
may be against any promoter, allottee or real estate agent, as the case
may be. The aggrieved person may include an association of allottees or
any voluntary association registered as such with the objective of
protecting consumers’ interest.
The essential requirements for making a complaint before the
Authority or the Adjudicating Officer are :

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1) The project should have been registered under the Act;

2) The alleged violations are continuing till date;
3) The alleged violations contravene provisions of RERA;
4) The issue should have neither been decided nor pending in
any other court/forum.
Section 32 of the Act enumerates the advisory functions of the
Authority in its role to facilitate the growth and promotion of a healthy,
transparent, resourceful and competitive real estate sector.
ADVOCACY AND AWARENESS MEASURES (SEC. 33):
The appropriate government may seek opinion of the Authority on
the possible effect that any of its policies may have on the real estate
sector. The Authority shall give its opinions to the government within 60
days of receiving such reference.
However, it shall not be incumbent on the appropriate government to
implement such an opinion given by the Authority. The Authority shall
also take suitable steps to promote awareness and training in the laws
and the policies of the appropriate government concerning the real estate
sector.
POWERS OF AUTHORITY (SEC. 35):
The authority is vested with power to initiate action against any
promoter or allottee or real estate agent at any time by its own volition,
without any trigger by a complainant, to furnish in writing such information
or explanation relating to the project as it may require. Such demand shall
be made in writing and shall record the reasons therefor. The Authority
may appoint one or more persons to make an inquiry in relation to the
business and activities of any promoter or allottee or the real estate agent.
The Authority shall have the same powers as are vested in a Civil
Court under CPC while trying a suit, in respect of the matters including:
a) examining book of accounts and other documents;
b) summoning and enforcing the attendance of person and
examining them on oath; and
c) conducting examination of witnesses or documents.
POWERS TO PASS INTERIM ORDERS (SEC. 36):
In the course of an enquiry, if the Authority is where the Authority has
reasons to believe, prima facie, that a contravention of the

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Act/Rules/Regulations thereunder has occurred, or continues to occur, or

is about to occur, the Authority may intervene and issue pro term order
restraining either party from carrying on with such contravention until the
conclusion of the inquiry or until further orders.
Section 37 of the Act empowers the Authority for effectively
performing its duties to issue directions from time to time to the Promoters
or Allottees or Real Estate Agents, as the case may be. Such directions
shall be binding on all concerned parties.
POWERS OF AUTHORITY (SEC.38):
The Authority shall have powers to :
a) impose penalty or interest to any contravention or obligations cast
upon the promoters/allottees/real estate agents;
b) shall be guided by the principles of natural justice and provisions of
the Act and shall have powers to regulate its own procedure
c) where an issue is raised relating to agreement, action, omission,
practice, procedure, that:
1) has an appreciable prevention, restriction or distortion of
competition in connection with the development of a real estate
project;
2) has effect of market power of monopoly situation being abused
for affecting interest of allottees adversely;
d) Suo motu make reference in respect of such issue to the
Competition Commission of India.
Under Section 39 of the Act, the Authority, within a period of two
years from the date of order made under the Act with a view to rectifying
any mistake apparent from the record, amend any order passed by it and
shall make such amendment, if the mistake is brought to the notice of the
parties. No such amendment shall be made in respect of any order
against which appeal has been preferred under this Act. The Authority
shall not amend substantive part of its order passed under the Provisions
of this Act.
As per Section 40 of the Act, of a promote or an allottee or a real
estate agent fails to pay any interest or penalty or compensation imposed
on him by the adjudicating officer or the Regulatory Authority or the
Appellate Authority, under this Act, it shall be recoverable from such
promoter or allottee or promoter or real estate agent in such a manner as
prescribed as an arrears of land revenue.

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If any adjudicating officer or the Regulatory Authority or the

Appellate Authority issues any order or directs any person to do any act
or refrain from doing any act, which it is empowered to do under this Act,
then in case of failure by any person to comply with such order or direction,
the same shall be enforced, in such a manner as prescribed.

THE REAL ESTATE APPELLATE TRIBUNAL

ESTABLISHMENT OF THE REAL ESTATE APPELLATE TRIBUNAL (SEC. 43):

The appropriate government shall within a period one year from the
date of coming into force of this Act, by a Notification establish an
Appellate Tribunal. The appropriate government, if it deems necessary,
establish one or more benches of the Tribunal for various jurisdictions in
the State or UT. Every Bench of Appellate Tribunal shall consist of at
least one Judicial Member and one Administrative to Technical Member.
The appropriate government of two or more states or UT, if it deems fit,
establish one single Appellate Tribunal.
Any person aggrieved by any direction or decision or order made by
the Authority or by an adjudicating officer under this Act may prefer an
appeal before the Appellate Tribunal having jurisdiction over the matter.
A) Where a promoter files an appeal with the Appellate Tribunal
it shall not be entertained, unless the Promoter deposits atleast 30% of
the penalty as may be determined by the Tribunal;
B) Where an allottee files an appeal with the appellate Tribunal, it
shall be entertained on payment of entire amount including interest and
compensation imposed on him if any, or with both, as the case may be
before the appeal is heard.
APPLICATION FOR SETTLEMENT OF DISPUTES BEFORE
TRIBUNAL (SECTION 44):
a) The appropriate government or the competent authority or any
person aggrieved by any direction or order or decision of the
Authority of the Adjudicating Officer may prefer an appeal;
b) Every appeal shall be preferred within a period of 60 days from
the date on which a copy of order or decision or directions made
by the authority or by the Adjudicating Officer is received;

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c) Every appeal shall be accompanied by such fees as may be

prescribed;
d) The appellate tribunal may entertain any appeal after the expiry
of 60 days, if it is satisfied that there was sufficient cause for
not filing it within the period;
e) On receipt of any appeal, the Tribunal may after giving the
parties an opportunity of being hear pass such orders including
interim orders, as it thinks fit;
f) The Tribunal shall send a copy of every order made by it to the
parties and to the Authority or the adjudicating officer ;
g) The appeal shall be dealt with by it as expeditiously as possible
and shall dispose of the appeal within a period of 60 days from
the date of receipt of appeal;
h) Where any such appeal could not be disposed of within 60
days, the Tribunal shall record the reasons in writing for not
disposing the appeal within that period;
i) The Tribunal for the purpose of examining the legality or
propriety or correctness of any
j) order or decision of the Authority or the adjudicating officer, call
for the records relevant to disposing of such appeal and make
such orders as it thinks fit.
COMPOSITION OF TRIBUNAL (SEC. 45):
The Appellate Tribunal shall consist of a Chairperson and not less
than two whole time Members of which one shall be a Judicial Member an
other shall be a Technical or Administrative Member, to be appointed by
the appropriate government.
QUALIFICATIONS FOR APPOINTMENT (SECTION 46):
A persons shall not be qualified for appointment of the
Chairperson or a Member of the Tribunal, unless he :
a) In case of the Chairperson, is or has been a judge of High Court;
b) In case of a Judicial member,
1) he has held a judicial Office for at least 15 years, or
2) Has been a member of the Indian Legal Service in the post
of Additional Secretary, or
3) An advocate for at least twenty years with experience in
dealing with real estate matters ;
c) In case of a Technical or Administrative Member,

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1) He is a person who is well-versed in the field of Urban

Development, housing, real estate development,
infrastructure, etc. and possess experience of at least 20
years; or
2) A person who has held the post in the State/Central
government equivalent to the post of Additional Secretary
to the Government of India or an equivalent post.
d) The Chairperson shall be appointed by the appropriate
government in consultation with the Chief Justice of High Court
or his nominee;
e) The Judicial Member and Technical or Administrative member
of the Tribunal shall appointed by the appropriate government
on the recommendation of Selection Committee consisting of:
1) The Chief justice of High Court or his nominee
2) The Secretary of the Department handling Housing;
3) The Law Secretary
and in such manner as may be prescribed.
TERM OF OFFICE (SECTION 47):
The Members and the Chairperson shall hold office for a term not
exceeding 5 years from the date on which he enters upon his office. He
shall not be eligible for re-appointment. However, no Judicial Member or
Technical or Administrative Member shall hold office after he has attained
the age of 65 years.
SALARY AND ALLOWANCES (SEC.48):
The salary and allowances and the terms of office of Chairperson
or Member shall be prescribed by the appropriate government by means
of Rules enacted by it. Is section also prescribes the method of
relinquishment of office by the Chairperson or the Members. The
appropriate government shall fill up the vacancies within a period of 3
months from the date of vacancy.
POWERS OF TRIBUNAL (SEC. 53):
1) The appellate tribunal shall be bound to follow the principles of
Natural Justice and not the provisions of Civil Procedure Code,
1908.
2) The appellate tribunal shall have power to regulate its own
procedures.

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3) The Tribunal need not follow the provisions of the Indian Evidence
Act, 1872
4) The Tribunal shall have the same powers as are vised in CPC in
respect of the following matters:
a) Summoning and enforcing the attendance of any person and
examining him on oath;
b) Requiring the discovery and production of docu`ments;
c) Receiving evidence on affidavits;
d) Issuing Commissions for the examinations of witnesses or
documents;
e) Reviewing its decisions;
f) Dismissing an application for default or directing it ex-parte
g) Any other matter which may be prescribed.

5) All proceedings before the Tribunal shall be deemed to be judicial

proceedings and the appellate tribunal shall be deemed to be a civil
court for the purpose.
As per section 54 of the Act, the Chairperson shall have powers
of general superintendence and direction on the conduct of the affairs
of the Tribunal and shall presiding over the meeting of the Tribunal
exercise and discharge such administrative powers and functions of
the Tribunal.
Under Section 57 of the Act, every order made by the appellate
tribunal shall be executable by the appellate tribunal as a decree of a
civil court and for this purpose, appellate tribunal shall have all the
powers of a Civil Court.

OFFENCES, PENALTIES AND ADJUDICATION:

PUNISHMENTS/PENALTIES (SEC. 59 to 68) :
a) If any promoter contravenes the provisions of Sec.3 of the Act
(prior registration of project) is liable for penalty which may
extent upto 10% of the estimated costs of the project;
b) If any promoter does not comply with the orders, decisions or
directions issued or continues to violate the provisions of Sec.3
shall be punishable with imprisonment for a term which may
extend upto 3 years or with fine which may extend to further
10% (i.e. 10% + 10%) of the estimated cost of the project.
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c) If any promoter provides false information or contravenes the

provisions of Sec.4 (in application for prior registration) is liable
to a penalty which may extend upto 5% of the estimated cost of
the project;
d) If any promoter contravenes any other provisions of this Act or
the Rules or Regulations made thereunder shall be liable to a
penalty which may extent upto 5% of the estimated cost of the
project;
e) If any real estate agent fails to comply with or contravenes the
provisions of Sec. 9 & 10 (Registration and Functions of Real
Estate Agents) shall be liable to a penalty of Rs.10,000/- for
every day during which such default continue which may
cumulatively extend upto 5% of the cost of plat or apartment to
which the sale or purchase has been facilitated;
f) If any promoter who fails to comply with or contravenes any of
the orders or directions of the authority, he shall be liable to a
penalty for every day during which such default continues which
may cumulatively extent upto 5% of the estimated costs of the
project;
g) If any promoter who fails to comply with or contravenes of the
orders or decisions or directions of the Appellate Tribunal, he
shall be punishable with imprisonment for a term which may
extend upto 3 years or with fine for every day during which such
default continues, which may cumulatively extend upto 10% of
the estimated costs of the project;
h) If any real estate who fails to comply with or contravenes any of
the orders or directions of the Authority, he shall be liable to a
penalty for every day during which such default continues which
may cumulatively extend upto 5% of the estimated cost of the
project for which the sale or purchase has been facilitated;
i) If any real estate agent who fails to comply with or contravenes
any orders, decisions or directions of the Tribunal shall be
punishable with imprisonment for a term which may extend upto
one year with fine for every day during which such default
continues which may cumulatively extend upto 1-% of the
estimated cost of the project for which sale or purchase has
been facilitated;
j) If any allottee who fails to comply with or contravenes any of the
orders, decisions or directions of the Authority, he shall be liable
to a penalty for the period during which such default continues
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which may cumulatively extend upto 5% of the plot as

determined by the Authority;
k) If any allottee, who fails to comply with or contravenes any of
the directions or orders of the Tribunal, he shall be punishable
with imprisonment for a term which may extend upto one year
or with fine for every day during which the default continues
which may cumulatively extended upto 10% of the project;
ABSTRACT:
Sl.No. Section Defaulter Violations Penalty
1. 59 Promoter Contravenes Sec.3 10% of the
cost
2. 59 Promoter Continues violation Imprisonment
of Sec.3 upto 3 years
or with fine
extend upto
10%
3. 60 Promoter False information 5% of the
cost
4. 61 Promoter Continues 5% of the
contravenes cost
5. 62 Real Estate Violation of Prov.9 5% of the
Agent & 10 cost
6. 63 Promoter Not complying the Penalty for
orders of the every day,
Authority extend upto
5%
7. 64 Promoter Not complying the Imprisonment
orders of the upto 3 years
Tribunal or fine for
every day
upto 10%
8. 65 Real Estate Non-compliance of 5% of the
Agent orders of the cost
Authority
9. 66 Real Estate Non-compliance of Imprisonment
Agent the orders of the upto 1 year
Tribunal with fine for
everyday
extended
upto 10%

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10 67 Allottee Non-compliance of 5% of the

the orders of the cost
Authority
11. 68 Allottee Non-compliance of Imprisonment
the orders of the upto 1 year
Tribunal with fine for
everyday
extended
upto 10%

OFFENCES (SEC. 69 & 70):

Both the company and its officers on an equal footing for awarding
penalties for offences committed by the company under the Act. The
Officer shall be exonerated, if he proves that the offence was committed
without his knowledge or that he had exercised all due diligence to prevent
the commission of such offence. Any director, manager, secretary or
other officer of the company is punishable, if it is proved that the offence
has been committed with the consent or connivance of, or is attributable
to, any neglect on the part of such person.
The Court or Authority or Tribunal shall, for the purposes of
compounding any offence punishable with imprisonment under the Act,
accept the amount as specified.
ADJUDICATIONS (SECTIONS 71 AND 72):
Section 71 of the Act provides for appointing a person who is or
has been a District Judge as Adjudicating Officer for adjudging
compensation under Sections 12, 14, 18 & 19 of he Act pending before
the Consumer Disputes Redressal Forum or the State Commission or the
National Commission established under the Consumer Projection At,
1986.ff The aggrieved party may with the permission of such Forum or
Commission, withdraw the complaint pending before such body and file
an application before the Adjudicating Officer under this Act.
The Adjudicating Officer shall dispose of the same within a period
of 60 days from the date of receipt of the application. For the purpose of
conducting inquiry, the Adjudicating Officer shall have powers to summon
and enforce the attendance of any person acquainted with the facts and
circumstances of the case to give evidence or to produce any documents
which he considers necessary for the adjudication.

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The Adjudicating Officer (AO) may direct the defaulting party to pay
such compensation or interest as the case may be, as he thinks fit in
accordance with the provisions of any of those sections.
The Adjudicating Officer shall not determine the amount of
compensation or interest flowing from the default on the part of the
Promoter in an arbitrary manner. For determining them, he shall consider,
inter alia, disproportionate gain or unfair advantage, if any, that may
accrue to the allottee, whether the promoter is a compulsive defaulter and
the circumstance surrounding the default alleged.
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