P. 1
Unit 7 ( LAND ACQUISITION – THE LAND ACQUISITION ACT 1960, ACT 486 )

Unit 7 ( LAND ACQUISITION – THE LAND ACQUISITION ACT 1960, ACT 486 )

|Views: 202|Likes:
Published by Zara Nabilah

More info:

Published by: Zara Nabilah on Jul 19, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

08/06/2015

pdf

text

original

C3347/UNIT7/1

UNIT 7
LAND ACQUISITION – THE LAND ACQUISITION ACT 1960, ACT 486

OBJECTIVES

General Objective To understand the concepts and procedures of acquisition of land under the Land Acquisition Act 1960, Act 486. Specific Objectives At the end of the unit you will be able to:          identify the authority which has been empowered to acquire land compulsorily, state the purposes of compulsory acquisition, identify the types of land that may be acquired, identify the state officers that are allowed to enter land scheduled for compulsory land acquisition, describe the general steps in the acquisition of land, review the detail steps in the acquisition of land, discuss the rights of dispossessed proprietors and interested persons to appeal, discuss the role of Court in the land acquisition process, explain compulsory land acquisition for temporary occupation or use of land.

C3347/UNIT7/2

INPUT

The Land Acquisition Act (LAA) 1960, Act 34 came into enforcement on the 13th . October 1960. Since then, many amendments have been made to the act. In 1992 the act was revised and was known as LAA 1960, Act 486. In 1998, the act once again was amended with the enforcement of Act 999.

The purpose of LAA 1960, is to “process land acquisition and pay equitable compensation”. The creation of this act is in accordance to the specification of Item 13(2) which states that “no law is allowed to make provision for compulsory acquisition or taking of properties without paying equitable compensation.” Although land may be purchased from the proprietor for development purposes, compulsory acquisition is preferred by the government. This may due to the fact that: a) b) c) It is difficult for both the proprietor and the party that needs the land to come to an agreement over the price of land. The land purchased is subject to condition contrary to the use that is intended. Therefore the condition needs to be changed. This can cause a lot of inconvenience. The land bought may also be subjected to encumbrances like charge, lien and tenancy that are exempted from registration.

By compulsory acquisition, the land can be obtained even if the proprietor does not agree to sell it and no bargaining over the price is necessary. Once a memorial under section 23 of the LAA is made with respect to any land, that land shall vest in the State Authority as State Land free from encumbrances.

C3347/UNIT7/3

7.1

AUTHORITY TO ACQUIRE LAND COMPULSORILY Under the LAA 1960, the State Authority is the only authority empowered to acquire land compulsorily. In exercising its power, the State Authority can delegate it to certain person such as the Menteri Besar under the Delegation of Powers Ordinance, 1956.

7.2 PURPOSES OF COMPULSORY ACQUISITION Section 3 of LAA 1960, provides that the State Authority may acquire land which is needed:a) for any public purposes, b) by any person or corporation undertaking a work which in the opinion of the State Authority is beneficial for the economic development of the whole of or some part of Malaysia or to the public or a section of the public, or c) for the purpose of mining or residential, agricultural, commercial, industrial or recreational or the combination of any of the uses mentioned. The term “public purpose” can be said to include a purpose in which the general interest of the community, rather than for a particular interest of a person, is directly or vitally concerned. In this respect, acquisition of land for school, hospital, community hall and road is regarded to be for a public purpose. 7.3 LAND THAT CAN BE COMPULSORILY ACQUIRED As defined in section 2(1), land that can be compulsorily acquired may be one of the following: a) Alienated land within the meaning of the State land law, b) Land occupied under customary right, c) Land occupied in expectation of title such as Approved Application (AA) or Surat Akuan,
Note that land held under a mining certificate or a mining lease cannot be acquired compulsorily….

C3347/UNIT7/4

7.4 RIGHT OF STATE OFFICERS TO ENTER LAND INTENDED FOR COMPULSORY ACQUISITION Section 5 of the LAA, 1960, provides that any officer or person, together with servants and workmen authorized by the State Director by virtue of written authority in Form B, shall have the right at all reasonable times to enter any land for the purpose of the Act.

The LAA 1960 defines “State Director” as a State Director of Lands and Mines appointed under the State land law and includes a Deputy State Director of Lands and Mines. Please review sec. 1.7.2 of this module or sec. 12 of NLC to refresh your memory on “state officers”….

C3347/UNIT7/5

Activity 7a

TEST YOUR UNDERSTANDING BEFORE YOU CONTINUE WITH THE NEXT INPUT….! Circle the correct answer 7.1 The _______________is the only authority empowered to acquire land compulsorily. A) Menteri Besar B) State Authority C) State Government D) Federal Government 7.2 Compulsory acquisition, rather than purchase of land is preferred by the government because of the following reasons except A) agreement over the price of land is difficult to reach. B) the land bought may also be subjected to encumbrances that are exempted from registration. C) payment of compensation in the case of land acquisition is normally cheaper than the market value of the land. D) the land may be subjected to conditions contrary to the use that is intended and changing this can cause a lot of problems. 7.3 The following types of land may be compulsorily acquired except A) mining land B) alienated land C) customary land D) land occupied in expectation of title 7.4 Identify the state officers that are allowed to enter land intended for compulsory acquisition by virtue of written authority in Form B. I. Workmen III. Settlement Officer II. Survey Officer IV. Land Administrator A) B) C) D) I, II and III I, III and IV II, II and IV I, II, III and IV

C3347/UNIT7/6

Feedback to Activity 7a

7.1 B 7.2 C 7.3 A 7.4 D

Well done!…We’ve gone through the answers, if you are still confused,…come and see me after the class…

TttTttt

C3347/UNIT7/7

INPUT

7.5 PROCEDURES OF COMPULSORY LAND ACQUISITION Application for land acquisition may be made to the Land Administrator. Upon receiving any application for land acquisition, the Land Administrator shall transmit the application and the accompanying documents to the State Economic Planning Unit or in the case of an application made in the Federal Territory of Kuala Lumpur, to the Committee if he is satisfied that they are in order. The State Economic Planning Unit or the Committee for the Federal Territory of Kuala Lumpur shall, after it has considered each application transmit the application with the accompanying documents and a report of negotiations, if any to: a) the Committee, in case of a State, or b) the State Authority, in case of the Federal Territory of Kuala Lumpur. On receiving the application, the Committee, in the case of a state shall evaluate the appropriateness of the application and shall no later than two months from the date of receiving the application, transmit it to the State Authority together with such recommendation as it thinks fit. The final decision on whether to approve or reject the application is made by the State Authority. The detail procedures for land acquisition can be divided into six categories namely: a) b) c) d) e) Request for acquisition, investigation and gazetting Enquiry and order Payment of compensation Formal possession of the land Reference to court f) Revision of rent, resurvey and issue of title in continuation where part of the land is taken.

C3347/UNIT7/8

7.5.1

Request For Acquisition, Investigation And Gazetting The request for acquisition of land can be from Federal Department, State Department or from a Federal or State statutory body or from private person or body. The request must be made in a form that is specified under KPTG Circular 3/79. Relevant documents must also be accompanied (see sect 3(3), LAA 1960). In some situations the land must first be investigated for its suitability for a certain project and to avoid any ultra vires intention of unscrupulous party with regard to the amount of compensation. To carry out this investigation, gazetting under section 4 is made by notification in Form A. Land Administrator shall publicized the notification by displaying public notice board of the Land Office where the land affected is situated or other places that the Land Administrator thinks fit. If it is necessary to carry out detail investigation on the land, the State Director will issue permission letter in Form B to allow relevant officers to enter the land to conduct site suitability study. If it is not necessary to carry out any investigation on the land or if the land has been gazetted under section 4, a paper prepared for the EXCO will be forwarded to the State Authority for approval. This will be gazetted under section 8 of LAA 1960. The paper will be attached with Form C which contains the list of land involved, the name of proprietors and a plan of the land to be acquired. When the State Authority approves the acquisition, a declaration under section 8 is made by using Form D and is published in the Government Gazette together with a copy of Form C. This declaration will be ineffective after two years if during this period Land Administrator does not carry any investigation and offer any compensation. Immediately after the declaration, section 9 requires that Land Administrator to cause the areas affected by the acquisition to be marked out upon the land. He should also make a note of intended acquisition in the register document of title or other appropriate record. Next, under section 10 the Land Administrator will issue a public notice in Form E indicating that early steps on the hearing of all enquiries on payment of compensation have started. The date of hearing will also be fixed. The date must be more than 21 days from the date of issuance of Form E. Any applicant may withdraw from the acquisition of any land before the publication of the declaration under section 8 by giving a notice in writing to the Land Administrator.

C3347/UNIT7/9

7.5.2

Enquiry And Order

The procedure for enquiry is governed by section 12. On the date of enquiry, Land Administrator will: a) investigate on the valuation of land to be acquired, b) assess the amount of compensation, c) enquire on the interest of all persons claiming compensation or who in his opinion are entitled to compensation and objections, if any. Section 13 gives Land Administrator the power to get a written report on the valuation of land and to call and question witnesses in order to administer oaths or affirmations. He may also order that relevant documents be submitted to him. The Land Administrator may for a sufficient reason postpone any enquiry or adjourn any hearing of enquiry from time to time. Written award in Form G should be prepared upon conclusion of the enquiry. The award should specify: the amount of compensation total area being acquired apportionment of compensation payment cost and expenditure, if any Payment Of Compensation Having prepared the written award, the Land Administrator shall serve or cause to be served the notice of award and offer of compensation in Form H on each interested person. The notice should also be served on the applicant and the proprietor.

a) b) c) d) 7.5.3

The proprietor and interested person, has three choices upon receiving Form H, ie. to duly accept the award, to accept it with objection or to object it. The applicant can only either accept it or object it.

C3347/UNIT7/10

If during the enquiry, the Land Administrator decided that: i. there is no one eligible for compensation or ii. the person has objected upon receiving Form H, or iii. there is a dispute as to the right or title of the person to receive the compensation, or as to the apportionment of compensation, The Land Administrator must as soon as possible deposit the compensation money to the Court. This is done ex-parte by using the Land Administrator’s affidavit. If the applicant objected, 25% of the amount of the award will be retained by the Land Administrator. The Land Administrator shall make payment of only seventy-five per cent of the amount of the award. He shall withhold twenty-five percent of the award until the expiration of appeal period or if there is further appeal, the amount of compensation is finally determined by Court. If there is no reference to Court, the remaining 25% must be paid immediately. When the amount of any compensation awarded under this Act is not paid or deposited on or before the due date, late payment charges at the rate of eight per cent per annum from the due date until the time of such payment or deposit is payable by the Land Administrator. 7.5.4 Formal Possession Of The Land

Formal possession of the land can only be done in two situations: a) when Form H is being served, b) when Certificate of Urgency of Form I is issued. According to section 19, The Land and Mines Department can issue Certificate Of Urgency 15 days after the issuance of Form E provided that no building is involved in the area being acquired. Formal possession of the land is done under section 22 by issuing a notice of Form K to the occupier of land. A copy of this notice is sent to the proprietor if he is not the occupier and the proper registering authority to be endorsed in the corresponding document of title. When Form K is officially registered in the title, the State Authority will automatically take formal possession on the scheduled land. As provided by section 35, the State Authority may withdraw from acquisition of any land that has not been taken possession. Notification of every withdrawal from acquisition shall be published in the Gazette. The Land Administrator has to take a number of actions as stated in section 35(2) and 35(4) of the Act.

C3347/UNIT7/11

7.5.5

Reference To Court Reference to Court may only be made by the Land Administrator either by: i. His own initiative, or ii. Application by person interested in any scheduled land. The Land Administrator may, by application in Form M refer to the court with regard to the following matters: i. The true construction or validity or effect of any instrument ii. The person entitled to a right or interest in land iii. The extent or nature of such right or interest iv. The apportionment of compensation for such right or interest v. The persons to whom such compensation is payable vi. The cost of any enquiry under the LAA, 1960 and the persons by whom such costs shall be borne. Section 37 states that any person interested in any scheduled land may make objection to: i. the measurement of the land ii. the amount of compensation iii. the persons to whom it is payable iv. the apportionment of the compensation Any objection made under section 37 shall be made by a written application in Form N to the Land Administrator requiring that he refer the matter to the Court. It must be noted that no objection can be made on the compensation if the amount does not exceed three thousand ringgit. It must also be noted that if the amount exceeds fifteen thousand ringgit, the applicants on whose behalf such land was acquired shall be deemed to be a person interested in any scheduled land and as such may make objections on any grounds specified above. On receiving any application, the Land Administrator shall, within six months refer the matter to the Court by a reference in Form O. Further actions will be handled by the Court. 7.5.6 Revision Of Rent, Resurvey And Issue Of Title In Continuation Where Part Of The Land Is Taken Where only part of a lot is acquired under this Act, the Land Administrator shall revise the rent payable by the proprietor and shall cause the part retained by the proprietor to be re-surveyed. The revised rent (if any) shall be re-calculated by reference to the area of the part as established by the survey and is payable the following year.

C3347/UNIT7/12

Where part of a lot has been re-surveyed, the proper registering authority shall: i. In the case of land held under Registry title or Land Office title, issue title in continuation to the part retained by the proprietor as if he were issuing title in continuation to land as a whole, ii. In the case of land held under title evidence by an entry in the Interim Register, issue title in continuation to the part so retained will consist of a fresh folio of the Interim Register which shall replace and shall be in the same form as the folio relating to the original lot. 7.6 THE ROLE OF COURT The LAA 1960 gives a new perspective to the role of the Court in the land acquisition process through the A999/97 amendment. Where the objection is regarding the amount of compensation, the Court shall appoint two assessors, one of whom is a Government valuer, to aid the Judge in determining the objection and in arriving at a fair and reasonable amount of compensation. If the two assessors differ on the amount of compensation, the Judge may only elect to concur with the decision of one of the assessors. Any decision made is final and there shall be no further appeal to a higher Court on this matter. In cases that are not related to the amount of compensation the Judge will sit alone and appeal to higher court is allowed if the persons involved are not satisfied with the decision made by the Judge.

7.7 TEMPORARY OCCUPATION OR USE OF LAND Section 57 provides that whenever it appears to the State Authority that the temporary occupation and use of any land is needed: i. for any purpose specified in section 3, or ii. in order to carry out public works on any land, the State Authority may direct the Land Administrator to procure the occupation or use of any such land for a period not exceeding three years. Upon receiving such instruction, the Land Administrator will deal with the proprietor to establish the terms and conditions of occupation and the amount and method of compensation. On the expiration of the term of occupation or use, the land shall be restored to the condition it was before such occupation or use.

C3347/UNIT7/13

Activity 7b

TEST YOUR UNDERSTANDING BEFORE YOU CONTINUE WITH THE NEXT INPUT….! 7.5 Match each form with its function: Form A ◦ Form B ◦ Form C ◦ Form D ◦ Form E ◦ ◦ Authority to enter survey ◦ Schedule of lands affected by land acquisition ◦ Notice that land is likely to be acquired ◦ Notice of enquiry ◦ Declaration of intended acquisition

7.6 Decide whether the following statements are true (T) or false (F). a. During enquiry, the Land Administrator will only investigate on the valuation of land to be acquired. _____ b. Written award is made in Form F. _____ c. If there is any objection on the amount of compensation, 75% of the amount will be retained by the Land Administrator. _____ d. Upon taking formal possession of the land, a copy of Form K is sent to the registered proprietor of the land if he is not the occupier, the applicant and the proper registering committee. _____ e. Certificate of Urgency can be issued15 days after the issuance of Form E provided that no building is involved in the area being acquired. _____ f. Reference to Court can only be made by the land Administrator. _____ g. In cases of appeal on the amount of compensation, if the two assessors appointed by the Court differ on the amount of compensation, the Judge may determine the amount himself. _____ h. Temporary occupation and use of any land by under section 57 of the LAA 1960 can only last for a period of 3 years or less. _____

C3347/UNIT7/14

Feedback to Activity 7b

7.5

Form A ◦ Form B ◦ Form C ◦ Form D ◦ Form E ◦

◦ Authority to enter survey ◦ Schedule of lands affected by land acquisition ◦ Notice that land is likely to be acquired ◦ Notice of enquiry ◦ Declaration of intended acquisition

7.6

a. b. c. d. e. f. g. h.

F F F F T T F T

C3347/UNIT7/15

KEY FACTS 1. Proprietors or interested persons of a land cannot object compulsory land acquisition. They only can object on the items listed out in section 37 of the LAA 1960. 2. Compulsory land acquisition is preferred by the State Authority compared to purchase of land because it is easier and faster to acquire land compulsorily. 3. The purpose of compulsory land acquisition must be solely for public interests. Otherwise the validity of land acquisition can be challenged. The Land Administrator must carry out the land acquisition with due care to ensure that the action taken does not overrule Item 13 of the Federal Constitution. 4. The LAA 1960 also allows for compulsory acquisition for temporary occupation or use of land.

C3347/UNIT7/16

Self-Assessment 7

You are approaching success. Try all the questions in this self-assessment section and check your answers with those given in the Feedback on Self-Assessment given on the next page. If you have any problems, discuss it with your lecturer. Good luck. 1. State the purposes of compulsory land acquisition. 2. Describe the general procedures of compulsory land acquisition under the LAA 1960. 3. Briefly explain the detail steps of land acquisition. 4. Discuss the role of Court in the compulsory land acquisition process.

C3347/UNIT7/17

Feedback To Self-Assessment 7

Have you tried the questions???? If “YES”, check your answers now. 1. The purposes of compulsory land acquisition are for: a) any public purposes, b) the economic development of the whole of or some part of Malaysia or to the public or a section of the public, or c) the purpose of mining or residential, agricultural, commercial, industrial or recreational or the combination of any of the uses mentioned. Application for land acquisition is made to the Land Administrator. Then, the Land Administrator will transmit the application and the accompanying documents to the State Economic Planning Unit or, in the case of an application made in the Federal Territory of Kuala Lumpur, to the Committee if he is satisfied that they are in order. The State Economic Planning Unit, or the Committee for the Federal Territory of Kuala Lumpur shall, after it has considered each application transmit the application with the accompanying documents and a report of negotiations, if any to: c) the Committee, in case of a State, or d) the State Authority, in case of the Federal Territory of Kuala Lumpur. On receiving the application, the Committee, in the case of a State shall evaluate the appropriateness of the application and shall no later than two months from the date of receiving the application, transmit it to the State Authority together with such recommendation as it thinks fit. The final decision on whether to approve or reject the application is made by the State Authority.

2.

C3347/UNIT7/18

3.

The brief explanations of the detail procedures for land acquisition are given below: a) Request for acquisition, investigation and gazetting Request for acquisition can be made to the Land Administrator using the correct form and accompanied by the relevant documents. In some situations the land must first be assessed for its suitability. If this is the case, then the Land Administrator will take the necessary steps to allow relevant officers to enter the scheduled land. If this is not the case, then a paper prepared for the EXCO will be forwarded to the State Authority for approval. When the State Authority approves the acquisition, a declaration under section 8 is made by using Form D and is published in the Government Gazette together with a copy of Form C. This declaration will be ineffective after two years if during this period Land Administrator does not carry any investigation and offer any compensation. Immediately after the declaration, section 9 requires that Land Administrator to cause the areas affected by the acquisition to be marked out upon the land. He should also make a note of intended acquisition in the register document of title or other appropriate record. Next, under section 10 the Land Administrator will issue a public notice in Form E indicating that early steps on the hearing of all enquiries on payment of compensation have started. The date of hearing will also be fixed. The date must be more than 21 days from the date of issuance of Form E. b) Enquiry and order On the date of enquiry, Land Administrator will: a) investigate on the valuation of land to be acquired, b) assessed the amount of compensation, c) enquire on the interest of all persons claiming compensation or who in his opinion are entitled to compensation and objections, if any. The Land Administrator may for a sufficient reason postpone any enquiry or adjourn any hearing of enquiry from time to time. Written award in Form G should be prepared upon conclusion of the enquiry. The award should specify: the amount of compensation total area being acquired apportionment of compensation payment cost and expenditure, if any.

a) b) c) d)

C3347/UNIT7/19

c) Payment of compensation When the written award is prepared, the Land Administrator will notify the interested persons, the applicants and the proprietor. The proprietor and interested persons can either duly accept the award or accept it with objection or object it. The applicant can either accept or object it. If there is any objection, 25% of the award will be retained by the Land Administrator. He shall make payment of only seventy-five per cent of the award and withhold the other twenty-five percent until the expiration of appeal period or if there is further appeal, the amount of compensation is finally determined by Court. If there is no reference to Court, the remaining 25% must be paid immediately. When the amount of any compensation awarded under this Act is not paid or deposited on or before the due date, late payment charges at the rate of eight per cent per annum from the due date until the time of such payment or deposit is payable by the Land Administrator. d) Formal possession of the land Formal possession of the land can only be done in two situations: c) when Form H is being served, d) when Certificate of Urgency of Form I is issued 15 days after the issuance of Form E provided that no building is involved in the area being acquired. Formal possession of the land is done under section 22 by issuing a notice of Form K to the occupier of land. A copy of this notice is sent to the proprietor if he is not the occupier and the proper registering authority to be endorsed in the corresponding document of title. When Form K is officially registered in the title, the State Authority will automatically take formal possession on the scheduled land. The State Authority may withdraw from acquisition of any land that has not been taken possession. Notification of every withdrawal from acquisition shall be published in the Gazette.

C3347/UNIT7/20

e) i. ii.

Reference to court Reference to Court may only be made by the Land Administrator either by: His own initiative, or Application by person interested in any scheduled land. The matters that may be referred to the Court by the Land Administrator are : i. the true construction or validity or effect of any instrument ii. the person entitled to a right or interest in land iii. the extent or nature of such right or interest iv. the apportionment of compensation for such right or interest v. the persons to whom such compensation is payable vi. the cost of any enquiry under the LAA, 1960 and the persons by whom such costs shall be borne Section 37 states that any person interested in any scheduled land may make objection to: i. the measurement of the land ii. the amount of compensation iii. the persons to whom it is payable iv. the apportionment of the compensation It must be noted that no objection can be made on the compensation if the amount does not exceed three thousand ringgit.

f)

Revision of rent, resurvey and issue of title in continuation where part of the land is taken. Where only part of a lot is acquired under this Act, the Land Administrator shall revise the rent payable by the proprietor and shall cause the part retained by the proprietor to be re-surveyed. The revised rent (if any) shall be re-calculated by reference to the area of the part as established by the survey and is payable the following year. 4. Where the objection is regarding the amount of compensation, the Court shall appoint two assessors, one of whom is a Government valuer, to aid the Judge in determining the objection and in arriving at a fair and reasonable amount of compensation. If the two assessors differ on the amount of compensation, the Judge may only elect to concur with the decision of one of the assessors. Any decision made is final and there shall be no further appeal to a higher Court on this matter. In cases that are not related to the amount of compensation the Judge will sit alone and appeal to higher court is allowed if the persons involved are not satisfied with the decision made by the Judge.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->