Economic Laws of Land and Property

CHAPTER
this purpose, government policies of these countries want to assist by removing most of
Economic laws of.... land
I[~
the Jaws relating to excise and customs tax and render them free to operate in an area set
aside for the purpose. India drafted its Special Economic Zone (SEZ) Policy in 2000 with

and Property the main objective of providing an internationally competitive environment for exports.
The law was enacted in 2005 because mere gov~rnment policy without the backing of a
Jaw might not provide enough confidence to investors. A legal framework always ensures
stability, continui ty, and purpose.
Although industrial development is in the interest of public good, vast problems have
Principle: Domimum non potestesse in pedenti. cropped up in the acquisition of land for such development. In a highly populous country
A right to property cannot be in suspension. like India, land is a relatively scarce resource, which is more often than not owned by poor
farmers. Land being their only resource of sustenance, acquiring land for industries has
usually met with stiff resistance from them.
The Urban Land C eiling and Regulation Act, 1976 was enacted fo r the purpose
~
4 .----.,.._';!£q ...,,_ .. .A.- ,~t -..t¥ ,.,,_.,:_ _ 45
of overcoming the scarcity of land in the urban areas, for better planning, and fo r
( CHAPTER OUTLINE
_& ..,...._ discouraging undue sp eculation. Large expanses of land in the cities used to be in th e
W
I
Introduction and Interpretation
The Transfer of Property Act, I 882 hands of a few. Through this law, the government sought to acquire land in the interest
Special Economic Zones Act, 2005
Establishment of Special Economic • Land Acquisition Act, 1894 of the public good. H owever, the Urban Land Ceiling and Regulation Act could not be
Zone • Stamp Act, 1899 put into practice by the states because of the extreme dissatisfaction of the land owners
Authorities and Officials • Registration Act, 1908
and the lack of urban planning by the government, thereby indicating the difficulty of
Facilities and Incentives Case Study: Public Cause vs
Property Laws Public Good land acquisition.
• Legal Luminary: Anand Sharma T itle of the property, whether land or any other such as stocks and shares, needs legal
certification. This is achieved through registration. The process of registration is finalized by
paying money to the registry and it is identified by government revenue stamps. The yaJue
16 of the stamp depends on the value of the property.
.1 INTRODUCTION AND INTERPRETATION For you as a manager, this chapter highlights the fact that land resource management

l ,_
must be considered with several allied laws in the context of all the laws of business. There
No person shall be deprived ofhis property save by authority oflaw. d. is no resource, property, or ownership upon the Earth as best as the land.

>< • · n of In ,a
_"""' 300A, ''""""'" 16.2 SPECIAL ECONOMIC ZONES ACT, 200S
:: Th, '<op, of ,h;, ,h, p" ' fndod,s sp,aaJ . <conom,c . 1aw,. Among
. td.
h ese,ssed
the because
Special
Economic Zones Act, 2005, also called the SEZ Act 200 , is speci f roperty an (1) A SEZ shall, on and from the appointed day, be deemed to be a territory outside the customs

'"°"•m,m. Es,.••«
5 .
of i,, rek»oc, '"'°"as, maru,g,, Yoo an, led thmogh t ' a ' .
ficaJJy 1scu
h Jfed laws O P
htt ind,peadeo.,,, fodia has grown econom,cally , n
dis oomid«
t depends
d
d
I§ territory ofIndia for the purposes of undertaking the authorized operations.
(2) A SEZ shall, with effect from such date as the central government may notify, be deemed to be
a port, inland container depot, land station, and land customsstations, as the case may be, under
<o be ooc of th, leading cmc,Wng economies of the world. Econonuc "' """ o
oo mdosmaJ
.
laod. ib"'
.
" '"
"°'""· '""' md,.oiaJ
.
. d elopmen
dewlopmcn, demand, not onlY lacg, ""
bo«a0cracy ,od less legal « qoiremenis, wluch ' Pm
I"' Co,.
d red and
f
Sec. 1 of the Customs Act, 1962.
- The SEZ Act, 2005, 53, 1 and 2
'>pfd Tod"" riali,a asid<
. h 1 . unhm e
hn,~ Ode of th, Au, <h, SEZ Aa 2005 deno«sa,ea, ononcs . ch"' Salient Features
. . f land set A SEZ may be established under this Act, either jointly or St'\ -erally by the central government,
fior tIie speuaJ
•·• 1purpose of
. . . ' . "'"' .so d up
B ·1 Ru . · ' · economic activity. The need of em ergrng econo
O
JOSJ"' state government, or any person for manufactm-e of goods or rendering sen ices or for both
~" , . "", od,a, Chm,, "d .>,"<h Africa is,o '" ,.sidead, qua<n poc< To ,chio'
rrooom,c Pmwc,, <hmogl, P,odo«ioo, '"de, and <ommen,, fairly onhindeccd. or as a free trade and warehousing zone [Sec• 3 (I)]·

......
9'JJ
'f;7 4~ 2 Lega!AspectsofBusiness

ESTABLISHMENT Of SPECIAL ECONOMIC ZONE

Economic Laws of Land and Property 423 ~ - -1~
- ' -,,
16J
in cases where one developer does not h · h. . .
... ocansetup SEZ'· ·-\ SEZ ma\·
u'h · be established under this Act , e·tJ
1 1erjo· tJ in a SEZ ave m is posscssmn the minimum area of
b,· the cenrral government. Stale go,·ernment, or any p erson for man f:
.
m Yorsev
1·ree trad e and warehousing u acture of g eraJJ)'
.
conuguo
us land as may be prescribed for settin
. . .
. SEZ 1
g up a · • n such cases, each developer
shall be considered as a developer in respect of the land in his possession.
· g <PJ
~icr, or for botl1 or as a
rrndenn ., • - . zone (Sec 0 OcJs
J6. J 1. In case a srate g~,·ernmenr mtends to set up a SEZ, after identifying th . 3, l) (C, 0t • ·0 n of infrastructure
provis• . . . .
Any person
. · wh0 , or a state government tllat, intends
. Lo
forward the proposal du:ectly w the board for the purpose of setting u h e area, it Se provide any infrastructur~ fa~iliues m the idcntifie_d area or intends Lo undertake any auiliorized
P t c sr:2 (S JJi,y
Identification of area Any person who intends to set up a SEZ ec. 3, 4J operation may, ~ter entenng into an agreement Willi tlle developer, make a proposal fur tllc same
th (' arra. make a proposal ro the state government concerned for the
- may' after 1de0ti~
· . · to the board for its approval. S~ch person or tlle state government, who ha5 been granted tlle

ih e SEZ Sec. 3. 2).

'Jlng
purpose of Setting letter of approval, shall be considered as a co-developer of the SEZ. The developer shall then
Up submit the exact particul~rs ~f the identified area to the central government and there upon
Developing procedure The state government may forward 011 . . that government after sausfying that the requirements arc fulfilled, shall notify the specifically
. . . , receipt of h
from a dc:Tdoper. togetller mtll its recommendat10ns to the board •h. t e Prop , , identified area in the state a5 SEZ. The developer shall, after the grant of the letter of approval
. . . . .. wrt in th 0s.,
penod. Th(' board "ill furilier commurucate Its dec1sron about app e Prescrjkd under of Sec. 3 ( I 0) submit the exact particulars of the identified area referred to in sub-Secs
1
rejc:ction to tlle cemraJ gO\·errunent. The central government shall gra roval Im Odifications;
ue
(2-4) of that Section, to the central government and there upon that government may, after
n I a etterof
if tlle proposal is appro,·ed. The central government may approve m h· approva1 satisfying that the requirements under Sec. 3 (8) and other requirements as may be prescribed, are
ore t an one d
eveioper fulfil]ed, notify the specifically identified area in ilie state a5 SEZ. This is provided that an existing
SEZ shall be deemed to have been notified and established in accordance with the provisions of
l-'M¥l¥0 PmnoNER: Oswal vs RESPONDENT: Union of India*
mis Act and the provisions of iliis Act shall, as far as may be, apply to such a zone accordingly.
DATE OF JUDGEMENT: 10 January 2011
FAm :
Documents
The petitioners are private limited companies engaged in the business of recycling (a) Location of the proposed zone with details of existing infrastructure and that proposed
of plastic scrap into plastic granules and agglomerates and agro products at their to be established
units in the Kandla SEZ. The claim that they are governed by the provisions of the
SEZ Act, 2005, and the same read with SEZ Ru/es, 2006. Respondent number 3 is the (b) Area of the proposed SEZ and its distance from the nearest sea port/ airport/ rail/ road
administrative head of the SEZ and respondent number 4 is the office of the custom head, and so on
based at Kand/a SEZ, which is under the control of respondent number I . (c) Financial details and mode of financing ilie project and viability of the project
In contrast, the respondents have fried sworn affidavits from laboratories that nullify the (d) D etails of foreign equity, if any
certificates given by the petitioners and Deputy Commissioner of Customs. ResPondent (e) Whether the zone will allow only certain specific industries or will be a multiproduct zone
number 2 herein says that the report of sample of plastic scrap/waste in CAPET Ahmedabad
is doubtful and the report of the Kand/a Customs Laboratory is contradictory. State governntent The following will be provided by the state government:
JUDGEMENT: Interim relief granted to the petitioner. (a) The area proposed under SEZ shall be free from any environmental restrictions.
REASON; (b) Water, electricity, and other services would be provided as required.
The submission is prima facie, found to be not acceptable for the simple reason that (c) Full exemption shall be given in electricity duty and tax on sale of electricity for self-
it came into force after the SEZ Act, 2005, wherein specific authorities are provided. generated and purchased power.
The Customs Authorities seem to have been rendered functus officio so far as the (d) Exemption from state sales tax, octroi, mandi tax, turnover tax and taxes. duty; cess, and
matter pertaining to the conduct of a unit situated in SEZ is concerned.
levies on supply of goods from Domestic Tariff Area to SEZ units.
Show Cause Notice can satisfy the court about its focus standi and its jurisdiction; the (e) Single-point clearances system and minimum inspections requirement under state laws/
th
Au!hority cannot be al/owed to usurp the power to issue Show Cause Notice. Otherwise,
e entire object and purpose of the establishment of SEZ will stand frustrated. rules would be provided.
(D Generation, transmission, and distribution of power shall be allowed ,,ithin the SEZ.
Hence ad-interim relief is granted in terms of paragraph 9(HH) subject to the
(g) The zone will be declared as a Public Utility Service under the lndusoial Disputes Act, 1947.
comphance
of any duty or of all
taxthe provisions
payabJ b thand subject
.. to. further orders .by
. this court
. in respect 1
(h) All powers under the Industrial Dispute Act, 1947, shall be delegated to the Development
-
'Oswal vs-
Union of India· see htt JI e .Y e petrtroners 1n case the pet,trons far/.
1 Commissioner. Sec. l l(l) of the SEZ Act, 2005, provides iliat ·the Central GoYernment
nd
' P www_, ,ankanoon.org/doc/869920/ (5 October 2011). mayappomt· anyof 1·ts o fficers not below the rank of D('putY
. · Secretary· to the Government
of India as the D evelopment Commissioner of one.
~:24 Legal Aspects ofBusiness

Economic Laws ofLand and Property 425 ~

Appro,-al by the central government The Government f .
. . .I o 1nd1
rhr abO\l' proposals. may gralll 111-pnnop e approval for the se . a, after
- •·d 1· · d f tting u cons· _ FACILITIES AND INCENTIVES
rinciple appro,-a.l shall be \ ;u1 or a peno o one year. H o~ P of Sr:-'> 1deri
P vever, this . c.q_ 1' n~ 16 5
be ex1endrd b,· ·
the Drpanmc111 of Commerce as and when
_ necessa
· vaJ1ctity
Perj0 he;n. . le-window clearance Chapter V deals with single-wind"w clearance that deals
Suig · · f h I · I
3 , of the SEZ :\ ct. 200.'.>. the board of approval ma)• accept d. · ' ry. Accorct· dIJJ· . h the const1tut10n o t e approva committee, powers and funnion, of the approva
. . . , mo 1fy 01. . 111g •)·
drprndmg Oil ,·anou, nrcumsrances. ln case of acceptance, a r0 . '. r~Ject th 10 Sec ::~rnittee, setting up of unit, canc~llatio~ of letter of appr~val to e~trepreneur,_ settin.~ up
· I · hi I · fTi · PP \ al s v 11·
three years ,111 1m ,,· c 1 nme e ecm·e steps shall be taken b , th ,
I c Pro ·
· a d for a Jlo.~ d O eration of and offahorc banking umt, settmg up of an mternattonal fi nancial sen1ces
· H h. · · d b > ( devcJ 0 Peri an p 1· . 1· . .
th r pro1rc1. owe,·er. 1 1s nme peno can e extended by the De . Per to ini 0d,,r cent re, single app 1cauon
. orm
. return,
. . agency . to mspect, smgle enforcement officer or agency .
depending Oil rarious circumstances. pai lmen1 of C Plrl!Jrn1 fl notified offences, mvesuganon mspecl1on search or seizure, designated courts to try suits
Ol)Jl)J
rri:e ord nou·ficd offences, appeal to high court, and offences by companies.
an
16.4 AUTHORITIES AND OFFICIALS Setting up and operation of offshore banking unit An application for setting up
Board of approvals The board of approval is established by the and operating a n offahore banking unit (branch of a bank) in a SEZ may be made to the
Src. 8. I . It will consist of one officer not below the rank of adcfif central governl!Jen Reserve Ba nk. The Reserve Bank shall, if satisfied that the applicant li.ilfils all the conditions
the \ finistn- or Department of Commerce and two officers not belo\1ona h I seci,eta!), fr ,,,1 specified, grant permission to such an applicant for setting up and operating an offshore:
v t e ra11k 0 banking unit.
·
,ecretary w the Government of India; one officer not below the rank of . . of ajoin,"'
the GO\·ernmem of Indi a \\1t· h fi nanci·a1 sefVJces;
· sueh officers not exceed·Jomt secretary, Setting up of international financial services centre The central government shall
111gten 1ll1nees 0
of the state go,·ernment-Sec. 8, I (a-d). 110 • approve only one international financial sen ,iccs centre in a SEZ.
Members State nominee; director general of Foreign Trade· Developni C Special fiscal provisions for SEZs Chapter VI deals \\,ith special fiscal pro\'isions for
and a professor of an Indian Institute of .Management. ' em omllUssionet,
..
SEZ such as exemptions, drawbacks, and concessions to every developer and entrepreneur.
Provisions of the Income Tax Act, 196 1, can be applied with certain modifications in relation
Development commissioner He is the overall '.n-charge of the SEZ and authorized to:
a Ta.kt aJJ steps to discharge his functions under this Act to ensure speedy developmeni of to developers and entrepreneurs, duration of goods or sen,ices in SEZs, transfer of ownership
the SEZ and to promote export and removal of goods, and domestic clearances by units.
b , Guide the entrepreneurs in setting up of units in SEZ
SEZ authority Chapter VII deals v,,jth the constitution of SEZ authority, officers of the
c' Emure and take suitable steps for the effective promotion of expons from SEZ authority and other staff, special provision for transfer of officers or other employees to the
d Ensure proper coordination with the central government or state government departments authority and the functions of the authority, grants and loans by the central go\'ernment,
concerned or agencies
constitution of fund and its application, accounts and audit, directions by the central
1e 1 \fonitor the performance of the developer and the units in SEZ government, returns and reports, power to supersede authority, members, officers. and other
f Di,charge such other functions as may be assigned to him by the central govcrnmem employees of the authority.
under 1his Act or any other law for the time being in force It should be noted that the concept of SEZ has been met with significant criticism and
g) Di~charge such other functions as may be delegated 10 him by the Board opposition in the entire country, especially by
Unit approval committee All the requests for setting up of units in the SEZ are approred (a) Those who lost their lands through the application of
at the zone ltTel b~· the Approval Committee consisting of the Development Commissioner the Land Acquisition Act, 1894
after a discus,ion 1,ith the customs a uthorities and representatives of the state governmen1.
All po,i-appro,·aJclearances in matters related to importer-exporter code number, change in
(b) Those who advocate for environmental protection
(c) Other industries that do not have the same infra-
A MANAGER'S TAKEAWAY
Think critically about
ili, name "' iliecomp,m· Oc ;mplemcnting agency, bro, d-b, nd;ng d;ve,.;ficarioo, aod '"'" structural facilities, fiscal concessions, and customs the benefits and losses
an: pro,,ded th ar ihe zonal b ·el by the Development Commissioner. There is a separate wui exemptions before adopting a legal
provision or a policy
to lll()IJJt<J r e r,erfonnance of the SEZ units periodically and it is governed by the Approval (d) SEZ policy opponents for creating tax haven enclaves
stipulation.
De1 elopmemSEz
CcmHnntee. a dunits
R are J liable
· for penal action under the provision of the Foreign Tm/ e and loss of revenue to the country When something special
d is offered, consider its
.·\ ppn11·al Crm1mHtce
• n_ egu ation)
'Secs Act,l 4l.
13 and in case of any violation in the rules fo rmulated by ie Social economists suggest an all-inclusive and holistic
I period of validity.
industrial development.
~ 426 Legal AspectsofBusiness Economic Laws of Land and Property 427 -____..

16.6 PROPERTY LAWS crca ted by the same . transfer,

d the interest created£or thc benc/it ul. such a person shall not
, fpro,,,,rty' means an act by which a living person conveys propert., . ta ke effect ' unless 1t cxtcn s to the whole of the remammg
• . mterest
. of the transferor in the
7irans,er o ,-- h . If. •r. in Pres

I§ future, to one or more other Jiving persons, or to ,mse , and one or more other livin enc or in
and 'to transfer property' is to perform such an act. 9 Persons, propcrty-
f//11stration · A Itransfers
fi h ·property
Ii of which he is the owner to Bin trust r·or A and h". .
1s mtend ed
- The Transfer of p
roperty S
, ec. s vifc successive. y or t cir. ves, and, after
. the death of the su!VI·vor, ,or
r the. eIdest son u f th c

In the forn·-fourth .-\mendment to the Constitution of India, properh, 1\·otcndcd marriage for hfc, and after l11s death for n"'s ·second son.
. The mtcrest
- so created 1.or
. . . -,~~ . . , , es not cxtcn d the whoIe of
to
the fundamental ri!!:hts. Apart from Article 300A, which expressly t· tachcd ~ e benefit of the eldest son does not take effect becausp "t do
1
_ "_ _. . . . _ . s ,Hes tha rolli til
depnn· a11othcr of his properues, the spmt of the enure Constnuuon of . ~ none c Ns remaining 111tercst 111 the property.
1nd1
· of dim11tY
· · of lifce and t he m · aJ1·ena bil1ty
· of one's prope a 1s b an
the proiecoon u • rty. T he T astd on sale of ~ovable p~operty - Sec. 54 Sale is a transfer of ownership in exchange
Property .-\ cl 1882. is an allied Act of the Contract Act, 1872, and the Sale of ransfer 0r for a price paid or promised or part-paid and part-promised. Such transfer, in the ca.~e of
J 930. Simi.Jar!); there are other Acts such as the Land Acquisition Act 1 . GoodsAq tangible immovable property, can be made only by a registered instrument. lt takes place
, 894, the R · ,
.-\cl 1908: Easements Act, l 882: the Urban Land Ceiling and Regulation A egistration when the seller places the_buyer or such a person as he directs, in possession of the property.
1976
n-commended for repeal due to its non-performance); the Benami Tran c_t, (Which ~ A contract for the sale of immovable property is a contract that a sale of such property shall
. . sacuons p n1· .
.-\CL 1988: and the state-mse rent Acts. For you at this stage it is suffici· ro b1tion take place on terms settled between the parties. It does not, of itself, create any interest in,
' ent to kno
thesr .-\ct.s are important because whenever a law is enforced, its interlinki w_thatal) or charge on, such property.
i.~ logical. ng rela11onship
Mortgage- Sec. 58 A mortgage is the transfer of an interest in a specific immovable
property for the purpose of securing the payment of money advanced or to be advanced
16.7 THE TRANSFER OF PROPERTY ACT, 1882 by means of loan , an existing or future debt, or the performance of an engagement that
may give rise to a pecuniary liability. The transferor is cailed a mortgagor, the transferee a
Living person The transfer of property is between living persons. Living person can be a
mortgagee, the principal money and interest of which payment is secured for the time being
compam: an a~sociation, or a body of individuals, whether incorporated or not, but nothin are called the mortgage money, and the instrument (if any) by which the transfer is effected
herein c~ntained shaUaffect any law for the time being in force relating to the transfer ~
0 is called a mortgage deed.
prope~ · w or br companies, associations, or bodies of individuals. Living person is a wider
term than natural human beings. It includes juristic persons such as companies and others Charges- Sec. 100 Where immovable property of one person is by act of parties or
such a, associations or body of indi\~duals irrespective of whether registered or not. operation of law made security for the payment of money to another and the transaction
does not amount to a mortgage, the latter person is said to have a charge on the property:
Transfer A process or an act by which something is made over to another. It does all the provisions herein before contained that apply to a simple mortgage shall, so far as
not. hm,·e,·er, mean that the making m·er of the thing should always be absolute. I may
may be, apply to such charge.
transfer my book to you for a dar I may also transfer it to you absolutely either by sale,
Leases of immovable property- Sec. 105 A lease of immovable property is a transfer
~ift. ur in exchange of your book. In either case, what is primarily essential is that I hare
of a right to enjoy property, made for a certain time, express or implied; or in perpetuity,
to hand rm:·r the book tu you. This act of handing over the book to you is the transfer
of the book. in consideration of a price paid or promised; or of money, a share of crops. seni ce, or any
other thing of value, to be rendered periodically or on specified occasions to the transferor
Conveyance of property Transfer of property has special technical meaning in the by the transferee, who accepts the transfer on such terms.
Transfer of Property Act. Only five com·eyances are considered transfer of property for the Exchanges- Sec. 118 When two persons mutually tra~sfer the ownership of one
::n_- Th_ree modes convey absolute title, for example, sale, gift, and exchange. Two convey thing for the ownership of another- neither thing nor both thmgs ~emg _money only- the
st
lurnted intere , for example, mortgage and lease. Transfer can be in the present or future, · · all d h A ti·ansfier of properrv in compleoon of an exchange can
but the transferor and the transferee mu~t be a living person. The only exception is Sec. 13 transacnon 1s c e an exc ange. ·,
of the Transfer of Propert>' Act. be made only in a manner provided for the transfer of such a property by sale.
Gifts- Sec. 122 Gift is the transfer of certain existing mo,·able or immovable property
Exception to trans£. O f fit · ·d · b · one person cailed the donor, to another,
f er property according to Sec. 13- Transfer for bene
o unborn person Wh - d fi r made voluntarily and without cons1 , eraoon,behalf) of 1hr donee.
· Acceptance must be made
1ht· bencIi I r,f a person not 111
·ere, on
·st. •a transfer of property,' an interest therein is create
· 0t
called the donee, and accepted b) or on
• eXJ cnce at the date of the transfer, subject to a prior rnteres
re ;28 Legal Aspects ofBusiness
Economic La ws Of Land and Property ~
42~

. , d or and while he is still capable of givin , I

1iuring- the lifconH' of tl~t . Ol_1 ._, g. f the doh .....,1_ Sec, 11 Il stales .tl1at
AW'iP,.. . after rcccivincr,., tll(. 0 b'~ecuons,
· . "111
th<'. autl)(Jnty . hav<' to hold an
Ix-fore• accrptanrc, lIir e.,TJft 1.s , oru. ·•ee d',~
jnqu1.r)'• Under Secs . Band 9 , 1t L~ necessary that u1<.actu . al extent of. land prupos('d to b<' acquired .
an e value of the.land have to be assessed before ·staru·ng thc ·mqu1ri. • ( )n compIeuon • o f th<·
d 01
16 8 LAND ACQUISITION ACT, 1894 . 1.n() uirv
· ,, an award will be passed to that effen and published by the competent auth onty. · A",ter
· . d d acquisition Declarauon that land is req . pa: •·ng the award, . the collector or the deputy commission"r · , .,•l)all send noUtc · lO the owners , ,r
cl ation of inten e . . U1rcd for Ssl
c1•r representauves who were not present ptrsonally ,at ,,u1e u·rn,· o 1· passmg · o1- th e awar<l .
De 1ar ,e .
I Subject to l11c prmi sions .of Part\ 11 of . this
. .
Act, -~ /when thc /ap "Pui~~
th
purpc. -. ient] 1., ,au,·-fi eu._, after considen ng the report. ii any, made under Scc.6:i-A _ Prop~~ 'fiJJle 1!-•tJ..U•~ Once. the
. inc1uirv· , i~ cone·Iud ed , ll · 1·s the duty or the comp<·tent authority
g-o,·crnn · · . l Ia 1id is needed for a public purpose, or for a rornpan , . ,su¾, to pass the award wn hm two years from the date of publication of the dedaration under
'l ] that arw parucu ar . ) , a dccJa . ·
-h:illbcmadeto
· · lhate·lliect under the signature of a .secretary, to such. govern rncnt . ororra~,,n Sec. 6, as envisaged under Sec. 11A of the Act. If the authority faib to adh1·rt to the time
"officer
· th
duh· au on z< · ·d to certif, )' its order 5 and d1 ffen·nt dcclarat1ons may b ~
c lllade !Olli( schedule prcscribcd under th<' Act, the entir<' proceedings initiated for land ac.qui,ition will
· .
amc to ume 111 respec l of different parcels of any land covered by the sanw notifi . l\
ca11on- roil) lapse. Afte r pa.~sing of the award, the deputy cornmissionn or any other competent auth0rity
Land Acquisition Act. I 894, Sec. 6. . ., . . may take possession of the land imrncdiattly, which shall there upon ve, t ab,olutely ..,.;th
. , h
Th!S .--,.ct as c . b en highlv• contennous . and has. becomr . very< ontroversial as th e cenir,, the government, free from all claims, whatsoever.
and srate ~o,.ernmc·nts ,and their agencies , apply mcreasmgly for more land fro"' .. , thc IIJ, • Special powers Sec. 17 This confers special powers on the concerned authority
.11.
un\\1 mg 01, ner . . s suc ·h as fa
' rmers and householders. In 189+ when the leo-isJ
.,. al!on. illl
wherein passing of award may be dispensed with and yet permits to take possession of thr
• •
acqu1smon o u• f l"r ld was enacted the population was less and the land resources 1·ere re~Qr
'· , . ,
I
land notified fo r acquisition. Further holding of inquil)' can also be waived. as em;saged
high. The acquisition of land by the governmer_ll drd n~t a~ect _the common people. Inan under Sec. SA of the Act. However, such powers can be exercised only in case of urgency.
indw.triaJly fast-de,·eloping country such as India.' the sJtua'.ro n 1s _r~verse_d. It is hoped that After passing of the award, the person whose land has been proposed to be acquired can
thi, law will br chang('d in the nl'arest fu ture possible to ~v_o'.d attn lion, disputes, agitations. give his consent for such acquisition and agree to receive the compensation.
and bloodshed. A 11 , . 1, . bill as an amendment for the Acqms1t.1ou of Land Act was introduced
111 Compensation- Sec. 30 lt provides for settlement of dispute penarning to
:2007 in the Lok Sabha; howeYer, it has not yet been passed. The important salient features
of the procedures inrnln ·d are described in the following sections. apportionment of the compensation amount is available. In such a situation, the deputy
commissione r should refer the matter to the court. The claimant v.ill be entitled to the
Notification Sec. 4(1) T he process of acq uisition begins with the issuance of compensation, which is determined based on the market value of the land determined as
preliminary notification. The notification published in the official gazette and in two daih on the date of preliminary notification. According to Sec. 34, if there is delay in pa)m ent
nn, spapcrs circulating in that locality of which a t least one shall be in the regional language of compensation beyond one year from the date on which possession is taken, imerest at the
Funhermore, it is also necessary that the notification has to be affixed in conspicuous places rate of 15 per cent per annum shall be payable from the date of expil)· of the said period
uf that locality
of one year on the outstanding amount of compensation till the date of pa)ment.
Filing of objections The main objective of issuing preliminary notification is to call Pos session of the land as final T he government, under Sec. 16 of the :\ct. is at liberty
for objrctions, if an~; against such acquisitions from the owners or others who have cenain to withdraw from acquisition of land except in cases prmided under Sec. 36. H owe\'er, if the
int,'rcst iu thl' propcn); thereby prO\iding them v.~th an opportunity to raise their claim.1 land has already been possessed, then the government will have no authority to ,,; 1hdraw
agaimt the mm·e of the g01·ernment for acquiring their la nds. The persons aggriered ~
from such acquisition.
,uch notification ;hall file their objections within thirty days from the date of preliminal)
notifi< ation.

Fina] dedaration · Sec. 4 (1) After receipt of objections, the concerned authoritJ 16.9 STAMP ACT, 1899
,hali conqdcr those objections, and if found unsatisfactory, a final declaration rejecting Lht Objective T he government wants to charge for its various sen;ccs. starting from postal
'. !aims inll be i,,ued. According to Sec. 6 of the amended Act, the final declaration shaUIx delivery to transfer of property. Cirizens too have come to accept something stamped or sealed
th th
l%u_ed b~· ,, au oiit)· ll'ithin a period of one year from the da te of issuance of preliminary as trustworthy. People trust documents on stamp paper similar to how they have confidence
nouficauon According to S 6(2' Of' • · J ted in cu rrency coins and bills or notes. There are Yarious st:1mps for Yarious sen-ices. such as
undrr the Act . , de· I·ec.• · J I11c Act before the amendment, the umc·snpufa he
· for final
sha re b rokers propert\' deals and revenue-related deals..\11 these are imtruments of revenue
I. .
pre rmrnarv .
noufication The Ii I d wa~
c arauon I three
. years from the da te of publicanon t ° ' . ,
· · na ec ara11on has to be published as required. collection to the goYernment.
~·~
~ 430 Lega/Aspectsof Business

• c◄ the law r
Basis or
.·- 1- ·-din1hc,011110 s,
Tax 1, t ,,c
Tl , Constimtion of India has provided provisio ~
.
1t . . ns •or J, .
f ' tamps 0 11 mstrume nts rccordrng the tra n . . cvy,n. ,_
. .·
,. d to be convcme nt for coll cc lio n and supervisi
sact,on · ·" "'Ii,
s. I his, · 6 1
contd
abfe1 :..:.,_- . .
Economic Laws of Land and Property 431
~,.
. •~1
. · has b,·en ,oun
of taxanon1 · . ·ith tax on
.
transaCllons.
.
Article 246
_
a nd the
· on. l'h
sc , c Stamp ·
'Otii,
r__. __ Used m insurance departments to authenticate
. ti I - arue dea1mg " · V( nth s h \ insurance policies
is Ia sea1 , .' . ·d , the lcoislati,·e power to levy stamp dutfrs. J\nicl ' ' •C Cduie I
. \\1th reg,11 IO ,,. . . . cs 265 •rt .11 Stamp duty in respect of import paid to India
re c, an . h· iTgarding the d1stnbu11o n of n ·, ·c nut·. Th,• p • 268 a foreign bl . .
•)69 c) arc rde,·ant marn . . . rocccds . , llj
- . . . financial ,·ea r shall be assign ed to th e state. Undn ~ . _ · of st,.. fer Used m transaction of shares by financial institutions
5haretran1~s~- - - - - - - - - - - - - - T . - : - ~ - - - - - - - - = - - -- - - - - - ,
I,
dur..- k \lablc Ill an~ . ' . . , . . . '"HlJcJc 2 ·••p
t ·ip duuc, . _ a,_ a1.,l ,iicntioned m a hst are levied • by_ till umon, but Und er A .46,suc'" •sroker's stam p Used in respect of transaction through brokers - ·i
, an . ·I11. 11 1h )" are levied collects a nd re tams the proceeds. As th rticJe ilia NotafY___ _ _ _ _ _ _ _ __ _ _ _ _-'--------------------'1
Used at notarization of documents l I.I
1hr statr 111 " c e . . c rcvcn ·
sramp dun. 1.s assign _. ed to the state m which . they arc_ collected, ea ch sta tl' govcr Ue fr%
r,
· "b d. b . I thar stamps purchased m the sta te a lone shou ld lie used r. . 11111 cn1 h, , . A art from the above m entioned stamps used in the government dcpanments, embossing a nd frankin,\
prcscn e ~ ru e or 1ns1ru 1 J,ov. p ps arc also in vogue. It 1s both effiocnt and convcmmt rather than ha,ing docum,·nts p asted and 0
execu1ed 111 11.
. . Ille% of these stam ·
d with seals separately. 'I
S d ty n s,arnpe
tamp u o negotiable iostnunents . Tax is levie d in the form of Stanip . re I
f tl·ons in instruments such as bill of exchange, letter of credit debe
o 1ransar . ,
10 Pe<1
nture 5r '·
of insurance, agreement or memorandum of agreement, lease cum sale, sale of p; P01t1 All stamps arc available in suitable and varied denominations. Each state of India has regulation.,
deposit of deeds. conveyance, and so on as defined in Schedule 2 of the Starn °Pell). regarding st.amp duty. The states also have the power to incrca.<;c or decrease the stamp duty
prO\ided in the Stamp Act, all dunes · wit . h wh 1c
' h a ny 111st1
. -umcn ts a re chargeabJ
p Act. --\s
be paid and such payment shall be m . d'ICate d on sueh m
. strument by means of • e sh.Ji
. · by the government. An ms'.1 . . .ument to be duly stamped 1should
rnpre55ed 16.10 REGISTRATION ACT, 1908
stamps or ~tamps issued ht
stan1ped w11h a stamp not only of the amount reqmred by the law but also in the Inspector of Registration-0) The State Government shall appoint an officer to be the Inspector
prescribed by the law. manner
I§ General of Registration for the territories subject to such Government. Provided that the State
Government may, instead of making such appointment, direct that all or any of the powers and
duties hereinafter conferred and imposed upon the Inspector Generalshall be exercisedand performed
Paying for stamps Stamps hm·e rnrious uses (Table 16.1 ). The stamp duty parabl
by such officer or officers, and within such local limits, as the State Government appoints in this behalf.
on an instrument may also be paid in cash by challan in a ba nking treasury or a tre~u:
counter signed by an officer empowered by state government or by a demand draft or ~- - The Registration Act, 1908, Sec. 3
pay order drawn on a branch of any scheduled bank. Instruments may be stamped Iii~
an adhesi\·c stamp. Any d ocument requiring legitimacy in matters of property, sale, brokering, and the like needs to
be registered with the central or state governments. There are various authorities who perform
Table 16. 1 Types of stamps and thei this task, such as the registrar or sub-registrar or anyone authorized officially (Case I 6.2 ).
I Stamp Compulsory registration of doCUJDents- Sec. 17 U nder this section, there are
Revenue Use a numbe r o f documen ts or instruments enumerated that are required to be compulsorily
Court fee registere d:
Judicial stamp (a) Instruments by which an immovable property is gifted.
(b) Instruments that create, declare, assign limit, or extinguish any right, title, or interest- vested
Non-judicial stamps Used for transaction with the judiciary
or contingent- in any immovable property, exceeding n 00 in value. However. if these
Used since 1928. Used for contracts, agreement sales, a re testam entary instruments. for example, wills and codicils, then these are not coveITd.
Fiscal (adhesive) deed, wills, lease, rent, and so on
(c) Instrumen ts th at acknowledge receipt/ payment of any consideration on account of any
Used in non-judicial documents for financial creation, declaration, assignment, limitation, or extinction of any right. title, o r intt'rest
transactions
are covered. The testa mentary instruments a re not covered.
(d) Leases of immovable properties that are made annually exceeding a term of one year
Conld
- -
"Th, o, ,r
-,omps
- ;, oh;q,;,ow; d yo, ge, <oofowd ahoo, ;,s ose, ,J,e ;m•g~ wdl d ea, yo,s do,b" S. or reseIVing a yearly rent.
h11p:/ /\nn,.ksphc.org/starnpit/ info (3 O ctober 20 11 ). (e) Instruments transferring or assigning any decree or order of a mun or any award if it
c reates, d eclares, assigns, limits, or extinguishes any right_ titk. or interest- vested o r
15':'
32 Legal Aspects ofBusiness
Economic Laws of Land and Property 433 QJ 1f11if t
nv~1t.11
PETTTIONER:
Thiruvengada Pillai vs RESPONDENT: Navaneethamm
a 1and Ot'-
••ers•
contingent . in any · h 1mm0\ ,tblc ~
d propc1ty' exi·teding ' 1(J[J .11 1 ,·a1U<' , f"r ,·xampk. cn11rt "'t 1,
DAn: OF JUDGEMENT: 19 February 2008 ord crs dca
. I mg wtt _mcrg!'r,
.' emt-r"ns
" · , .,tn.angemcnts, an<l , r, r,n Sec, Y I! '3'J l r,f tlw
ompa nies Act, 19::>6);
. . again t,·stamrntary in,., tru Ill( .IW, ,<llf'
. cxctnplt' d .
C
Specific perfonnance: validity of stamp paper, opinion of experts 5 oc uments cnntammg. contra!'ts to. transfer for l'<>n ,1c .· In,,uon
. · o f any 1111m", ·abl,· propcnv
Fr...rrs:
St mp Act l 899; the Indian Stamp Rules, 1925; Sec. 45 of the lndi eEc._S4 of the 1 . (f) D
in pa rt performanc<· of a !'ontract !Src :>3A of the Tr·ti1';l-rpr l () 1- p rop('nv A{ t. I n 82 h.IC h,
a an V1denc 11d1,, L r ) ) • \ \'

Plaintiff-Appellant alleged that the first defendant agreed to sell . e Act, 181 ave•brcn cxccut . . cdnn oraftn 2"1-S!'l11emb'Lr 2001 , mu~t br 1Tgt~t!'rl'd. · , It ha, bi>t·n lurthcr
. d . . suit Pr0 l h
agreement and received some amount as a vance. Plaintiff issued . Perty h.. rovided that ii suC'h docum,·111> an· not n:o-i,tcrcd
.,. , tl1 <. n t ht-y !-)I1aII nnt Ilt.1\ T a n , f> fl-e t t
· h b I D ,
the sale deed and receive t e a ance amount. e,endant denied th a notice uy
to exec •n P
for the purposes of S,T. 53/\ of' tlH' T ramfer of Propert) Art , 1882. '
executed the sale deed in favour of a second defendant. Plaintiff fil de agreement IJte
e a suit i al)j Non-compulsory regiStr ation of docwnents The foll,l\\ing need not I,1· compulv,rily
performance. Defendant contended that the sale agreement put fo h or sPecific
was forged and concocted. Trial court dismissed the suit on the grou rtd by the Plaintiff registered:
. n that th (a) Instruments relat ing to shan:s in a company whrrtc all the share, of the cr,mpan~ 1 onw,t
forth by plaintiff was false. H1_gh court allowed the second appeal filed b e salePot
defendant restoring the dec1s1on of the tnal court. Hence, the prese t Ythe letO!Jd of immovabk property
n appeal
Is the agreement of sale executed on two stamp papers pure'- · (b) Some court decrees
11ased on d'" (c) Any endorsement on a m urtgagr deed acknowlr·dging thr payment of the whok o r part
dates and more than six months before the date of execution not v . h,ere11
. 'fi e d in . th e d 1sputed 7
first appellate court 1ust1 . comparing ' thumb imp ahd . · Was the of the m ortgage money and any other receipt for the payment of tht' monry due under
. . . . ress,on . h
admitted thumb 1mpress1on and recording a findin g a bout the authen .. Wit the a m ortgage whe n the receipt dues not extinguish mortgage
thumb impression, without the benefit of any opinion of an expertl t1eity of lhe
0 Penalties C hapter XI\· discusses the penalties fix incom·ctly endorsing, cop)ing, translatim;. or
court err in reversing the judgement of the first appellate court in the s· 1d the h·19h
econd ap registering document,, faJse statements, delivering fal-;c copil's of documents, false impersonation.
Held, the Indian Stamp Act, 1899, nowhere prescribes any expiry date f pe,11
stamp paper. No ,mpe · d'
1ment ,,or a stamp paper purchased more tha or. use of,• and abe011ent. The registering offict>r may conduct undC'r thl' Indian Penal Code, 1860.
. .
before the proposed date of execution being used fo r the document.
n six month5 A The aboYe issu(' is merely a pointer. You arc recomm<'nded to read thi.,
/ ...,. MANAGER'S TAKEAWAY Act carefully because all your acti,itics concerning va1ious instrumt>nt,
JUDGEMENT. Appeal dismissed
Adocument is a of contract, sale, brokering, and so on will have a day-to-day occupation
RwoN: The trial court had analyzed the evidence properly and had dismissed the suit by giving legal instrument that with registration processes of onl' kind or the other. You arc further
cogent reasons. The first appellate court reversed it by wrongly placing onus on the a manager should advised to read and understand the Indian Easement, Act, 1882. which
defendants. Its observation that when the execution of an unregistered document put assiduously
• guard.
d d .
concerns 1t,ell . with
. leave and · licenses.
· · dispcnsable acu,
an m · 1C\·
· o f the
forth by the plaintiff was denied by the defendants, it was for the defendants to establish OnIy a s1gne , seaIe , . . . .
and stamped document company management. The Rent Act, which 1s speofic to each st.ate. 1s
that the document was forged or concocted, is not sound proposition. The first appellate
court proceeded on the basis that it is for the party who asserts something to prove that is a legal instrument. another important law you should know for the lx-nefit of your company
thing; and as the defendants alleged that the agreement was forged, it was for them to
prove it. But the first appellate court lost sight of the fact that the party who propounds
the document will have to prove it. In this case, plaintiffs came to court alleging that the
first defendant had executed a Page 0954 agreement of sale in favour. The first defendant SUMMARY
having denied it, the burden was on the plaintiff to prove that the first defendant had Stamp Act, 1899
There are several laws of property and land . Registration Act, 1908
executed the agreement and not on the first defendant to disprove it. The issues also
The SEZ Act, 2005 suddenly seemed to have Land acquisition is a difficult issue as it is tied with
placed the burden on the plaintiff to prove the document to be true. No doubt, the
increased the public consciousness dramatically people's emotions and livelihoods such as those of
plaintiff attempted to discharge his burden by examining himself as also the scribe and
against acquisition of large sizes of lands for quick farmers.The transfer of property ensures the correct
one of the attesting witnesses. However, the various circumstances enumerated by the
industrialization. manner of conveyance of rights and entitlements
trial court and high court referred to earlier, when taken together, rightly create a doubt
th In the context of SEZ, the following allied laws thereof. Registration of property ensures legal title.
abou_t e authenticity of the agreement and dislodge the effect of the evidence. The ensure justice and safeguard the rights of citizens, This title is endorsed through documents that are
deos,on of th e high court, reversing the decision of the first appe llate court, does not call stamped, sealed, and signed. Stamp duty is a means
associations, and the corporations:
for interference. There is no merit in this appeal and the same is accordingly dismissed.
----- SEZ Act, 2005 for the government to levy tax for the services it
·Toiruvengada Pillai vs Nava th ·//WWW• Transfer of Property Act, 1882 renders.
lawinhk·com/ (3 0 ctober 201neee
OJ.
ammal and others, in the Supreme Court of India; see also http. Land Acquisition Act, 1894
 ~
•.r:.:::J/11' 434 LegoIAspectsofBusiness
Economic Laws of Land and Property 435~
EXERCISES

~
H;,, Th, la,,d ""l";,;,;.,,
Sitar.un got a notice from the government S.1)~ng
Per the law of SEZ by niaking p e ratrirc1 ,,
that land under a cc11ain sUIWY number that
g 1 1,c or T he non-proccssmg area, for arUVJUcs other
happens to be his " ·ould be acquired for the overnment or to the Board of Aiiroposa110 th, U~t-ii
(iii) M o han wrnt to the sub-registrar PrO\'ai. . 'It
highwa~ project. He filed a suit claiming that he
. . . and s1
has no knowledge of any p ublic notification. H e his brother m a sale dcrd 1,1thout h· . gntd~,.
contended that if there " ·ere such a notification, p~wer of attorney. In fact, he aclcda11ngani• .
as if •Pilr~
his brother. ht ' <J
he would han: filed objections w1der Sec. 5A of
Hint: Impersonation is a criniinat offrn .
the :\cL The gO\-ernment contended that it has the
l)enahze
· d under Sre 62 u f thr Stanip Ace, hr •'"• ~
right to dispense with Sec. 5A as per Sec. l 7 (.J.).
(iv) Is SEZ a short-lrnn law? It docs no, c1, 1908
Hint: Yes. under the said section the government h ·
cannot dispen..<1' the right of the people for objections. same p lace among laws o f propert a"t ii·!
r.-
ll .-\ company acquired land in SEZ as per the law. . . .
of Acqu1s1t10n o 1· p ropen y and Tray as, Iha,
Property. ns,er of
H oMwr. afier some rime they pressurized the
adjutant owners to sell their properties to the (v) Narrate the \'arious uses and instances of
compam·.
Stamp Duty Act for a private limited corn~
. . rca for sening up Units fi,r artiVJtirs, being counsel for tlw ptlll1onrr 1ha1 1·xrru11un of ~lul·,and so
rcss111g a . .
fhC P'-o re of goods, or rcndcnng service;, on is in contravention of th e provision, "f S<'c. G of Ihr-
,ufaclU . 1.
dir n131 -xclusively for trac lllg or ware huming State Act of 2003 should 11o1 l,c ac tepted b,· the court.
. area c . ..
Alier pointing out to 1hr court that 1hr , uhstr~tum of the
urp0srs, •fied under clause (a) ur clause (b). writ petition is the alleged viuldti,,n of till' State Act of
P hose speo
1han 1 . rovisions of tlus Art shall haw eflrct notwitlt~tanding 2003, it was argued that then· arc no far wal avPrnH'n ls
:,I,(I)'fhcP
. sistent tl1erew1'ti1containe
. d .111 any othrrlaw for or grounds relating 10 violation of th,· Ct·ntral Art of
,u,)1hing1ncon. in force or in any .mstnnnc-nt having dlrct by 2005, and as the rhall rnge 10 the allotment of J.,nd 1,1
tin,c being .
the law other than this Act. respond!'nt number 5 pron-eds on a fundamental le~al
,;r1ur of an)' ' misconception, thr pc·tition should 1,e di, missed.
and His Cause
P utioner Adjudicator of Cause and the Good
e La.I Sharma was a municipal employee. After his
Chief JusticeJM Panchal and J ustice ~I Rafiq of the High
·\ [ohan
. he dedicated h,msr
. If to publ.1c cause: fighting
reurcrnen 1' Court of Rajasthan heard tlw argument, c,f the counsel,
. d grab. He raised the .issue through a Puhlir
.
nsl 1an from either side, elaborating their respecU\·e pusiuon,. They
ag,31 Litigation against the land alluncd to developers
Interest came to the follO\,ing conclusion:
through UH' SEZ Act, 2003, in the State uf Rajasthan. Thr Thr record thus does nut indicate that the land was
not only sold cheap, but was also sold 10 people
Iand waS alloucd in a surreptitious or clandestine manner. :\or does
, · teresLs which did not speak of any public good ,t,
\Vil1l tn ' the record show that there is any sram as 1s sought to be
per the stated objective of the SEZ. made out by the petitioner. Ii would not be out of place to
Under Sec. 6 (I) of the State Act of 2003, the State of state that the so-called scam is a figment of the imagination

•
-
Take up a summer internship at a SEZ of your
-
DEVELOPMENT OF LEGAL EDGE
-·-----------
-~~~:J
When back in your training institutes, rnale
Rajasthan has to identify and notify the area to be developed
as a special economic zone whereas under Ser. 6 of the
said Act, the state government has bren entrusted "' th the
of the petitioner, which has no factual basis at all. & noticed
earlier, srveral decisions taken under the Central Act of 2005
are no1 challenged by 1hc petitioner al all. Therrfore. the
interest duty to select a developer for the purpose of development court "iU have to proceed on the footing that those decisions
p resentations foc using o n th e legal probltlll;
Encourage others to do the samf'. of the zone. and under Sec. 6 (3) of the said Act, the state arc ,·alid. Once thr decisions taken under the Central Art
confronted at the zone.
At the end of the internship collate your reports. government is required to prescribe the procedure to select of 2005 arc tn·ated 10 be valid, thi, roun finds that nothing
the developer. remains to be done in the instant public litigation The
The land involved was a whopping 13,000 bighas for petition will haw to he carried to its logical conclusion by

- -
projects such as IT City, Bio Tech City, and Knowledge dismissing the same.
FURTHER READIN<i
Web resources
- _, '~
.--~~
-: -:~
• Registration Act, 1908 http: / / www.indiacode.co.in.
City. A Memorandum of Understanding (MoU) was
signed between the government and the developer
Mahindra and Mahindra, the renowned industrial group.
The Moral of the Case
Although prudence may convince the fairness of a caLLse,
Special Economic Zones Act, 2005. justice demands fidelity to the application of the law.
• Latest Case Law o n Land Acquisition Act. 189-1 The charge of the Public Interest Litigation petitioner is
Transfer of Propeny Act. 1882. that the land, which is commercially highly valuable, was Discussion Q.uestions
Land Acquisition Act. 1894. http://revenueh aryana.gov.in/ html/am_rules/ I. What are main issues in this c='
transferred to the developer for free. He pleaded with
Stamp Act. 1899. land¾ 20acquesition¾20 1894.pd( 2. What is the relationship of the disputin~ parties'
the High Court of Rajasthan to set aside the ~!oC. The
SEZ http:/ /www.sezindia.nic.in. 3. How do you evaluate a land resource?
petitioner's commercial estimate of the land was Rupers
4. What do you understand by the term land use?
one crore per bigha. Hr pleaded stating that 1his is a
5. Howwould you evaluate the judgemenl of the Rajasthan
...CASE STUDY ~, land grab in the garb of SEZ, depri,, ng the state of its

- ..
PL'BLIC CAUSE VS PUBLIC GOOD High Court?

Nothing is good for everyone, but only relatively to some people. 1

:sl legitimate revenue.

The State and the Public Good

THE SEZ ACT, 2005 States
3. I .-\ ~EZ may Ix- estahli,hcd underthi, Act, either jointly
<)r s,,-.,•raJI) by the renlra} i:O\'cmm,nt, State government, or
-
am pers,,n for manufacture of good, or rendering sclVices
--
And,,-, Cid,·. 'In, Coun« rftner,, 2 4 1925,. lr,n,1. Oorothy Bussy.
or for both or as a Free Trade and Warehousing Zone. t J
Tht developer shall, after the grant of lc11rr of appnlllil
6. The areas falling within the SEZ may be deman:ated~
the Central Government ur any authority specified by 11 35·
6. Are you aware of any anti-SEZ mm"t"mems? ls this
judgemenl relevant 10 1hem'
The counsel for Mahindra and l'vlaltindra eountered the
Going Beyond
claims of the petitioner in the follo\\1ng manner: I. Analyze the SEZ development m India and assess their
The Crntral Act of 2005 is a parliamentary legislation far-reaching ron.-.equenres.
covering the field of SEZ. which is subsequent to the Statr
Art of 2003 and. therefore. by ,·inue of the donrine of
parliamentary supremacy, 1hr. plea raised b) 1hr learned
2. What an- ,he mtrnl 10jud~e public good m th,· Indian
socio-eronom1r contt"Xt ?

---