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SECTION A: BUILDING ECONOMICS
2. LAND ECONOMICS 2.1 Land economics: Land as limited resource
2.2 Land development and conservation 2.3 Public policies on land utilization and development 2.4 Theories of land values 2.5 Acts
2.1 LAND ECONOMICS: LAND AS LIMITED RESOURCE:
Land is a natural resource which yields some income and has some exchange value .Land economics is a branch of the economics which focuses on the use of land and the role of land in economics. It often intersects with environmental economics, since land use policies have an impact on the health of the environment, and many land economics trade
Land provides infinite variation of degree. High Cost of Urban Land: • The cost of land and its development to provide essential housing services and other infrastructure facilities has steeply risen and now accounts for substantial cost of housing construction. At the same time. It is therefore. especially in the urban areas. from university campuses to public utilities. It is nature’s free gift. 2. the quantity of housing and human settlement that emerges should not be adversely affected. 5. The pressure of growing population in developing countries has laid a heavy burden on the physical resources of the countries. incumbent on planners to achieve economic physical planning by application of the latest advances in sciences and technology. Characteristics of Land: 1.journals focus on the environmental ramifications of land-use around the world. It doesn’t have any supply value. It is fixed in quantity. 6. • • • New developments: Some basic principles of physical planning to ensure land use economy as well as economy in cost of development of land which need to be further researched and studied for practical adoption are: ECONOMICAL SPACE NORMS: 5 . Local planning regulations and building by-laws have a significant impact on land use planning and cost of land development for housing. 4. Specialists in this branch of economics work in a number of places. It has become therefore to devise ways and means of effecting saving in the use of land cost of its development. fertility and situation so that no two pieces of land are exactly alike. The scarcity of land and infrastructure facilities has come in the way of housing development. 3. It is permanent. Land lacks mobility in geographical sense.
HEALTHFUL HOUSING 2. demand for land which can be used as housing may inflate the prices of farmland. They also look at how land can be made more profitable. and the allocation of land resources can play a critical role in how land is treated. open spaces and residential densities. and land use policies which force land to remain unoccupied and unused for large stretches of time. or timber. land can be scarce and difficult to obtain. land may be very inexpensive due to decreased demand.Until the economic conditions of the masses improve . Powerful planning commissions and lobbies may be able to push the nature of land use in their communities. although land speculation may create situations in which the supply of land cannot meet the demand. however. shaping land use policies and the economics of locally available land in ways which sometimes surprise economists. ADVANCES IN CONSTRUCTION TECHNOLOGY 4. The study of land economics is often closely wrapped up in politics. especially when the land harbors deposits of natural resources like minerals. whether that use is urban or rural. It is also a fixed resource: the amount of available land on Earth is finite. especially politics on a local scale. oil. As a fixed resource. by establishing policies which are designed to balance the needs of individuals against the needs of the government and the population as a whole. and how land values shift over time in response to a variety of factors including market pressures and the discovery of natural resources. minimum space norms would have to be realistically laid down for built up accommodations . Researchers in this field may look at issues like government acquisition of land to satisfy right of way requirements for roadways and utilities. land's value is dictated by its availability. The way in which land is used can have a profound impact on a local or national economy. making it difficult for farmers to buy or retain land for farming use. One of the fields of focus in land economics is the allocation of land. In packed cities. and it has a correspondingly high price. for example. 1. Regional and national governments also play a role in land economics. Public and private uses of land and their sometimes conflicting needs are also of interest in land economics. 5 . COMMUNICATION FACILITIES 3. COMMUNITY PARTICIPATION Land itself is a resource like labor or capital. In rural regions. so that these are actually adopted and also progressively improved without adversely affecting the environmental conditions. Or.
especially when the land harbours deposits of natural resources. land may be very inexpensive due to decreased demand. and the allocation of land resources can play a critical role in how land is treated. Researchers in this field may look at the issues like government acquisition of land to satisfy right of way requirements for roadways and utilities. for example. land value’s is dictated by its availability. although land speculation may create situations in which the supply of land cannot meet the demand. however. Or. Public and private uses of land and their sometimes conflicting needs are also of interest in land economics. It is also a fixed resource: the amount of available land on earth is finite. They also look at how land can be made more profitable.2 LAND DEVELOPMENT AND CONSERVATION: Land economics is a branch of economics field which focuses on the use of land and the role of land in economics. In rural regions. estate into lots. demand for land which can be used as housing may inflate the prices of farmland. semi-natural for the state for a of typically purpose 5 . The way in which the land is used can have a profound impact on a local or national economy. land can be scarce and difficult to obtain. making it difficult for farmers to buy or retain land for farming use. One of the fields of focus in land economics is the allocation of land. whether that use is urban or rural. Land itself is a resource like labour or capital. In packed cities. and land values shift over time in response to a variety of factors including market pressures and the discovery of natural resources.2. and land use policies which force land to remain unoccupied and unused for large stretches of time.  Land development: Land development refers to altering the landscape in any number of ways such as: Changing landforms from a natural or purpose such as agriculture or housing. Subdividing real building homes. As a fixed resource. and it has a correspondingly high price.
industrial and office uses. The conversion of land from one use to another is the generally accepted definition of land development. analysis and engineering is known as land development design. Their growth in size and complexity is typical of urban development and unlike what we are experiencing today. aqueducts. forming villages and primitive towns. usually of great intensity. Developing property or changing its purpose. land development is the conversion of land from one use to another. for the mutual protection and livelihood for all. extrapolating the data. and is typically applied to a single parcel or group of parcels and includes supporting uses and infrastructure improvements. studying and understanding the data. It did not take long however. on and claiming land. before city planners and residents alike echoed to have areas preserved for recreational. economically and environmentally acceptable to the client and the public.  The steps involved in land development are: 5 . for example by converting an unused factory complex into into individually owned units. Since the early 1950s. social and cultural activities. The great civilisation of Egypt. Land development design and consulting constitute the systematic process of collecting data. and creating on paper the plans for reshaping the land to yield a land development project that is politically. population densities and others posed a challenge then and continue to require innovative solutions today. With their complex roadways. drainage. The systematic approach to the land use planning. Greece and Rome can be traced to humble beginnings of tribal communities. waste disposal. uniform in principle and practise. The definition formally applied almost exclusively to residential. educational. and even urban and suburban redevelopment projects. commercial markets and residential areas the ancient problems associated with land development endeavours. the conversion of land to a different use generally meant a more intense use.  This age old process began with ancient societies organised themselves into tribes. In response to this social need the definition of land development was broadened to include such as converting rural land to agricultural use constructing major transportation and utility systems. retail. water supply.those of adequate transportation. Thus. Today the process for finding solutions and developing scenarios for land use that serve the greater good is systematic one. Persuasion. and is to a large degree. commercial. salesmanship and negotiation are all part of each step in the land development design process.
Step3 Conceptual design presents the initial organisation of the development program. identify usable site area and form the foundation of further design efforts through provision of adequate base mapping and establishment of project goals. reviewing submittals. with particular emphasis on identification of environmental. shop drawings and RFIs. Step7 Construction is the final step in land development process. During construction the land development consultant is a valuable resource for both the client and the contractor and is often responsible for stake out.Step1 Feasibility/programming initiates the process with a general review of proposed program and existing site conditions. Step5 Final design is the conclusion to the primary design effort. codes and ordinances and recommends a course of action to accomplish the development program with respect to those documents. cultural and infrastructure resources. including building arrangements and infrastructure systems. preliminary plans are enhanced with a level of detail sufficient to construct all aspects of the project Step6 Plan submission and permitting represent the formal regulatory review of final design (construction) documents by all governing agencies as well as application for procurement of all necessary site and building permits. Step4 Schematic design is a refinement of the initial concept sketches that adds scale. dimensions and precise testing of specific uses.  5 . Carried out predominantly by engineers. Feasibility review and site analysis are usually performed concurrently. Step2 Site analysis determines the allowable use of the site based on local master plans. these studies result in a complete site inventory. certain inspections and field and formal revisions.
development and management of the land resources are assured. There is lot of pressure on land due to the increasing population from the agricultural. industrial. http://en. Planning. The total available land area in the state sets the limits within which the competing human needs have to be met. and the benefits such as the regulation of the effects of flooding. uneconomic returns.Land Conservation: Land is one of the most precious natural resources. http://www.3 4. which is the place where all nutrients are available. environmental pollution. On the other hand. the objective of improving the productivity. The needs of agricultural. domestic and others often result in diversion from one use to the other. development and management of the land resources which ensures the physical and chemical and biological health of soil profile is of prime importance. Land Development Handbook. Public conservation land and other natural areas also contribute other often overlooked products such as clean water supplies.Chapter-1. Third Edition.Overview-Pg-1 5 . Even the available land is subjected to soil erosion of varying degrees and degradation problems of different magnitudes. the land is subjected to soil erosion and land degradation problem due to rain and wind action and faulty cultivation practices resulting in loss of topsoil.  Land being the major non renewable natural resource is inelastic in nature.wisegeek.wikipedia.org/wiki/Land_development . ecological imbalance. In a predominantly agricultural system.  Conservation action provides benefits such as opportunities for active outdoor recreation.Overview of The Land Development Process. draughts and floods. Hence the conservation.Pg-2 3. and reduction in storage capacity. This leads to poor yields. erosion and climate change.com/what-is-land-economics. reservoir sedimentation.  References 1. the importance of which in human civilisation needs no elaboration.htm 2. and shutdown of hydel power stations. and for the appreciation of landscapes and the historic heritage. Engineering & Surveying/ Dewberry. Pg. Part-1. Diversion of land from agriculture to non-agriculture uses adversely affects the growth in agriculture sector. industrial and housing sectors. profitability and prosperity of the farmers and achieving agricultural development on an ecological sustainable basis can be attained only when conservation.
in/spc/annualplan/ap2004-05/ch9_4. Some public interventions in different form were also made in the land market. regulatory measures.gov.in/spctenthplan/CH_9_4.pdf 7.gov.doc. Urban Land Reforms were however. Other scholars define it as a system of "courses of action. there has been no consistent Urban Land Policy formulated on the basis of detailed study of the problems that are encountered."  Urban Land Policy in India: Land reform measures were initiated in rural India soon after independence in 1947. and judicial decisions. laws. legislative acts.tn.tn. http://www.5. but the first major step aimed at fundamental reforms in the urban land systems came only in 1976 when a comprehensive land ceiling legislation took place. and funding priorities concerning a given topic promulgated by a governmental entity or its representatives. "Public policy is commonly embodied "in constitutions. Neither the Government of India nor the State Government has formulated any such policy. slow in coming. Despite these efforts India lacks a comprehensive Urban Land Policy.govt. 5 .nz/conservation/threats-and-impacts/benefits-ofconservation/economic-impacts/ 2. http://www.3 PUBLIC POLICIES ON LAND UTILIZATION AND DEVELOPMENT: Public policy can be generally defined as the course of action or inaction taken by governmental entities (the decisions of government) with regard to a particular issue or set of issues. While one may find expressions or intentions and isolated policy announcements. http://www.PDF 6.
National commission on Urbanization (1988): An important step towards understanding the urban problems of the country was taken by the government of India when it appointed national commission on urbanization. The Commission in its report examined the dimensions of urbanization and the issues relating to the existing urban patterns and policies in India and made recommendation on the range of policy interventions necessary to bring about more human and efficient urban seducements. The task Force on ‘Planning of urban development which submitted its report in 1983 critically examined.Sources of Land Policy: The following constitute the vital sources of urban policy matters in India. particularly to meet the housing requirements of the weaker sections. inter alia. The report submitted by the committee in 1965 must be considered as a landmark in the field of urban policy literature in India. especially with reference to Delhi and called for a new approach to promote efficiency in the allocation of land and to help the poor in their access to land for Shelter. (i) Reports/papers government Five year Plans Legislation brought out by the central or State (ii) (iii) (iv) Report of the Committee on Urban land Policy: The first attempt towards evolving an Urban Land Policy was made when the Government of India. It identified the failure to anticipate the rising demand for urban land and ensure an adequate land at affordable prices as possibly the most disastrous feature of the past four decades of urbanization in India. the problems of urban land policies in India. 5 . National housing Policy: The national Housing policy document of the government of India (1988) emphasized the need for the formulation and implementation of a purposeful land policy in the context of achieving the goal of eradicating houselessness in the country by the turn of the century. The commission strongly advocated a realistic land policy to overcome the problems of shortage of urban land and the rising land prices. The committee took note of the declining man-land ratio and considering a comprehensive long policy measures. It reviewed the existing approaches to land policy. It also suggested strategies to augment the supply of land. Ministry of health consisted a Committee to examine the problems related to urban land Policy in1963. Task force on housing and Urban Development: The planning Commission set up Task forces to evolve a long term perspective on housing and urban development Issues in 1982. Emphasizing the significance of urbanized land as a vital resource that needs to be generated in sufficient quantities for appropriate usage.
The plan referred to the high costs of urban development in rapidly growing urban areas and proposed measures to control urban land values. It is this provision that enables the state to directly acquire private lands or restricts private rights over land. and direct intervention in the land market to gain social control of land. Legislations: Legislation is a source as well as an instrument of Public Policy. The Seventh Five Year Plan called for slowing down the growth of big metropolises and stressed the need for preparation of regional and sub-regional Urban Development Plans. The most important constitutional provision in relation to Urban Land Policy is article 19(1)(f) which confers on individual the right to property. perhaps the most important instrument necessary for achieving breakthrough in urban development will be the formulation of Urban Land Policy. In the Sixth Plan the thrust of urbanization policy was on development of small and medium towns and achieving balanced distribution of urban population. The operation of this provision is.Five year plan: The five year plans constitute an important source of state policy on issues relating to socio economic development in India. the first serious effort at laying down a broad policy with regard to urban development was made while formulating the third five year plan. The State seeks to achieve many of its policy objectives through enactment of laws. The Fourth Five Year Plan stressed the need of urban land policy and called for action on the recommendations of the report of the committee on urban land policy of 1965. It recognized that. A major difficulty in the articulation of urban land policy is the plethora of existing legislation and regulation which govern the land market Planning Commission 1989. however restricted by article 19(5) which empowers the state to place reasonable restrictions on property rights in public interest. While the first two plans of the central government recognized the need for formulation of policies relating to urban planning and development. Town Planning Legislation including Urban Development Authority Acts: To control the use of land 5 .These laws relate primarily to land use regulation which restrict private rights. The various laws governing the land market passed by the Central and State government may be classified as follows: 1. The Fifth Five Year Plan is of great significance so far as urban land policy is concerned.
Municipal enactment including building byelaws: To control building activities. 5 . i. Act: To acquire land for public 3.e. It is dependent on both the present and the future use which . Slum Improvement and Clearance Act: To improve the living conditions of slum dwellers. is influenced by the physical and economic characteristics of the site and the social control of land use” ( Clarke . RAVINDRA. Preventing concentration of land ownership.. 4.e. According to Lichfield (1956). Optimum social use of urban land. 2. 2. Value may. For example. where the site possesses value for a future use its potential is reflected in the present price or rent. 4. be classified as “current value”. www. page no. Urban Land Ceiling and Development Act: To improve ceiling limits on land holdings and achieve equitable distribution of urban land. in turn ..wikipedia. 1965 ).with a view development. Clarke has clarified that the value may also change before any change of use actually takes place. 5. URBAN LAND POLICY – Author : A. Supply of adequate quantity of land at reasonable prices. value for the present use or “potential value”. 3.org. Objectives of Urban Land Policy: The Committee on Urban Land Policy (1965) outlined four basic objectives: 1.4 THEORIES OF LAND VALUES: The concept of land value may be classified as “the monetary evaluation of land use.35-39 2. values are created and changed by the same forces that create and change uses. Land to regulate its planned growth and Acquisition purposes. Encouraging community effort for land development and housing. i. therefore. Reference 1. value for a different and usually more valuable use at some future date. 2.
and the other is the assessed value. the urban land value is determined by adding the location factor to the agricultural land value. The key concept that is missing today is LAND VALUE. Yes. Ratcliff (1949). carrying forward the argument of Haig opined that the utilization of land was ultimately determined by the relative efficiencies of the uses in various locations. which is the price of a land parcel negotiated at the time of sale of the parcel. Hurd (1901). In cities. more fertile but also more remote. However.. land is of use chiefly for placing buildings upon it. towns and villages. Haig (1926) introduced the notion of the friction of space i. The market value of a piece of land may be different from the assessed value.M. that is. Theory Of Land Values Agricultural land has value because of its fertility.Land value can be considered in two contexts. He tried to establish a three-way relation of rent. hindrance to perfect or immediate accessibility. One other factor influencing the value of urban land is the amount of floor space in the building. The first important work on urban land use values was written by R.. the most fertile land is not always the most valuable.. He adopted the principles put forward by Ricardo for agriculture land to the urban land. and How Economic Theory should be taught.  The Valuation Of Real Estate. Proximity to communities and to means of transportation makes some agricultural land more valuable than other land. the site value was equal to the agricultural rental and the location value. Current Financial Crisis. R. the current financial crisis highlights how scholars need to recast the economic theory that they teach. often regarded as the father of modern land economics. which is the estimated worth of the parcel made by a competent private or public assessor (Northam. The use to which such buildings may be put determines the value of the land in relation to the other land in the community and their use depends to a great extent upon their location. Classical economics divided factors of production into three: 5 . One is the market value. its ability to yield produce for its owners. Efficiency in use is measured by the ability to pay rent and the use that can extract the greatest return from a given site will be the successful bidder. transport costs and location which is independent.M. Alfred Marshall (1916) introduced the concept of ‘location value’ which is expressed in the financial advantage derived from the location of the site.e. In other words. for without such ‘friction’ there would be no transport costs and all locations would be perfect. 1975). According to him.
These excesses fructify vast new areas around growing cities. This is based on no respectable quantitative research whatever. Tax theory is now based on the fallacy that a progressive tax must also be one that suppresses and distorts incentives. Beginning around 1920. The other way is simply to trivialize land values as a quantity. attend mainly to the froth on the waves. When the wave of land values ebbs. scholars conflated land with capital. but in the process land value almost disappeared. The result is to slow down new loans and seize up the system. overlooking or trivializing all differences. in effect "monetize" those speculative land values. The basis of allocating loans is not marginal productivity. capital goes into investments that pay out slowly. banks have to contract. and a systematic ignoring of research showing land values to be a major element of wealth. as we see today. and debtors default.land. ignoring the basic wave of land value that drives the cycle. and those statesmen whom they have trained. and capital. by taking land under and around speculative developments. as we now call it. rose to the fore. At this time "macro-economics". In a boom of land values. For a time it eclipsed "micro-economics". labor. because a bank. and the positive 5 . As to teaching money and banking. This left them totally unprepared to cope with or explain the crash of 1929. Gradually. much higher than the values of reproducible capital. but collateral security. cannot lend much faster than its debtors repay their loans. few or no texts recognize that expanding banks. which had degenerated into the explanation of the allocation of resources among competing ends. Another and related fault in theory is to ignore the turnover of capital. resulting in a crash. One is to conflate them with values of man-made capital. This reflects economists ignoring the high concentration of the ownership of land. When values are high and rising they lead to great excesses of urban sprawl. as perceived by bankers who do not distinguish land from capital. Scholars have "disappeared" land values in two main ways. no matter how positive its balance sheet. Yet economic theorists. land values move in cycles of high amplitude. One obvious fault in this is that interest rates and land rents vary inversely. as they are now. The loan turnover of banks slows down. micro-economics came back to be integrated with macro. When it comes to the dynamics that lead to crises like that of 2008. resulting in an overhang of "ripening" land that far exceeds possible demands.
In the other way. buildings. would substantially improve the economic efficiency of the jurisdiction. because land value contributes to overall property value. Nobel Prize winner William Vickrey believed that "removing almost all business taxes. This does not apply to LVT. If labor. Evans.  Land value taxation (LVT) Is an ad valorem tax on the value of land. and improvements to land.html. distort market mechanisms or otherwise create deadweight losses the way other taxes do." A correlation between the use of LVT at the expense of traditional property taxes and greater market efficiency is predicted by economic theory. The only direct effect of LVT on prices is to lower the market price of land. Most taxes distort economic decisions. and replacing them with taxes on site values. people are dissuaded from constructive and beneficial activities. and so LVT cannot be passed on to tenants. the Theory of Land Values. machinery or plants are taxed. LVT is different from other property taxes on real estate — the combination of land. 5 . and income-creating investing.incentive effects of taxing land in lieu of work. Every jurisdiction that has a real estate property tax has an element of land value tax. http://chestofbooks.  Reference 1. because the supply of land is inelastic. Alan W. Market land rents depend on what tenants are prepared to pay rather than on the expenses of landlords. and has been observed in practice. excepting only taxes reflecting the marginal social cost of public services rendered to specific activities. This ignores buildings. including property taxes on improvements.com/real-estate/Real-Estate-Principles- Practices/chapter-XIV-the-valuation-of-real-estate-theory-of-landva. it will not deter production. which is payable regardless of how well the land is actually used. Because of this. and personal property. buildings. building. Publisher – University of reading department of Economics. The efficiency are penalized due to the excess burden of taxation. 2. 1988. LVT is often said to be justified for economic reasons because if it is implemented properly. paragraph 1 and 2. enterprise. improvements.
v. functionality of communities and good building. content and implementation of plans.5 ACTS: Land Use and Building Act (132/1999. ii. iv. economical community building. An appropriate traffic system and. that expertise is comprehensive and that there is open provision of information on matters being processed. The review briefly explains planning matters and the stage of processing reached as well as any such decisions and other actions which have an immediate influence on the basic premises. viii. Robert Leonard Outhwaite. The Act also aims to ensure that everyone has the right to participate in the preparation process. 5 . ix. economically. vi. public transport and non-motorized traffic. favourable business conditions. iii. objectives. vii. x. socially functional living and working environment which provides for the needs of various population groups. By Charles theory Chomley. especially. Land value taxation in theory and practice. a safe. provident use of natural resources. protection of the beauty of the built environment and of cultural values. Page no. local authorities must draw up a review of all planning matters that are or will in the near future become pending in the local authority or the regional council and which are not of minor importance (planning review). xi. socially and culturally sustainable development. Objectives in land use planning The objective in land use planning is to promote the following through interactive planning and sufficient assessment of impact: i. amendment 222/2003 included): General objective of the Act: The objective of this Act is to ensure that the use of land and water areas and building activities on them create preconditions for a favourable living environment and promote ecologically. pleasant. availability of services. 76 2. the elderly and the handicapped. and that planning is high quality and interactive. economical community structure and land use. healthy. biological diversity and other natural values. such as children. environmental protection and prevention of environmental hazards. Planning review At least once each year.3.
community development requiring planning may be expected. In addition. and create and maintain cultural values. the economy of the local structure. or avoidance of environmental hazards. land use. b) a significant impact on national cultural or natural heritage. National land use objectives may concern matters which have: a) international or more extensive than regional bearing on local structure. Provisions concerning areas requiring planning also apply to construction where the environmental impact is so substantial as to require more comprehensive consideration than the normal permit procedure. In a legally binding local master plan or building ordinance. due to their location. An order in a local master plan or a building ordinance designating an area as requiring planning may be in force for a maximum of ten years at a time. When national land use objectives are issued. c) The planned and continuous care and maintenance of the built environment and building stock. local authorities may also designate areas where. The Finnish Building Code The competent ministry will issue technical and corresponding general regulations and instructions supplementing this Act. or the transport or power network. the general objectives of this Act and the objectives for land use planning laid down in section 5 must be taken into account. Areas requiring planning An area requiring planning is an area the use of which involves needs that require special measures. or where land use planning is warranted by particular environmental values or hazards.Planning reviews must be publicized in a manner appropriate for their purpose. which are published in the Finnish Building Code. safe and pleasant and serves the needs of its users. such as road. Objectives of building guidance The objective of building guidance is to promote: a) the creation of a good living environment that is socially functional and aesthetically harmonious. b) building based on approaches which have sustainable and economical life-cycle properties and are socially and economically viable. the ministry is in charge of 5 . National land use objectives National land use objectives are decided upon by the Council of State. or c) Nationally significant impact on ecological sustainability. as areas requiring planning. water main or sewer construction or arranging other areas.
given the population density and the type of land use in the country. however. Building restriction A building restriction is in force in areas designated by the regional plan as recreation or protection areas or areas for transportation or technical service networks. The regulations in the Building Code concern the construction of new buildings. the Central Government hereby makes the following rules for the guidance of the State Government and the Officer of the Central Government and of the State Governments. The evolution of Law of Land Acquisition as it exists today in various forms in different statutes in India has undergone an evolution in the last decade. the law tries to provide various provisions for objections and alternative remedies in case of inadequacy of compensation. regulations that concern building but are issued under other legislation may also be included in the Building Code. and 5 . Furthermore. 1963. but at present. b. Originally the wishes of owners of property were totally irrelevant. These rules shall apply to acquisition of land for all companies under Part VII of the Act. Unless otherwise specifically prescribed by the regulations. Land Acquisition (Companies) Rules. namely :— 1. Instructions are not binding. 2. The regulations in the Building Code are binding. These rules may be called the Land Acquisition (Companies) Rules. and approaches other than those suggested in them may be applied if they meet the requirements set for building.1894 (1 of 1894). they are applicable to renovation and alteration work only in so far as the type and extent of the measure and a possible change in use of the building or part thereof require. be it Narmada Bachao Andolan or the recent Nandigram issue. Short title and application a. This is evident from the fact that the fundamental issue in a number of top stories in the past few years has been the Process of Land Acquisition. Definitions In these rules: a. “Act” means the Land Acquisition Act.harmonizing regulations concerning buildings issued by government authorities. Exercise of the powers conferred by section 55 of the Land Acquisition Act 1894 (1 of 1894). The area covered by building restrictions may be increased or decreased by a special order in the plan. With number of State Governments demarcating lands as Special Economic Zones the problem just is going to get worse. 1963: The difficulties that come in the process of Land Acquisition in India are immense.
specify.The Committee shall regulate its own procedure.Whenever a company makes an application to the appropriate Government for acquisition of any land. that Government shall direct the Collector to submit a report to it on the following matters. iii. a. that the area of land proposed to be acquired is not excessive. The Secretary to the Department or any officer nominated by him dealing with the purposes for which the company proposes to acquire the land. and iii. The appropriate Government shall appoint one of the members of the Committee to be its Chairman.The Collector shall. hold an enquiry into the matters referred to in sub-rule (1) and while holding such enquiry he shall : 5 . and vi. d. “Committee” means the Land Acquisition Committee constituted under rule 3 3. to make any representation in this behalf. by order. Appropriate Government to be satisfied with regard to certain matters before initiating acquisition proceedings a. ii. It shall be duty of the Committee to advise the appropriate Government on all matters relating to or arising out of acquisition of land under Part VII of the Act. that the land proposed to be acquired is suitable for the purpose. Agriculture and Industries or such other officers of each of the said Departments as the appropriate Government may appoint. constitute a Committee to be called the Land Acquisition Committee.b. b. v. 4. c. that the company has made its best endeavour to find out lands in the locality suitable for the purpose of the acquisition. Where the land proposed to be acquired is good agricultural land that no alternative suitable site can be found so as to avoid acquisition of that land. that the company is in a position to utilise the land expeditiously. by notification in the Official Gazette. on which it is consulted and to tender its advice within one month from the date on which it is consulted: provided that the appropriate Government may on a request being made in this behalf of the Committee and for sufficient reasons extend the said period to a further period not exceeding two months. The Committee shall consist of: i. that the company has made all reasonable efforts to get such lands by negotiation with the person interested therein on payment of reasonable price and such efforts have failed. iv. Such other members as the appropriate Government may appoint for such term as that Government may. after giving the company a reasonable opportunity. Land Acquisition Committee. namely : i. For the purpose of advising the appropriate Government in relation to acquisition of land under Part VII of the Act the appropriate Government shall. e. b. ii. The Secretaries to the Government of the Departments of Revenue.
or ii. and ii. gift. As soon as may be after holding the enquiry under sub-rule (2). having regard to the provisions of sections 23 and 24 of the Act.i. 5. where the land has been acquired for the erection of the dwelling houses for workmen employed by the company. is of average or above average productivity and includes a garden or grove land. and lease or otherwise. submitted under section 5A of the Act. if any. consult the Senior Agricultural Officer of the district whether or not such land is good agricultural land. the proposed transfer of the land along with dwelling houses. if any. Explanation— For the purpose of this rule “good agricultural land” means any land which. in the opinion of the Collector. is to some other company or where the company is a co-operative society. ii. the approximate amount of compensation likely to be payable in respect of the land. d. the appropriate Government has consulted the Committee and has considered the report submitted under this rule and the report. if any. amenities. no such sanction shall be given unless: i. which. is to such workmen or their dependent heirs: Provided that before giving any such sanction the appropriate Government shall consult the Committee 6. and iii. All rules made by the appropriate Government for the guidance of its officers with respect to acquisition of land for companies under Part VII of the Act and in force immediately before the commencement of 5 . c. should be acquired for the company. considering the level of agricultural production and the crop pattern of the area in which it is situated. the proposed transfer of land along with dwelling houses. buildings or work. Conditions under which sanction may be given for transfer of land. Where a company for which land has been acquired under the Act applies for the previous sanction of the appropriate Government for the transfer of that land or any part thereof by sale. the Collector shall submit a report to the appropriate Government and a copy of the same be forwarded by that Government to the Committee. such transfer is to any or all of its members. determine. Repeal. Ascertain whether the company offered a reasonable price (not being less than the compensation so determined). the agreement under section 41 of the Act has been executed by the company. in any case where the land proposed to be acquired is agricultural land. to the persons interested in the land proposed to be acquired.No declaration shall be made by the appropriate Government under section 6 of the Act unless— i.
in writing and in person. cease to have effect. but also let the private persons know what land is being taken. The section also makes it mandatory for the officer or person authorised by the government to give a notice of seven days signifying his intention to enter any or building or enclosed court in any locality. 5 . either by cutting trenches or fixing marks as posts. Object is to facilitate measurement and preparation of acquisition plan. After considering such report made by the collector under section 5(a) the government may issue a declaration within one year of the notification under section 4 to acquire land for public purposes or company. The collector after making inquiry to such objections has to forward the report to the government whose decision in this respect would be final. An important process that takes place under this section is demarcation which consists of marking out boundaries of land to be acquired. and dispute all disputes to insufficiency of amount lie to the collector. Under Section 5(a) any person interested in land which is notified under section 4 (who is entitled to claim an interest in compensation) can raise an objection. The next step in the process of acquisition is that collector has to cause land to be marked out. After the declaration under Section 6. taking level. An officer or authorised person of the government has to tender payment for all necessary damage. Requirement of this section deals only with approximation and does not require exact measurement. set out boundaries etc.these rules shall. to the extent of the repugnancy. The proceeding under the Land Acquisition Collector is of an administrative nature and not of a judicial or quasi judicial character. this declaration is a mandatory requirement of the acquisition. unless it is already done. The notification puts forward the intention of the government to acquire and entitles government officials to investigate and ascertain weather the land is suitable for the purpose. newspaper and give a public notice which entitles anyone on behalf of the government to enter the land for the purposes of digging. It is to be done by requiring body that is the government department or company whichever be the case. When a government intends to occupy a land in any locality is has to issue a notification under Section 4 in the official gazette. The Process of Land Acquisition For the purposes of Land Acquisition Act of proceedings are carried on by an officer appointed by the government known as Land Acquisition Collector. collector has to take order from the appropriate government weather state or central for the acquisition of land under section 7. measured and appropriate plan to be made accurately. This is a mandatory provision of the process of land acquisition. Obstruction under Section 8 and Section 4 are offence punishable with an imprisonment not exceeding one year and with fine not exceeding fifty rupees.
even though they might not have appeared before him. 1894 3) List of Cases Referred 1. Bali Malimambu v. Balwant Ramachandran v. consider the objections and take all the information necessary for ascertain the value of the land.Section 9 requires the collector to cause a public notice at convenient places expressing government’s intention to take possession of the land and requiring all persons interested in the land to appear before him personally and make claims for compensation before him. Ratni Devi v. Chief Commissioner Delhi AIR 1975 SC 1699. 2. and it is a mandatory requirement. 3. In awarding compensation the Land Acquisition Collector should look into estimate value of land. investigate their claims. The award made must be under the following three heads: • • • Correct area of land Amount of compensation he thinks should be given Apportionment of compensation Section 11 makes it obligatory on the part of the collector to safeguard the interests of all persons interested. Next step in the process of acquisition requires a person to deliver names or information regarding any other person possessing interest in the land to be acquired and the profits out of the land for the last 3 years. The object of this step is to enable the collector to ascertain the compensation by giving him a vague idea. Babu Barkya Thakur v. 5. The enquiry involves hearing parties who appear with respect to the notices. and such an enquiry can be adjourned from time to time as the collector thinks fit and award is to be made at the end of the enquiry. State of Gujrat AIR 1978 SC 515. Value of the property in the neighbourhood can be used as criteria. State of Punjab AIR 1963 SC 151. It also binds the person by requiring him to deliver such information to the collector my making him liable under sections 175 and 176 of the Indian Penal Code. References 1) The Constitution of India 2) List of Statutes a) THE LAND ACQUISITION ACT. Secretary of State ILR 29 Bom 480. 4. State of Bombay  1 SCR 128. give due considerations to the other specific factors. Somnawati v. The award should be made within 2 years. 5 . The Final set of collector’s proceedings involve an enquiry by the collector into the objections made by the interested persons regarding the proceedings under section 8 and 9 and making an award to persons claiming compensation as to the value of land on the date of notification under section 4. In affect this section requires collector to issue two notices one to the locality of acquisition and other to occupants or people interested in lands to be acquired.
14. Ponnaira v. 7. 21. 1085. Luitang v. State of Rajasthan AIR 1907 SC 1074. Special Officer. 15. 8. Pran Jivan Jaitha v. Ram Charan v. 24. State of UP (1970) 1 SCC 125. v. State of West Bengal AIR 1974 Cal 210. Secretary of State AIR 1914 PC 20. Corpn of Calcutta AIR 1922 PC 333. 22. Valjibhai Muljibhai Soneji v. Revenue Division Officer. 20. State of Madras AIR 1967 Mad 332. 18. V. Amulya Chandra Banerjee v. The Land Acquisition Officer (1997) 2 MLJ 85. 11. Valliammal v. Vellagapudi Kanaka Durga v. Hamabai Framjee v. Government of Tamil Nadu AIR 1990 Mad 321. Luchmeswar Singh v. Raghunath Das v. Dossabhai v. 17.P.6. 19. Hamabai Famjee v. 27. Secretary of State AIR 1926 Mad 1099. AIR 1952 ALL 752. Clark v. v. District Collector of Deccan 11 CLJ 612. 28. Province of Bombay v. 5 . V. State of Madhya Pradesh AIR 2000 MP 2. Mathurbhai Hirajibhai Patel v. 26. 25. State of Kerala AIR 1966 Ker 187. Darbhanga Municipality ILR 18 Cal 99. Trichinopoly v. 9. Khub Chand and Ors. V Doraiswami Pillai and Ors v. District Collector AIR 1971 AP. Secretary of State ILR 39 Bom 279. Nash (1905) Law Co. Narendrajit Singh and Anor. 13. 12. Varadachai AIR 1944 Mad 271. Khushal Das AIR 1950 SC 222. State of U. 10. Gajamand v. 16. Ambyan Menon and Ors. Salsette ILR 36 Bom 599. Deputy Commissioner AIR 1961 Mani 31. State of Gujrat AIR 1973 Guj 261. 23. State of Bombay AIR 1963 SC 1890. Jayaram Reddy and Ors.
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