Property stands out to
be one of the main assets accomplished by any person in his lifetime.
Properties are generally transferred to generations being followed. The same
property can be acquired by the government in some cases for the sole purpose
of development of the country and strengthening the defence and security
provisions of the country. As the property is an immovable commodity the
compensation of the same is a question of great interest, especially in case of
the property being a home to a family or the property being the source of
earning a livelihood. The major ACT issued in order to provide the owners with relief
and facilities for the benefit of both the government and the owner was passed
in 1952 under the name Requisition and Acquisition of Immovable Property Act.
The ACT was originally
issued in order to protect the interests of the landlords and the government,
post-independence when the distribution of land was not proportional and the
landlords suffered huge losses due to the circumstantial changes in the
formation of a new nation and the shifting of power under the newly established
democracy. To monitor the powers of the government and also safeguard the
rights of the people who own certain piece of property, which were being
harassed by the government officials for personal interests the act of
Acquisition and Requisition of Immovable Property was passed building a set of
rules and limits to be followed in order to acquire some property and also
provide a fair and just compensation to the owner to minimise the loss.
According to the
original passed ACT, Section 3 of the Act deals with the power to requisition
immovable property, whereas the section 7 covers the power to acquire the
requisitioned property. Section8 and 9 deals with the principles and methods of
compensation and payment modes that have are meant to be provided to the owner
whose property has been requisitioned and compensation for the same has to be
made. People have complained about the instances where the interest rate for
the property was not made according to the rules laid down by the act and also
there have not been adequate hearing of the cases filed against the unfair
compensation and challenging the notice of acquisition by the competent authorities.
However, after prolonged litigation traversing up to the Apex Court, if the
interested persons succeed in getting a notice of acquisition quashed, they
would be bestowed with the unintended benefit of compensation for their
property as on the date of publication of fresh notice of acquisition. The
compensation rate shows a hike with respect to the astronomical increase in the
market value of property between the original date of publication of notice of acquisition
and the present date of publication of the same.
Recently the original
Act of the Requisitioning and Acquisition of Immovable Property, issued in 1952
was proposed its 12th amendment for regulating the Governing
compensation amount payable at the time of the acquisition of immovable property
by the central government was introduced by the Minister of State for Planning,
Programme Implementation and Statistics Rao Inderjit Singh. It was introduced
by M Venkaiah Naidu, on 18th July 2017 and was passed by the Lok Sabha
on 20th December, 2017.
The bill also seeks to
amend a section of the Requisitioning and Acquisition of Immovable Property Act
to “enable the central government to re-issue the notice of acquisition to the
owner or such other person interested in the property, for the purpose of
giving (an) opportunity of being heard”. The owner or the person interested in
the property would also be entitled to annual rate of interest — prevalent at
any relevant time on the compensation payable — from the date of publishing the
first notice till payment of the final compensation.
The above statement allows
the central government to re-issue the notice of acquisition in order to ensure
that the property’s owner gets an opportunity to be heard in order to get the
appropriate compensation amount from the government as it is the duty of the
government to pay fair and just compensation for the acquired land.
Further, it is proposed
that any enhanced compensation with or without interest awarded by the court or
other authority, before the date of commencement of the proposed amendment,
shall be subject to the reissuance of the proposed notice of acquisition and
shall be applicable only to the cases of property being acquired for national
security and defence purpose.
The Representation of the Immovable Property (Amendment)
Bill, 2017 is hoped to bring a significant reform in the exercise of the Right
to Property, which is a constitutional right, as it will make the acquisition
of the immovable property hassle free and provide fair and just compensation to
the owner. The amendment in the bill is significant, as it has
been done in the interest of the security of the nation. It will help corrupt
element from taking undue advantage by misusing the litigation process. As discussed above, if these
possible drawbacks will not be monitored, controlled or terminated, the main
purpose of the Representation of the Immovable Property (Amendment) Bill, 2017
will turn out to be futile and can further lead to the fair opportunity to the
owners for gaining an appropriate compensation.