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Land Acquisition (Companies) Rules, 1963

4. Appropriate Government to be satisfied with regard to certain matters before initiating acquisition proceedings.

1.      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, namely :—

              i.        that the company has made its best endeavour to find out lands in the locality suitable for the purpose of the acquisition;

             ii.        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;

            iii.        that the land proposed to be acquired is suitable for the purpose;

            iv.        that the area of land proposed to be acquired is not excessive;

             v.        that the company is in a position to utilise the land expeditiously; and

            vi.        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.


2.     The Collector shall, after giving the company a reasonable opportunity, to make any representation in this behalf, hold an enquiry into the matters referred to in sub-rule (1) and while holding such enquiry he shall :—

              i.        in any case where the land proposed to be acquired is agricultural land, consult the Senior Agricultural Officer of the district whether or not such land is good agricultural land;

             ii.        determine, having regard to the provisions of sections 23 and 24 of the Act, the approximate amount of compensation likely to be payable in respect of the land, which, in the opinion of the Collector, should be acquired for the company; and

            iii.        ascertain whether the company offered a reasonable price (not being less than the compensation so determined), to the persons interested in the land proposed to be acquired.

Explanation .— For the purpose of this rule “good agricultural land” means any land which, considering the level of agricultural production and the crop pattern of the area in which it is situated, is of average or above average productivity and includes a garden or grove land.



3.     As soon as may be after holding the enquiry under sub-rule (2), the Collector shall submit a report to the appropriate Government and a copy of the same be forwarded by that Government to the Committee.

4.     No declaration shall be made by the appropriate Government under section 6 of the Act unless—

              i.        the appropriate Government has consulted the Committee and has considered the report submitted under this rule and the report, if any, submitted under section 5A of the Act; and

             ii.        the agreement under section 41 of the Act has been executed by the company.

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