Sections 100 and 101: Change of Ownership and Return of Unutilised Land

Sections 100 and 101 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 regulate change of ownership of acquired land and provide for reversion of land that remains unutilised for the statutory period.

Act No. 30 of 2013Chapter XIII - MiscellaneousCentral Act in force from 1 January 2014
At a glance: Section 100 prohibits change of ownership without specific permission from the appropriate Government. Under the Central text of Section 101, land acquired under the Act that remains unutilised for five years from the date possession was taken must be returned by reversion to the original owner or owners or their legal heirs, or to the appropriate Government's Land Bank, in the prescribed manner. State amendments may alter the five-year rule.

Section 100 - No Change of Ownership Without Permission

No change of ownership without specific permission from the appropriate Government shall be allowed.

Meaning and Scope of Section 100

Section 100 places a direct statutory restriction on change of ownership. A change is not permitted unless specific permission is obtained from the appropriate Government. The identity of the appropriate Government is determined under Section 3(e) of the Act according to the nature of the acquisition.

The provision should be read with Section 99, which restricts a change from the purpose or related purposes for which land was originally sought to be acquired. Together, Sections 99 and 100 regulate both the use and ownership of acquired land.

Section 101 - Return of Unutilised Land

When any land acquired under this Act remains unutilised for a period of five years from the date of taking over the possession, the same shall be returned to the original owner or owners or their legal heirs, as the case may be, or to the Land Bank of the appropriate Government by reversion in the manner as may be prescribed by the appropriate Government.

Explanation. For the purpose of this section, "Land Bank" means a governmental entity that focuses on the conversion of Government owned vacant, abandoned, unutilised acquired lands and tax-delinquent properties into productive use.

How Section 101 Operates

The Central text of Section 101 uses the date of taking over possession as the starting point for the five-year period. If the acquired land remains unutilised throughout that period, the provision requires its return by reversion in the manner prescribed by the appropriate Government.

Who May Receive the Returned Land?

The statutory destinations are the original owner or owners, their legal heirs as the case may be, or the Land Bank of the appropriate Government. The applicable prescribed procedure and any valid State amendment must be checked before determining the route of reversion in a particular acquisition.

Meaning of Land Bank

The Explanation to Section 101 defines a Land Bank as a governmental entity focused on converting Government-owned vacant, abandoned or unutilised acquired lands and tax-delinquent properties into productive use.

Central Rules on Return of Unutilised Land

Rule 20 of the RFCTLARR (Compensation, Rehabilitation and Resettlement and Development Plan) Rules, 2015 prescribes a Central procedure for return of unutilised land. It provides for notice to the Requiring Body, an opportunity of hearing, a written order by the Collector and taking possession for return to the original owner or owners, their legal heirs, or the Land Bank. Where land is returned to the original owner or legal heirs under the Central rule, the rule also addresses refund of compensation excluding solatium before possession is restored.

State Amendments Must Be Checked

Section 101 has been amended in some States. The official India Code text, for example, records an Andhra Pradesh amendment substituting the Central five-year wording with a period linked to the time specified for setting up the project or five years, whichever is later. The applicable State law should therefore be verified before applying the Central five-year formulation to a particular acquisition.

Practical Points

Official Statutory Sources

For the current Central text and State amendments, refer to the India Code portal. The Department of Land Resources administers the RFCTLARR Act at the Union level and publishes the Act, rules and related materials. The RFCTLARR Compensation, Rehabilitation and Resettlement and Development Plan Rules, 2015 contain the Central procedure concerning return of unutilised land.

Important: before applying Section 101, verify the State in which the acquisition is situated, the applicable State amendment or rules, the date possession was taken and whether the land has in fact remained unutilised for the legally relevant period.