Land Acquisition Act 2013 - Chapter X: Payment

Section 79: Investment of Money Deposited in Other Cases

Section 79 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 deals with investment of money deposited with the Land Acquisition, Rehabilitation and Resettlement Authority for reasons other than the circumstances covered by Section 78.

In brief: where money is deposited with the Authority for a cause outside Section 78, an interested person may apply to the Authority for investment of that money in Government or other approved securities. The Authority may also direct payment in a manner intended to preserve, as nearly as possible, the benefit that the interested parties would have obtained from the acquired land.

Section 79 of the Land Acquisition Act 2013

Investment of money deposited in other cases.

When money has been deposited in the Authority concerned under the Act for a cause other than the causes mentioned in Section 78, the Authority may, on the application of a party interested or claiming an interest in the money, order it to be invested in Government or other approved securities considered proper by the Authority. The Authority may direct payment in a manner designed to give the interested parties the same benefit they might have obtained from the land concerned, or as nearly equivalent a benefit as possible.

Meaning and Scope of Section 79

Section 79 is a protective provision governing deposited compensation or other money held by the Authority when Section 78 does not apply. Instead of allowing the deposited amount to remain unproductive, the provision enables an interested party to request an investment order.

The power belongs to the Authority concerned, meaning the Land Acquisition, Rehabilitation and Resettlement Authority constituted under the Act. The statutory power is discretionary: the Authority may make an investment order after an application by a party interested in, or claiming an interest in, the deposited money.

When Section 79 Applies

The provision applies when money has been deposited with the Authority under the Act for a reason other than the causes mentioned in Section 78. Section 78 specifically addresses deposited money relating to land belonging to a person who had no power to alienate that land. Section 79 therefore covers other qualifying deposits made with the Authority.

Who May Apply to the Authority?

An application may be made by a party who is interested in the deposited money or who claims an interest in it. The applicant must therefore assert a legally relevant interest in the fund before seeking an order under Section 79.

How the Money May Be Invested

The Authority may order investment in Government securities or other approved securities that it considers proper. The purpose stated in the section is not merely investment for its own sake. The payment arrangement should seek to provide the interested parties with the benefit they might have enjoyed from the land for which the money was deposited, or an approximation of that benefit.

Practical distinction: Section 78 contains a specific regime for money connected with land belonging to a person without power to alienate. Section 79 applies to deposits made for other causes and operates on an application by an interested party.

Related Provisions

Official Legal Resources

For the authoritative Central Act, amendments, schedules and available subordinate legislation, consult the official India Code record. Administrative information concerning land resources and implementation is available from the Department of Land Resources, Ministry of Rural Development.

This article is a general explanation of the statutory provision. For a particular acquisition, deposit, entitlement dispute or investment application, the applicable Central and State rules, notifications, orders and judicial decisions should also be checked.