Official guidance, Tamil Nadu land law
G.O. (Ms.) No. 401, Land Acquisition Enhanced Compensation Payment of Interest, 2018
The Tamil Nadu Revenue and Disaster Management, Land Acquisition I(1), Department issued Government Order (Ms.) No. 401 on 12 October 2018 to clarify how interest must be calculated on solatium and additional market value in compensation under the Land Acquisition Act, 1894. The clarification limits this interest to the period from 19 September 2001 and requires the earlier procedure, under which such interest was not payable, to be followed for periods before that date.
What the government order governs
Government Order (Ms.) No. 401, issued by the Tamil Nadu Revenue and Disaster Management, Land Acquisition I(1), Department on 12 October 2018, concerns interest payable on enhanced compensation in land acquisition cases under the Land Acquisition Act, 1894. It specifically addresses interest on the aggregate compensation amount, including solatium and additional market value.
Why the clarification was issued
An earlier government order stated that land acquisition claimants were not entitled to interest on the 30% solatium or the 12% additional amount. Following the Supreme Court of India judgment in Sundar versus Union of India dated 19 September 2001, Government Order Ms. No. 70 superseded that earlier position and allowed interest on the aggregate compensation amount in cases pending on the judgment date.
A later government letter treated pending cases as including cases where an award had been passed before 19 September 2001 but an appeal for enhanced compensation remained pending. In practice, this led to interest sometimes being calculated from the award date or possession date, even when that date was before 19 September 2001.
Key provisions
Government Order (Ms.) No. 401 provides the following clarification:
- A person entitled to compensation awarded under the Land Acquisition Act, 1894, on or after 19 September 2001 may receive interest on the aggregate amount, including solatium and additional market value.
- Interest on solatium and additional market value is payable only from 19 September 2001.
- Interest is not payable on the 30% solatium and 12% additional amount for any period before 19 September 2001.
- For periods before 19 September 2001, officials must follow the procedure that was in force on 18 September 2001.
- The pendency of execution proceedings does not provide a basis for claiming this interest from an earlier decree or award date.
Who is affected
Government Order (Ms.) No. 401 affects people claiming compensation in land acquisition cases, particularly where an award, appeal or execution proceeding existed before 19 September 2001. It also directs the Commissioner of Land Administration, District Collectors, District Revenue Officers and Land Acquisition Officers to apply the clarification.
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Common questions
Can I receive interest on solatium for a period before 19 September 2001?
No. Government Order (Ms.) No. 401 states that interest on solatium is payable only for the period from 19 September 2001.
Does a land acquisition appeal pending on 19 September 2001 qualify for interest?
A pending case included an award passed earlier where an appeal for enhanced compensation was pending on 19 September 2001. However, interest on solatium and additional market value is limited to the period from that date.
Can interest be calculated from the original award or possession date if it was before 19 September 2001?
No. The clarification requires interest on solatium and additional market value to begin only from 19 September 2001, not from an earlier award or possession date.
Does a pending execution petition allow interest from the decree date?
No. The document records that pending execution proceedings do not create a basis for claiming interest on solatium from the decree date.
