Official guidance, Tamil Nadu land law
G.O. (Ms.) No.13, Determination of Final Compensation to Land Owners, 2018
The Industries (SIPCOT-LA) Department issued Government Order (Ms.) No. 13 on 21 February 2018 to determine final compensation for certain land acquired under the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997. It applies multiplier factors to market value, including rural factors based on distance from an urban area, where interim compensation had already been fixed under Government Order (Ms.) No. 45, Industries (SIPCOT-LA) Department, dated 14 May 2014.
What the document does
Government Order (Ms.) No. 13 of the Industries (SIPCOT-LA) Department sets out how the final award must be determined for certain industrial land acquisitions. It covers cases where interim compensation had already been fixed and allowed under Government Order (Ms.) No. 45, Industries (SIPCOT-LA) Department, dated 14 May 2014.
The final amount must follow the First Schedule of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The market value is multiplied by a factor that depends on whether the project is in an urban or rural area and, for rural projects, its distance from an urban area.
Multiplier factors
Government Order (Ms.) No. 13 specifies these factors for market value:
- Rural project within 30 kilometres of an urban area: 1.25.
- Rural project beyond 30 kilometres and within 50 kilometres of an urban area: 1.50.
- Rural project beyond 50 kilometres from an urban area: 2.00.
- Project in an urban area: 1.
The document identifies urban areas as including the territory of the Chennai Metropolitan Development Authority, including village panchayats within it. It also includes Madurai, Tiruchirappalli, Salem, Coimbatore and Tirunelveli Municipal Corporations, together with areas, including village panchayats, within 8 kilometres of their limits. The supplied text also refers to other municipal corporations, municipalities, town panchayats, cantonments and townships.
Who may be affected
Government Order (Ms.) No. 13 may affect:
- Land owners whose property was acquired for industrial purposes and whose interim compensation was fixed under Government Order (Ms.) No. 45.
- Officials responsible for preparing or approving the final compensation award.
- Buyers, owners and professionals checking compensation records relating to an industrial acquisition.
The document also records that compensation provisions under the 2013 central legislation were applied to industrial acquisition cases where the relevant notice under the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997 was published on or after 1 January 2014.
Guidance for market value
Government Order (Ms.) No. 13 requires authorities to follow the instructions issued by the Additional Chief Secretary and Commissioner of Land Administration in the circular dated 13 November 2017 and the letter dated 12 December 2017 when determining market value.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does Government Order (Ms.) No. 13 apply to every industrial land acquisition?
The document specifically addresses cases where interim compensation had already been fixed and allowed under Government Order (Ms.) No. 45, Industries (SIPCOT-LA) Department, dated 14 May 2014.
What multiplier applies if my acquired land is more than 50 kilometres from an urban area?
For a project in a rural area beyond 50 kilometres from an urban area, the market value multiplier is 2.00.
Is the multiplier the same for urban and rural projects?
No. The market value factor for an urban area is 1. Rural factors are 1.25, 1.50 or 2.00, depending on the project's distance from an urban area.
Does the final award simply use the earlier interim compensation amount?
The final award must apply the specified multiplier factor and follow the First Schedule of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, together with the identified Commissioner of Land Administration guidance.
