Government Letter No. 565, Land Acquisition Prior Entry Cases, 2002
The Tamil Nadu Revenue Department issued Government Letter No. 565 dated 31 December 2002 to clarify additional compensation and interest in land acquisition cases where possession was taken before the formal notification. It states that the 12 percent additional amount is limited to the date of possession, is not payable when possession preceded the notification, and that delayed payment interest must be calculated on compensation correctly determined under the Land Acquisition Act.
What the clarification covers
Government Letter No. 565 dated 31 December 2002 was issued by the Tamil Nadu Revenue Department following questions from the Accountant General about compensation in prior entry land acquisition cases. These are cases in which possession of land was taken before the award or even before publication of the acquisition notification.
The Accountant General reported cases where the 12 percent additional amount had been allowed up to the award date even though possession had already been taken. Interest at 9 percent or 15 percent had then been calculated after including that additional amount.
Who may be affected
The Revenue Department clarification is relevant to:
- Landowners whose property was occupied or taken before the acquisition notification.
- Landowners checking whether an acquisition award includes the correct additional amount and interest.
- District Collectors and District Revenue Officers responsible for processing land acquisition compensation.
- Auditors and property professionals reviewing older acquisition awards.
Key points
- Additional compensation at 12 percent on market value must be restricted to the date possession was taken.
- Where possession was taken before publication of the notification, the 12 percent additional compensation is not payable for that earlier period.
- Interest at 9 percent or 15 percent for delayed payment must be calculated on the compensation amount correctly determined under section 23(1-A) of the Land Acquisition Act.
- The clarification arose because earlier instructions to District Collectors and District Revenue Officers were reported as conflicting with the relevant provisions of the Act.
Legal notes included in the source
The source explains that interest compensates a person when money due to them is wrongfully withheld or paid late. It also records that statutory interest cannot be awarded for a period before publication of the notification when possession was taken outside the acquisition process.
For such pre-notification possession, the source states that the landowner retains title and may be entitled to rent or damages for the period during which the Government retained possession. It also records that, where additional compensation and solatium form part of the compensation awarded, interest is payable on the whole compensation rather than only on the land's 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
Can I claim the 12 percent additional amount for a period before the acquisition notification?
No. Government Letter No. 565 states that when possession was taken before the notification, the 12 percent additional compensation is not payable for that earlier period.
Up to what date can the 12 percent additional amount be calculated?
The Tamil Nadu Revenue Department clarification says it must be restricted to the date possession was taken.
How should delayed payment interest be calculated?
Interest at 9 percent or 15 percent, as applicable, must be calculated on the compensation amount correctly determined under section 23(1-A) of the Land Acquisition Act.
Do I lose ownership rights if the Government occupied my land before issuing the notification?
The legal notes in the source state that where possession was taken before the notification and outside the Act, the landowner retains title and may be entitled to rent or damages for the period of Government possession.
