162. Exemptions.—The provisions of this Chapter shall not apply to land owned by the Government
or a local authority.
163. Definitions.—For the purposes of this Chapter,—
(a) “ceiling limit”, in relation to land, means the limit fixed under section 164;
(b) “family”, relation to a person, means the person, the wife or husband, as the case may be, and
the dependent children and grand-children, of such person;
(c) “land” does not include land used for non-agricultural purposes.
164. Ceilings on holdings.—No person either by himself or, if he has a family, together with any
other member of his family (hereinafter referred to as the person representing the family) shall, whether
as a raiyat or an under-raiyat or as a mortgagee with possession or otherwise, or partly in one capacity and
partly in another, hold land in excess of twenty-five standard acres in the aggregate:
Provided that where the number of members of the family of such person exceeds five, he may hold
five additional standard acres for each member in excess of five, so, however, as not to exceed fifty
standard acres in the aggregate.
Explanation.—In the case of a company, an association or any other body of individuals, the ceiling
limit shall be twenty-five standard acres.
165. Submission of returns.—Every person representing a family who at the commencement of this
Act holds, or has at any time during the period between the 10th day of August, 1957 and such
commencement held, land in excess of the ceiling limit shall submit to the competent authority, in such
form and within such time as may be prescribed, a return giving the particulars of all land held by him
and indicating therein the parcels of land, not exceeding the ceiling limit, which he desires to retain:
Provided that in the case of a joint holding, all co-sharers may submit the return jointly indicating the
parcels of land, not exceeding the aggregate of their individual ceiling limits, which they desire to retain.
Explanation.—In the case of a person under disability, the return shall be furnished by his guardian or
authorised agent, as the case may be.
166. Collection of information through other agency.—If any person, who under section 165 is
required to submit a return, fails to do so, the competent authority may collect the necessary information
through such agency as may be prescribed.
167. Procedure for determination of excess land.—(1) On-receipt of any return under section 165
or information under section 166 or otherwise, the competent authority shall, after giving the persons
affected an opportunity of being heard, hold an inquiry in such manner as may be prescribed, and having
regard to the provisions of section 168 and section 169 or of any rules that may be made in this behalf, it
shall determine—
(a) the total area of land held by each person representing the family;
(b) the specific parcels of land which he may retain;
(c) the land held by him in excess of the ceiling limit;
(d) whether such excess land is held by him as a raiyat or as an under-raiyat or as a mortgagee
with possession;
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(e) the excess land in respect of which the under-raiyat or the mortgagee with possession may
acquire the rights of the raiyat or the mortgagor, as the case may be;
(f) the excess land which may be restored to a raiyat or a mortgagor;
(g) the excess land which shall vest in the Government; and
(h) such other matters as may be prescribed.
(2) For the purposes of determining the excess land under this section, any land transferred at any
time during the period between the 10th day of August, 1957 and the commencement of this Act shall,
notwithstanding such transfer, be deemed to be held by the transferor.
(3) The competent authority shall prepare a list in the prescribed form containing the particulars
determined by him under sub-section (1) and shall cause every such list to be published in the Official
Gazette and also in such other manner as may be prescribed.
168. Selection of excess land in cases of certain transfers.—(1) Where any person holding land in
excess of the ceiling limit at any time during the period between the 10th day of August, 1957 and the 2nd
day of December, 1959, has transferred during such period any part of his land to any other person under
a registered deed for valuable consideration, the excess land to be determined under section 167 shall, to
the extent possible, be selected out of the land held at the commencement of this Act by the transferor in
excess of a family holding and no land shall be selected out of the land transferred.
(2) Where any person holding land in excess of the ceiling limit at any time—
(a) during the period between the 10th day of August, 1957 and the 2nd day of December, 1959,
has transferred during such period any part of his land to any other person in any manner other than
under a registered deed for valuable consideration, or
(b) during the period between the 2nd day of December, 1959 and the commencement of this Act
has transferred during such period any part of his land to any other person in any manner whatsoever,
the excess land to be determined under section 167 shall be selected out of the lands held at the
commencement of this Act by the transferor and the transferee in the same proportion as the land held by
the transferor bears to the land transferred and where no land is held by the transferor, out of the land
transferred.
(3) Where excess land is to be selected out of the lands of more than one transferee, such land shall be
selected out of the lands held by each of the transferees in the same proportion as the area of the land
transferred to him bears to the total area of the lands transferred to all the transferees.
(4) Where any excess land is selected out of the land transferred, the transfer of such land shall be
void.
(5) Notwithstanding anything hereinbefore contained, the excess land to be selected shall in no case
include the homestead land of a person.
Explanation.—For the purposes of this sub-section, “homestead land” means the land on which the
homestead (whether used by the owner or let out on rent) stands together with any courtyard, compound
and attached garden, not exceeding one acre in the aggregate.
169. Excess land to vest in Government.—(1) Where any excess land of a raiyat is in his actual
possession, the excess land shall vest in the Government.
(2) Where any excess land of a raiyat is in the possession of a person holding the same as an
under-raiyat or as a mortgagee and the excess land together with any other land held by such person
exceeds his ceiling limit, the land in excess of the ceiling limit shall vest in the Government.
(3) Where any excess land of a raiyat is in the possession of a person holding the same as an
under-raiyat or as a mortgagee and such person is allowed to retain the excess land or a part thereof as
being within his ceiling limit, that person shall acquire the rights of the raiyat or of the mortgagor, as the
case may be, in respect of such excess land or part thereof on payment of compensation, if any, as
hereinafter provided, but if that person refuses to pay such compensation, the excess land or part thereof
shall vest in the Government.
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(4) Where there is any excess land of an under-raiyat or of a mortgagee with possession, the excess
land shall vest in the Government:
Provided that in any case where the excess land or any part thereof held by the raiyat or the
mortgagor together with any other land held by such person does not exceed the ceiling limit, the excess
land or such part thereof as does not exceed the ceiling limit shall be restored to the possession of that
person on an application made by him in this behalf to the competent authority within such time as may
be prescribed and in the case where the possession of such land is restored to the mortgagor, the mortgage
in respect of such land shall be deemed to be a simple mortgage.
170. Publication of the final list and consequences thereof.—(1) Any person aggrieved by an entry
in the list published under sub-section (3) of section 167 may, within thirty days from the date of
publication thereof in the Official Gazette, file objections thereto before the Collector.
(2) The Collector or any other officer authorised in this behalf by the Administrator may, after
considering the objections and after giving the objector or his representatives an opportunity of being
heard in the matter, approve or modify the list.
(3) The list as approved or modified under sub-section (2) shall then be published in the Official
Gazette and also in such other manner as may be prescribed and subject to the provisions of this Act, the
list shall be final.
(4) With effect from the date of the publication of the list in the Official Gazette under
sub-section (3),—
(a) the excess land shall stand transferred to and vest in the Government free of all encumbrances;
or
(b) the possession of the excess land shall stand restored to the raiyat or the mortgagor, as the
case may be; or
(c) the rights of the raiyat or the mortgagor in respect of the excess land shall stand transferred to
the under-raiyat or the mortgagee, as the case may be.
171. Compensation.—(1) Where any excess land of a raiyat vests in the Government there shall be
paid by the Government to the raiyat compensation, subject to the provisions of sub-section (2), of an
amount equal to twenty times the net annual income from such land.
Explanation.—For the purposes of sub-section (1), the net annual income from any land shall be
deemed to be one-fifth of the value of the average yearly gross produce of the land, calculated in such
manner as may be prescribed.
(2) Where such excess land or any part thereof is in the possession of an under-raiyat, the
compensation payable under sub- section (1) in respect of the land shall be apportioned between the raiyat
and the under-raiyat in such proportion as may be determined by the competent authority in the
prescribed manner, having regard to their respective shares in the net income from such land.
(3) In addition to the compensation payable in respect of any excess land under sub-section (1), there
shall also be paid compensation in respect of any structure or building constructed on such land and any
trees planted thereon and such compensation shall be determined by the competent authority in the
prescribed manner, having regard to the market value of such structure or building or the value of such
trees, and such compensation shall be paid to the person who has constructed the structure or building or
planted the trees.
(4) Where any excess land in respect of which compensation is payable is subject to any mortgage or
other encumbrance, the amount due under the mortgage or other encumbrance in respect of such excess
land, or where a transfer in respect of any excess land is void by virtue of sub-section (4) of section 168,
the consideration money paid by the transferee in respect of such excess land, shall be a charge on the
compensation payable in respect of the excess land to the person who has created the mortgage or
encumbrance or, as the case may be, to the transferor.
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(5) Where an under-raiyat acquires the rights of a raiyat in respect of any excess land, the
compensation payable by him in respect of that land shall be equal to the amount which the raiyat would
have been paid as compensation under sub-section (2) or sub-section (3) if the land had vested in the
Government; and the amount shall, in the first instance, be paid to the raiyat by the Government and shall
be recovered from the under-raiyat in such manner as may be prescribed.
(6) Where a mortgagee in possession acquires the rights of the mortgagor in respect of any excess
land under sub-section (3) of section 169, the compensation payable by the mortgagee in respect of that
land shall be such sum of money, if any, as may be due to the mortgagor after setting off the mortgage
debt against the market value of such excess land.
(7) Where any excess land of a religious or charitable institution vests in the Government,
such institution shall, in lieu of compensation payable under sub-section (1) or sub-section (2), or
sub-section (3), be paid an annuity equal to the net annual income of the excess land and such net annual
income shall be determined by the competent authority in the prescribed manner.
(8) The competent authority shall, after holding an inquiry in the prescribed manner, make an order
determining the amount of compensation payable to any person under this section.
172. Manner of payment of compensation.—(1) The compensation payable under section 171 shall
be due from the date of the publication of the list under sub-section (3) of section 170 and may be paid in
cash, in a lump sum or in instalments, or in bonds.
(2) Where the compensation is payable in bonds, the bonds may be made not transferable or
transferable by endorsement or in any other manner but all such bonds shall be redeemed within such
period, not exceeding twenty years from the date of issue, as may be prescribed.
(3) Where there is any delay in the payment of compensation or where the compensation is paid
either in instalments or in bonds, it shall carry interest at the rate of two and a half per cent. per annum
from the date on which it falls due.
173. Limit of future acquisition of land.—No person representing a family shall acquire in any
manner whatsoever, whether by transfer, exchange, lease, agreement or succession, any land where such
acquisition has the effect of making the total area of the land held by him exceed the ceiling limit; and
any such land in excess of the ceiling limit shall be treated as excess land of the transferee and the
provisions of sections 167 to 172 shall, as far as may be, apply to such excess land.
174. Excess land not to be surrendered in certain cases.—Where a person representing a family
holds land not exceeding the ceiling limit, but subsequently the land held exceeds the ceiling limit, then,
notwithstanding anything contained in this Chapter, such person shall not be required to surrender any
part of the land on the ground that it is excess land, if such excess is due to any improvements effected in
the land by the efforts of the family or to a decrease in the number of its members.
175. Power of Collector to take possession of excess land.—After the publication of the list of
excess land under sub-section (3) of section 170, and after demarcation in the prescribed manner of such
land where necessary, the Collector may take possession of any excess land and may use or cause to be
used such force as may be necessary for the purpose.
176. Offences and penalties.—(1) Whoever being bound to submit a return under section 165 fails to
do so, without reasonable cause, within the prescribed time, or submits a return which he knows or has
reason to believe to be false, shall be punishable with fine which may extend to one thousand rupees.
(2) Whoever contravenes any lawful order made under this Chapter or otherwise obstructs any person
from lawfully taking possession of any land shall be punishable with fine which may extend to one
thousand rupees.
177. Finality of orders.—Subject to the provisions of this Act, every order made under this Chapter
shall be final.
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178. Power to exempt, etc.—(1) The Administrator may, on an application made to him in this
behalf within three months from the commencement of this Act, exempt from the operation of section
164—
(a) any land which is being used for growing tea, coffee or rubber including lands used or
required for use for purposes ancillary to, or for the extension of, the cultivation of tea, coffee or
rubber to be determined in the prescribed manner;
(b) any sugarcane farm operated by a sugar factory;
(c) any specialised farm which is being used for cattle breeding, dairy or wool raising;
(d) any person who holds a compact block of land exceeding the ceiling limit which—
(i) is being used as an orchard from before the 1st January, 1958; or
(ii) is being used as a farm in which heavy investment or permanent structural improvements
have been made and which, in the opinion of the Administrator, is being so efficiently managed
that its break up is likely to bring a fall in production:
Provided that where such person holds the compact block of land together with any other land, he
shall be permitted to elect to retain either the compact block of land, notwithstanding that it exceeds the
ceiling limit or the other land not exceeding the ceiling limit;
(e) any land which is being held by a co-operative society, provided that where a member of any
such society holds a share in such land, his share shall be taken into account in determining his
ceiling limit:
Provided that the Administrator may entertain the application after the expiry of the said period of
three months, if he is satisfied that the applicant was prevented by sufficient cause from making the
application in time.
(2) Where any land in respect of which exemption has been granted to a person under clause (d) of
sub-section (1) is transferred to another person, the Administrator may, on an application made to him
within three months from the date of the transfer, exempt the transferee from the operation of section 164
and section 173 and the provisions of the said clause shall, as far as may be, apply to the grant of such
exemption.
(3) Where the Administrator is of opinion that the use of land for any specified purpose is expedient
or necessary in the public interest, he may, by notification in the Official Gazette, make a declaration to
that effect and on the issue of such notification, any person may, notwithstanding anything contained in
section 173, acquire land in excess of the ceiling limit for being used for such specified purpose and such
person shall, within one month from the date of such acquisition, send intimation thereof to the competent
authority.
(4) Where any land, in respect of which exemption has been granted under sub-section (1) or
sub-section (2) or sub-section (3), ceases to be used, or is not within the prescribed time used, for the
purpose for which exemption had been granted, the Administrator may, after giving the persons affected
an opportunity of being heard, withdraw such exemption.
CHAPTER XIV.—PREVENTION OF FRAGMENTATION
179. Definitions.—For the purposes of this Chapter,—
(a) “holding” means the aggregate area of land held by a person as a raiyat;
(b) “fragment” means a holding of less than two standard acres in area;
(c) “land” has the same meaning as in Chapter XIII.
180. Restrictions on transfer, etc.—(1) No portion of a holding shall be transferred by way of sale,
exchange, gift, bequest or mortgage with possession, so as to create a fragment:
Provided that the provisions of this sub-section shall not apply to a gift made in favour of the
Bhoodan movement initiated by Acharya Vinoba Bhave.
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(2) No portion of a holding shall be transferred by way of lease, where as a result of such lease,—
(i) the lessor shall be left with less than two standard acres, or
(ii) the total area held by the lessee exceeds the limit of a family holding.
(3) No fragment shall be transferred to a person who does not have some land under personal
cultivation or to a person who holds, or by reason of such transfer shall hold, land in excess of the limit of
a family holding.
181. Partition of holding.—(1) No holding shall be partitioned in such manner as to create a
fragment.
(2) A fragment shall not be partitioned unless as a result of such partition its portions get merged in
holdings of two standard acres or more or in fragments so as to create holdings of two standard acres or
more.
(3) Whenever, in a suit for partition, the court finds that the partition of a holding will result in the
creation of a fragment, the court shall, instead of proceeding to divide the holding, direct the sale of the
same and distribute the proceeds thereof among the co-sharers.
(4) Wherever a holding is put up for sale under sub-section (3), a co-sharer shall have the first option
to purchase the holding at the highest bid; if there are two or more co-sharers claiming the first option,
that co-sharer who offers the highest consideration shall be preferred.
182. Transfers in contravention of this Chapter.—(1) Any transfer, partition or lease of land made
in contravention of the provisions of this Chapter shall be void.
(2) No document of transfer, partition or lease of land shall be registered unless declarations in
writing are made, in such form and manner as may be prescribed, by the parties thereto before the
competent registering authority under the Indian Registration Act, 1908 (16 of 1908), regarding lands
held by each prior to the transaction and the land which each shall come to hold thereafter.
(3) No registering authority shall register under the Indian Registration Act, 1908 (16 of 1908), any
document of transfer, partition or lease of land if, from the declarations made under sub-section (2), it
appears that the transaction has been effected in contravention of the provisions of this Chapter.
183. Penalty.—The parties to any transfer, partition or lease made or entered into in contravention of
any of the provisions of this Chapter shall be punishable with fine which may extend to one hundred
rupees.
184. Power to make rules.—(1) The Administrator may, by notification in the Official Gazette,
make rules to carry out the purposes of this Part.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:—
(a) the form in which, and the period within which, a return under section 165 may be submitted;
(b) the agency through which information may be collected under section 166;
(c) the manner of holding enquiries under this Part;
(d) the matters which may be determined under sub-section (1) of section 167 and the manner of
determination of excess lands under this Part;
(e) the form in which a list under sub-section (3) of section 167 or sub-section (3) of section 170
may be prepared and the manner of publication of such list;
(f) the period within which an application for restoration of excess land may be made under the
proviso to sub-section (4) of section 169;
(g) the manner of apportionment of compensation between the raiyat and the under-raiyat under
sub-section (2) of section 171;
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(h) the manner of assessment of the market value of any structure or building or trees under
sub-section (3) of section 171;
(i) the manner of recovery of the compensation payable by the under-raiyat under sub-section (5)
of section 171;
(j) the manner of determining under sub-section (6) of section 171 the market value of any excess
land in respect of which a mortgagee in possession acquires the rights of the mortgagor;
(k) the manner of determination of the net annual income of any excess land for the purpose of
payment of compensation under section 171;
(l) The manner of payment of compensation, including the number of instalments in which the
compensation may be paid or recovered and the period within which bonds may be redeemed;
(m) the manner of demarcation of any excess land under section 175;
(n) the matters which may be determined by the Administrator in granting an exemption under
section 178 including the form in which applications and intimations may be made or given, under
section 178;
(o) the form of declarations under section 182;
(p) any other matter which has to be, or may be, prescribed.