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No.51()0/42 -0E2l.1l (A)
GovernomfIe nndti a
MiniosfFt irnya nce
DepartomfEe xnpte nditure
KartaBvhyaaw anN-e1w, Delhi
Date0d5:. 05.2026
OFFICMEE MORANDUM
SubjAemcetn:d mienGn etn eFrianla nRcuilae2ls0 ,1- 7r eg.
Ihta sb eedne ciwdietdth ha ep proovfFa iln aMnicnei sterf otlol omwaikneg
amendmientn htGe e neFrianla nRcuilae2ls0 ,1 7:
·- ·-•----•-"· ----------·--•-------·-··--·-�·----�--
Ext iisg_n_��L�
_ _____
AmendeR --du
------
l ------e
-- ---------
Rul3e1 0( 1T)r ansoffLe arn Td.r anosffl earnf dr oam Rul e3 1O Transfer/alienation
UniToenr rittoao Creyn tGroavle rnDmeepnatr tmoefnC te ntrGaolv ernmelnatn'ds
(i:Mei.n iosrtD reyp artomfte hnUetn ioGno vernmsehnatbl elg overansep de rt he
includDienfge ncRea,i lwaaynsd, P ostasn di nstrupcltaicaoetnAd sp pendix
Telegroarvp ihcvsee) r sa bseoh n'a nlpolr onfoli ots s?' A &o fG7 FBR s.
basis.
Rul3e1 0 (2T)r anosflf aenrfd r oomn Dee partment
oft hGeo vern(maedsne tf iinnRe udl 3e0 9t)oa nother
shableol n ' npor onfoli ots bsa's is.
'Npor onfoil to sass'i ndicaatrt ueld3e 1s10 )(a nd
310(a2b)o vdeo enso nte cessmaeraitnlr ya nbsefienrg
affewcitt'ehzd e croosT tr'a.n csafbnee ro nt hbea soifs
mutually taegrramensecd ao bnldeio trii enox ncsh ange
foerq uvaall luaeno drp aymeonfvt a loufle a nodrc ost
of acquisition.
Rul3e1 0 (3)T ransfoefr b uildianngds
superstrouncl taunsrdhe asbl elt reastiemdi tloa r
transoffe lra ndT.r ansfoef rb uildianngds
t.uµtm,elsro nul daunvrdi daeb ovseh ablela tU ,e
presentc-odsatmy i nudse precioaftt ihoens e
structsutraen(dsoi)nnt gh lea nVda.l uaftoitroh ni s
purpossheab lelo btaifnreodtm h eC entPruabll ic
WorkDse partmaettn htte i moeft ransfer.
Rul3e1O (4T)h ea llotomfle annttdoa ,n rde covery
ofc osotfb uildfirnotgmhsP e u bSleicct Uonrd ertakings
shableal t' marvkaeltau sed 'e fiinnpe adr ag-ra2op fh
Appen-d7i.x
Rul3e1O (5 )T het ranosffl earna dn db uilding
betwetehnUe n ioann dS taGtoev ernmsehnatblsel
regulbaytt hepedr oviosfAi rotnis2c 9l42e,9s 52 ,9 a8n d
299o ft heC onstiatnudts iuobns idiinasrtyr u_c_t ions
Page 1 of 13·--.·--··-·-----·--•-.-•-·-·--
issubeytd h Uen iGoonv ernwmheinactrh re e produced
asA ppen-d7i.x ···-···----· +····.·.-·-.··.··.·.·.· ··················
Append-Tirxa-n7os ffLe arna dn Bdu ildbientgwse eAnp pendi-xG-u7iAd elfionre s
thUen iaonnSd t aGtoev ernment. transfer/aolfi Ceennattriaoln
Governmenlta nd (new
proviisnisoenr ted).
Appendix-78 Other
constituptrioovn1asal1n odn s
subsiidnisatrryu icstsiuboeynd s
theU nioGno vernmfeonrt
transoffLe arn adn dB uildings
betwetehneU nioann dS tate
Government.
1.Thesreu laepsp ltyot het ransoffle arna dn d NoC hange
buildbientgwse tehneU nioann dt heS tate
Governmaennadtl sst oot hseu rretnotd heSert ate
Governmoefln atnbsde lontgoRi anigl ways.
Theg eneproasli tuinodneA rr ti2c9l4oe f t he
Constiitstu htaaistof nr otmh ceo mmenceomfent
thCeo nsti-tution
(aa)lp lr opearntday s sewthsi cihm mediately
befosruecc ho mmencewmeernvete stienHd i s
Majefsottryh p eu rpoosfte hsGe o vernomfte hnet
DominoifIo nnda inaad l plr opaenradts ys ewthsi ch
immediabteeflosyru ec cho mmencewmeernet
vestiendH isM ajesftotyrh ep urpoosfte h e
Governmoefen atc Gho vernPorro'vsi snhcael,l
vestr espect1inv tehleyU nioann dt he
correspSotnadtaienn;dag l rli ghltisa,b ialnidties
obligaotfti hoGeno sv ernomfet nhDteo minoifon
Indainado ft hGeo vernomfee natcG ho vernor's
Province,a rwihsoeiutnothgf ea rn yc ontroarct
otherwsihsaebl,el t her ighltisa,b ialnidties
obligarteisppnesco tfti hvGeeo lvye rnomfIe nndti a
andt hGeo vernomfee natcc ho rrespSotnadtieng
subjteoac ntay d justmenotrt obm ema addebe y
reasooftn h cer eabteifoontr heceo mmencement
oft hceo nstiotftu htDeio omni noifPo ank isotroa fn
thPer ovionfWc ees,Bt e ngWaels,Pt u njaanbd
EasPtu njab.
Arti2c9l4ae,si se vident,t osr ueclcaetstesosi on
propearstsyer,ti sg,lh itasb,i alniodtb ileisg aint ions
certcaaisnoe ns lAyr;t i2c9l5oe ft hCeo nstitution
whicrhe lattose u ccestsoip orno pearstsye,t s,
righltisa,b ialnidot bileisg aitnoi tohncesar s es,
provitdhe-ast
(iA)sf rotmhc eo mmenceomfte hnCeto nstitNuotCi hoann:ge
(aa)lplr opearntday s sewthsi icmhm ediately
beforec osmumcehn cewmeervneet s tiend
'----'�- .._.9.r1 yc:l_il§I§r1Qt_ actoer rE;spt()ora ,S cltiantge
Page 2 of 13speciifnPi aerd-t Bo ft hFei rSscth edule
shavlelsi tnt hUen iointf,h peu rpofsoer
whiscuhc phr opearntday s sewtesrh ee ld
immedibaetfeolsryue c cho mmencement
witlhle rebaeftp eurr poosfet sh eU nion
relattoai nnoygft hmea tteenrusm eriant ed
thUen iLoins atn;d
(ba)lrli ghltisa,b ialnidot bileisg aotfti hoens
Governmeonft a ny IndiaSnt ate
corresptooanS dtianstgpe e ciifnPi aer-dt
Bo ft hFei rSscth edwuhleet,ah reirs oiuntg
ofa nyc ontroaroc tth erwsihsabele,lt he
riglhitasb,i alnoidbt liiegsao tfti hUoenn iso n
Governmitefhn petu ,r pofsowerhs i scuhc h
righwtesr ea cquiorrel di abiolrities
obligawteiroein nsc urbreefdo sruec h
commencewmietlnhlte rebaepf utrepro ses
oft hUen iGoonv ernrmeelnattt oai nnoygf
thmea tteenrusm eriantt heUedn iLoins t:
subjteoac nty a greemeenntte irnetidon t hat
behablyft heU nioGno vernmweinttthh e
Governomfte hnSattt a te.
(ii)Suasba jfeocrte tshaGeio dv,e rnomfee natc hN oC hange
Stastpee ciifnPi aer'dtB o 'ft hFei rSscth edule
shalals.,f rotmh ec ommenceomfet nhte
Constitbuet itohnes, u ccesosfo trh e
Governomfet nhcteo rrespIonnddiSiatnangt e
asr egaarlpdlrs o paenradts ys eatnsad l rli ghts,
liabialnidot bileisg awthieotnahsre,ir s oiuontfg
anyc ontroaroc tth erwoitshete,hr a tnh ose
refetroir nCe lda u(s)1e.
Alplr opearntday s sewthsi,ci hn clluadnaedn d
buildainndwg hsi,vc ehs itnt hSet aGtoev ernment
undAerrt i2c9l4ae nsd2 95o ft hCeo nstiotru tion
otherswhiabsleeal tt hdei spoofst ahrlee spective
StaGtoev ernmwehnowt isbl,eal tl ibteodr itsyp ose
theomfb ys almeo,r tgeatgcea.,n,t d h per oceeds
thersehoafbl elc redittote hdre e venoufte hse
respeScttaiGtvoeev ernments.
Frotmh ceo mmenceomfte hnCeto nstitthuet ion,
tranosflf aenrbd e twetehnUe n iaonnd t hSet ate
Governmsehnatlb le regulabtye mdu tual
agreemeexnctew phte tnh eayr aec quiurnedde r
somAec tT.h eU niGoonv ernhmaevnleta diodw n
thfeo llopwriinngct iobp elo ebss erivnre edg atrod
certpaoiinn ts:-
(i()a)Whenl anbde lontgoai p nrgi vpaatret Nyo C hange
hatsob ea cquiornbe edh oaflt hfUe n ion
Governamceqnuti ssihtabileola n tt he
Page 3 of 13_,, ,,__,______·_�_·~ -·-~~
expenosfte h Gaotv ernment.
(b) Inc asewsh erteh Uen ioGno vernmNeonC th ange
requainrlyea nwdh,i icsih n o ccupation
oft heS tatGeo vernmteon bte,
transfteotr hreetmdh,a e m oupnaty able
byt hUen iGoonv ernwmieolnrltd inarily
bet hmea rkveatl oufet hlea nadn d
buildiiafnn gyts,h, e reon.
(c) Thea mounpta yabwlieli ln cltuhdeeN oC hange
capitavlailzueoedf l anrd evenue
assessoantb hlleea nwdh etnh ter ansfer
causaecst luoasolsfl anrde vetnotu hee
StaGtoev ernment
(d) Solati1u5mp ecroe fn pta yaubnldee Sro latpiauyma bulned etrh e
thLea nAdc quisAicwttii nloolnat p ptloy e xtanptr ovisioofn Lsa nd
sucthr ansfers. AcquisAicttwi iolnnlo atp ply
tos uch transfers.
(iiL)ansdu rptlotu hsre e quireomfte hUnent iso NnoC hange
Governm-eWnhte:nt hUen ioGno vernmnoent
longreerq uilraendid n t hepiors sesstihoen,
Governomfet hnet Sitnwa htieic ithss ituwaitleld
beg ivtehnoe p tioofan s sumpionsgs esosfti hoen
wholea npoyor r ttihoenrs euobfjt eotc htfe o llowing
condit-ions:
(at)hUen igoonv erntmheenmts eslhvabelesl
thjeu dgoefws h etherr etqhuteioryr e et ain
anpya rtilcaunoldrna ort ;
(bi)tfh Set aGtoev ernmentt oa dsessuimree
possesosfti holena ntdh,oe p titoodn os o
shablele xercwiisteshdii mxno ntohfts h e
datoenw hitchhUe n iGoonv ernsmiegnnti fy
theiinrt enotfsi uornr entdhelera inndg;
(ct)haem oupnaty afboltreh lea nwdi ilnla ll
casebsei tmsa rkveatl autet hdea toef
transfer;
(dw)hent heS tatGeo vernmdeenstit roe
assupmoes sesosfoi nolanyp ortoifto hne
lansdu rrentdheersyeh dab,lee l n tittodl oed
soo nlityfh vea loufte h e alsaa wn hdo ilse
nomta terrieadlulbcyyet dhd ei viasnidon;
(ei)fth Set aGtoev erndmoen notdt e sitroe
assumpeo ssesosfia onnyl anodn t he
foregtoeirnmtgsh U,en iGoonv ernwmielnlt
bef reteod ispiostoe ft oa thipradr ty.
Befohroew,e vseodr i,s poosfti hnlega nd,
thUen iGoonv ernwmieclnoltn stuhlSett ate
Governamset nott hl ee voyfg rournedon tr
assessmaenndtt h ec onditiifao nnys,,
subjteowc hti icsthh oublesd o ladn dth ey
wilalsf, a arsp ossidbilsep,oo fst ehl ea nd
subjteoct th ceo ndiwtihoinctshh Set ate
Governmmeanydt e sitroie m posTeh.e
UniGoonv ernamreneno tht o,w evbeoru,n d
too btatihnec oncurroeftn hceSe t ate
'------~---,
Page 4 of 13Governimnea nlctla seasn,di nc aseosf
disagretehmUeen nito n Govsehranlmle nt
bet hseo ljeu dogfte h tee ramnscd o nditions
tob ei mposed.
(iiDie)termionafDt iisopnu atset so T itl-esN.oC hange
Dispuatste ots i bteltew etehnUe n iGoonv ernment
andaS taGtoev ernsmheanbltedl e termbiytn heed
SupreCmoeu rt.
2. Markveatl udee fin-eMda.r kveatl uweh enO mitted
appltioel da nmda yb ed efianset dh per ice
whitchhle a nwdo ulfde ticsfho lidnt hoep en
markseutb jteotc htge r oundo rar sesnets sment
showang aiinitsnt t h ree verneugei sotrie,fr s,
nog rournedno tra ssesssmheonwatng aiintst
itnh ree verneugei sstuebrjtseoa,cg tr ournedn t
ora ssesslmeevnaittte hdre a attew higcrho und
renotra ssessimsae cnttu baelillnyeg v ioned
simillaanirdnt s h nee ighbouerxchlouoaddli lng
caseisn w hicshu cshi millaanrdi snt he
neighbouarrhheeo lodd offgr reoeu rnedno tr
assessamtfe anvto uorrau bnlfea vourraatbesle
ofg rouonrda ssessmTehniitsst. h mea rket
value hwahtsiob c ech r edoirdt eebdi atset dh,e
casmea yb ei,n t hcea soef a ltlr ansactions
betwetehSnet aGtoev ernmaenntdth sUe n ion
Governomrbe enttw etehUnen iGoonv ernment
anSdt aGtoev ernmoertn htResa ilways.
2. ThiOsM i asl saov ailoanwb elbes oifDt eep artomfEe xnpte nditure (\II/W\11/,do�.gqy.jn).
(AvinKa.Ns ihl ankar)
DirecEt.olrl,( A)
Te2l4:0 1-1985
To,
Secrettaoar lCilee nst Groavle rnMmiennits tries/Department.
Page 5 of 13Appendix – 7A
GUIDELINES
-Transfer/Alienation of Central Government Land-
1. Introduction:
1.1 Land is a precious and limited natural resource and is of critical
significance in the national endeavor for economic development. Therefore,
its availability for various developmental purposes is of paramount
importance. It is an asset where value keeps rising with time. The Central
Government owns significant amounts of this valuable asset, either on free
hold basis or on lease basis. In view of its limited availability and dynamics of
developmental needs, the need arises on many an occasion for inter-se
transfer/exchange of land amongst Departments or amongst offices of a
particular Department. Question also often arises whether land is to be
transferred to a Central PSE or State Government based on mutually agreed
terms or to be sold outrightly to a private entity on purely commercial terms.
These guidelines lay down the principles and procedures governing alienation
of land belonging to the Central Government.
2. Objective:
2.1 The objective of these guidelines, therefore, is to lay down framework
and conditions to be followed by the Central Government for assessment of
the amount of land owned and used by them and the procedure to be
followed for sale/ lease of a piece of land identified either as surplus or as
required for a different public purpose or for public infrastructure/public utility
project so as to ensure productive and gainful use of land and also to unlock
its monetary value.
3. Definitions:
(i) Central Government: Ministries/Departments of Government of
India, their attached and subordinate offices, statutory authorities
administered by Government of India, Central Government
owned/controlled entities* and UTs without legislature.
(ii) CPSEs: A company in which not less than fifty-one per cent of the
paid-up share capital is held by the Central Government and
Page 6 of 13includes a company which is a subsidiary company of such a
company. This includes SPV companies owned 50% by
Government of India and 50% by State Government.
(iii) State Government: Respective State Govts and their
offices/bodies including local bodies and UTs with legislature.
(iv) Long-term lease: 30 years or more (including all
possible/permissible periods of renewal).
(v) Short-term lease: Less than 30 years or any lease other than
Long-term lease.
(vi) Market Value: The Market value is the value of land determined
as per para 6 below keeping in view the following:
a) Prevalent Guideline Value,
b) Recent auction/sale of comparable land in close proximity,
c) Professional valuation considering non-distress sale scenario
and the encumbrance, reservation/restriction etc.
(vii) Guideline Value: Minimum value notified by the government
concerned for a land parcel. This involves terms such as ‘Circle
Rate’, ‘Ready Reckoner Rate’ etc. used by some State
governments.
(viii) Market Rental Value: The rent assessed as per para 6 below
based on the lease term, with reference to the market value of
the property.
(ix) Guideline Rental Value: The rent assessed as per para 6 below
based on the lease term, with reference to the guideline value of
the property.
(x) Nominal Rental Value: Rs. 1/- per sqm per annum.
(xi) Sale: Transfer of ownership of land in exchange for a
consideration.
(xii) Lease: Transfer of a right to enjoy land for a specified period,
express or implied, in consideration of a premium and/or rent,
while the ownership of such land remains with the lessor.
* Central Government owned/controlled entities: Such institutions that fulfill
the following conditions, or any other institution(s) that may be classified as
such on a case-to-case basis:
a) They have been established by, or with the approval of
Government of India, and
b) They obtain their entire budget (or majority of their budget) from
Government of India, and
Page 7 of 13c) They are controlled by Government of India, with Government
having the power to give necessary directions to them, and
d) The membership of their Governing bodies can be determined by
Government of India by adding/removing/replacing Members and
Chairperson, and
e) Their accounts are covered by the Comptroller & Auditor General’s
(CAG) audit.
4. Applicability:
4.1 The following five categories of land transfer shall be covered under this
framework:
S.No Type of transfer From To
1. Sale/Long term lease Central Government Central Government
2. Sale/Long term lease Central Government CPSEs
3. Sale/Long term lease Central Government State Government
4. Sale/Long term lease Central Government Any other entity
5. Short term lease Central Government Central Government,
CPSEs, State Govt. or
any other entity
5. Exemptions:
(i) This framework will not cover land/buildings to be acquired or
disposed of where specific provisions exist under statute/law.
(ii) Any land transfer/lease covered by existing policies of
Ministries/Departments as on 1st March, 2026 will continue under
that policy / guideline.
6. Valuation:
6.1 The value at which the land transaction is to be done will be
determined by NLMC. For this purpose, NLMC may charge a fee from the
requesting Ministry/Department. The following land values would be
Page 8 of 13determined and made available by NLMC as per the nature of the land
transfer:
(i) Sale of land:
a) Guideline Value/ Circle Rate/ Ready Reckoner Rate /
(hereinafter referred to as ‘Guideline Value’) – NLMC may
take the highest Guideline Value issued by the State/UT
during the previous three years.
b) Market Value
(ii) Leasing of land:
a) Market Rental Value
b) Guideline Rental Value
Note: The valuation report to be submitted by NLMC under these guidelines
shall not require the approval of the Alternative Mechanism.
6.2 In addition to the NLMC, any other Government of India entity or CPSE
which carries out valuation could also be engaged subject to such
entity/CPSE:
(a)* empaneling and then engaging such professional valuers# for this
purpose, and
(b) not being under the administrative control/domain of the
Ministries/Departments which are parties to the land transaction
*Condition (a) would not apply to CPWD.
#Professional Valuer: An individual entity registered as a valuer under the
provisions of the Companies Act, 2013.
7. Assessment of need: In cases of land transfer covered at Sl. No. 1 & 2 of
table at para 4 above, Ministries/Departments may ensure that proposal for
transfer of land is supported by concrete plans or projects with a clear
timeline for execution. To ensure fairness of the process, Secretary
(Expenditure), may carry out Inter-Ministry consultation on a case-to-case
basis keeping in mind the opportunity cost, competing demands and
alternative uses of land.
8. Competent Authority and value to be considered for transfer of Land:
Page 9 of 13S. Type of From To Approving Pricing
No Transfer Authority
1. Sale/Lo Central Central Transferor Through Book Transfer/
ng term Government Government Administrative Nominal Rental Value
OR
lease Ministry with
through Budget
the prior
allocation (at Guideline
concurrence
value/Guideline Rental
of Ministry of
Value)
Finance
2. Sale/Lo Central CPSEs Transferor Where CPSE is 100%
ng term Government Administrative Government of India
lease Ministry with owned:
the prior
For public purpose: At
concurrence
Guideline
of Ministry of
Value/Guideline Rental
Finance
Value
Other than public
purpose: Market
Value/Market Rental
Value
For other CPSEs: Market
Value /Market Rental
Value
3. Sale/Lo Central State Cabinet Public Purpose:
ng term Government Government Guideline Value/
lease Guideline Rental Value
Non-public Purpose:
Market Value / Market
Rental Value
Page 10 of 134. Sale/Lo Central Any other Cabinet Transparent
ng term Government entity competitive bidding:
lease Reserve price to be
based on Market
Value/Market Rental
Value determined as
per para 6 above.
5. Short Central Central Transferor Public Purpose:
term Government Government Administrative Guideline Rental Value
lease , CPSEs, Ministry with
State Govt. the prior
concurrence
or any other Non-public Purpose:
of Ministry of
entity Market Rental Value
Finance
9. Transfer of CPSE land*: Policy for transfer of CPSE land to any entity
through sale/long term lease or short-term lease shall be formulated by
Department of Public Enterprises (DPE). Until then the existing provisions of
GFRs, 2017 shall continue to be followed.
*CPSEs under Ministry of Steel shall follow the instructions issued by their
Administrative Ministry, until a policy is formulated by DPE, as above.
10. Transfer of buildings and superstructures on land shall be treated similar
to transfer of land. Transfer of buildings and superstructures on land shall be at
the present-day cost minus depreciation of these structure(s) standing on the
land. Valuation for this purpose shall be obtained in accordance with para 6
above.
11. If any question, not covered in these guidelines, in regard to land
alienation arises, the same shall be taken up with the Ministry of Finance,
Department of Expenditure for an appropriate course of action.
***
Page 11 of 13Appendix – 7B
Other constitutional provisions and subsidiary instructions issued by the Union
Government for transfer of Land and Buildings between the Union and State
Government
These rules apply to the transfer of land and buildings between the Union and the State
Governments and also to the surrender to the State Governments of land belonging to
Railways.
The general position under Article 294 of the Constitution is that as from the
commencement of the Constitution –
(a) all property and assets which immediately before such commencement were vested in
His Majesty for the purposes of the Government of the Dominion of India and all property
and assets which immediately before such commencement were vested in His Majesty
for the purpose of the Government of each Governor’s Province, shall vest respectively
in the Union and the corresponding State; and all rights, liabilities and obligations of the
Government of the Dominion of India and of the Government of each Governor’s
Province, whether arising out of any contract or otherwise, shall be the rights, liabilities
and obligations respectively of the Government of India and the Government of each
corresponding State subject to any adjustment made or to be made by reason of the
creation before the commencement of the constitution of the Dominion of Pakistan or of
the Province, of West Bengal, West Punjab and East Punjab.
Article 294, as is evident, relates to succession to property, assets, rights, liabilities and
obligations in certain cases only; Article 295 of the Constitution which relate to succession
to property, assets, rights, liabilities and obligations in other cases, provides that –
(i) As from the commencement of the Constitution:
(a) all property and assets which immediately before such commencement were
vested in any Indian State corresponding to a State specified in Part -B of the First
Schedule shall vest in the Union, if the purpose for which such property and assets
were held immediately before such commencement will thereafter be purposes of
the Union relating to any of the matters enumerated in the Union List; and
(b) all rights, liabilities and obligations of the Government of any Indian State
corresponding to a State specified in Part -B of the First Schedule, whether arising
out of any contract or otherwise, shall be the rights, liabilities and obligations of
the Union Government, if the purposes for which such rights were acquired or
liabilities or obligations were incurred before such commencement will thereafter
be purposes of the Union Government relating to any of the matters enumerated
in the Union List:
subject to any agreement entered into in that behalf by the Union Government with
the Government of that State.
(ii) Subject as aforesaid, the Government of each State specified in Part ‘B’ of the
First Schedule shall, as from the commencement of the Constitution, be the
successor of the Government of the corresponding Indian State as regards all
property and assets and all rights, liabilities and obligations, whether arising out of
any contract or otherwise, other than those referred to in Clause (1).
All property and assets, which include land and buildings, and which vest in the
State Government under Articles 294 and 295 of the Constitution or otherwise
shall be at the disposal of the respective State Governments, who will be at liberty
to dispose them of by sale, mortgage, etc., and the proceeds thereof shall be
credited to the revenues of the respective State Governments.
Page 12 of 13From the commencement of the Constitution, the transfer of land between the
Union and the State Government shall be regulated by mutual agreement except
when they are acquired under some Act. The Union Government have laid down
the following principles to be observed in regard to certain points:
(i) (a) When land belonging to a private party has to be acquired on behalf of
the Union Government acquisition shall be at the expense of that Government.
(b) In cases where the Union Government require any land, which is in
occupation of the State Government, to be transferred to them, the amount
payable by the Union Government will ordinarily be the market value of the land
and buildings, if any, thereon.
(c) The amount payable will include the capitalized value of land revenue
assessable on the land when the transfer causes actual loss of land revenue
to the State Government.
(d) Solatium payable under the extant provisions of Land Acquisition Act
will not apply to such transfers.
(ii) Land surplus to the requirements of the Union Government: - When the Union
Government no longer required land in their possession, the Government of the
State in which it is situated will be given the option of assuming possession of the
whole or any portion thereof subject to the following conditions: -
(a) the Union government themselves shall be the judges of whether they
require to retain any particular land or not;
(b) if the State Government desire to assume possession of the land, the
option to do so shall be exercised within six months of the date on which the
Union Government signify their intention of surrendering the land;
(c) the amount payable for the land will in all cases be its market value at
the date of transfer;
(d) when the State Government desire to assume possession of only a
portion of the land surrendered, they shall be entitled to do so only if the value
of the land as a whole is not materially reduced by the division; and
(e) if the State Government do not desire to assume possession of any land
on the foregoing terms, the Union Government will be free to dispose it of to a
third party. Before, however, so disposing of the land, the Union Government
will consult the State Government as to the levy of ground rent or assessment
and the conditions, if any, subject to which it should be sold and they will, as far
as possible, dispose of the land subject to the conditions which the State
Government may desire to impose. The Union Government are not, however,
bound to obtain the concurrence of the State Government in all cases, and in
cases of disagreement the Union Government shall be the sole judge of the
terms and conditions to be imposed.
(iii) Determination of Disputes as to Titles - Disputes as to title between the Union
Government and a State Government shall be determined by the Supreme Court.
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