Collector determines the market rate of the land.
1. When analysing and estimating the market value of the land, the Collector must use the following criteria:
a. The market value, if any, stated under the Indian Stamp Act, 1899 for the registration of sale deeds or agreements to sell in the region where the land is located; or
b. The average selling price for similar types of land in the nearby village or neighbourhood region; or
c. Amount of compensation agreed upon under section 2 sub-section (2) in the case of land acquisition for private firms or public-private partnership projects, whichever is greater:
The date on which market value is determined shall be the date on which the notification under section 11 is made.
Explanation 1.- The average sale price referred to in clause (b) shall be determined by taking into account the sale deeds or agreements to sell registered for similar types of land in the near village or nearby area during the three years immediately preceding the year in which such land acquisition is proposed.
Explanation 2.- One-half of the total number of sale deeds or agreements to sell in which the highest sale price is indicated should be taken into consideration in computing the average sale price referred to in Explanation 1.
Explanation 3. -Any price paid as compensation for land acquired under the provisions of this Act on an earlier occasion in the district must not be taken into account in assessing the market value under this section and the average selling price referred to in Explanation 1 or Explanation 2.
Explanation 4.- Any price paid that, in the view of the Collector, is not representative of real prevailing market value may be reduced for the purposes of calculating market value under this section and the average sale price referred to in Explanation 1 or Explanation 2.
Reference: Section 27 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
1) Rampal & Anr vs Union Of India & Ors on 8 February, 2018
2) Madhu Singh vs Union Of India on 4 February, 2019
3) Papers Laid On The Table Of The House By Ministers/Members. on 21 May, 2012 – – AHG215 – 202100581 – 117 – 87 – 2021001992021004314162