Government of Punjab Department of Revenue (Land Revenue Branch)
All the Deputy Commissioners
in the State.
Chandigarh, dated the 4/9/1984
Sub: Disposal of various types of Govt lands under the control of Revenue Department
Ref: Continuation of this Deptt Memo No 14/26/81-LR-llI/1716-1722, dated 2Oth February, 1984.
The policy of Government for the disposal of various types of Government land under the control of Revenue Department has already been conveyed to you, vide this Department's communication mentioned above. Now the President of India is pleased to convey you the following procedure for the implementation of the policy mentioned above.
Procedure For Sale of Land Through Open Auction
Authority competent to approve the auction:
(2) When the inferior evacuee land, evacuee agricultural land/Nazool land and Provincial Government land are to be disposed of through open auction according to the conditions laid down in above policy, the approval of competent authority in each case as laid down in the Punjab Financial Rules, Vol I may be obtained before the sale is confirmed.
(3) When its decided to sell any piece of land through open auction, then the following directions should be followed:
(i) Fixation of reserve price : Every auction of the land under these instructions shall be subject to a reserve price fixed in respect of the land. In case of sale inferior evacuee land, Nazool land (escheated) land situated within the Municipal limits and up to two miles beyond these limits, and evacuee agricultural lands situated within 5 miles of the Indo-Pak Border, a reserve price shall be fixed at the current market price to be determined after taking into account the average price of land of similar kind in the village or locality concerned during the last one year as per registered sale deeds, the location of the land and other relevant factors. Where adequate no of transactions of land of the kind being sold had not taken place in the village/ locality concerned during the last one year, the average price of transactions for the previous year or for the neighbouring village/locality may be taken into consideration, as may be considered to be appropriate in a particular case. When the reserve price works out to Rs. 10 lacs or below, it may be approved by the Distt Collector; or when it exceeds Rs. 10 lac but is up to Rs.50 lacs by the Divisional Commissioner and when it exceeds Rs. 50 lacs then by the Financial Commissioner Revenue.
(ii) Reserve price for restricted auction :- In case of sale of agricultural Nazool (escheated) land in rural areas which cannot be allotted and for which no eligible persons are available for its allotment under the Nazool land (Transfer) Rules 1956 and which have therefore to be sold in restricted auction as laid in paragraph 7 of this Deptt. Memo under reference, the reserve price shall be 75 % of the current market price to be determined in accordance with the procedure laid down in sub paragraph (i) above.
(iii) Notice: Wide publicity shall be given to the notice of intended sale through open auction at least 15 days before the proposed sale of the area are not only by proclamation through beat of drum through the local Revenue officials but also through notice in two or three leading newspapers of the area- One copy of the notice shall be fixed at a conspicuous public place near the land to be auctioned.
(vi) Proclamation: - The proclamation and notice of sale shall be issued in all the villages comprising the Kanungo circle or the city/town in which the land is situated. Every such notice shall state the date, time and place of proposed auction, the description of land to be sold, the terms and conditions of the sale and any other particulars which the Sub Divisional Officer(C) considers material. The details of such lands shall be provided to the persons interested to give the bid on demand.
(v) Sale after 15 days :- No sale shall take place until after the expiry of a period of 15 days from the date of publication of the notice.
(vi) ADC/SDM to supervise the auction: - The auction shall be supervised by an officer not lower than the rank of Addl. Deputy Commissioner or the SDO(C) as may be directed by the Distt Collector, who before starting the auction of land shall ensure that all the formalities of proper advertisement fixation ~f reserve price of the land to be auctioned etc. have been completed.
(vii) The officer who is supervising the auction may withhold sale of any land if he finds that the auction held is not in the best interest of Govt and also in the event of any dispute arising between bidders after recording the reasons, in writing which may not be made public.
(viii) Adjourning the auction: The Addl. Deputy Commissioner or Sub Divisional Officer(C) as the case may be if the situation so demands for reasons to be recorded in writing may adjourn the sale to a specific date and an announcement about the next date of sale shall be made at the time of adjournment of the sale provided that where the sale is adjourned for a period exceeding 15 days, a fresh notice shall be given.
(ix) Earnest money: The persons declared to be highest bidder shall deposit with the officer conducting the sale on the spot, at the fall of hammer 25 % of the total amount of the final bid, if the auction is open to all, and 5 % of the bid if agricultural Nazool(escheated) land in rural areas is sold in restricted auction to the Scheduled Castes, or the evacuee agricultural land situated within 5 miles of the Indo- Pak Border is sold in an auction restricted to the Scheduled Castes, Rai Sikhs, Ex-Servicemen, Small and omlers and sitting tenants/In the case of default of such deposit the bid will be treated to have been cancelled and the land may be sold again. The bids received after the fall of hammer should not be considered.
(x) The officer supervising the auction shall record the receipt of the deposit mentioned in (ix) above on the auction bid statement and also give a receipt to the persons tendering the amount. The amount may be paid either by cash or by bank draft or partly by cash and partly by bank draft on any scheduled bank.
(xi) Forfeiting the Earnest money: Where the highest bidder, whose bid is provisionally accepted resiles from the bid before its final approval or rejection is communicated to him, the amount deposited by him under clause (ix) above shall be forfeited.
(xii) No bid shall be approved until after expiry of 15 days of the auction.
(xiii) Balance amount: As soon as the sale is confirmed or rejected by the competent authority mentioned in para 2 above an intimation of the approval of the bid or its rejection shall be given to the highest bidder. The highest bidder whose bid is accepted (herein after referred to as the auction purchaser) shall deposit the balance amount of the bid money within 15 days from the receipt of the notice to him to this effect if the land is sold to him in an auction open to all. However, in case of agricultural Nazool (escheated) land in rural areas sold to the Scheduled Castes in restricted auction, the price shall be payable in 20 equal six monthly instalments in accordance with the provisions of rule 9 and 9(A) of the Nazool land Transfer Rules 1956, including the one already paid at the fall of the hammer. Similarly, in the case of evacuee agricultural land situated within 5 miles of the Indo- Pak Border, the price shall be payable in 20 equal six monthly instalments including the one already paid at the fall of the hammer. The possession of the land purchased by an auction purchaser shall be handed over to him after the whole of the bid amount has been deposited by him in the Government Treasury if the land is sold to him in an open auction. In the case of agricultural Nazool ( escheated) land in rural areas and evacuee agricultural land situated within 5 miles of the Indo- Pak Border, sold in restricted auction, it shall be handed over on confirmation of sale and after payment of first instalment.
(xiv) Cancellation of sale for non deposit of money: If the auction purchaser in case of land, other than the agricultural nasal (escheated) land in rural areas and evacuee agricultural land situated within 5 miles of the Indo-Pak Border sold in restricted auction, does not deposit the balance of the purchase money within 15 days of receipt of intimation reg. confirmation of the sale, the Deputy Commissioner, shall be competent to cancel the sale and forfeit the amount already paid after giving due notice to the defaulting person.
(xv) Cancellation of sale for non deposit of money (Restricted auction): The auction purchaser in case of agricultural Nazool (escheated) land in rural areas or evacuee agricultural land situated within five miles of the Indo-Pak Border sold in restricted auction shall pay normal interest at the rate of 10% on the instalments due. If he does not deposit the six monthly instalment on the due date, he shall be liable to pay a further amount of penal interest at the rate of 3.1/2 for the defaulted period and upon the defaulted amount up to the date he clears the arrears of such instalments, over and above the ordinary rate of interest. If such auction purchaser fails to make the payment of such outstanding instalments along with interest and the penal interest before the payment of seventh instalment becomes due, the Deputy Commissioner shall be competent to cancel the sale and forfeit the amount already paid after giving due notice to the defaulting person.
(xvi) In case the highest bid is less than the reserve price, the property must be withdrawn from the sale and if the officer incharge of the auction considers the reserve price excessive taking into account the market price, he should refer the matter to the Distt. Collector or through him to the authority which fixed the reserve price as the case may be, who may than fix a lower reserve price, if considered necessary.
(xvii) The auctions in the Distt. should be spread over a suitable period and care should be taken that as far as possible auctions in rural areas take place when harvesting or sowing seasons are over. The agricultural land should be sold in a reasonable number of plots.
(xviii) The lands and buildings given on temporary lease should be put to auction after the expire of the current terms of the leases, if these are liable to auction under the above instructions
Persons who can participate in restricted auction for evacuee agricultural land within five miles of Indo-Pak border:
(4) Only the members of Scheduled Castes, Rai Sikhs, Ex-Servicemen, small land owners and sitting tenants on this shall be eligible to participate in this restricted auction. No person who had already been transferred land either on the basis of allotment or on the basis of possession but had disposed it of thereafter, shall be permitted to participate in the restricted auction. An affidavit to this effect will be obtained from the intending bidders. Similarly, no minor or anyone of his behalf shall be allowed to participate in restricted auction. 11ris should be made clear in the notice of auction also.
Procedure For Setting aside Sale
(5) (i) Where a person desires that the sale of any land under these instructions should be set aside because of any alleged irregularity or fraud in the conduct of sale or otherwise, he should make an application to that effect to the Collector of the District.
(ii) Every application for setting aside the sale under this rule shall be made within 10 days from the date of auction.
(iii) The Distt. Collector will either decide the objections himself if he is competent to approve the bid or refer it to the authority competent to do S.No order in this regard will, however, be passed without giving an opportunity of being heard to the highest bidder and the objector.
(iv) If after consideration of the facts alleged, the competent authority mentioned in sub para (iii) above is satisfied that any material irregularity or fraud has been committed in the publication or conduct of sale, he shall make an order that the land or property be re-auctioned. The competent authority may also refuse to approve the bid if it is otherwise satisfied that material irregularity or fraud had been committed in the publication of notice or conduct of sale or the bid is unduly low.
Procedure For Appeal And Review
(6) (i) Where any person is aggrieved by an order of the Distt. Collector, he may prefer an appeal to the Commissioner of the Division within 30 days from the date of such orders. The order of the Commissioner shall be final and binding and subject to no other appeal.
(ii) Any person aggrieved by an order of the Commissioner of the Division, except an order passed on appeal against the order of the Collector, may prefer an appeal to Financial Commissioner (Revenue) within 30 days of the date of such order whose decision thereon shall be final.
(iii) Any person aggrieved by an order of the Financial Commissioner (Revenue), except an order passed on appeal may prefer an appeal to the State Government within 30 days of such order whose decision thereon shall be final.
(iv) The Commissioner, Financial Commissioner Revenue or the State Govt. may entertain an appeal after the expiry of 30 days, if he/it is satisfied that the applicant was prevented by sufficient cause from filing the appeal in time.
(v) The provisions of Section 15 of the Land Revenue Act, 1887 will apply in regard to review of orders by the Collector, Commissioner, Financial Commissioner Revenue or the State Government.
Power to call to examine and revise proceedings of revenue officers
(7) The Financial Commissioner Revenue, the Commissioner or Distt Collector may call for the record of any case and pass such order as he may trunk fit. No order which adversely affects a person should, however, be passed whether on appeal review or revision without giving him an opportunity of being heard.
Bar on alienation of the evacuee agricultural land within 5 miles of Indo-Pak border and nazool (escheated) agricultural land in rural areas purchased in restricted auction.
(8) (i) The auction purchaser who has purchased the evacuee agricultural land within 5 miles of the Indo-Pak Border and Nazool agricultural land in restricted auction under para 5 or para 7 of this Department Memo. No.14/26/81-LR-IlI/1716-22, dated 20.2.1984 , shall not be entitled to lease, transfer, sell, mortgage with possession or otherwise alienate or part with the land so purchased wholly or partly in any manner in favour or a person who was not eligible to participate in the restricted auction, for a period of 20 years. The land may, however, be pledged in favour of Govt. or Semi Govt. Corporation or a Bank or a Cooperative Financing Institution for securing loan for effecting improvements in the said land.
(ii) The auction purchaser shall cultivate the land so purchased himself or through any member of his family or through any member of the category of the persons eligible to participate in restricted auction only.
(iii) If any auction purchaser violates any of the conditions in clauses (i) and (ii) above, the Distt. Collector shall be competent to cancel the sale, forfeit the amount already paid and resume land after giving the notice to him.
Conferment of proprietary rights & issue of sale certificates:
(9) (i) As soon as the whole amount of bid money and all other Govt. dues in respect of this land have been paid by the auction purchaser and the sale of the land in his favour has been confirmed by the authority competent to sanction the sale, the Distt. Collector shall put the person declared to be the purchaser into possession of the property sold and shall issue a sale certificate conferring proprietary right on him. In case of the agricultural Nazool (escheated) land in rural areas and evacuee agricultural land situated within 5 miles of Indo- Pak Border sold in restricted auction, the Distt. Collector shall put the auction purchaser into possession of the property sold on confirmation after payment of first installment of the bid amount. The sale certificate conferring the Proprietary Rights in this case shall be issued on completion of the payment of all instalments and any other dues in land. The proforma of the sale certificate shall be supplied to you in due course.
(ii) The sale certificate shall be got registered by the auction purchaser at his own expense and the payment of stamps and registration shall be his own Responsibility.
(iii) The mutation in favour of the auction purchaser may be sanctioned by the competent revenue authority in accordance with the registered sale certificate.
Head of account
(10) The amount received on account of sale of lands and other property to be disposed of under this scheme should be credited to the receipt head "029-Land Revenue (d)Receipt of sale of Govt. Estates".
Replacement of district level committees already constituted under instructions of finance department
(11) The existing Distt. Level Committee constituted vide Finance Department Notification No. 653-2-B&C- 76/5575, dated 25.2.1976 shall stand replaced by the new Committee now constituted by the Government vide Revenue Department Memo. No 14/26/81-LR-m-1716-22, dated 22.214.171.1244, so far as the disposal of lands under the control of the Revenue Department is concerned.
(12) It is now requested that you may please initiate action immediately to implement in your District the Govt. policy about the transfer/ disposal of various types of Govt. land under the control of Revenue Deptt. conveyed to you vide this Deptt. Memo No. 14/26/81-LR-III/1716-22, dated 20.2.1984. These instructions may please be brought to the notice of all concerned for strict compliance. The spare copies of these instructions .for the Sub-Divisional Officer (C} and Tehsildars are enclosed for expeditious action in the matter.
Submission of monthly progress report
(13) In order to report the progress in the matter of transfer of sale of various types of lands mentioned above, a monthly progress report in the enclosed proforma may please be sent to this Department by the 20th of every month. This report may please be started from the month of August and the report of that month may please be supplied by the 2Oth September, 1984 without fail.
(14) These instructions are issued with the approval of Finance Department conveyed vide their UO No. 13/52/2-FG-II/84/1352, dated 1.8.1984.
(15) Please acknowledge its receipt.
Under Secretary Revenue,