Relief to buyers in Tamil Nadu who purchased land acquired under Ceiling Act, after 2008

The Tamil Nadu government on Wednesday, April 12, 2023 gave a huge relief to those who have acquired land in six urban agglomerations, unaware of the acquisition proceedings under the Ceiling Act and unable to obtain pattas for them. The government said in the Assembly that the deadline for benefitting under the ‘Innocent Buyers’ Scheme’ would be extended further from the existing cut-off date of September 26, 2008.

The Tamil Nadu government on Wednesday, April 12, 2023 gave a huge relief to those who have acquired land in six urban agglomerations, unaware of the acquisition proceedings under the Ceiling Act and unable to obtain pattas for them.

The government said in the Assembly that the deadline for benefitting under the ‘Innocent Buyers’ Scheme’ would be extended further from the existing cut-off date of September 26, 2008.

“The cut-off date would be extended further from September 26, 2008, so that those who acquired such land after 2008 also benefit from the scheme. Moreover, the land value will be revised,” Minister for Revenue and Disaster Management K.K.S.S.R. Ramachandran said. He did not elaborate.

The Tamil Nadu Urban Land (Ceiling & Regulation) Act, 1978, was enacted with a retrospective effect from August 3, 1976. It was aimed at preventing the monopoly of land in urban areas, curbing the land crisis in urban markets and reducing the soaring prices.

The provisions of the Act were initially introduced in Chennai city (then Madras) and the Chennai City Belt Area and extended to five urban agglomerations — Coimbatore, Madurai, Salem, Tiruchi and Tirunelveli. The Act had fixed a ceiling on vacant urban land that a person can hold in an urban agglomeration.

However, several individuals had purchased land plots in city suburban areas that were taken over by the State government under the 1978 Act. They were believed to have been unaware of the acquisition of the land by the government; hence, they were unable to obtain pattas and faced several challenges in managing their property.

In September 1998, the government introduced the ‘Innocent Buyers Scheme’, which fixed September 26, 2008, as the cut-off date. The land value to be paid by the buyer was fixed on the basis of the zonal value determined for a particular urban agglomeration at the time of acquisition. The government issued an order revising the the norms and guidelines.