The Requisitioning and Acquisition of Immovable Property Rules,1953
Section 9. Compensation
An authority to whom the powers of the Central Government have been delegated shall, as far as may be, associate with itself the local officer of the Central Government concerned with the property in fixing compensation under clause (a) of sub-section (1) of section 8, and obtain the approval of the Central Government in the administrative Ministry concerned [or if any officer authorised by that Government in this behalf.]
2.Compensation for requisitioned property, other than agricultural land, shall be paid by the competent authority quarterly in arrears. In the case of agricultural land, the compensation shall be paid either annually or on release of the land, whichever is earlier. The compensation shall be paid either in cash or by cheque at the discretion of the competent authority.
[(3)The competent authority shall, as soon as may be practicable after the making of a acquisition, communicate to each person interested an offer of what, in the opinion of the competent authority, is a fair amount of compensation payable to such person in respect of the property requisitioned or acquired.
(4) If the owner of the property is not readily traceable or if there be no person competent to alienate the property or if the ownership of the property is in dispute or if there be any dispute as to the title to receive the compensation or as to the apportionment of the amount offered as compensation, the competent authority shall deposit in Court the amount of the compensation as determined by him under clause(a) of sub-section (1) of section 8. The competent authority shall at the same time submit to the Central government a report setting forth the full facts of the case with all connected papers and apply for the appointment of an arbitrator. Where the compensation is recurring, the competent authority shall, in cases covered by this sub-rule, deposit the amount in court from time to time in arrear as it falls due.
(5) (I) Every person interested to whom an offer is made under sub-rule(3) shall, within fifteen days of the receipt of the offer, communicate in writing to the competent authority his acceptance, or otherwise of the offer. If he accepts the offer, the competent authority shall enter into an agreement with him on behalf of Central Government in Form “˜K.
(ii) In the following circumstances, the competent authority may, at his discretion, make [to all eligible claimants] “˜on account payment upto 80 percent. Of the amount which, in his opinion, is likely to be assessed as compensation or recurring compensation as the case may be:-
(a) When there is likely to be delay in assessing compensation;
(b) Where the competent authority has made an assessment but there is delay in reaching an agreement though there is a reasonable prospect of agreement being reached; or
(c)where it is clear that an agreement cannot be reached.
(iii) If the competent authority makes an “˜on account; payment under clause (ii), he shall enter into an agreement with the person to whom payment is made on behalf of the Central Government in form “˜L with such modifications as the nature of the case may require.
(6)If any person to whom an offer is made under sub-rule(3) does not accept the offer or does not within fifteen days of the receipt of the offer communicate in writing to the competent authority his acceptance or otherwise of the offer, the competent authority shall, as soon as may be, submit to the Central Government a report setting forth the full facts of the case, particularly as regards the nature and extent of disagreement between himself on the one hand and the said person on the other hand and he shall also forward with the report all conne cted papers. The competent autho rity shall at the same time deposit in Court the amount offered by him to the said person under sub rule(3).]