Important Provisions of Tamil Nadu Land Reforms Act 1961 that You Must be Aware Before Buying a Land

property-law
Land Reforms

The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961, came into effect on April 6, 1960. This Act was designed to limit the maximum amount of agricultural land that a family could own, which significantly transformed property ownership in Tamil Nadu. Its primary goal was to ensure that surplus land was redistributed to the landless, creating a fairer system of agricultural land distribution.

Land Ceiling Regulations

Under the Act, families of five members could hold a maximum of 30 standard acres. For each additional family member, the law allowed an extra 5 standard acres, with the total landholding capped at 60 standard acres. This limit was put in place to prevent land concentration in the hands of a few and to provide better access to land for small farmers and landless individuals.

Exemptions and Non-Agricultural Land Use

The Act also specifies certain types of land that are exempt from being counted toward the ceiling limit. These include:

  • Roads, channels, and drainage systems within cultivated lands that are used for agricultural purposes.
  • Land held by state or central governments or their undertakings.
  • Land held by universities.
  • Land assigned to land colonization cooperative societies.
  • Land exempted under Section 37-A for industrial or commercial organizations, as long as the exemption remains valid.
  • Land permitted under Section 37-B for public trusts, as long as the permission remains active.
  • Plantations that existed at the time of the Act’s commencement.
  • Land containing orchards, topes, or areca nut gardens, whether continuous or not.
  • Land used solely for growing fuel crops at the time of the Act’s commencement.

Declaring Surplus Land

An authorized officer conducts an inquiry to assess how much land an individual or family holds. During this process, landowners have the opportunity to present their claims and arguments. After reviewing all relevant information, the officer will declare any surplus land, identifying the specific plots and survey numbers that the government will acquire.

Compensation for Surplus Land

The government provides compensation to landowners for any surplus land it acquires. Schedule III of the Act (amended by Act 11/79) sets the compensation rate, with a maximum payment of Rs. 3,500 per acre, depending on the land’s classification and quality. Additionally, the government pays 4% interest on the compensation amount. After acquiring the surplus land, the government prioritizes distributing it to those most in need.

Interim Use of Surplus Land

Before distributing the surplus land, the government may allow it to be cultivated or used. During this interim period, anyone permitted to use the land must pay a lease amount, as specified by the Act.

Priority for Land Assignment

The Act prioritizes certain groups of individuals for land assignment. These groups include:

  • Individuals who were cultivating surplus land and were later dispossessed, including cultivating tenants and agricultural labourers.
  • Service personnel, such as servicemen, members of the Indian National Army, Assam Rifles, and other paramilitary forces, along with the dependents of those killed in action.
  • Repatriates from Burma or Sri Lanka, provided their total assets did not exceed Rs. 10,000 upon arrival in India.
  • Landless agricultural labourers.
  • Cultivating tenants who hold less than 3 acres of dry land or 1.5 acres of wetland.
  • Cooperative farming societies, subject to the ceiling limits established by the Act.

Maximum Land Assignment Limits

Initially, the maximum land assignment limit was 5 acres, but a government order (G.O.Ms.No.715, Revenue Department) dated March 24, 1980, reduced this limit to 3 acres of dry land or 1.5 acres of wetland.

Cost of Assigned Land

Beneficiaries under the Act must pay for the land assigned to them. The payment is capped at Rs. 350 per acre, and beneficiaries can make payments over 20 annual instalments at 5% interest.

The Importance of the Act

The Tamil Nadu Land Reforms Act has played a vital role in redistributing land and reducing inequality in land ownership. By setting limits on landholdings and ensuring the redistribution of surplus land, the Act has helped improve access to land for marginalized groups, including small farmers and agricultural labourers.

Legal Disclaimer

The information provided in this blog is for general and educational purposes only. It should not be construed as legal advice from The Aran Law Firm or the individual author. For specific legal concerns, we strongly encourage you to consult a legal professional. Always seek legal advice tailored to your situation.

This blog reflects the key features and procedures of the Tamil Nadu Land Reforms Act, including updates since its introduction. For personalized legal guidance, we recommend reaching out to a qualified legal advisor.

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