Section 7(3) in Nagpur Improvement Trust Land Disposal Rules, 1983
(3)For determining the premium, the Committee shall take into account sale of similar or similarly situated land in the vicinity during the year immediately preceding the fixation of premium. If no transactions have taken place during that year, the sale in other similar locations may be taken into consideration. The rate of premium shall not be less than the cost incurred on account of acquisition and development of the land.
