- (a) Land : The award of compensation should be made-on the basis of the market value of the land as at the date of publication of notification under Section 4 (1) of the Act and the restrictions impose by Section 24 (seventy) also become operative from that date. The market value of the land should preferably be determined by-scanning the sale deeds of similar type of land in the locality immediately before the notification under Section 4 (1).In case where market value cannot be determined on the principle aforesaid the principle of capitalization of the net annual profit should be adopted for determining the amount of compensation payable for a property. The net annual profit represents interest on capital invested. The rate of interest shall, however, be notified by the Government from time to time.(b)Trees : The award shall include value of trees also but care has to be taken not to pay the value of trees twice, e.g. when the value of the produce of the trees has already been included in the rent which forms the basis of award. The land owner is entitled to compensation for the value of the produce of the trees and such compensation should be awarded to him unless, as said above, it has already been included in the rent which forms the basis of the award. The market value of fruit trees, bamboos or other folder trees, at ten times the annual value of fruit/fodder leaves, shall be tendered as compensation.The owner may, however, be given the option of a cutting and removing the trees but on such option being exercised, no compensation for trees shall be awarded.(c)Houses : The rental of houses should be calculated wherever possible on the actual three years rental preceding the award and the rental value shall ordinarily be 10 times the annual average o such rental. Where it is not possible to determine the annual rental the calculation shall be based upon an estimate of the cost of materials and re-building, the former being deducted if made over to the owner. In case of thatched houses or other which could be removed without serious damage, the owners may be allowed to remove them but expenses required for such removal will be paid to them.(d)Other Structures : ( Tanks, fencing walls etc.) - The cost of reconstruction shall ordinarily be tendered as compensation provided.(i)that if any of the structures has been out of use compensation shall be allowed on the present value of the material only.(ii)that if any of the structures is out of repair or damaged deduction shall be made on that account.(e)Irrigation and water supply channel:As far as possible the irrigation and water supply channel preferably by kept intact. If this is not possible and a new construction has to be made, the entire cost of construction shall be estimated and tendered as compensation. If there is no possibility of providing any irrigation channel and the irrigation facility in respect of any holding is lessened, compensation shall be tendered to the affected land owners at 100 times of the difference of Land Revenue between the irrigated and unirrigated revenue rates on the land.(f)Capitalized value of land revenue : the capitalized value of land revenue is the aggregate land revenue of a certain number of years payable by an acquiring body to the State Government to compensate it for the loss in land revenue, as a result of its remission, in cases of compulsory acquisition.The multiple to calculate the aggregate land revenue shall be forty. When the land revenue is not assessed, it shall be calculated at the average rate of Land revenue per acre of a similar land in the locality.
