Section 9(4)(b) in The Bihar Government Estates (Khas-Mahal) Manual, 1953

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State of Bihar - Subsection

Section 9(4)(b) in The Bihar Government Estates (Khas-Mahal) Manual, 1953

(b)Salami should also be levied when settling land for non-agricultural purposes in town khasmahals and for building purposes in khasmahal villages developing into towns. In a growing town, land appreciates rapidly in value. Similarly in khasmahal villages which for some special reasons (e.g., owing to the opening of a new railway station) are developing into towns, the value of land rises with great rapidity. In the initial stages of development, Government are often required to undertake capital expenditure, a share of which should be borne by the residents who benefit. Under the present system Government frequently do not obtain their share of the unearned increment from urban development. It is equitable that Government should take in advance a share of the increased value by means of salami. Salami in this sense is not rent capitalised but a share in the increase of value anticipated during the period of a non-agricultural lease. The rate of rent must not be varied according to the amount of salami. It must not be considered that high rate of salami entitles the lessee to a low rate of rent;

(ii)The circumstances in which it is advisable to take salami in town khasmahals cannot be precisely defined but will usually fall within one of the following cases:-

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State of Bihar - Subsection

Section 9(4)(b) in The Bihar Government Estates (Khas-Mahal) Manual, 1953