Section 40 in The Displaced Persons (Compensation and Rehabilitation) Rules, 1955
40. Adjustment of compensation against purchase price of Government built property and plots.
(1)A purchaser of a Government built property or a Government plot may adjust the net compensation payable to him against the purchase price of the property or the plot, as the case may be.(2)Where the Government built property has been purchased on instalment basis or hire-purchase basis, the arrears of instalments, if any, shall be deducted from the gross compensation. After deduction of such instalments and public dues and other dues, the present value of the remaining instalments including shall be set of against the present value of the remaining instalments, including interest the ownership of the superstructure and the site if it consists of free hold land, shall be transferred to the purchaser. If the site was held by the purchaser under lease, it shall be demised to him on such terms and conditions as may be determined by the Settlement Commissioner.(3)Where the present value of the remaining instalments of the purchase price including interest, exceeds the amount of the net compensation payable to the purchaser, the number of instalments and the amount of each instalment may by agreement which the purchaser be revised. As soon as the full price (including interest, if any), has been paid, the ownership of the superstructure shall be transferred to the purchaser. If the site on which the superstructure stands consists of freehold land the site shall also be transferred to the purchaser. If the site is held on a lease, the purchaser shall hold the site on such terms and conditions as may be determined by the Settlement Commissioner.Explanation - In the case of the urban area of the town of Delhi the terms and conditions of the lease shall be as in Appendix XI but the purchaser shall have the option to continue to hold the site on the terms and conditions originally agreed upon by him as in Appendix XII or XIII.(4)Where the Government built property was purchased otherwise than on instalment basis or hire-purchase basis and the entire price has not been paid, the balance of the purchase price shall be set off against the net compensation payable to the purchaser.(5)Where the purchaser of a Government built property on instalment basis or otherwise does not agree to the compensation payable to him being adjusted against the balance of the purchase price due from him, he may continue to pay the purchase price upon the terms originally agreed upon, but in such a case the payment of compensation to him shall be postponed to such a date as the Central Government may, by general or special order, specify.
