Section 206(1) in Andhra Pradesh Panchayat Raj Act, 1994
(1)Whenever in pursuance of Section 205, the Andhra Pradesh Election Commissioner for Local Bodies requisitions any premises, there shall be paid to the person interested compensation the amount of which shall be determined by taking into consideration the following namely:-(i)the rent payable in respect of the premises or if no rent is so payable, the rent payable for similar premises in the locality;(ii)if in consequence of the requisition of the premises the person interested is compelled to change his residence or place of business, the reasonable expenses, if any, incidental to such change:Provided that where any person interested being aggrieved by the amount of compensation so determined makes an application within the prescribed time to the Andhra Pradesh Election Commissioner for Local Bodies for referring the matter to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed in this behalf by the Andhra Pradesh Election Commissioner for LocaL Bodies may determine:Provided further that where there is any dispute as to the title to receive the compensation or as to the apportionment of the amount of compensation, it shall be referred by the A.P. Election Commissioner for Local Bodies to an arbitrator appointed in this behalf by the said Commissioner for determination, and shall be determined in accordance with the decision of such arbitrator.Explanation. - In this sub-Section, the expression "person interested" means the person who was in actual possession of the premises requisitioned under Section 205 immediately before the requisition or where no person was in such actual possession, the owner of such premises.