Section 15(4) in The Punjab Village Common Lands (Regulation) Rules, 1964
(4)The amount of compensation shall be determined in accordance with the following principles :(a)if the lands has been sold by the panchayat, the amount of compensation of the land shall be same as received by it from the vendee.(b)if the land is utilized by the panchayat for any of its purposes, the amount of compensation shall be determined by working out an average of the sale proceeds of the lands of the same nature and kind sold in the village during the last three years and if no such land has been sold in the village reasonable price as may be determined :Provided that the payment of such compensation shall be made in six equal annual instalments, if the amount involved is more than Rs. 300.
