Section 12(1) in Tamil Nadu Land Reforms (Payment for Surplus Land) Rules, 1966
(1)In cases falling under section 53 the cash portion of the amount, as soon as it is deposited with him, and each of the annual instalments of the principal due on the bonds, as soon as it is cashed, shall be invested by the District Collector in Government guaranteed security. The interest portion of each annual instalment and interest accruing on the investments made, shall till the death of the maintenance-holder or till the right to receive maintenance ceases to exist or till the liability to pay maintenance is discharged be drawn by the District Collector and paid in the manner laid down below:-(i)Out of the interest, that amount which bears to the total amount of interest the same proportion as the extent of the interest of the maintenance-holder in the annual net income from the surplus land bears to the total annual net income from such land, shall be paid to the maintenance-holder. In determining the amount of interest payable to the maintenance-holder under this sub-rule, the District Collector shall give effect to the terms of any decree for maintenance or the terms of any instrument creating a charge on such surplus lands for payment of maintenance to the maintenance-holder concerned.(ii)The balance of the interest shall be paid to the person from whom the surplus land was acquired, or the person denying rights through such person, as the case may be.
