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Valuations of properties, which are compulsory acquired under Land Acquisition Act No.9 of 1950
The Land Acquisition Act No.9 of 1950 ‘Makes provisions for acquisition of the Lands and Servitudes for public purposes and provides for matters connected with or incidental to such provision’. Provisions are also made for the vesting of lands in to Local Authorities or other public corporations and, is the significant legislation in the field of Compulsory Purchase and Compensation. The Land Acquisition act of 1950 was modeled mainly on the English Land Clauses Acts, The Acquisition of Land Act 1919 and the Acquisition of Land Authorization Procedure Act 1946 and the Land Acquisition Act amended by Act 28 of 1964 is the premiere and oldest Land Acquisition act in force today.
The important aspects of the procedure in terms of valuation, under the Land Acquisition Act 1950 are outlined as follows;
Section 2:
On direction of the minister who decides that land in any area is needed for public purpose, the Acquiring Officer publishes notice under Section 2 to this effect and thereby Authorized Officers are permitted to make investigations for selecting such land.
Section 3:
Compensation is provided for any damage done during investigations carried out on any such land.
Section 4:
After final decision by the minister, all owners are notified of the intention to acquire the land, where the owners of such lands given right to make objections
Section 5:
Even after taking objections under Section 4 in to consideration, the minister still decides to proceed with the acquisition a further declaration is made in the Gazette under Section 5 to that effect.
Section 6:
Under Section 6, The Surveyor General prepares a plan of the land.
Section 7:
Under Section 7 there is a Notice is to be published in the Gazette and in the newspapers, calling for claims relating to right, title and interest and the amount of compensation expected, with details of compensation, before a specified date.
Section 9:
Under Section 9, The Acquiring Officer holds inquiry into claims, the market value and other relevant matters, in view of making decisions on claims and disputes relating to title.
Section 10:
Under Section 10 of the act, The Acquiring Officer has to determine followings: - Title - Compensation and, refer any dispute on title to the Courts
Section 17:
Under Section 17, The Acquiring Officer makes an award to following effects:
- The person entitled for compensation
- The nature of the interest in the acquired land
- The total amount of claims for compensation
- The amount of compensation
- Any apportionment of the compensation It is significant, that the amount of compensation awarded to shall not exceed the amount of his claim.
Section 38:
Under Section 38 of the act, at any time after an award is made under section: 17, the Minister may by order published in the Gazette for taking possession of a land or servitude.
Section 38 (a):
Any time after notice under section: 2 or section: 4 is exhibited, on the ground of any urgency, the Minister could take the immediate possession of the land, publishing a notice under Section 38 (a).
Section 44:
Vesting of acquired land or servitude, to Local authority or some other government body.
Section 45 (1):
Defines the term of “Market Value” Market Value, which the Land might be expected to have realized, if sold by a willing seller in the open market as a separate entity on the date of section 7 publication.
Section 45(2):
Defines the market value of the servitude shall
- Where if it is a new servitude which is to be created the market value of the servient tenement of the servitude will be diminished by the creation of the servitude
- Where if it is an existing servitude which is going to be acquired the market value will be the dominant tenement of the servitude diminishing the existing the extinction of the servitude.
Section 46:
Assessment of Compensation Compensation for the acquisition of the Land or servitude shall be the market value of that Land or Servitude also entitled to:
- Compensation for any damage sustain by the reason of the severance of the land from his other land.
- Compensation for any damage sustain by the reason of the land injuriously affecting on his adjoining land or any immovable property thereon. -This (i) & (ii) shall not exceed twenty per centum of the market value
- Compensation for loss of earnings from any Business This shall not exceed three times the average annual net profits from the business as shown by the books of accounts, for the three calendar years immediately preceding the date of section 7 published.
- Any reasonable expenses of effecting any change of residence necessarily caused by the acquisition of the land.
Section 47:
Deductions: The market value of the remaining part of that land is likely to increase by reason of such acquisition shall be deducted from the compensation. - The amount of deduction should not exceed twenty per centum of the market value.
Section 48:
Matters to be ignored
- The degree of urgency of the acquisition of the Land or servitude.
- His disinclination to part with his interest in the Land or to allow the acquisition of the servitude
- Any damage sustained to a private person if such person liable to a suit
- Any damage which after the award of compensation
- Any increase which occur in the market value after its acquisition under this Act
- Any improvement made on the land after the notice under section 4
Following are the other subsequent statute laws, which enable the compulsory purchase of property for special purposes or have interfered with the compensation in the term of ‘Market Value’ and has imposed certain restrictions, conditions and circumstances in which value has to be determined, when properties are compulsorily acquired by the State or become vested in the state, by the force of legislations on payment of compensation.
- Urban Development Authority Law No 41 of 1978
- National Housing Development Authority Act No.17 of 1979
- Greater Colombo Economic commission Law No.4 of 1978
- Town and Country Planning Ordinance Of 1946
- Land Reform Law No.1 of 1972 - Land Reform Commission Act. No.26 of 1972
- Colombo District (Low Lying Areas) Reclamation and Development Board
- Act No.15 of 1968
- Rent Act No.7 of 1972 and amendments thereto, No.55 of 1980 and No.26 of 2002
- Co-operative Societies Law No.5 of 1972
- Ceiling on Housing Property Laws No1 of 1973
- Apartment Ownership Law No.11 of 1973
- Tourist Development Act No.14 of 1968
- Coast Conservation Act
- Agrarian services Act no.58 of 1979
- Roads and Thoroughfares Act no.45 of 1956 and Law no.37 of 1973
- Mahaweli Authority of Sri Lanka Act No.23 of 1979
- Walawe Lands Act No.11 of 1958
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Preparation of Condition Reports
The department prepares ‘Condition Reports’ in respect of private lands, which are compulsorily acquired for public purposes and where, possession is being vested immediately with the State and subsequent preparation of valuations for payment of compensation in respect of such lands, under Section 38 (a) of the Land Acquisition Act of Sri Lanka in major and under several other Statutory Laws.
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Preparation of Estimates
Preparation of Estimates, for allocation of funds for future compulsory acquisitions of lands, under the provisions of the Land Acquisition Act of Sri Lanka.
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Valuation of immovable and movable property
Valuation of movable and immovable properties are performed by the department, for various purposes including, valuations for purchases and disposals under private treaty, accounting purposes & lease purposes, when such valuations are required by the State and State sector institutions.
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Rental Valuations
- Rental Valuations are furnished to the State and State Sector Institutions either in respect of their property holdings identified for letting out, or when such institutions require private properties for their occupation and use.
- Rental Valuation of Government Quarters - Under the provisions of Sec 5.6 and 7.2 of Chapter XIX of Establishment Code, The department fixes Economic Rents as concessions to occupier, who are government servants, and Penal Rents.
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Assessments & Re-assessments for Local Taxes
The department carries out Assessment and Re-Assessment of properties in all other local authorities of the country, except of the Colombo Municipal Council, for levying of Local Rates (Local Taxation) and also assists such Local Authorities in determination of objections made in respect of such assessments by aggrieved ratepayers.
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Advisory Services
The department provides advisory services in the spheres of valuation & property management and in promoting professional skills.
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Assisting Courts of Law
Assisting Courts of Law and various other Tribunals, those hear and determine compensation disputes, by leading expert evidence are done by the department, where officers of the Department represents the Chief Valuer, in Rent Boards except those within Colombo Municipal Council limits, in addition.
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Valuation for Privatization Purpose
The Department undertakes valuations of Public Enterprises for purposes of Privatization at request of The Public Enterprise Reform Commission.
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Valuation for Purposes Under Bribery Act
The Department performs valuations for purposes of Bribery Act, and assists Commissioner of Bribery. |
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