Maharashtra Cabinet Revises Interest On Delayed Land Acquisition Compensation
Officials said that in some cases involving development projects and government schemes, advance possession of land is required because of the urgency of the project.
Mumbai: The Maharashtra Cabinet on Tuesday approved a revision in the interest rate payable on delayed compensation to persons affected by land acquisition under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Under the revised provision, interest on delayed compensation will be one percentage point higher than the rate at which the Reserve Bank of India (RBI) lends to commercial banks.
The decision was taken at a Cabinet meeting chaired by Chief Minister Devendra Fadnavis at Sahyadri Guest House on Tuesday.
In a statement, the Chief Minister’s Office (CMO) said the interest rate would be fixed at one percentage point above the rate at which the RBI provides funds to commercial banks.
Officials said that in some cases involving development projects and government schemes, advance possession of land is required because of the urgency of the project. Since the land is handed over to the government before the award is made, affected landowners are entitled to interest on the compensation amount for the delay in payment, as provided under the 2013 Act.
According to the Revenue Department, there is a disparity between the existing interest rate on delayed compensation and prevailing lending rates charged by banks. The Cabinet has therefore approved an amendment to Section 72 of the Act.
“Section 72 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 will be amended in the coming days,” officials said.