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The Maharashtra Project Affected Persons Rehabilitation Act, 1999

Maharashtra · state statute
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2001 : Mah. XI]  1 
 THE MAHARASHTRA PROJECT AFFECTED PERSONS  
REHABILITATION ACT, 1999 
[Text as on 20th December 2024] 
_______________ 
CONTENTS 
PREAMBLE. 
SECTIONS. 
CHAPTER I 
PRELIMINARY 
 1. Short title, extent, commencement and application.                                                               
 2. Definitions.  
CHAPTER II 
CHIEF CONTROLLING AUTHORITY, PROJECT AUTHORITY, THEIR POWERS AND DUTIES 
 3. Chief controlling authority in rehabilitation matters. 
 4. Duties and functions of chief controlling authority. 
 5. Duties and functions of Collector. 
 6. Duties and functions of project authority.  
 7. Delegation of powers to subordinate officers.  
 8. Subordination of officers and servants. 
 9. Constitution of Advisory Committee. 
CHAPTER III 
REHABILITATION OF AFFECTED PERSONS 
 10. Rehabilitation of affected persons. 
 11. Areas of affected and benefited zone to be notified. 
 12. Restrictions on transfer, sub-division, partition, conversion or improvement of land. 
 13. Declaration of areas in affected or benefited zones. 
 14. Power to purchase or acquire land for purposes of this Act. 
 15. Preparation of proposals of rehabilitation and publication, thereof. 
 16. Grant and assignment of land and payment of special grant. 
 17. Power to grant developed land to the project affected person. 
 18. Execution of layout by project authority or any other agency and after completion, vesting 
thereof in Zilla Parishad. 
 19. Transfer of encumbrances. 
2 The Maharashtra Project Affected Persons Rehabilitation  [2001 : Mah. XI 
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 20. Disposal of acquired lands with structures, thereon completion of project. 
CHAPTER IV 
MISCELLANEOUS 
 21.  Penalty.  
 22.  Officers of Government and local authorities to assist Commissioner, etc.  
 23.  Officers and servants appointed under this Act to be Public servants.  
 24.  Bar of jurisdiction.  
 25.  Protection of action taken under this Act.  
 26.  Power to make Rules.  
 27.  Declarations as to policy of State. 
CHAPTER V 
REPEAL AND SAVING 
 28.  Repeal and saving.  
 29.  Removal of difficulty.  
 SCHEDULE 
 
  
2001 : Mah. XI] The Maharashtra Project Affected Persons Rehabilitation 3 
 Act, 1999 
LIST OF AMENDMENT ACTS 
 1. Amended by Mah. 28 of 2009 1(28-10-2009) 
 2. Amended by Mah. 10 of 2013 (6-5-2013) 
                                                   
1  Mah. Ord. XIX of 2009 was repealed by Mah. XXVIII of 2009. 
 
Note.- The date mentioned in the bracket indicates the date of commencement of the Act. 
4 The Maharashtra Project Affected Persons Rehabilitation  [2001 : Mah. XI 
 Act, 1999  
    
  
2001 : Mah. XI] The Maharashtra Project Affected Persons Rehabilitation 5 
 Act, 1999 
MAHARASHTRA ACT No. XI OF 20011 
[THE MAHARASHTRA PROJECT AFFECTED PERSONS REHABILITATION ACT, 1999.] 
[This Act received the assent of the President on the 7th March, 2001;  
assent was first published in the Maharashtra Government Gazette,  
Extraordinary, Part VIII, on the 14th March, 2001.] 
An Act to consolidate and amend the law relating to the rehabilitation of persons affected by 
certain projects in the State of Maharashtra and for matters connected therewith or incidental 
thereto.  
WHEREAS it is expedient to consolidate and amend the law relating to the rehabilitation of 
persons affected by certain projects in the State of Maharashtra and for matters connected therewith or 
incidental thereto ; It is hereby enacted in the Fiftieth Year of the Republic of India as follows :— 
CHAPTER I 
PRELIMINARY 
1.  Short title, extent, commencement and application. — (1) This Act may be called the 
Maharashtra Project Affected Persons Rehabilitation Act, 1999.  
(2) It extends to the whole of the State of Maharashtra.  
(3) It shall come into force on such date a s the State Government may, by 2notification in the 
Official Gazette, appoint.  
(4) (a) It shall apply to all irrigation projects of which the area of the af fected zone exceeds 50 
hectares, or the area of the benefited zone exceeds 200 hectares or a gaothan is affected.  
(b) It shall also apply to all projects, other than irrigation projects specified in clause ( a), 
such as industry including industrial estate, atomic energy, university, oil and natural gas, energy, 
chemical, roads, national par k, sanctuary, mines, etc. However, the entire responsibility to 
execute them and to rehabilitate the project affected persons shall rest with the concerned 
department of the Government of Maharashtra by entering into an agreement with the concerned 
project authority or body.  
(c) Where, in the opinion of the State Government, it is necessary and expedient in the 
public interest to apply it to any other project, the State Government may by notification in the 
Official Gazette , declare that it shall apply in relation to such projec t as specified in the 
notification ; and thereupon the provisions of this Act shall apply to such project. 
(d) Notwithstanding anything contained in clauses ( a) and (b), it shall not apply to projects 
falling under the jurisdiction of inter -State projects; and the rehabilitation work, financed by the 
external agencies and countries. 
2.  Definitions.— In this Act, unless the context requires otherwise,—  
(1) “affected zone”, in relation to a project, means the area declared under section 13 to 
constitute the area of the affected zone under that project ;  
(2) “affected persons” means—  
(a) an occupant whose land in the affected zone (including land in the gaothan) is 
acquired under section 14 for the purposes of a project ;  
Explanation.— For the purpose of this sub -clause, where any agricultural land is 
recorded in the relevant village records in the name of one of the brothers as a Karta or 
                                                   
1  For Statement of Objects and Reasons of the L.A. Bill No. XXVII of 1999, see Maharashtra Government Gazette, 
Extraordinary No. 37, Part V-A, dated the 19th April 1999, pages 307-308. 
2  This Act came into force by Government Notification, Revenue and Forests Department, No. LAA. 599/CR -148/Part-
II/R-1, dated the 14th March 2002, w. e. f. 1st April 2002. 
6 The Maharashtra Project Affected Persons Rehabilitation  [2001 : Mah. XI 
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Manager of a Hindu Joint Family, then every brother 1[or sister] or 2[son or sons or daughter 
or daughters of each deceased brother or deceased sister as one separate unit of such brother 
or sister] who has a share in the lands, whether his name is recorded in such  village record 
or not, shall be treated as affected person ;  
(b) a person who is a tenant in actual possession of land under the relevant tenancy law 
in the affected zone at the time of acquisition of land ;  
(c) an occupant whose land in the benefited zone is acquired for construction, 
extension, improvement or development of canals and their banks under irrigation project or 
for establishment of a new gaothan within or outside the benefited zone for rehabilitation of 
persons from affected zone, and whose—  
(i) residual cultivable holding is reduced to less than one hectare after acquisition ; or  
(ii) residual holding stands divided into fragments which are rendered 
unprofitable for cultivation ; or  
(iii) residual holding is rendered uncultivable.  
Explanation.— For the purposes of this sub-clause, the expression “occupant” includes 
a tenant in actual possession of land under the relevant tenancy law in the benefited zone at 
the time of acquisition of land ;  
(d) a person who is an agricultural labourer ;  
(e) a person, not being an occupant or a person referred to in sub-clauses (a), (b), (c) 
and (d), who for a continuous period of not less than five years immediately before the date 
of publication of the notif ication under section 4 of the 3Land Acquisition Act, 1894   
(I of 1894) , has been ordinarily residing or ca rrying on any trade, occupation or calling or 
working for gain in a gaothan in the affected zone ; 
(3) “agricultural labourer” means a person who does not hold any land in the affected zone 
but who earns his livelihood principally by manual labour on agricultural land for not less than 
five years immediately before the area comprising that land is declared to constitute an affected 
zone under section 13, and who has been deprived of earning his livelihood principally by manual 
labour on that land ;  
Explanation.— For the purpose of determining the five years residence in the affected zone, 
the norms shall be as prescribed.  
(4) “agricultural land” includes land used or usable for horticulture, the raising of crops, 
grass or garden produce, dairy farming, breeding of livestock, poultry farming, fish farming, fish 
seed production centre, nursery, growing medicinal herbs or the grazing cattle ; b ut does not 
include land used for cutting of wood only ;  
(5) “beneficiary” in relation to a project means whosoever, either individually or as an 
institution, company, factory gets benefits directly or indirectly from the project ;  
(6) “benefited zone”, in relation t o a project, means the area dec lared under section 13 to 
constitute the area of the benefited zone under that project ;  
(7) “Code” means the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966) ;  
(8) “holding” means the total land held by a person as an occupant or tenant, or as both ;  
Explanation.— For the purposes of this clause, while calculating the total land held by a 
person, the following lands in the benefited zone shall not be taken into consideration, namely :—  
                                                   
1  These words were inserted by Mah. 10 of 2013, s. 2(i). 
2  These words were substituted for the words “son or sons of any deceased brother all together as  one unit” by Mah. 10 of 
2013, s. 2(ii). 
3  Now see the Right to fai r Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 
2013 (30 of 2013). 
2001 : Mah. XI] The Maharashtra Project Affected Persons Rehabilitation 7 
 Act, 1999 
(a) the land on w hich the dwelling house or cattle shed ( gotha) is erected and such 
land shall include also the area adjacent thereto comprising land of three meters surrounding 
such dwelling house or cattle shed (gotha) ;  
(b) the land on which a well has been dug and is shown as such in the village register 
of land records (Village Forms VII and XII) ;  
(c) the land which is shown as unarable or un -cultivable ( pot-kharab) land in the 
village register of land records (Village Forms  VII and XII) for a continuous period of not 
less than five years immediately before the year of issue of the notification under section 11;  
(d) fifty per cent. of the land which is shown as saline ( Khar) land in the village 
register of land records (Village Forms VII and XII) for a continuous period of not less than 
five years immediately before the year of issue of the notification under section 11 ;  
(9) “land pool” means the lands referred to in sub -section (1) and ( 4) of section 14 which 
may be available for rehabilitation of affected person ; 
(10) “project” means,—  
(a) an irrigation project, that is to say, the construction, extension, improvement or 
development or any work for the supply of water for the purpose of irrigation ;  
(b) atomic energy an d power project, that is to say, construction, extension, 
improvement or development of any work for the production or supply of electricity or any 
work conducive to electrical development ;  
(c) a public utility project, that is to say, any work of constr uction, extension, 
improvement or development of public utility including roads, other than irrigation project 
and power project ;  
(d) National Park and Sanctuary declared under the provisions of the Wild Life 
Protection Act, 1972 (53 of 1972);  
(e) an industrial project, that is to say, setting up of production, distribution or service 
industry of providing any service, in relation to them and includes an Industrial Estate ;  
(f) an university project, that is to say, setting up of any university o r any teaching, 
training institution ;  
(g) a chemical project, that is to say, extraction, production and processing of 
chemicals ;  
(h) a mine project, that is to say, extraction of any mineral from the bed of the earth or 
river bed ;  
(i) any composite project of any of the two or more such projects ;  
and includes any work of construction, extension, improvement or development which is incidental or 
supplemental to the execution of a project, such as construction of pump house, lift irrigation scheme, 
colony, etc., and which results in rendering the holders or occupants of land, which may be used for 
such project, as affected persons and in respect of which a notification is issued under section 11 ;  
(11) “project authority” means an officer in whom the  overall control and superintendence 
of the execution of the project vests and includes an officer whom the State Government may, by 
general or special order, designate to be a project authority ;  
(12) “prescribed” means prescribed by rules made under this Act ;  
(13) “revenue division” means a revenue area which forms a division under section 3 of the 
Code ;  
(14) “rules” means rules made under this Act ;  
(15) “Schedule” means the Schedule appended to this Act ; 
8 The Maharashtra Project Affected Persons Rehabilitation  [2001 : Mah. XI 
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(16) “to cultivate ” means to carry on any agricultural operation, and the expression 
“cultivation” shall be construed accordingly ;  
(17) “Village Panchayat” means a Village Panchayat established or deemed to h ave been 
established under the 1Bombay Village Panchayats Act, 1958 (Bom. III of 1959) ;  
(18) words and expressions used in this Act but not defined, shall have the meanings 
respectively assigned to them in the Code. 
CHAPTER II 
CHIEF CONTROLLING AUTHORITY, PROJECT AUTHORITY, 
THEIR POWERS AND DUTIES 
3.  Chief controlling authority in rehabilitation matters.— The Chief controlling authority, in 
all matters connected with the rehabilitation of affected persons in a revenue division, shall, subject to 
the superintendence, direction and control of the State G overnment, vest in the Commissioner 
appointed under section 6 of the Code. 
4.  Duties and functions of chief controlling authority. — Subject to any general or special 
order of the State Government, it shall be the duty of the Commissioner,—  
(a) to impleme nt the rehabilitation programme within the framework or the policy of the 
State Government relating to the rehabilitation of affected persons in his division ;  
(b) to co-ordinate and supervise the work of rehabilitation of affected persons in his division ;  
(c) to ensure speedy rehabilitation of affected persons by requiring the Collector or the 
project authority concerned to undertake the work of rehabilitation simultaneously with the work 
of the project ; and to report to him periodically the progress m ade in the matter of rehabilitation 
of affected persons and by rendering to them such guidance and assistance as the circumstances 
of the case may require ;  
(d) to submit per iodical reports to the State Government regarding the rehabilitation of 
affected persons in his division ;  
(e) to prepare or cause to be prepared annual budget for providing funds for carrying out the 
rehabilitation of affected persons in his division ;  
(f) to disburse the grants duly placed at his disposal for rehabilitation of affected persons, to 
such officers and authorities at such intervals according to their requirements as he may think fit, 
for carrying out the rehabilitation of affected persons ;  
(g) to ensure the proper utilization of grants placed at his disposal and carry out test audit ;  
(h) to perform such other functions as the State Government may, from time to time, by an 
order in writing, entrust to him. 
5.  Duties and functions of Collector.— It shall be the duty of the Collector,—  
(a) to co-ordinate and supervise the work of rehabilitation of affected persons in his district ;  
(b) to ensure speedy rehabilitation of affected persons, within the framework of the policy of 
the State Gove rnment relating to the rehabilitation of affected persons by requiring the project 
authorities and subordinate officers posted to work on the project to attend to the work of 
rehabilitation as may be assigned to them, from time to time ;  
(c) to issue a ce rtificate to a person who is nominated by the project affected person for 
being employed against the quota reserved for the nominees of the affected persons ;  
                                                   
1  The short title of this Act was amended as “the Maharashtra Village Panchayats Act” by Mah. 24 of 2012. 
2001 : Mah. XI] The Maharashtra Project Affected Persons Rehabilitation 9 
 Act, 1999 
(d) to perform such other functions as the State Government or the Commissioner may, 
from time to time, by an order in writing, entrust to him. 
6.  Duties and functions of project authority.—  It shall be the duty of the project authority,— 
(a) to carry out such work for providing the necessary civic amenities in a new gaothan or 
extension of an ex isting gaothan as the case may be, established for rehabilitation of affected 
persons, as may be entrusted to it by the State Government or the Commissioner or the Collector ;  
(b) to take measures for the speedy rehabilitation of the affected persons unde r the overall 
supervision and guidance of the Collector ;  
(c) subject to any reservations validly made and subject to availability of posts, to give 
highest priority in Class III and Class IV category of service on the project establishment, to one 
member of the affected family nominated by the affected person, if such member is eligible for 
such employment according to the recruitment rules for such posts :  
Provided that, while recruiting a member of the affected family,  against such quota, the 
project authority shall, as far as possible, employ not less than fifty per cent. of such nominees 
who are affected by the project under execution, as may be prescribed ;  
Explanation.— For the purpose  of this clause the expression “family” means the spouse, 
son, married or unmarried daughter or brother or sister or daughter -in-law or grandson, or grand -
daughter (which includes son or daughter of the daughter also) of the affected persons, or adopted 
son or daughter who is residing with and is dependent on such affected person.  
(d) to prepare or cause to be prepared annual budget for providing funds for the civic 
amenity works to be provided in a new gaothan or extension of an existing gaothan established 
for the rehabilitation of affected persons ; 
(e) to furnish to the Commissioner and to the Collector, during the various stages of 
planning and execution of the project, information and plans in regard to the affected and 
benefited zone of the project, as may be required for assessing the extent of the  land and other 
facilities required to be provided to the affected persons for their rehabilitation ;  
(f) to execute an agreement with the beneficiary to abide by the provisions of section 10 as 
may be prescribed. 
7.  Delegation of powers to subordinate officers.— (1) The State Government may, by 
notification in the Official Gazette and subject to such restrictions and conditions, delegate such of the 
powers conferred and duties imposed on the Commissioner or the Collector or the project authority by 
or under this Act to such officers of the State Government or local authority as it may deem proper and 
expedient.  
(2) The Commissioner or the Collector may, by order in writing, delegate such of the powers 
conferred and imposed on him by or under this Act,—  
(a) to such officers not below the rank of Tahsildar ; or  
(b) to such officers of the State Government or local authority as, with the approval of the 
Commissioner, may be specified in the order.  
(3) The project authority may, by order in writing, deleg ate such of the powers conferred and 
duties imposed on it by or under this Act to such officers not below the rank of Sub-Divisional Officer, 
Deputy Engineer, Assistant Engineer, Assistant Conservator of Forests.  
8.  Subordination of officers and servants .— For the purposes of this Act, the Collector, the 
project authority and all other officers and servants appointed under this Act shall be subordinate to the 
Commissioner.  
9.  Constitution of Advisory Committee. — For the purposes of assisting it in speed y 
rehabilitation of affected persons, the State Government may, from time to time, constitute one or more 
committees for advising the State Government or any officer connected with the scheme of 
rehabilitation of the affected persons on such matters as may be referred to it by them. The composition 
10 The Maharashtra Project Affected Persons Rehabilitation  [2001 : Mah. XI 
 Act, 1999  
of such committee, the regulation of its business, the allowances or fees, if any, to be paid to its 
members and all matters incidental thereto shall be such as the State Government may, from time  to 
time, by general or special order, determine. 
CHAPTER III 
REHABILITATION OF AFFECTED PERSONS 
10.  Rehabilitation of affected persons. — (1) The State Government shall in accordance with 
the provisions made by or under this Act and subject to the availability of sufficient land for the 
purpose, rehabilitate affected persons from the affected zone under an irrigation project, on land in the 
villages or areas receiving benefit of irrigation from such project. 
(2) Nothing in section 14 or any other provisions of this Act or any other law for the time being in 
force shall prevent the State Government from rehabilitating, in accordance with the other provisions 
made by or under this Act, as many persons as possible from the affected zone under any other project 
to which the provisions of this Act apply or not, including those under any irrigation project who have 
remained to be rehabilitated,—  
(a) on land in benefited zone of any irrigation project or, as the case may be, in other 
villages or areas, acquired for the purpose under the provisions of section 14 ; or  
(b) on any land from the land pool.  
(3) The State Government shall provide civic amenities in the prescribed scale and manner in the 
new gaothan or in the extended part of any existing gaothan established for the purpose of 
rehabilitation of affected persons and such amenities shall include the following, namely :—  
(a) permanent provision for d rinking water, in proportion to the population, by open well, 
bore well, tube well, piped water supply scheme or by any other mode ;  
(b) school with playground of appropriate level as prescribed by the Education Department 
of the State Government with toilet facilities ;  
(c) construction of Village Panchayat Office and Chavdi or Samaj Mandir ;  
(d) internal metal roads and asphalted approach road of appropriate standard ;  
(e) an access to the farm lands of the affected persons, if required ;  
(f) electric supply along with street lights, and three phase connections, wherever required ;  
(g) cremation ground with a shed, platform, electric supply, water supply and burial ground, 
as may be required with an approach road ;  
(h) open built-up gutters ;  
(i) financial assistance for individual latrines and public latrines, whenever necessary ;  
(j) land for cattle stand with a water cistern ;  
(k) land with pick up shed for Maharashtra State Road Transport Corporation bus services ;  
(l) land for threshing floor, that is to say, khalwadi ;  
(m) pasture land (if Government land is available) ;  
(n) developed land for market ;  
(o) land for future expansion of gaothan ;  
(p) land for a secondary school and a dispensary or primary health centre, bank, post -office, 
garden for children, etc., depending on the population of the new gaothan ;  
(q) land for registered bodies for public purposes in the old gaothan ;  
(r) land for play ground. 
2001 : Mah. XI] The Maharashtra Project Affected Persons Rehabilitation 11 
 Act, 1999 
(4) In addition to the amenities listed above, the State Government shall also provide, to an 
appropriate standard, in the new gaothan having majority of the affecte d persons, all such other 
amenities which existed in the old gaothan :  
Provided that, the places of public worship shall not be constructed by the Government, however, 
the compensation for the places of public worship in the old gaothan shall be awarded to the concerned 
Public Trust and if the places of public worship do not belong to any public trust, such places of public 
worship shall be constructed as provided in the Maharashtra Religious Endowments (Reconstruction 
on Resettlement Sites) Act, 1970 (Mah. XXX of 1970).  
(5) The expenditure on all such amenities in sub -sections (3) and ( 4) above shall be part of the 
cost of the project.  
(6) ( a) In all Class III and Class IV category of services under the establishment of the State 
Government Departments, public sector undertakings, local self government, government -aided 
institutions and co -operative societies specified under section 73A of th e Maharashtra Co-operative 
Societies Act, 1960 (Mah. XXIV of 1961)  there shall be not less than five per cent. priority quota for 
the employment of nominees of the affected persons.   
(b) The beneficiary persons, societies, companies, factories, sugar -factories, spinning -mills 
assisted by the State Government in the form of matching share contribution etc., shall p rovide 
employment to not less than five per cent. of the cadre strength of Class III and Class IV or equivalent 
of non-technical employees to the nominees of the affected persons :  
Provided that, the above priority shall be treated as preference among the  open and different 
reservation categories in pro-rata manner.  
(c) The Collector shall maintain a register showing the recruitment position in the District and 
ensure removal of the backlog in recruitment of the nominees of the affected persons. However, at any 
recruitment, the percentage of the persons so recruited from amongst the nominees shall not exceed 
fifty.  
11.  Areas of affected and benefited zone to be notified. — (1) In respect of a project to which 
this Act applies, the Commissioner of the reve nue division, in which the entire or major part of the 
project lies, shall by notification in the Official Gazette—  
(a) specify the village ; or areas, if any, which are likely to be in the affected or benefited 
zone of such project ;  
(b) s pecify, provisionally the area of holding in such villages or areas if any, to which 
restriction specified in section 12 shall apply.  
(2) Such notification shall be published in the villages or areas which are likely to be in the 
affected or benefited zones, by beat of drums and by affixing a copy of notification in some prominent 
place or places in the zones, and in the village chavdi and in the office of the Village panchayat, if any, 
and also in the office of the Tahsildar, the Collector, the project authority and the Commissioner. 
12. Restrictions on transfer, sub-division, partition, conversion or improvement of land.— (1) 
Notwithstanding anything contained in any law for the time being in force, no agricultural land in the 
villages or areas specified in the notification under section 11 shall, after publication of the notification in 
the Official Gazette, and until Collector makes a declaration to the effect that no further land in the 
benefited zone of any particular village or area therefrom is required for the purpose of this Act, be—  
(a) transferred whether by way of sale (including sale in execution of a decree of civil court 
or of an award or order of any other competent authority) or by way of gift, exchange, lease or 
otherwise ;  
(b) sub -divided (including sub -division by a decree or order of any court or any other 
competent authority) ; or  
(c) partitioned (including partition by a decree or order of any court or any other competent 
authority) ;  
(d) converted to non-agricultural purpose ; or  
12 The Maharashtra Project Affected Persons Rehabilitation  [2001 : Mah. XI 
 Act, 1999  
(e) improved by making substantial additions and alternations, except with the permission in 
writing of the Commissioner.  
(2) The Commissioner may refuse to give such permission, if in his opinion, the transfer, sub -
division, partition, conversion or improvement of land is likely to defeat the object of this Act, or may 
give such general or special permission, subject to such conditions, if any, as he may deem fit to 
impose to carry out the object of this Act, including a condition that the grant of such pe rmission shall 
be without prejudice to the area of land liable to be compulsorily acquired under section 14 on the basis 
of any holding as it existed immediately before the grant of such permission.  
(3) Any transfer, sub -division, partition, conversion or  improvement of land made in 
contravention of sub -section (1) or of any condition imposed under sub -section (2), shall be void and 
inoperative.  
(4) Any transfer, sub-division, partition, conversion or improvement of any land in the villages or 
areas specified in notification under section 11 and to which restrictions specified in this section apply, 
made on or before the date of such notification shall not be taken into consideration for the purposes of 
sub-section (4) of section 14, unless such transfer, sub-division, partition, conversion or improvement 
is made—  
(a) by mets and bounds  and entries in respect thereof are recorded in the relevant village 
record after due certification ; or  
(b) by decree to that effect and entries in respect thereof are rec orded in the relevant village 
records after due certification or the proceedings are pending before the Revenue Authorities for 
recording the entries in respect of the same in the relevant village records. 
13.  Declaration of areas in affected or benefited  zones.— (1) As soon as may be practicable, 
the Collector shall give a public notice inviting objections or suggestions in respect of the lands within 
his District and falling under clauses ( a) and (b) of sub-section (3) of this section, by publishing in the 
manner specified in sub -section ( 2) of section 11 and also in the Official Gazette  and in one daily 
newspaper in Marathi language with wide circulation in the local area comprising such village in areas 
of the affected and benefited zones.  
(2) Any person interested in the land in such areas may submit objections or suggestions, if any, 
to the Collector within 30 days from the date on which such public notice is published by beat of 
drums in the village or area concerned, or the date on which i t is published in the newspaper as 
aforesaid, whichever is later, and the Collector, shall with all reasonable despatch, forward any 
objections or suggestions so made together with his report in respect thereof to the Commissioner and 
on considering the report and the objections and suggestions, if any, the Commissioner may pass such 
order as he deems fit.  
(3) The Commissioner shall, not later than three years in case of major irrigation projects and not 
later than one year in case of other projects from t he date of publication of notification under section 
11, shall by notification in the Official Gazette , and also by publication of such notification in the 
manner provided in sub-section (2) of section 11, declare—  
(a) the extent of area which shall constitute the area of affected zone under the projects,  
(b) the extent of the area of benefited zone under the project if the project is an irrigation 
project,  
(c) which of the slabs mentioned in the Part II of the Schedule shall apply to such project for 
the purpose of acquisition of land in the benefited zone :  
Provided that, it shall be lawful for the Commissioner to notify the affected zone and the 
benefited zone by separate notifications.  
(4) The project authority shall furnish to the Collector detaile d map of at least 25 per cent. of the 
area of the benefited zone in case of a major irrigation project and 100 per cent. of the area in case of 
other projects within one year from the date of notification under section 11.  
2001 : Mah. XI] The Maharashtra Project Affected Persons Rehabilitation 13 
 Act, 1999 
(5) If, at any time during the course of execution of a project, the project authority is satisfied that 
any change in the areas mentioned in the notification under sub -section ( 3) is necessary, it shall 
communicate such change with reasons and the plans and particulars relating to the c hange to the 
Commissioner through the Collector.  
(6) On receipt of the communication under sub -section (5) and the report of the Collector, if any, 
Commissioner may, after considering the reasons given by the project authority and in the report, if 
any, of the Collector and making such enquiry, if any, as he thinks fit, make such change in the manner 
laid down in sub-sections (1), (2) and (3). 
(7) On publication of the notification as provided for in sub-section (3) or (6), as the case may be, 
the restrictions laid down in sub -section ( 1) of section 12 shall not apply to lands which are not 
included in the benefited zone or the affected zone of the project in the villages notified under  
sub-section (1) of section 11.  
14. Power to purchase or acqui re land for purposes of this Act. — (1) The Commissioner or 
the Collector authorised by him by general or special order in this behalf may purchase or exchange 
any land required for carrying out the purposes of the Act :  
Provided that, the amount paid for the purc hase of the land under this sub -section shall be 
approximately equal to the amount of compensation payable for the land had it been acquired in 
accordance with the provisions of sub-section (2).  
(2) Subject to the provisions of this section, the C ommissioner may for carrying out the purposes 
of this Act, also com pulsory acquire land under the 1Land Acquisition Act, 1894 (I of 1894 ) and the 
acquisition of any land for any of the said purposes shall be deemed to be a public purpose within the 
meaning of that Act.  
(3) The Commissioner may acquire lands included in a gaothan in the affected zone as far as 
practicable according to the provisions of Part I of the Schedule.  
(4) For the purpose of rehabilitating affected persons from the affected zone und er an irrigation 
project, including those under any irrigation project, who have remained to be rehabilitated, on land, 
the Commissioner may acquire land from holding in the benefited zone of the project according to the 
slab declared in the notification u nder sub -section ( 1) of section 13 and may also acquire, where 
necessary, land from any other villages or areas, as it may deem fit.  
(5) All lands acquired under this section shall form part of the land pool.  
(6) An affected person who is entitled but do es not want alternative land in the benefited zone 
shall be paid fifty per cent. amount of the value of the land offered to him, such value having been 
worked out on the basis of the true market value estimated in the prescribed manner on the basis of the 
land rates determined and issued, at the relevant time, in the form of Annual Statement of Rates, by the 
Chief Controlling Authority under the Bombay Stamp (Determination of True Market Value of 
Property) Rules, 1995, framed under the 2Bombay Stamp Act, 1958 (Bom. LX of 1958).  
15. Preparation of proposals of rehabilitation and publication, thereof. — Subject to the 
general or special order which the Commissioner may make in this behalf, the Collector shall prepare, 
within six months from the date of notification under sub-section (3) of section 13, the proposals in one 
or more stages, from time to time, as the circumstances may require for rehabilitation of the affected 
persons from the affected zone under a project and publish a notice containing such pro posals in the 
manner laid down in sub-section (2) of section 11 for the information of such affected persons. 
16.  Grant and assignment of land and payment of special grant. — (1) An eligible affected 
person who is desirous of getting land or plot or both i n the area shown for the purpose in the scheme 
published under section 15 may make an application to the Collector in the prescribed form for grant of 
land or plot, and subject to such rules as may be prescribed, it shall be lawful for the Collector—  
                                                   
1  Now see the Right to fair compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 
2013 (30 of 2013). 
2  The short title of this Act was amended as “the Maharashtra Stamp Act” by Mah. 24 of 2012. 
14 The Maharashtra Project Affected Persons Rehabilitation  [2001 : Mah. XI 
 Act, 1999  
(a) to grant land acquired under section 14 to such affected person with the occupancy status 
on the land held by him earlier ;  
(b) to grant a plot of land to such affected person in a new gaothan or extended part of the 
existing gaothan with the occupancy status on the land held by him earlier and rupees ten 
thousand as a special grant for construction of house on such plot,  
in such manner, as far as possible, according to the provisions of parts III and IV of the 
Schedule and on such terms and conditions as may be prescribed :  
Provided that—  
(i) if the allottee of the land under sub -clauses ( a) and ( b) of sub -section ( 1) is an 
occupant Class II, he shall be entitled to conversion of the land to occupant Class I after a 
period of ten years on payment of premium as may be prescribed ;  
(ii) the affected person referred to in sub -clause (d) of clause ( 2) of section 2 shall be 
eligible to a constructed house on the basis of the Indira Awas  Scheme of the State 
Government ;  
(iii) the affected person referred to in sub -clause (e) of clause ( 2) of section 2 shall be 
eligible only for grant of a plot under clause (b) ;  
(iv) subject to the provisions of sub -sections (2) and ( 3), the occupancy price of the 
land or plot, as the case may be, granted under clause (a) or (b), except under sub-clause (ii) 
above, shall be determined and paid in the manner as may be prescribed.  
(2) An affected person eligible for the grant of land or plot under sub -section (1) shall forfeit his 
right to get the same if—  
(a) he fails to communicate his willingness to accept the grant of land or plot made to him, 
to the Collector within a period of forty -five days from the date of receipt by him of a notice in 
that behalf from the Collector ; or  
(b) he fails to deposit with the Collector, towards occupancy price of the land, sixty-five per 
cent. of the amount of compensation which he has received for his land which is acquired from 
him in the affected zone or of the likely cost of the land to be granted to him und er sub-section 
(1), whichever is less, at the time of payment of such compensation to such affected person. 
(3) After payment of the amount under clause ( b) of sub -section ( 2), the remaining amount  
towards the occupancy price pa yable by the affected person  for the land allotted to him shall be 
recovered from him free of interest in such manner and instalments as may be prescribed :  
Provided that, the first instalment of such recovery shall commence one year after the irrigation 
facility is made available to him.  
(4) The State Government shall pay a special grant to all such affected persons who have 
deposited an amount as per clause ( b) of sub-section (2) of this section but have not been alloted land 
in the benefited zone and the rate of the special grant  shall be rupees four hundred per mensem for the 
period from the date of actual displacement of the person from the land to the date of allotment of land 
in the benefited zone.  
(5) Nothing in this Act shall prevent the project authority to lease out to the affected person the 
land acquired from him till the gorge filling of an irrigation project is taken up and not used for 
quarrying dam seat, etc.  
(6) Nothing in this Act shall pr event the Collector to lease out to the affected person the land 
acquired from him in the benefited zone, which is still in his possession, for whatever reason, till the 
possession of such land is granted to any eligible affected person and such land shall  be given only on 
lease.  
2001 : Mah. XI] The Maharashtra Project Affected Persons Rehabilitation 15 
 Act, 1999 
17.  Power to grant developed land to the project affected person. — 1[(1)] Where the 
acquiring body disposes developed land from the land acquired for the purposes of the project, the 
project affected person would be entitled to twelve and half per cent. develop land of the land acquired 
from him, on payment of amount prescribed by State Government.  
2[(2) Notwithstanding anything contained in sub -section ( 1), it shall be lawful for the State 
Government to grant such alternative be nefits to the project affected person in lieu of the developed 
land as the State Government may notify taking into consideration the nature of the project and the 
local conditions.]  
18.  Execution of layout by project authority or any other agency and aft er completion, 
vesting thereof in Zilla Parishad.— The execution of every lay out of a new gaothan or the extension 
of an existing gaothan, as the case may be, in so far as it relates to public utilities, civic and other 
amenities and services shall be car ried out by the respective project authority, or where the 
Commissioner considers it necessary so to do, it may by an order in writing entrust it to any such 
agency as it may deem fit. On completion of the said works in all respects and on issue of a certi ficate 
in writing by the Collector under his hand and seal to that effect, the said works shall, for all purposes 
vest in the Zilla Parishad  having jurisdiction over the area included in the new gaothan or the 
extension of an existing gaothan, as the case may be, as if it were a deve lopment scheme undertaken 
by that Zilla Parishad under the provisions of the Maharashtra Zilla Parishads and Panchayat Samitis 
Act, 1961 (Mah. V of 1962). 
19.  Transfer of encumbrances.— (1) Save as otherwise provided in any other law for the time 
being in force, where any land held by an affected person in an affected zone is burdened with a 
mortgage, debt, or other encumbrance, such as mortgage, debt, or other encumbrance shall be deemed 
to be transferred therefrom and attach itself to the land, granted to such affected person under section 
16, and the mortgagee, creditor or, as the case may be, other encumbrancer shall exercise his rights, 
accordingly.  
(2) If the land to which a mortgage,  debt or other encumbrance is transferred under sub -section 
(1) is of less market value than the original land from which it is transferred, the mortgagee, creditor or, 
as the case may be, other encumbrancer shall, save as otherwise provided in any other l aw for the time 
being in force, be entitled to the payment of such compensation by the affected person owning the land 
as may be determined by the Collector.  
(3) Notwithstanding anything contained in sub-sections (1) and (2) or in any agreement or in any 
law for the time being in force, a mortgagee, creditor or, as the case may be, an encumbrancer shall 
not, for any money advanced or any loan given under such mortgage, debt or encumbrance, whether 
before or after the commenc ement of this Act, recover in any manner, whatsoever, on account of 
interest, a sum greater than the amount of the principal of the money advanced or of the loan.  
20.  Disposal of acquired lands with structures, there  on completion of project.— When any 
land is acquired by the Government for the purpose of a project and on which the Government or any 
other Semi-Government Authority or body has constructed any offices or any other structures and on 
the completion of such project, such land with the construc tions thereon, is no more required by the 
Government or such authorities or bodies, such land along with the constructions, may be disposed of 
by the Government in the prescribed manner, and subject to such terms and conditions as may be 
specified by the Government.  
CHAPTER IV 
MISCELLANEOUS 
21.  Penalty.— (1) If any person knowingly furnishes any false information under this Act or 
obstructs in cultivation of land given to an affected person under this Act, he shall be punished with 
imprisonment which may extend to three months or with a fine which may extend  to five thousand 
rupees, or with both :  
                      

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