17. Compulsory acquisition of land -

(1) If in the opinion of the State Government any land is required for the purpose of development or for any other purpose, under this Act, the State Government may acquire such land under the provisions of the Land Acquisition Act, 1894 :

Provided that any person from whom any land is so acquired may after the expiration of a period of five years from the date of such acquisition apply to the State Government for restoration of that land to him on the ground that the land has not been utilized within the period for the purpose for which it was acquired and if the State Government is satisfied to that effect it shall order restoration of the land to him on repayment of the charges which were incurred in connection with the acquisition together with interest at the rate of twelve percent per annum and such development charges if any as may have been incurred after acquisition.

(2) Where any land has been acquired by the State Government, that Government may after it has taken possession of the land, transfer the land to the [State Authority or any Local Development Authority as the case may be] 1 or any local authority for the purpose for which the land has been acquired on payment of [State Authority or any Local Development Authority as the case may be] 1 or the local Authority of the compensation awarded under that Act and of the charges incurred by the Government in connection with the acquisition. 

1. Substituted by section 17 (1) of Uttarakhand Act No. 25 of 2013.

17-A. [Land Bank of State Authority -

The State Authority shall have the power to create its own Land Bank through:--

(a) the State Government under the Land Acquisition Act, or

(b) Surplus land received from the State Government, or,

(c) the Land Acquisition/Pooling Policy of the development authorities or,

(d) Purchase of land from any private person/agency / company, private or public.

2. Added by section 17 (2) ibid.

17-B . Disposal of land by the State Authority-

(1) The State Authority may dispose of/transfer –

(a) any land of its land bank to any of the Local Development Authority/Company/Agency/Person, Private or Public for providing affordable housing to the weaker sections of the society;

(b) any land acquired by the State Government and transferred to it without carrying out any development thereon ; or

(c) any such land after carrying out such development as it thinks fit, to any Local Development Authority or any local authority or to such persons, in such manner and subject to such terms and conditions as it considers expedient for securing the development according to plan.

(2) Nothing in this Act shall be construed as enabling the State Authority to dispose of land by way of gift, but subject thereto, references in this Act, to the disposal of land shall be construed as references to the disposal thereof in any manner, whether by way of sale, exchange or lease or by the creation of any easement, right or privilege or otherwise.

(3) Notwithstanding, anything contained in sub-section (2), the State Authority may create a mortgage or charge over such land (including any building thereon) in favor of the Life Insurance Corporation of India, the Housing and Urban Development Corporation, or a banking company or any other financial institution approved by general or special order in this behalf by the State Government.]3

1. Omitted by section 5(i) of U.P. Act No. 19 of 1976.

2. Subs. by section 5 (ii) ibid.

3. Added by section 17 (2) of Uttarakhand Act No. 25 of 2013.

18. Disposal of land by the authority or the local authority concerned-

(1) Subject to any directions given by the State Government in this behalf, the Authority or as the case may be, the local Authority concerned may dispose off—

(a) any land acquired by the State Government and transferred to it without undertaking or carrying out any development thereon; or

(b) any such land after undertaking or carrying out such development as it thinks fit, to such persons, in such manner and subject to such terms and conditions as it considers expedient for securing the development of the development area according to plan.

(2) Nothing in this Act shall be construed as enabling the Authority or the local Authority concerned to dispose of land by way of gift [***]1 but subject thereto, references in this Act to the disposal of land shall be construed as references to the disposal thereof in any manner, whether by way of sale, exchange or lease or by the creation of any easement, right or privilege or otherwise.

[(3) Notwithstanding anything contained in sub-section (2), the Authority or the local authority concerned may create a mortgage or charge over such land (including any building thereon) in favour of the Life Insurance Corporation of India, the Housing and Urban Development Corporation or a banking company as defined in the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972 or any other financial institution approved by general or special order in this behalf by the State Government.]

[(4) Where vacant land has been disposed of under this section by way of lease for making constructions within the stipulated time within right of forfeiture of the lease and re-entry upon failure to make constructions within such time and the lessee fails without sufficient reason, to make the constructions or a substantial portion thereof, within the stipulated time or such extended time as the lessor may grant, [the lessor may, subject to the provisions of sub-section (4-A) forfeit]1 the lease and re-enter upon the land :

Provided that no forfeiture and re-entry shall be made unless the lessee has been allowed reasonable opportunity to show cause against the proposed action.

[(4-A) Where a lessee fails to make construction within the stipulates time and the extended time, if any, under sub-section (4) so that the total period from the date of lease exceeds five years, a charge at the rate of two percent of the prevailing market value of the concerned land shall be realized every year from him by the lessor and if from the date of imposition of the said charge a further period of five years elapses, the lease shall stand forfeited and the lessor shall re-enter upon the land :

Provided that where the period of five years has expired before the commencement of the Uttar Pradesh Urban Planning and Development (Amendment) Act, 1997 or where the period of five years expires within one year after such commencement, the charge shall be realizable after a period of one year from the date of such commencement.]2

(5) Upon such forfeiture and re-entry, the premium paid by the lessee for such land shall be refunded without any interest, after deducting—

(a) the amount, if any, due to the lessor under that lease; and

(b) a sum equivalent to 5 percent of the premium, for administrative expenses.

(6) Any person aggrieved by an order under sub-section (4) may, within 30 days from the date of knowledge thereof, prefer an appeal to the District Judge whose decision shall be final.

(7) The land so re-entered upon after forfeiture of lease may be disposed of in accordance with the provisions of sub-sections (1) and (2).]3

1. Ins. by section 5 (a) of U.P. Act No. 3 of 1997.

2. Added by section 5 (b) ibid.

3. Subs. by section 5 of U.P. Act No. 21 of 1985.

19. Nazul lands -

(1) The State Government may by notification in the Gazette and upon such terms and conditions as may be agreed upon between that Government and the Authority, place at the disposal of the Authority, all or any developed and undeveloped lands in the development area vested in the State (known and hereinafter referred to as “nazul lands”), for the purpose of development in accordance with the provisions of this Act.

(2) After any nazul land has been placed at the disposal of the Authority under sub-section (1), no development of any such land shall be undertaken or carried out except by or under the control and supervision of the Authority.

(3) After any such nazul has been developed by or under the control and supervision of the Authority it shall be dealt with by the Authority in accordance with directions given by the State Government in that behalf.

(4) If any nazul land placed at the disposal of the Authority under sub-section (1) is required at any time thereafter by the State Government, the Authority shall by notification in the Gazette, replace it at the disposal of that Government upon such terms and conditions as may be agreed upon between that Government and the Authority.