purpose of valuation

8/9/2019 Purpose of Valuation

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CONTENTS

Introduction...........................................................................................................1

1.1)Land Acquisition...........................................................................................1

1.2)Basic Principles of the Land Acquisition Act.................................................1

1.3)Procedure for Acquisition of Land.................................................................2

1.3.1Investigation............................................................................................2

1.3.2Objective and confirmation.....................................................................3

1.3.3Claim and Award.....................................................................................4

1.3.4The Land Acquisition Officer....................................................................4

1.3.5The claim filed before a Land Acquisition Officer must contain:..............4

1.3.6Method of Valuation................................................................................5

1.3.7Technique of valuation............................................................................5

1.3.8Depreciation ...........................................................................................5

1.3.9Depreciation as decrease in worth..........................................................6

1.4)What is Fair Value?.....................................................................................10

1.5)Determination of Fair Value........................................................................10

Brief Details of Project.........................................................................................11

1.1Project Information......................................................................................111.1.1Vithalvadi and Ahiraula Bypass.............................................................11

1.1.2Kalyan Bridge........................................................................................11

1.1.3Land-acquisition by the method of private negotiation.........................12

1.1.4Land-acquisition by the method of private negotiation under

Resettlement & Rehabilitation Policy.............................................................12

Methodology........................................................................................................13

1.2Collection of Data from secondary sources.................................................13

1.3Methods Of Valuation..................................................................................13

1.3.1Valuation Based on Circle Rates:-..........................................................13

1.3.2Valuation based on the twenty times of the Gross Annual Agricultural

Produce ........................................................................................................15

1.3.3Sale Statistics Method / Valuation based on registered Sale Deed........16

Determination of Replacement Value..................................................................19


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VALUATION VALUATION OF LAND ACQUISITION

Introduction

1.1) Land Acquisition

Land Acquisition means acquiring of land for some public purpose bygovernment/government agency, as authorized by the law, from the

individual landowner(s) after paying government fixed compensation in lieu

of losses incurred by land owner(s) due to surrendering of his/their land to

the concerned government agency.

The subject of land acquisition can broadly be classified into two categoriesnamely:

Acquisition subject to payment of amount

Acquisition subject to payment of compensation

The first category deals with deprivation of property through the channel ofacquisition and law under which deprivation comes into effect has to be fair and

reasonable and it has also to provide modalities by which amount to be paid

computed. The living examples of this type of deprivation are Banks, Insurance

companies, Coal mines etc. the amount to be paid here has no relationship with

the market value and its extent does carry necessary content of social

reservation, a share of society in general.

The second category deals with acquisition of land needed for public utilities like

Atomic reactors, Oil refineries, Gardens etc for which it is essential to have land

at a fair price so as to fix the public finance to be minimum.

The Government of India has enacted the Land acquisition act in 1894, which has

been amended from time to time looking to the circumstances and needs of the

time. It gives no option to an individual if his land is required for a public purpose

and thus sale by him is compulsory.

1.2) Basic Principles of the Land Acquisition Act

Land or Properties required for a public purpose

Sale by an Owner is compulsory and there is no option in the same

Owner to get market value as against sentimental or monopoly value andno cut from the set market value towards social reservation

Property is acquired free from all encumbrances

In addition to the market value, an Owner will be entitled to additionalcompensation of 30% on the value of such land for compulsory acquisitionwhich is known as Solatium.

1 School of Building Science And Technology, CEPT University ImranMansuri (1204)

Maulik Panchal (1303)


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1.3) Procedure for Acquisition of Land

The procedure for acquisition of land can be divided into following parts:

1.3.1Investigation

When land is required by a local authority or a company, an application is

required to be made by it to the revenue authority, the application to be

accompanied with a copy of plan showing Survey No., purpose of acquisition and

the reasons as to why this particular site has been selected for purpose of

acquisition. It must also contain the provision made for the cost of acquisition

proceedings. The application must contain the fact that the local authority or the

company as the case may be, did try in first instance to purchase the land by

negotiations which did not materialize for one reason or another and hence the

need for acquisition proceedings.

After the government has been fully satisfied about the purpose the least area

needed, and other relevant facts as provided under Land Acquisition rules, it will

issue a notification under Section 4 of the Act in the State Government Gazette

Part I, that the particular land is needed for a public purpose. One of the

revenue officers will the appointed to function as Collector to hold an enquiry

under Section 5 A of the Act.




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Section 4 of the Act is very important as it fixes the material date for

determining the market value of a property. After notification under Section 4,

the owner is prohibited from selling his property or disposing of in any manner

he likes and further prevented from carrying out any works of improvement or

renovations for which no compensation will be payable if executed without

obtaining prior permission from the collector.

1.3.2Objective and confirmation

Generally, the notice for acquisition of a particular land will be served on all

persons interested in land, inviting their objections to the said acquisition within

30 days from the date of notification under Section 4 or from further date as

may be fixed by the collector.

The objections to the acquisition will be valid on one or more of the following

grounds namely:

1. That the purpose for which the land is proposed for acquisition is not apublic purpose.

2. That the land is not suitable for the said purpose.3. That land under acquisition is less suitable than the other piece of land.4. That the area under acquisition is excessive.5. That the acquisition is a malafide one.6. That the acquisition will destroy or impair the amenity of historical or

artistic monuments and places of public resort or will take away importantpublic rights of way or other conveniences or will desecrate religiousbuildings, graveyards and the like.

The collector after hearing the parties will submit his report to the Government

with his observations and if the Government is satisfied about the same, it will

declare finally the land for acquisition under Section 6; on the other hand if the

objections of the owners are upheld the Government can cancel the notification.

Section 6 provides time limit of one year from the date of publication of

notification for the declaration to be made that land is required for a public

purpose.

After the publication of the notification under Section 6 the Land Acquisition

Officer will proceed with the claim etc.

At times, the owner may file objections when the acquiring body desires to

acquire part of the property instead of whole. This will be under the provision of

Section 49(1) which prevents the Government from putting in force the

provisions of Land Acquisition Act in respect of only a part of the property when

the owner objects to the same. In this case if the owner desires and the

occupying body also agrees, the acquisition is proceeded further by notifying the

rest of the property afresh. However, if there is any dispute as to whether a

particular part notified does or does not form an integral part of the whole




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property, it is obligatory on the part of Land Acquisition Officer to refer such

matter for the determination of the court. If the court holds in favour of the

claimant, the acquisition in respect of part is quashed, and Land Acquisition

Officer will have to proceed further de novo for the acquisition of whole of the

property.

Section 49(2) deals with the rights of claimants for the claim of severance and

injurious affection to the rest of property on account of part acquisition. In case

the claim on account of severance or injurious affection is considered to be

excessive and unreasonable and if the Government feels it worthwhile acquiring

the rest of the property in0stead of paying compensation towards severance or

injurious affection and if the acquiring body also consents, the rest of the

property may be acquired by the Government, in which case, a simple order of

Government to acquire the same, entitles the acquisition of whole property and

the Land Acquisition Officer proceeds accordingly.

1.3.3Claim and Award

The Land Acquisition Officer will issue notices under Section 9 to all the persons

interested in the acquisition, including the occupants, to file their claim reports.

He will conduct the necessary enquiries which are not judicial ones and his

award is merely an offer.

1.3.4The Land Acquisition Officer

Is not to be a party to the proceedings

Is to possess an expert knowledge on valuation

To offer a fair price to an owner; and

Is to check that the public funds are not wasted.

1.3.5The claim filed before a Land Acquisition Officer must

contain:

Name of the claimants and co- shares if any with their shares, a written

declaration is required to that effect.

Document of profits

Rents or profits for last 3 years

Valuation report of an architect or engineer together with the

documentary evidence in support of the same.




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Whether the area given in notice issued by the collector is acceptable or

not.

A claim can either be made (1) After necessary notice has been issued by the

Land Acquisition Officer (L.A.O) or (2) SUO MOTO (Easement rights of a dominant

owner over the property under acquisition in which case the neighbours does notreceive any notice from the L.A.O unless such rights are recorded in the

collectors office as he has to file his claim report in response to the general

notice pasted on site.)

The Government has got the right to abandon the acquisition proceeding at any

time before the final declaration under Section 6 by simply canceling the

notification under Section 4.

In case, however, the Government desires to drop any acquisition proposal after

notification under Section 6, in respect of land the possession of which is not

taken over, it can do so under Section 48(1) of L.A. Act. However, in such cases,

compensation as provided under Section 48(2) will be required to be paid.

Leaving aside other legal aspects of various Sections of the Act, Section 23, 24 &

30 are important from valuation point of view as they provide what matters are

required to be considered and what matters are required to be neglected in

determining compensation and thus deal with the main principles of law of

compensation in India, along with appointment of compensation among

interested parties if any.

1.3.6Method of Valuation

The mode of valuation is not governed by any uniform rule and must be left to

the discretion of the collector and the court having regard to the nature of the

property. Thus the features of the property, circumstances of the case, probable

potentiality etc will determine the method of valuation to be applied. Having

regard to all these and other aspects the honorary courts have declared the

applicability or non-applicability of certain methods of valuation. Out of a number

of methods the courts have adopted income capitalization method or physical

method, the latter method having further offshoots like, comparables, land and

building mode, hypothetical building scheme, developers method, flat rate

technique and valuation belts.

1.3.7Technique of valuation

Nature of rent, outgoings, interest structure, years purchase, land value and

reversion (concept sent in oblivion in places where rent control regulations rule,

the field of relationship between tenant and landlord) are some of the important

ingredients of income capitalization technique.

1.3.8Depreciation




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It is a term derived from the Latin worked depretiatum meaning the fall in value

or becoming less in worth. In general sense it means getting consumed,

decayed, damaged, obliterated or worn out. It represents a loss caused by

factors like decay, wear and tear, actions of elements of nature, insufficiency or

inadequacy, obsolescence, changes in art and fashion, changes in demands etc.

Earlier the depreciation as a cost was not involved because of the absence of

long lived property or asset in commercial usage. But as the commerce and

individual ownership developed, the concept of estimating the charge for

consumption of long lived assets was evolved. In spite of treating depreciation

as loss or fall in value, its application in practice is always based on cost and not

on value.

Depreciation is used in the following two distinct meanings:

Depreciation as cost in operation

Depreciation as decrease in worth

The former leads to the cost deprecation and the latter leads to the value

depreciation. For the purpose of valuation of real properties, the application is to

be made of value depreciation and not the cost depreciation.

1.3.9Depreciation as decrease in worth

The term depreciation is used to convey decrease or decline, or lessening in

worth. The value of an asset depends on its capacity to render satisfying services

during its estimated or expected future life. The present worth of these expectedsatisfying services in tangible or intangible form represents its value at a

particular time. It may be in the form of returns that may be monetary or

satisfactions or enjoyments or sentiments. Hence, the decrease or decline in

value is reduction in its present worth of expected probable future satisfying

services. The basic measure of decrease in value will be the difference between

present worths of the assets for two distinct times or town distinct service

conditions.

Following are the three main causes responsible for depreciation as understood

by the decrease in worth:

1. Physical conditions

2. Functional obsolescence

3. Economic obsolescence

1) Physical conditions




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Following are the physical conditions for such type of decrease in worth:

a. Due to general wear and tearb. Due to elements of nature such as heat, cold and wind; &c. Due to structural deterioration

If proper maintenance and repairs are carried out, the items covered under (a)

and (b) can be taken care of such as leaky roofs, cracks in plaster, damages in

service lines, etc. these deteriorations are remediable by proper maintenance

and repairs and in certain cases, by incurring special expenses for repairs. These

remediable can be measured item wise and amount of expenses necessary can

be estimated. This is called the physical depreciation curable.

The structural deterioration is due to cheap construction, cheap materials, poor

workmanship and concealed items like improper foundations, load bearing walls,

columns etc. these can be remedied at prohibitive cost and will not be

satisfactory to profitable contribution and thus, it constitutes the physical

depreciation incurable.




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2) Functional obsolescence

The functional obsolescence means the mode by which the purpose was to be

fulfilled has gone out of use or out of date at a particular time. The functional

obsolescence is due to the causes within the structure or the asset itself. These

are of two types namely;

(i) Curable: The items which can be remedied by expenditure and they includedrainage and waste connections, changes in utility areas, provisions or toilets,etc.(ii) Incurable: the items, which can be remedied by incurring heavy out of,

proportion expenses and they include increasing the floor heights, rearranging of

upper floors, etc.

In all cases the expenses to be incurred will be out of proportion to the value

created by such expenditure and hence, such expenditure will be prohibitive

from practical considerations.

It is intrinsic in nature and is present due to following reasons:a. Inadequacy or over adequacy: The instances of inadequacy are absence of

bath or W.C., lack of ventilation, improper flooring of rooms, insufficientsizes of kitchen or store, etc. The over adequacy more than necessary oradequate. The instances of over adequacy are many electric points inrooms, unusual size of toilet with superior specifications, unwantedexpenditure in decorating kitchen or any other room.

b. Lacking in utility: The various examples for this type are floor spaces or

rooms, which may not be adequate. The location of rooms which may not

be proper with respect to directions, the ventilation of rooms may beinadequate, the hot and cold-water taps, and kitchen platform,washbasins, etc may not be available. All such conditions will lead to thefunctional obsolescence.

c. Obsolete necessities: The illustrations of obsolete necessitates are; watermay have to be obtained from a well or by a hand pump; old basket typelatrines are to be used instead of flush water closets; there is absence oflift for going to upper floors of multi storeyed building; etc.

d. Outmoded design: This means that design is out of tune and place. Newtype of functional utility makes previous ones outmoded. E.g. the use ofR.C.C has made the roofs of mangalore tiles or tin sheets as outmoded.Similarly, the special purpose house is also an instance of outmodeddesign in the sense that it will be useful to a particular owner only, butloses its value, if put to sale in the market.

e. Out of the way or odd design: This includes architectural styles, which mayhave a certain fad or crazy idea. The placing of architectural features maybe of freakish nature. The materials and their locations may be badly.




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3) Economic obsolescence

The physical and functional depreciations are internal because they are due to

causes within the property or asset itself. The depreciations due to the economic

obsolescence are external because they are due to external causes. The physical

and functional depreciation are curable to some extent, while the economicobsolescence is incurable. The economic obsolescence is due to the following

causes:

a) Changes in character and use: This happens when changes in

neighbourhood take place. When social quality of neighbourhood declines

or inharmonious rational groups occupy the neighbourhood, it is called the

decay of neighbourhood; it is called the decay of neighbourhood.

Sometimes, the use of the property is changed, say from residential to

commercial etc.

b) Changes in laws: This happens when planning or zoning laws are changedor restrictive laws are enacted regarding disposal and use of lands. For

instance, particular type of industries can be permitted in certain areas.

c) Nearness to nuisances: Some examples of nearness of nuisances which

result in the reduction of the attractiveness of the property are: nearness

to cinema, factory producing obnoxious odours, gas station, coal yard,

grave yard, etc.

d) Over supply: This happens when assets or properties for disposal are more

than the demand for such properties. This may happens due to changes in

zoning laws or tendency or people to migrate from one part to the other

part of the town due to some reason. Thus, the oversupply of properties

leads to the lowering of values of the properties.

e) Social changes: This happens when infiltration of different types of people

takes place e.g. presence of unsocial elements in a good locality, creation

of slums around a good locality, etc.

The physical obsolescence can be cured to some extent by proper maintenanceand repairs and replacement. The functional obsolescence can also be remediesto some extent by making changes in design and equipment from time to time.But there is no remedy for the economic obsolescence because it has rootcauses in social rather than physical causes.

Acquisition of a property for public projects viz., Irrigation, Highways, Railways,Housing, Water supply schemes, power projects, Industries, Tourism etc. arecommon and being implemented as when required. Open land, land withstructures like residential, other few types of lands facing acquisitions as andwhen required. In large projects, lands coming under the project may involve alltypes of items and compensation has to be made ownership wise, village wiseand so on.




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The Land-acquisition attracts severe criticism and resentment from the affectedpersons. The basic reasons for such criticism and resentment are that theacquiring authorities do not provide adequate compensation and also notensures the same or better living standard after acquisition. A concept of

Replacement value as against the market value has been accepted under theResettlement & Rehabilitation Policy enacted by the Government of Maharashtraon the behest of the World Bank for acquisition of Land and properties. ThisPolicy also provides various assistance over and above compensation so as toensure same or better living standard.

The following Nature based sub classes fall within each of the above PurposeGroups:

Nature Class Measurement Basis

Land (Freehold land / Crown land National & State Parks / Crown landother)

Fair Value

Buildings Fair Value

Plant, equipment, vehicles andInfrastructure systems

Cost

Road and Road Infrastructures,Earthworks

Fair Value

Cultural Assets Fair Value

1.4) What is Fair Value?

The Fair Value of an asset is the best estimate of the price reasonably obtainablein the market at the reporting date in keeping with the Fair Value definition.

1.5) Determination of Fair Value

The Fair Value definition is based on the assumption that the entity is a goingconcern without any intention or need to liquidate to curtail materially the scaleof its operations or to undertake a transaction on adverse terms.It is also assumed that the asset is exchanged after an adequate period ofmarketing to obtain its most advantageous price. The Fair Value of an asset is

determined by reference to its highest and best use, i.e. the use of the asset thatis physically possible, legally permissible, financially feasible, and which resultsin the highest value. Opportunities that are not available to the entity are nottaken into account.Market evidence from comparable asset sales is used to assist in determiningthe assets fair value.




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Total area of Land to be acquired 59.796 Hectares. Out of which 3.815 is river,nallah, barren & Gram Sabha (Village Assembly) Land etc. Remaining 55.981Hectares is to be purchased by mutual consent. The area of Land to bepurchased falling in Ambedkar Nagar, Saint kabir Nagar & Kalyan is 7.806Hectares, 17.011 Hectares, 13.164 Hectares respectively.

1.1.3 Land-acquisition by the method of private negotiation

Land can be acquired at rates approved by the commissioner on the recom-mendation of a committee headed by the local district Magistrate. Thecommittee' for finalization of the rates for the land to be acquired by the privateNegotiations, consist of the District Magistrate as Chairman, Authorizedrepresentative of the Department acquiring the land as Member/Conveyor,Additional District Magistrate (Finance & Revenue)/ District Registrar andconcerning sub Registrar as Members. The Committee giving due justification forrates, indicating the representative sale deeds, will recommend to the

commissioner for approval. After commissioner's approval Negotiations arecarried out with affected persons and their consent is obtained. The land will beacquired under land acquisition (Determination of compensation and Declarationof Award by Agreement) Rules 1997. However if any department purchases2land directly from farmers without attracting the provisions of the LandAcquisition (Amendment) Act 1984 it can do so under the relevant rules andprocedures of the concerned department.

1.1.4 Land-acquisition by the method of private negotiation

under Resettlement & Rehabilitation Policy

The government of Maharashtra enacted Resettlement & Rehabilitation policy forthe World Bank Aided Projects of the Public Works Department on the behest ofthe World Bank, which has laid down the procedures for acquisitions anddetermining compensation. Para 2.3 of the policy clearly specifies that allacquisitions of private land would be under the Land Acquisition (Amendment)Act 1984. Procedure for determining the Replacement Value to be paid foracquisition is laid down in Para 7 of the policy, which is to be the highest amongthe three amounts, arrived at by the following three alternatives methods:

1. Taking in to in to consideration 20 times the annual of gross production ofconcerned land, average over preceding five years.

2. Taking into account such prescribed rates or the average of the actualtransaction rates of similar lands for contemporary years for which the

sale deeds are registered.3. Fixing market value of land equal to minimum land value if so prescribed

by the State Government under Indian Registration Act of 1908.A District Level Committee to assess the replacement value of the property andadvise the R&R cell accordingly has been constituted under this policy1. Thiscommittee consists of the District Magistrate as its Chairman, Executive EngineerPWD as Member/Secretary, Additional District Magistrate (Finance & Revenue),Chief Development Officer, Lead Bank Officer, Related Village Headman(Pradhan), Representative of the NGO contracted by PWD and Representative of




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the Project affected poisons nominated by the NGO contracted by PWD asmembers.

After District Level committee's approval. Negotiations are carried out withaffected persons and their consent is obtained. Sale Deeds are got registered inname of the Governor. Sale Deeds duly vetted by the Law Department of theGovernment of Maharashtra are signed by an officer of the rank of deputySecretary of the Government and the concerned farmer/ owner. Afterexecution of Sale Deed land is transferred in the name of the Government ofMaharashtra.

Methodology

The work of land acquisition including R&R activities is assigned to M/s Develop-ment Institute for Systems. Demarcation of the alignment was carried out by

Total Station by fixing of pillars on the ground based on the coordinates takenfrom PWD headquarter. Social team has identified affected villages and personson the marked corridor. On identification of affected plots. Lekhpal wasapproached to identify the owners of the affected plots along with their addressand joint holders (if any) and other relevant details. On identifications of owners& joint holders, questionnaire designed for by passes was canvassed whichinclude details regarding social and economic aspects of the affected person.

1.2 Collection of Data from secondary sources

Throughout the Study, various types of secondary data were used along with theprimary data collected through surveys. Maharashtra at a Glance, published by

Jagaran Publications (Social, Cultural, Demographic and Economic ofMaharashtra), District Census Handbooks of districts through which road ispassing through, Tehsil Offices (for cost of agriculture land) and various otherpublished and unpublished materials (as referred at the end of this paper).

1.3 Methods Of Valuation

As per R&R Policy Replacement value of the Agricultural Land is determined onthe basis of following method:-

1.3.1 Valuation Based on Circle Rates:-

Stamps and Registration Department issues biannually the rates of land. Therates approved hylne District Magistrate, Kalyan for the period w.e.f. 01/04/06 forVithalvadi, rates approved by the District Magistrate, Ambedkar Nagar for theperiod w.e.f. 16/06/2006 tor Alapur Tehsil, rates approved by the DistrictMagistrate, Saint Kabir Nagar for the period w.e.f. 01/04/2006 for Dhanghata

Tehsil and rates approved by the District Magistrate, Kalyanw.e.f. 01/04/2006 forKhajani Tehsil have been adopted for determining the land values.

A wide variation was observed in the pattern of the Land Classification for ap-proved Circle rates by the four District Magistrates. The District Magistrate,




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Azamgarh has classified the land according to their locations on NationalHighways, State Highways, Other District Roads, Link Roads and the Land plotsat other locations. The District Magistrate, Ambedkar Nagar has classified theland according to irrigated Agricultural Land and its locations on District Road,Unk/Khadanja Road, Chak Road and Agricultural Land abutting Abadi/House. TheDistrict Magistrate, Saint Kabir Nagar has classified the land according to theirlocations on Main Road, on Other Road & at Other places the District Magistrate,Kalyanclassified the land as General agricultural plots and their locations, landabutting Main roads. Lands are also classified on the basis of and the size ofPlot/Land Holdings and further as Residential, Commercial and Industrial.

Rates for the Lands Classified as Land plots at Other Locations/ Other Places,

Irrigated Agricultural Land and General Agricultural Plots having more than a

specific area are given in Rs. per acre. While the rates for smaller size of Plots

was given in per Square Metre or per Decimal. These per acre rates for larger

size of plots are taken from the rates approved by the concerning District

Magistrates and are converted to rates in Rs. per Hectare by multiplying by 2.47for the simplicity of the calculations. These district wise land values are

summarized here under:-

Circle Rates per Hectre (Rs, in Lacs) of different Villages for Vithalvadi Bypass,Vegani Bypass and Kalyan Bridge

S.No Work/Project Area/Types of Villages

Names of Villages

Rates PerHectare (Ra,in Lacs)

1

Vithalvadi BypassTehsil - Vitahlvadi

Vory importantVillages

NiduadeehandBhilampur

7.17

ImportantVillages (A)

Mubarakpur,Bada Gaon,SaraiycRatnawe,Amari &Atahara

6.18

ImportantVillages (B)

Bhairopur &Manuddinpur

5.68

General Biharpur.Dhanghata &Pasi ur

5.44

Vagani Bypass Very ImportantVillages

Bhogaicha,Matalupur &Pakadi

7.17

2 Tehsil-Vitahlvadi

3 Tehsil-Phoolpur General Villages Sinhor Kol &Hansapur

4.49




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4 Kalyan Bridge General Villages Jainpur,Kamahariyaand

7.00

Ambedkar NagarDistrict

Special Villages Chandi-pur-Kalan

8.00

5 Saint Kabir NagarDistrict

FloodedAffected Area

Gunwatiya,Kharakpur,Suaraha andKanchanpur

3.95

General area Beharadandi 7.41

1.3.2 Valuation based on the twenty times of the Gross

Annual Agricultural Produce

Crop production & agricultural produce per Hectare and rates are being takenfrom Agriculture Statistics of. "Maharashtra krishi Aakde", Published by Directorof Agriculture statistics of Maharashtra, Krishi Bhawan, Maharashtra andStatistical Dairy published by planning department, Govt. of Maharashtra.andrates have been collected from "Agriculture Statistics and Crop InsuranceMAHARASHTRA. Krishi Bhawan, Maharashtra.

The per Hectare Productivity of Paddy in Kalyan district during last 5 years i.e.during 2000-2001, 2001-2002, 2002-2003, 2003-2004 & 2004-2005 was 18.53quintals, 20.68 quintals, 16,84 quintals, 20.36 quintals & 23.36 quintals and thatof the Wheat was 22.36 quintals, 23.86 quintals, 20,05 quintals, 24.89 quintals &21.15 quintals respectively. The per Hectare Productivity of Paddy in Ambedkardistrict during last 5 years i.e. during 2000-2001, 2001-2002, 2002-2003, 2003-2004 & 2004-2005 was 24.74 quintals, 24.18 quintals, 21,53 quintals, 27.43quintals & 19,96 quintals and that of the Wheat was 23.76 quintals, 24.02quintals, 27.59 quintals, 30.21 quintals & 27.15 quintals respectively. Rates perquintal published by the director of Agriculture Statistics and crop insurance U.P.,Krishi Bhavan, Lucknow for paddy was Rs. 510.00, Rs. 530.00, Rs. 570.00 andthat for wheat was Rs. 580.00, Rs. 610.00 & Rs. 640.00 rispectively.

Based on the above the average annual productivity value for paddy & wheat isRs. 10877.90 & Rs. 13834.22 respectively for Azamgarh district. On the basis of

20 times gross average annual agricultural produces, the rate works out to beRs. 4.94 lacs per hectare for Azamgarh district. The average annual productivityof ambedkar district value for paddy and wheat is Rs. 12802.46 and Rs.16389.42 respectively. On the basis of 20 times gross average annualagricultural produce, the rate works out to be Rs. 5.84 lacs per hectareAmbedkar district.

Similarly rates worked out for Saint Kabir Nagar and Kalyan districts. On thebasis of 20 times gross average annual agricultural produce, the rate works outto be Rs. 6.49 lacs per hectare in saint kabir Nagar district for General Land. Inflood affected areas only one crop can be shown and hence the rate worked out




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was Rs. 3.25 lacs per hectare. It was Rs. 4.93 lacs per hectare for Kalyandistrict.The land rate evaluation for Kalyandistrict as an example is cited here under inTable.

1.3.3 Sale Statistics Method / Valuation based on registered

Sale Deed

Land being an immovable property, all its sales and purchases has, to beregistered. The registered sale prices can be taken as adequate indicator ofmarket value of a given piece of land. Sale prices of those lands, which arecomparable in time, location & quality, are only to be considered.

Duly ceased Records of all the sales deeds registered during last 5 years i.e.

2000-A ' 2001-2002. 2002-2003, 2003-2004 & 2004-2005 in respective SubRegistrars offices namely Vithalvadi & Phoolpur in Azamgarh district, Alapur inAmbedkar Nagar districts and Dhanghta in saint Kabir Nagar district and khajaniin Kalyandistrict for all villages involved in Land Acquisition were collected &analysed. Average rate was worked out by dividing the total Cost of total landsold by the total Area of Land sold village, Tehsil and district wise. District wiserates are summarized below in Table

Name ofcrops

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005 Averageamountof grossAgricultu

ralProduce(Rs.)

20 timesof averageamount ofgross

agricultural produce(Rs.)

Yield

Quintals/Ha

Rate

perQuinta

l

(Rs.)

Yield

Quintals/Ha

Rate

perQuinta

l

(Rs.)

Yield

Quintals/Ha

Rate

perQuinta

l

(Rs.)

Yield

Quintals/Ha

Rate

perQuinta

l

(Rs.)

Yield

Quintals/Ha

Rate

perQuintal

(Rs.)

X1 Y1 X2 Y2 X3 Y3 X4 Y4

X5 Y5 (Xn+Yn)/5

Paddy

18.53

510

16.71

530

15.05

550 20.15

560

22.97

570 10192.20 203844.00

Wheat

22.36

580

26.45

610

20.98

620 23.65

630

23.89

640 14460.00 289200.00

Total 24664.20 493057.00

S.NO

Work/Project Area of land sold inlast 5 years(in Ha.)

Cost in Rs.Of totalland sold

AverageRate/Ha. InRs.

Averagerates perHectare(Rs. In




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lacs)1 Vithalvadi Bypass

Tehsil Vitahlvadi9.617 8343000 867526.30 8.67

2 Ahiraula Bypass 8.393 Kalyan Bridge 8.645 4287000 495893.58 4.963.1 Ambedkar nagar

district3.2 Saint Kabir nagar

District3.659 356000 97294.34 0.97

A Flooded areaB General area 6.764 2491000 368273.20 3.683.3 KalyanDistrict 16.1584 7178300 444245.717 4.44




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VALUATION [VALUATION OF LAND ACQUISITION]

Sr .No Type ofthevillages

Name of Villages

Rates of allirrigatedAgriculturalLand

Rates per Hectare (Rs. In Lacs) Agricultural Landabutting Abadi/House

Agricultural LandDistrict Road

Abutting RoadsLink/Khadanja Road

ChakRoad

Up to0.126Hectare

Greaterthan0.126Hectare

Up to0.126Hectare


Up to0.126Hectare


1 GeneralVillage Jainpur,kamahariya andSultanpur-Trappa-Haveile

7.00 21.00 14.00 14.00 10.50 8.40 21.00 14.00

2 SpecialVillage

Chandi-pur-Kalan 8.00 24.00 16.00 16.00 12.00 9.60 24.00 16.00

18 School of Building Science And Technology, CEPT University Imram Mansuri (1204)Maulik Panchal (1303)


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S.No. Type of thevillage/Area

Name of Village

Rates of Agricultural Land

On MainRoad

On OtherRoad

At otherPlace

1 Flood Affectedarea Gunwatiya,Kharakpur,suaraha andKanchanpur

7.41 6.18 3.95

2 General area Beharadandi 11.2 8.65 7.41

Sr.No

Name of Villages Rates of Agricultural Land

Up to 20decimal

20 decimalto 35decimal

35 decimalto 50decimal

Greaterthan 50decimal

1 Lakhus-pakad,

shankarpur, Dhodiaparand Rampur-Gosain

24.71 19.77 17.30 12.36

2 Arnabad, Baghad,Ekauna-Khurd andbalachak

19.77 17.30 14.83 9.88

3 Nargada-Jariga-singhand manjh-Deep

11.12 8.65 7.41 4.94

Sr.No.

Names ofBy-Passes

SubDistrict /Tehsil

Name of Village on By-Passes

Location of Land Plot

On nationaland State

Highways

Other thanthese

Locations1 Vithalvadi Vithalvadi Niduadeeh and Bhilampur

Mubarakpur,Bada Gaon, SaraiyaRatnawe, Amari, Atahara,Bhairopur, Manuddinpur,Biharpur, Dhanghata &Passopur

9.398.68

8.688.68

2 Vagani VithalvadiPhoolpur

Bhogaicha, Matalpur andPakadiHansapur & Sinhor Kol

9.399.88

8.398.39

Determination of Replacement Value

The Replacement Value of land structure or development may be defined as theamount which could purchase or create the new land structure, property ordevelopment The replacement value is higher than the market value in case ofstructure, property or development as it provides for new structure, property ordevelopment. The market value caters for the residual life only of the structure,property or development. The value of residual life does not guarantee sameliving standard, while the Replacement Value does. Therefore there is wideacceptability from the general public and almost no resentment or resistance

19 School of Building Science And Technology, CEPT University ImramMansuri (1204)



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20 School of Building Science And Technology, CEPT University ImramMansuri (1204)


purpose of valuation

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