AIA Act 3

Section 3 · [ Termination of Leases. [Substituted by Act No. 1 of 2000, dated 19.5.2000.]

(1)

(a)

Notwithstanding anything contained in the Indian Contract Act, 1872 (Central Act 9 of 1872), the Transfer of Property Act, 1882 (Central Act 4 of 1882), or any other law for the time being in force, and the terms and conditions of any lease entered into or other arrangement made with any person in respect of any demised plot either by the erstwhile Nizam's Government or by the erstwhile Government of Hyderabad or by the Government of Andhra Pradesh prior to the appointed date, all those leases, sub-leases or other arrangements made or entered into through a registered-deed or otherwise in respect of all demised plots in Azamabad Industrial Area which after due enquiry attract one or more of the ground for cancellation of lease as specified in clause (b) shall stand terminated on the appointed date and thereupon all such leases, sub-leases or any other arrangement whatsoever made by the person in occupation of the demised plot shall stand annulled and every such demised plot shall vest in the Government free from all encumbrances.

(b)

Notwithstanding anything contained in any other law for the time being in force, the leases of plots or portions shall be cancelled on either all or any of the following grounds namely:-

(i)misusing of land for a purpose other than the purpose for which land was allotted including non-user; or

(ii)sub-letting or transferring the plots or portions of plots by entering into disguised partnerships and other unauthorised transfer of interest in the plot; or

(iii)violation of any terms, conditions or covenant specified in the Lease Deed.

Explanation. - For the purpose of this Act, where a lessee enters into a partnership, agreement or other arrangement for carrying on any activity whatsoever on the demised plot, then notwithstanding anything in the Indian Partnership Act, 1932 (Central Act 9 of 1932), it shall also be deemed to be a violation of the conditions of the lease.

(2)

Lessees of plots whose leases shall not be cancelled under clause (b) of sub-section (1) shall be entitled to a grant of fresh lease with effect from the appointed date and renewal thereof from time to time on such terms and conditions as may be prescribed by the Government.

(3)

The Lessees specified in sub-section (2) may, in lieu of renewal of lease, opt for free-hold rights in respect of the demised plots of land by paying a price equivalent to 75% of the market value as specified for the area in Market value Guidelines under section 47(a) of the Indian Stamps Act, 1899 (Central Act 2 of 1899).

(4)

Upon the termination of the leases or other arrangement in respect of the plot under sub-section (1) the rights and liablities as between the parties to the lease or other arrangement in respect of plot shall cease and determine, but any amount due to the Government from the aforesaid person under the lease or other arrangement so terminated shall be recovered as an arrear of land revenue.]

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