1.14  Query:   

Classification of deposits with State/Central Government agencies for  acquisition of land.

1. The querist has sought the opinion of the Expert Advisory Committee as to whether the deposits with various State/Central Government agencies for acquisition of land should be classified as deposit or as land, although possession of the land is not received.

2. The querist has further informed that:

(a)        Land in question has been actually allotted by the Government and relevant documents in this regard have been issued in respect of some of the persons whereas in respect of the portion where documents have not been executed, such documents are in the process of execution.

(b)        One of the purposes of making deposits with State/Central Government agency is to acquire land at reasonable prices.

                        (c)        In all the cases, land has not been acquired by Government agency.

(d)        The deposits are in terms of Section 4(1) and Section 6 of Land Acquisition Act, 1984.

                                                                       Opinion                             October 7, 1992

The Committee is of the opinion that since the company has not received possession of the land, it should classify the deposits made with various State/Central Government agencies for acquisition thereof as ‘deposits’ with appropriate disclosure in respect of the nature of such deposits.

____________________________