Bench had held that amendment to Land Reforms Act was with retrospective effect

Samaj Parivartana Samudaya (SPS), an NGO, has filed a writ appeal before the High Court challenging a single-judge bench order which held that the amendment to the Land Reforms Act on income from non-agricultural source was with retrospective effect.

Film actor Upendra had challenged the Assistant Commissioner’s order forfeiting the agricultural land he had bought in 2005.

SPS contended that the High Court order of January 5, 2016 says that the amendment to the Land Reforms Act which raised the income limit for buying agricultural land to Rs 25 lakh, has a retrospective effect from March 3, 1974.

With this, thousands of transactions which are illegal, have been sought to be regularised in one stroke, the SPS stated.  The Land Reforms Act, with an objective of social reforms, was introduced from March 1, 1974. The amendment prohibited non-agriculturists having income of more than Rs 12,000 from non-agricultural sources from acquiring agricultural lands.

The Act was first amended in 1991 wherein the income limit from non-agricultural sources was increased to Rs 50,000.  In 1995 the income limit was increased to Rs 2 lakh by using the words “on and from the commencement of 1995 Amendment”.

This made the amendment only prospective. Last year, the Act was again amended and the income limit was increased to Rs 25 lakh. The legislature has also stated that the amendment shall come into effect “on from the commencement of 2015 Amendment”.

The High Court single-judge bench, while passing an order on a writ petition filed by actor Upendra, held that the amendment to the Act in 2015 was with retrospective effect from March 3, 1974.

“The single judge of the High Court allowed the writ petition filed by Upendra following the judgment in Vijaykumar Shankarayya Sardar v/s State of Karnataka, which dealt with the 1991 amendment, and held that even the 2015 amendment is retrospective.

Because of this judgment, thousands of illegal transactions from 1974 are sought to be regularised at one stroke by a complete misreading of the 2015 amendment to the Act. The amendment in 2015 is aimed at providing succour to the agriculturist, having non-agricultural income having regard to the inflation in the economy.

“The value of Rs 25 crore in the year 1974 is equivalent to almost Rs 10 crore as on today. Such an intention of providing retrospective regularisation of thousands of illegal transactions can never be gathered from the language of the amendment made to the legislation which was aimed at Agricultural Reforms in the State. By no stretch of imagination can the amendment of 2015 or 1995 be held to be with retrospective effect from March 1, 1974,'' the appeal filed by SPS contended.

Actor’s case

Film actor Upendra had income of more than Rs 23 lakh from non-agricultural sources when he had purchased agricultural land in Tavarekere hobli in March 2005, much
prior to the amendment in 2015.

The Assistant Commissioner held an enquiry and passed an order in 2009 holding that the purchase of the land was in violation of the provisions of section 79A of the Act and directed the tahsildar, (Bengaluru South) to reclaim the land.

The appeal filed by Upendra was dismissed by the Karnataka Appellate Tribunal.
Upendra had moved the High Court (WP number 37347-49/2009).