Section 269I of the Income-tax Act, 1961: Vesting of Property in the Central Government

(1) As soon as may be after the order for acquisition of any immovable

property made undersub-section (6) of section 269F becomes final, the competent

authority may, by notice in writing, order any person who may be in possession

of the immovable property to surrender or deliver possession thereof to the

competent authority or any other person duly authorised in writing by the

competent authority in this behalf, within thirty days of the date of the

service of the notice.

Explanation.-For the purposes of this sub-section, an

order for the acquisition of any immovable property (hereafter in this

Explanation referred to as the order for acquisition) made under sub-section (6)

of section 269F becomes final,-

(a) in a case where the order for acquisition

is not made the subject of an appeal to the Appellate Tribunal under section

269G, upon the expiry of the period during which such appeal may be presented

under that section;

(b) in a case where the order for acquisition is made the

subject of an appeal to the Appellate Tribunal under section 269G,-

(i) if the

order for acquisition is confirmed by the Appellate Tribunal and the order of

the Appellate Tribunal is not made the subject of an appeal to the High Court

under section 269H, upon the expiry of the period during which such appeal may

be presented under that section to the High Court;

(ii) if the order of the

Appellate Tribunal is made the subject of an appeal to the High Court under

section 269H, upon the confirmation of the order for acquisition by the High

Court.

(2) If any person refuses or fails to comply with the notice under

sub-section (1), the competent authority or other person duly authorised by the

competent authority under that sub-section may take possession of the immovable

property and may, for that purpose, use such force as may be necessary.

(3)

Notwithstanding anything contained in sub-section (2), the competent authority

may, for the purpose of taking possession of any property referred to in

sub-section (1), requisition the services of any police officer to assist him

and it shall be the duty of such officer to comply with such requisition.

(4)

When the possession of the immovable property is surrendered or delivered under

sub-section (1) to the competent authority or a person duly authorised by him in

that behalf or, as the case may be, when the possession thereof is taken under

sub-section (2) or sub-section (3) by such authority or person, the property

shall vest absolutely in the Central Government free from all encumbrances :

Provided that nothing in this sub-section shall operate to discharge the

transferee or any other person (not being the Central Government) from liability

in respect of such encumbrances and, notwithstanding anything contained in any

other law, such liability may be enforced against the transferee or such other

person by a suit for damages.

1 (5) Notwithstanding anything contained in

sub-section (4) or any other law or any instrument or any agreement for the time

being in force, where an order for acquisition of any immovable property, being

rights of the nature referred to in clause (b) of sub-section (1) of section

269AB, in or with respect to any building or part of a building which has been

constructed or which is to be constructed, has become final, then, such order

shall, by its own force, have the effect of-

(a) vesting such rights in the

Central Government, and

(b) placing the Central Government in the same

position in relation to such rights as the person in whom such rights would have

continued to vest if such order had not become final, and the competent

authority may issue such directions as he may deem fit to any person concerned

for taking the necessary steps for compliance with the provisions of clauses (a)

and (b).

(6) In the case of any immovable property, being rights of the nature

referred to in clause (b) of subsection (1) of section 269AB, in or with respect

to any building or part of a building, the provisions of sub-sections (1), (2)

and (3) shall have effect as if the references to immovable property therein

were a reference to such building or, as the case may be, part of such building.

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1. Ins. by Act 22 of 1981, s. 7 (w.e.f. 1-7-1982)