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THE DISPLACED PERSONS (COMPENSATION AND REHABILITATION) ACT, 1954

Title : THE DISPLACED PERSONS (COMPENSATION AND REHABILITATION) ACT, 1954

Year : 1954



(1) If the Central Government is of opinion that it is necessary to acquire any evacuee property for a public purpose, being a purpose connected with the relief and rehabilitation of displaced persons, including payment of compensation to such persons, the Central Government any at any time acquire such evacuee property by publishing in the Official Gazette a notification to the effect that the Central Government has decided to acquire such evacuee property in pursuance of this section.

(2) On the publication of a notification under sub-section (1), the right, title and interest of any evacuee in the evacuee property specified in the notification shall, on and from the beginning of the date on which the notification is so published, be extinguished and the evacuee property shall vest absolutely in the Central Government free from all encumbrances.

(3) It shall be lawful for the Central Government, if it so considers necessary, to issue from time to time the notification referred to in sub-section (1) in respect of-

(a) All evacuee property generally; or

(b) Any class of evacuee property; or

(c) All evacuee property situated in a specified area; or

(d) Any particular evacuee property.

(4) All evacuee property acquired under this section shall form part of the compensation pool.



There shall be paid to an evacuee compensation in respect of his property acquired under section 12 in accordance with such principles and in such manner as may be agreed upon between the Governments of India and Pakistan.



(1) For the purpose of payment of compensation and rehabilitation grants to displaced persons, there shall be constituted a compensation pool which shall consist of-

(a) All evacuee property acquired under section 12, including the sale proceeds of any such property and all profits and income accruing from such property;

(b) Such cash balances lying with the Custodian as may, by order of the Central Government, be transferred to the compensation pool;

(c) Such contributions, in any form whatsoever, as may be made to the compensation pool by the Central Government or any State Government;

(d) Such other assets as may be prescribed.

(2) The compensation pool shall vest in the Central Government free from all encumbrances and shall be utilised in accordance with the provisions of this Act and the rules made there under.



No property which forms part of the compensation pool and which is vested in the Central Government under the provisions of this Act shall be liable to be proceeded against for any claim in any manner whatsoever in execution of any decree or order or by any other process of any court or other authority.



(1) The Central Government may take such measures as it considers necessary or expedient for the custody, management and disposal of the compensation pool in order that it may be effectively utilised in accordance with the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, the Central Government may, for the purposes referred to in sub-section (1), by notification in the Official Gazette,-

(a) Appoint such officers as it may deem fit (hereinafter referred to as managing officers); or

(b) Constitute such authority or corporation, as it may deem fit (hereinafter referred to as managing corporation).

(3) Every managing corporation shall be constituted under such name and shall consist of such number of persons as may be specified in the notification, and every such corporation shall be a body corporate having perpetual succession and a common seal and shall by the said name sue and be sued:

Provided that one-third of the members of every managing corporation shall be non-officials.



(1) All managing officers or managing corporations shall perform such functions as may be assigned to them by or under this Act under the genera superintendence and control of the Chief Settlement Commissioner.

(2) Subject to the provisions of this Act and the rules made thereunder, a managing officer or managing corporation may take such measures as he or it considers necessary or expedient for the purpose of securing, administering, preserving, managing or disposing of any property in the compensation pool entrusted to him or it and generally for the purpose of satisfactorily discharging any of the duties imposed on him or it by or under this Act and may, for any such purpose as aforesaid, do all acts and incur all expenses necessary or incidental thereto.

(3) Any amount due to the Custodian in respect of any evacuee property acquired under this Act for any period prior to the date of the acquisition shall vest in, and be payable to, the Central Government and shall be recoverable by the managing officer or managing corporation from the person liable to pay the same.



(1) Where the Central Government is satisfied that the property entrusted to a managing corporation for custody, management and disposal has been transferred to any person or persons under this Act or that for any other reason it s no longer necessary to continue the managing corporation, the Central Government may, by notification in the Official Gazette, dissolve the managing corporation.

(2) Upon the publication of a notification under sub-section (1) dissolving a managing corporation-

(a) All the members of the managing corporation shall vacate their office as such members;

(b) All the powers and duties which may, by or under the provisions of this Act, be exercised or performed by or on behalf of the managing corporation shall be exercised and performed by such person or persons as the Central Government may direct;

(c) All property vested in the managing corporation at the date of dissolution shall vest in the Central Government.



(1) Notwithstanding anything contained in any contract or any other law for the time being in force but subject to any rules that may be made under this Act, the managing officer or managing corporation may cancel any allotment or terminate any lease or amend the terms of any lease or allotment under which any evacuee property acquired under this Act is held or occupied by a person, whether such allotment or lease was granted before or after the commencement of this Act.

1*[(2) Where any person,-

(a) Has ceased to entitled to the possession of any evacuee property by reason of any action taken under sub- section (1), or

(b) Is otherwise in unauthorised possession of any evacuee property or any other immovable property forming part of the compensation pool;he shall, after he has been given a reasonable opportunity of showing cause against his eviction from such property, surrender possession of the property on demand being made in this behalf by the managing officer or managing corporation or by any other person duly authorised by such officer or corporation.]

(3) If any person fails to surrender possession of any property on demand made under sub- section (2), the managing officer or managing corporation may, notwithstanding anything to the contrary contained in any other law for the time being in force, eject such person and take possession of such property and may, for such purpose, use or cause to be used such force as may be necessary.

2*[(4) Where a managing officer or a managing corporation is satisfied that any person, whether by way of allotment or lease, is, or has at any time been, in possession of any evacuee property acquired under this Act to which he was not entitled, or which was in excess of that to which he was entitled, under the law under which such allotment or lease was made or granted, then, without prejudice to any other action which may be taken against that person, the managing officer or the managing corporation may, having regard to such principles of assessment of rent as may be specified in this behalf by the Central Government, by order, assess the rent payable in respect of such property and that person shall be liable to pay the rent so assessed for the period for which the property remains or has remained in his possession:

Provided
that no such order shall be made without giving to the person concerned a reasonable opportunity of being heard.

(5) Where any person is, or has at any time been, in unauthorised possession of any evacuee property acquired under this Act, the managing officer or the managing corporation may, having regard to such principles of assessment of damages as may be specified in this behalf by the Central Government, assess the damages on account of the use and occupation of such property and may, by order, require that person to pay the damages within such time and in such installments as may be specified in the order:

Provided that no such order shall be made without giving to the person concerned a reasonable opportunity of being heard..]

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1. Substituted for "Sub-section (2) of Section 19" by the Displaced Persons (Compensation and Rehabilitation) (Amendment) Act, 1956, w.e.f 22-10-1956.

2. Inserted by the Displaced Persons (Compensation and Rehabilitation) (Amendment) Act, 1960, w.e.f. 27-02-1960.

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(1) Subject to any rules that may be made under this Act, the managing officer or managing corporation may transfer any property out of the compensation pool-

(a) By sale of such property to a displaced person or any association of displaced persons, whether incorporated or not, or to any other person, whether the property is sold by public auction or otherwise;

(b) By lease of any such property to a displaced person or an association of displaced persons, whether incorporated or not, or to any other person;

(c) By allotment of any such property to a displaced person or an association of displaced persons whether incorporated or not, or to any other person, on such valuation as the Settlement Commissioner may determine;

(d) In the case of a share of an evacuee in a company, by transfer of such share to a displaced person1*[or any association of displaced persons, whether incorporated or not, or to any other person] notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 (VII of 1913) or in the memorandum or articles of association of such company;

(e) In such other manner as may be prescribed.

2*[(1A) For the purpose of transferring any property out of the compensation pool under sub-section (1), it shall be lawful for the managing officer or the managing corporation to transfer the same to a displaced person jointly with any other person or an association of displaced persons or otherwise.]

(2) Every managing officer or managing corporation selling any immovable property by public auction under sub-section (1) shall be deemed to be a Revenue Officer within the meaning of sub-section (4) of section 89 of the Indian Registration Act, 1908 (XVI of 1908).

(3) Where the ownership of any property has passed to the buyer before the payment of the whole of the purchase money, the amount of the purchase money or any part thereof remaining unpaid and any interest on such amount or part shall, notwithstanding anything to the contrary contained in any other law, be a first charge upon the property in the hands of the buyer or any transferee from such buyer and may, on a certificate issued by the Chief Settlement Commissioner, be recovered in the same manner as an arrear of land revenue.

20A -2* Utilisation of compensation pool in connection with restoration of evacuee property in certain cases

(1) Where any evacuee or his heir is entitled to the restoration of any evacuee property on an application made by him in this behalf under section 16 of the Administration of Evacuee Property Act, 1950 (31 of 1950) (hereinafter in this section referred to as the Evacuee Property Act), and the Central Government is of opinion that it is not expedient or practicable to restore the whole or any part of such property to the applicant by reason of the property or part thereof being in occupation of a displaced person or otherwise, then, notwithstanding anything contained in the Evacuee Property Act and this Act, it shall be lawful for the Central Government-

(a) To transfer to the applicant in lieu of the evacuee property or any part thereof, any immovable property in the compensation pool or any part thereof, being in the opinion of the Central Government as nearly as may be of the same value as the evacuee property or, as the case may be, any part thereof, or

(b) To pay to the applicant such amount in cash from the compensation pool in lieu of the evacuee property or part thereof, as the Central Government having regard to the value of the evacuee property or part thereof, may in the circumstances deem fit.

Explanation. -The provisions of this sub- section shall apply, whether or not, a certificate for the restoration of the evacuee property has been issued to the applicant under sub- section (1) of section 16 of the Evacuee Property Act, as in force immediately before the commencement of the Administration of Evacuee Property (Amendment) Act, 1956, if the evacuee property has not in fact been restored to the applicant.

(2) Where in pursuance of sub- section (1) any evacuee or his heir has been granted any immovable property from the compensation pool or has been paid any amount in cash from the compensation pool, his application under section 16 of the Evacuee Property Act for the restoration of the evacuee property shall be deemed to have been disposed of, and his right, titled and interest in such evacuee property shall be deemed to have been extinguished but such extinguishment shall not affect the power of the Central Government to acquire the evacuee property under section 12 of this Act.]

20B -2* Restrictions on restoration of certain property

(1) Where any person is entitled to the restoration of any property by virtue of an order made by the Custodian- General under section 27 of the Administration of Evacuee Property, Act, 1950, (31 of 1950) or by the competent officer or the appellate officer under the Evacuee Interest Separation Act, 1951, (64 of 1951) and the Central Government is of opinion that it is not expedient or practicable to restore the whole or any part of such property to that person by reason of the property or part thereof being in occupation of a displaced person or otherwise, then, notwithstanding anything contained in the said Acts or this Act, it shall be lawful for the Central Government-

(a) To transfer to that person in lieu of the property to be restored or any part thereof, any immovable property in the compensation pool or any part thereof, being in the opinion of the Central Government as nearly as may be of the same value as the property to be restored or, as the case may be, any part thereof, or

(b) To pay to that person such amount in cash from the compensation pool in lieu of the property to be restored or part thereof, as the Central Government having regard to the value of the property to be restored or part thereof, may in the circumstances deem fit.

(2) Where in pursuance of sub- section (1) any person has been granted any immovable property from the compensation pool or has been paid any amount in cash from the compensation pool, his right, title and interest in the property to be restored shall be deemed to have been extinguished.]

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1. Inserted by the Displaced Persons (Compensation and Rehabilitation) (Amendment) Act, 1956, w.e.f 22-10-1956.

2. Inserted by the Displaced Persons (Compensation and Rehabilitation) (Amendment) Act, 1960, w.e.f. 27-02-1960.

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(1) Any sum payable to the Government or to the Custodian in respect of any evacuee property, under any agreement, express or implied, lease or other document or otherwise howsoever, for any period prior to the date of acquisition of such property under this Act, which has not been recovered under section 48 of the Administration of Evacuee Property Act, 1950 (31 of 1950), and any sum payable to the Government in respect of any property in the compensation pool, may be recovered in the same manner as an arrear of land revenue.

(2) If any question arises whether a sum is payable to the Government or to the Custodian within the meaning of sub- section (1in respect of any property referred to therein, it shall be referred in the Settlement Commissioner within whose jurisdiction the property is situated, and the Settlement Commissioner shall, after making such inquiry as he may deem fit and giving to the person by whom the sum is alleged to be payable an opportunity of being hear, decide the question; and the decision of the Settlement Commissioner shall, subject to an appeal or revision under this Act, be final, and shall not be called in question by any court or other authority.

(3) For the purposes of this section, a sum shall be deemed to be payable to the Custodian, notwithstanding that its recovery is barred by the Indian Limitation Act, 1908 (9 of 1908), or any other law for the time being in force, relating to limitation of actions.]

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1. Substituted for "21. Recovery of arrears. Any sum due to the Custodian in respect of any evacuee property acquired under this Act for any period prior to the date of the acquisition, or to the Central Government in respect of any property in the compensation pool may, on a certificate issued by the Chief Settlement Commissioner, be recovered in the same manner as an arrear of land revenue." by the Displaced Persons (Compensation and Rehabilitation) (Amendment) Act, 1956, w.e.f 22-10-1956.

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Last updated on August, 2016

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