Section 269UE:
Vesting of property in Central Government.
(1) Where an order under sub-section (1)
of section 269UD is made by the appropriate authority in respect of an immovable property referred to in
sub-clause (i) of clause (d) of section 269UA, such property shall, on the date of such order, vest in the
Central Government 1
in terms of the agreement for transfer referred to in sub-section (1) of section
269UC:
2
Provided that where the appropriate authority, after giving an opportunity of being heard to the
transferor, the transferee or other persons interested in the said property, under sub-section (1A) of section
269UD, is of the opinion that any encumbrance on the property or leasehold interest specified in the
aforesaid agreement for transfer is so specified with a view to defeat the provisions of this Chapter, it
may, by order, declare such encumbrance or leasehold interest to be void and thereupon the aforesaid
property shall vest in the Central Government free from such encumbrance or leasehold interest.
(2) The transferor or any other person who may be in possession of the immovable property in respect
of which an order under sub-section (1) of section 269UD is made, shall surrender or deliver possession
thereof to the appropriate authority or any other person duly authorised by the appropriate authority in
this behalf within fifteen days of the service of such order on him:
2
Provided that the provisions of this sub-section and sub-sections (3) and (4) shall not apply where
the person in possession of the immovable property, in respect of which an order under sub-section (1)
of section 269UD is made, is a bona fide holder of any encumbrance on such property or a bona
fide lessee of such property, if the said encumbrance or lease has not been declared void under the proviso
to sub-section (1) and such person is eligible to continue in possession of such property even after the
transfer in terms of the aforesaid agreement for transfer.
(3) If any person refuses or fails to comply with the provisions of sub-section (2), the appropriate
authority or other person duly authorised by it under that sub-section may take possession of the
immovable property and may, for that purpose, use such force as may be necessary.
(4) Notwithstanding anything contained in sub-section (2), the appropriate 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.
(5) For the removal of doubts, it is hereby declared that nothing in this section shall operate to
discharge the transferor or any other person (not being the Central Government) from liability in respect
of any encumbrances on the property and, notwithstanding anything contained in any other law for the
time being in force, such liability may be enforced against the transferor or such other person.
(6) Where an order under sub-section (1) of section 269UD is made in respect of an immovable
property, being rights of the nature referred to in sub-clause (ii) of clause (d) of section 269UA, such
order shall have the effect of—
(a) vesting such right 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 a right would have continued to vest if such order had not been made.
(7) Where any rights in respect of any immovable property, being rights in, or with respect to, any
land or any building or part of a building which has been constructed or which is to be constructed, have
been vested in the Central Government under sub-section (6), the provisions of sub-sections (1), (2), (3)
and (4) shall, so far as may be, have effect as if the references to immovable property therein were
references to such land or building or part thereof, as the case may be.
Notes:
1. Subs. by Act 38 of 1993, s. 35, for “free from all encumbrances” (w.e.f. 17-11-1992).
2. Ins. by s. 35, ibid. (w.e.f. 17-11-1992).