Section 101
Return of unutilised land
Reviewed by Ravi Sisodia · Last reviewed 10 October 2026
When land acquired under the Act remains unutilised for five years from the date of taking over possession, it must be returned to the original owner or owners or their legal heirs, or to the Land Bank of the appropriate Government by reversion, in the manner the appropriate Government prescribes.
Section 101, official text
When any land acquired under this Act remains unutilised for a period of five years from the date of taking over the possession, the same shall be returned to the original owner or owners or their legal heirs, as the case may be, or to the Land Bank of the appropriate Government by reversion in the manner as may be prescribed by the appropriate Government.
Explanation.—For the purpose of this section, “Land Bank” means a governmental entity that focuses on the conversion of Government owned vacant, abandoned, unutilised acquired lands and tax-delinquent properties into productive use.
Source: Act 30 of 2013, Gazette text as in the consolidated copy hosted by the Telangana High Court. Check India Code for later amendments.
State amendments recorded in the consolidated copy
Andhra Pradesh “In the principal Act, in section 101, for the words “a period of five years”, the words “a period specified for setting up of any project or for five years, whichever is later,” shall be substituted.” [Vide Andhra Pradesh Act 22 of 2018, sec. 11 (w.e.f. 1-1-2014).]
These apply only in the State named. Confirm the amendment is in force and applies to your land.
In plain words
When land acquired under the Act remains unutilised for five years from the date of taking over possession, it must be returned to the original owner or owners or their legal heirs, or to the Land Bank of the appropriate Government by reversion, in the manner the appropriate Government prescribes.
Key points
- Trigger: acquired land remains unutilised for a period of five years from the date of taking over possession.
- Who gets it: the original owner or owners or their legal heirs, or the Land Bank of the appropriate Government, by reversion.
- How: in the manner prescribed by the appropriate Government.
- Land Bank (Explanation): a governmental entity that focuses on the conversion of Government-owned vacant, abandoned, unutilised acquired lands and tax-delinquent properties into productive use.
- State amendment: the consolidated copy records an Andhra Pradesh amendment (Andhra Pradesh Act 22 of 2018) replacing “a period of five years” with “a period specified for setting up of any project or for five years, whichever is later”; see the box below.
Worked example
A State acquires farmland for an industrial park and takes possession in 2018. By 2023 nothing has been built on the land or otherwise put to use. Under section 101, five years from possession have passed without utilisation, so the land is to be returned to the original owners or their legal heirs, or to the State’s Land Bank, as prescribed. In a State with an amendment like Andhra Pradesh’s, the period would be the one specified for setting up the project or five years, whichever is later.
Questions on section 101
When must unutilised acquired land be returned?
When it remains unutilised for five years from the date of taking over possession.
To whom is it returned?
To the original owner or owners or their legal heirs, or to the Land Bank of the appropriate Government by reversion, as prescribed.
What is a Land Bank?
The Explanation describes it as a governmental entity that focuses on converting Government-owned vacant, abandoned, unutilised acquired lands and tax-delinquent properties into productive use.
Do States change this period?
Some do. The consolidated copy records an Andhra Pradesh amendment that uses the period specified for setting up the project or five years, whichever is later.
Related sections
- Section 99: No change of purpose to be allowed — no change of purpose to be allowed
- Section 100: No change of ownership without permission to be allowed — no change of ownership without permission
- Section 102: Difference in price of land when transferred for higher consideration to be shared — difference in price when transferred for higher consideration
- Section 103: Provisions to be in addition to existing laws — provisions in addition to existing laws
Nearby sections
- Section 99 — No change of purpose to be allowed
- Section 100 — No change of ownership without permission to be allowed
- Section 102 — Difference in price of land when transferred for higher consideration to be shared
- Section 103 — Provisions to be in addition to existing laws
Source and review trail
The text above is taken from the Gazette text of the Act. Check later amendments and the State rules before relying on it.
- Official text
- Act 30 of 2013 - consolidated copy (PDF)
- Central repository
- India Code - RFCTLARR Act, 2013