(1.) The year 1947 was of momentous events in the history of this country. It was the year of the great divide. The country gained freedom but at a heavy price. It was partitioned. An independent sovereign state, Pakistan was created. As a result of partition there was large scale migration. From the territories which remained in India, muslim population migrated to Pakistan. Hindus who had their homes in the territories which went to Pakistan migrated to India. There was a massive influx of the refugee population across the two borders. In large numbers, the migrant population which moved from Pakistan reached the city of Delhi. The city started expanding in geometrical proportion. Land was required for housing, industrial and commercial use. The Large Scale Acquisition Policy of 1961 was framed in Delhi. The policy envisaged allotment of land at pre-determined rates. The idea was to prevent unplanned growth of the city and provide land at reasonable prices to the migrant population.
(2.) In 1957 the Delhi Development Act was promulgated. The Act as originally framed, empowered DDA to acquire land and develop the same as per planned development of Delhi. Thereafter, power of DDA to acquire the land was taken away. As amended, at the request of DDA, Central Government would acquire lands and place the same at the disposal of DDA. The Delhi Development Authority (Disposal of Developed Nazul Land) Rules 1981 were framed. By virtue of Section 22 of Delhi Development Act, land which was placed at disposal of DDA was to be utilised by it as per directions of the Central Government. Additionally, utilisation of the land was as per the Nazul Land Rules, 1981.
(3.) Since land was allotted at pre-determined rates (not on market rates) perpetual leases were executed. The form of the lease was statutorily prescribed by the Nazul Land Rules. All leases had a clause to the effect that in case the perpetual lessee transfers the lease hold rights the lessor was entitled to recover up to 50% unearned increase in the value of the land. Prior permission had to be taken before transfer.