The Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962
# THE PETROLEUM AND MINERALS PIPELINES                       
 (ACQUISITION OF RIGHT OF USER IN LAND) ACT, 1962
 ___________

 ARRANGEMENT OF SECTIONS
 _________

SECTIONS

1. Short title, extent and application.
2. Definitions.
3. Publication of notification for acquisition.
4. Power to enter, survey, etc.
5. Hearing of Objections.
6. Declaration of acquisition of right of user.
7. Central Government or State Government or corporation to lay pipelines.
8. Power to enter land for inspection, etc.
9. Restrictions regarding the use of land.
10. Compensation.
11. Deposit and payment of compensation.
12. Competent authority to have certain powers of civil courts.
13. Protection of action taken in good faith.
14. Bar of jurisdiction of civil courts.
15. Penalty.
16. Certain offences to be cognizable.

16A. Burden of proof in certain cases.
16B. Presumption regarding property.
16C. Provisions as to bail.
16D. Section 438 of the Code of Criminal Procedure, 1973 not to apply.

17. Power to make rules.
18. Application of other laws not barred.

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# THE PETROLEUM AND MINERALS PIPELINES                       
 (ACQUISITION OF RIGHT OF USER IN LAND) ACT, 1962

 ACT NO. 50 OF 1962

[7th December, 1962.]

# An Act to provide for the acquisition of right of user in land [1][for laying pipelines for the
 transport of petroleum and minerals] and for matters connected therewith.

BE it enacted by Parliament in the Thirteenth Year of the Republic of India as follows:—

**1. Short title, extent and application.—(1) This Act may be called the [2][Petroleum and Minerals**

Pipelines] (Acquisition of Right of User in Land) Act, 1962.

(2) It extends to the whole of India except the State of Jammu and Kashmir*.

(3) It applies in the first instance to the whole of the States of West Bengal, Bihar, Uttar-Pradesh and

Gujarat and the Union territory of Delhi, and the Central Government may, by notification in the Official
Gazette, declare that this Act shall also apply to such other State of Union territory and with effect from
such date as may be specified in that notification and thereupon the provisions of this Act shall apply to
that State or Union territory accordingly.

**2. Definitions.—In this Act, unless the context otherwise requires,—**

(a) “competent authority” means any person or authority authorised by the Central Government,

by notification in the Official Gazette, to perform the functions of the competent authority under this
Act [3][and different persons or authorities may be authorised to perform all or any of the functions of
the competent authority under this Act in the same area or different areas specified in the
notification;]

(b) “corporation” means any body corporate established under any Central, Provincial or State

Act, and includes—

(i) a company formed and registered under the Companies Act, 1956 (1 of 1956); and

(ii) a company formed and registered under any law relating to companies formerly in force in

any part of India;

3[(ba) “minerals” have the meanings assigned to them in the Mines Act, 1952 (35 of 1952), and

include mineral oils and stowing sand but do not include petroleum;]

(c) “petroleum” has the same meaning as in the Petroleum Act, 1934 (30 of 1934), and includes

natural gas and refinery gas;

(d) “prescribed means prescribed by rules made under this Act.

**3. Publication of notification for acquisition.—(1) Whenever it appears to the Central Government**

that it is necessary in the public interest that for the transport of petroleum [4][or any mineral] from one
locality to another locality pipelines may be laid by that Government or by any State Government or a
corporation and that for the purpose of laying such pipelines it is necessary to acquire the right of user in

1. Subs. by Act 13 of 1977, s. 2, for “for laying petroleum pipelines” ( w.e.f. 3-2-1977).
2. Subs. by s. 3, ibid., for “Petroleum Pipelines” ( w.e.f. 3-2-1977).
3. Ins. by Act 13 of 1977, s. 4 (w.e.f. 3-2-1977).
4. Ins. by s. 5, ibid. (w.e.f. 3-2-1977).
*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and

Kashmir and the Union territory of Ladakh.

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any land under which such pipelines may be laid, it may, by notification in the Official Gazette, declare
its intention to acquire the right of user therein.

(2) Every notification under sub-section (1) shall give a brief description of the land.

(3) The competent authority shall cause the substance of the notification to be published at such

places and in such manner as may be prescribed.

**4. Power to enter, survey, etc.—On the issue of a notification under sub-section (1) of section 3, it**

shall be lawful for any person authorised by the Central Government or by the State Government or the
corporation which proposes to lay pipelines [1][or any mineral], and his servants and workmen.

(a) to enter upon and survey and take levels of any land specified in the notification;

(b) to dig or bore into the sub-soil;

(c) to set out the intended line of work;

(d) to mark such levels, boundaries and line by placing marks and cutting trenches;

(e) where otherwise survey cannot be completed and levels taken and the boundaries and line

marked, to cut down and clear away any part of any standing crop, fence or jungle; and

(f) to do all other acts necessary to ascertain whether pipelines can be laid under the land:

Provided that where exercising any power under this section, such person or any servant or workmen

of such person shall cause as little damage or injury as possible to such land.

**5. Hearing of Objections.—(1) Any person interested in the land may, within twenty-one days from**

the date of the notification under sub-section (1) of section 3, object to the laying of the pipelines under
the land.

(2) Every objection under sub-section (1) shall be made to the competent authority in writing and

shall set out the grounds thereof and the competent authority shall give the objector an opportunity of
being heard either in person of by a legal practitioner and may, after hearing all such objections and after
making such further inquiry, if any, as that authority thinks necessary, by order either allow or disallow
the objections.

(3) Any order made by the competent authority under sub-section (2) shall be final.

**6. Declaration of acquisition of right of user.—(1) Where no objections under sub-section (1) of**

section 5 have been made to the competent authority within the period specified therein or where the
competent authority has disallowed the objections under sub-section (2) of that section, that authority
shall, as soon as may be [2][either make a report in respect of the land described in the notification under
sub-section (1) of section 3, or make different reports in respect of different parcels of such land, to the
Central Government containing his recommendations on the objections, together with the record of the
proceedings held by him, for the decision of that Government] and upon receipt of such report the Central
Government shall [3][, if satisfied that such land is required for laying any pipeline for the transport of
petroleum or any mineral,] declare, by notification in the Official Gazette, that the right of user in the land
for laying the pipelines should be acquired. [3][and different declarations may be made from time to time in
respect of different parcels of the land described in the notification issued under sub-section (1) of section
3, irrespective of whether one report or different reports have been made by the competent authority
under this section].

1. Ins. by Act 13 of 1977, s. 6 (w.e.f. 3-2-1977).
2. Subs. by s. 7, ibid., for “submit a report accordingly to the Central Government” (w.e.f. 3-2-1977).
3. Ins. by s. 7, ibid. (w.e.f. 3-2-1977).

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(2) On the publication of the declaration under sub-section (1), the right of user [1][in the land specified

therein] shall vest absolutely in the Central Government free from all encumbrances.

(3) Where in respect of any land, a notification has been issued under sub-section (1) of section 3 but

2[no declaration in respect of any parcel of land covered by that notification has been published under this
section] within a period of one year from the date of that notification, that notification shall cases to have
effect on the expiration of that period.

3[(3A) No declaration in respect of any land covered by a notification issued under sub-section (1) of

section 3, published after the commencement of the Petroleum Pipelines (Acquisition of Right of User in
Land) Amendment Act, 1977, shall be made after the expiry of three years from the date of such
publication.]

(4) Notwithstanding anything contained in sub-section (2), the Central Government may, on such

terms and conditions as it may think fit to impose, direct by order in writing, that the right of user in the
land for laying the pipelines shall, instead of vesting in the Central Government vest, either on the date of
publication of the declaration or, on such other date as may be specified in the direction, in the State
Government or the corporation proposing to lay the pipelines and thereupon the right of such user in the
land shall, subject to the terms and conditions so imposed, vest in that State Government or corporation,
as the case may be, free from all encumbrances.

**7. Central Government or State Government or corporation to lay pipelines.—(1) Where the**

right of user in any land has vested in the Central Government or in any State Government or corporation
under section 6—

(i) it shall be lawful for any person authorised by the Central Government or such State

Government or corporation as the case may be, and his servants and workmen to enter upon the land
and lay pipelines or to do any other act necessary for the laying of pipelines:

Provided that no pipeline shall be laid under—

(a) any land which, immediately before the date of the notification under sub-section (1) of

section 3, was used for residential purposes;

(b) any land on which there stands any permanent structure which was in existence

immediately before the said date;

(c) any land which is appurtenant to a dwelling house; or

(d) any land at a depth which is less than one metre from the surface; [4]***

5[(ia) for laying pipelines for the transport of petroleum, it shall be lawful for any person

authorised by the Central Government or such State Government or corporation to use such
land for laying pipelines for transporting any mineral and where the right of user in any land
has so vested for laying pipelines for transporting any mineral, it shall be lawful for such
person to use such land for laying pipelines for transporting petroleum or any other mineral;
and.]

1. Subs. by Act 13 of 1977, s. 7, for “in the land” (w.e.f. 3-2-1977).
2. Subs. by s. 7, ibid., for “no declaration under this section has been published”, (w.e.f. 3-2-1977).
3. Ins. by s. 7, ibid. (w.e.f. 3-2-1977).
4. The word “and” omitted by s. 8, ibid. (w.e.f. 3-2-1977).
5. Ins. by s. 8, ibid. (w.e.f. 3-2-1977).

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(ii) such land shall be used only for laying the pipelines and for maintaining, examining,

repairing, altering or removing any such pipelines or for doing any other act necessary for
any of the aforesaid purposes or for the utilisation of such pipelines.

(2) If any dispute arises with regard to any matter referred to in paragraph (b) or paragraph (c) of the

proviso to clause (i) of sub-section (1), the dispute shall be referred to the competent authority whose
decision thereon shall be final.

**8. Power to enter land for inspection, etc.—For maintaining, examining, repairing, altering or**

removing any pipelines, or for doing any other act necessary for the utilisation of the pipelines or for the
making of any inspection or measurement for any of the aforesaid purposes, any person authorised in this
behalf by the Central Government, the State Government or the corporation, as the case may be, may,
after giving reasonable notice to the occupier of the land under which the pipelines has been laid, enter
therein with such workmen and assistants as may be necessary:

Provided that, where such person is satisfied that an emergency exists no such notice shall be

necessary:

Provided further that, while exercising any powers under this section, such person or any workmen or

assistant of such person, shall cause as little damage or injury as possible to such land.

**9. Restrictions regarding the use of land.—(1) The owner or occupier of theland with respect to**

which a declaration has been made under sub-section (1) of section 6, shall be entitled to use the land for
the purpose for which such land was put to use immediately before the date of the notification under
sub-section (1) of section 3:

Provided that, such owner or occupier shall not after the declaration under sub-section (1) of

section 6—

(i) construct any building or any other structure;

(ii) construct or excavate any tank, well, reservoir or dam; or

(iii) plant any tree,

on that land.

(2) The owner or occupier of the land under which any pipelines has been laid shall not do any act or

permit any act to be done which will or is likely to cause any damage in any manner whatsoever to the
pipeline.

1[(3) Where the owner or occupier of the land with respect to which a declaration has been made

under sub-section (1) of section 6,—

(a) constructs any building or any other structure, or

(b) constructs or excavates any well, tank, reservoir or dam, or

(c) plants any tree,

on that land, the Court of the District Judge within the local limits of whose jurisdiction such land is
situate may, on an application made to it by the competent authority and after holding such inquiry as it
may deem fit, cause the building, structure, reservoir, dam or tree to be removed or the well or tank to be
filled up, and the costs of such removal or filling up shall be recoverable from such owner or occupier in
the same manner as if the order for the recovery of such costs were a decree made by that Court.]

1. Ins. by Act 13 of 1977, s. 9 (w.e.f. 3-2-1977).

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**10. Compensation.—(1) Where in the exercise of the powers conferred by section 4, section 7 or**

section 8 by any person, any damage, loss or injury is sustained by any person interested in the land under
which the pipeline is proposed to be, or is being, or has been laid, the Central Government, the State
Government or the corporation, as the case may be, shall be liable to pay compensation to such person
for such damage, loss or injury, the amount of which shall be determined by the competent authority in
the first instance.

(2) If the amount of compensation determined by the competent authority under sub-section (1) is not

acceptable to either of the parties, the amount of compensation shall, on application by either of the
parties to the District Judge within the limits of whose jurisdiction the land or any part thereof is situated,
be determined by that District Judge.

(3) The competent authority or the District Judge while determining the compensation under

sub-section (1) or sub-section (2), as the case may be, shall have due regard to the damage or loss
sustained by any person interested in the land by reason of—

(i) the removal of trees of standing crops, if any, on the land while exercising the power under

section 4, section 7 or section 8;

(ii) the temporary severance of the land under which the pipeline has been laid from other lands

belonging to, or in the occupation of, such person; or

(iii) any injury to any other property, whether movable or immovable, or the earnings of such

persons caused in any other manner:

Provided that in determining the compensation no account shall be taken of any structure or other

improvement made in the land after the date of the notification under sub-section (1) of section 3.

(4) Where the right of user of any land has vested in the Central Government, the State Government

or the corporation, the Central Government, the State Government or the corporation, as the case may
be, shall, in addition to the compensation, if any, payable under sub-section (1), be liable to pay to the
owner and to any other person whose right of enjoyment in that land has been affected in any manner
whatsoever by reason of such vesting, compensation calculated at ten per cent. of the market value of that
land on the date of the notification under sub-section (1) of section 3.

(5) The market value of the land on the said date shall be determined by the competent authority and

if the value so determined by that authority is not acceptable to either of the parties, it shall, on
application by either of the parties to the District Judge referred to in sub-section (2), be determined by
that District Judge.

(6) The decision of the District Judge under sub-section (2) or sub-section (5) shall be final.

**11. Deposit and payment of compensation.—(1) The amount of compensation determined under**

section 10 shall be deposited by the Central Government, the State Government or the corporation, as the
case may be, with the competent authority within such time and in such manner as may be prescribed.

(2) If the amount of compensation is not deposited within the time prescribed under sub-section (1),

the Central Government, the State Government or the corporation, as the case may be, shall be liable to
pay interest thereon at the rate of six per cent. per annum from the date on which the compensation had to
be deposited till the date of the actual deposit.

(3) As soon as may be after the compensation has been deposited under sub-section (1) the competent

authority shall, on behalf of the Central Government the State Government or the corporation, as the case
may be, pay the compensation to the persons entitled thereto.

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(4) Where several persons claim to be interested in the amount of compensation deposited under

sub-section (1), the competent authority shall determined the persons who in its opinion are entitled to
receive the compensation and the amount payable to each of them.

(5) If any dispute arises as to the apportionment of the compensation or any part thereof or as to the

persons to whom the same or any part thereon is payable, the competent authority shall refer the dispute
to the decision of the District Judge within the limits of whose jurisdiction the land or any part thereof is
situated and the decision of the District Judge thereon shall be final.

**12. Competent authority to have certain powers of civil courts.—The competent authority shall**

have, for the purposes of this Act, all the powers of a civil court while trying a suit under the Code of
Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely:—

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of any document;

(c) reception of evidence on affidavits;

(d) requisitioning any public record from any court or office;

(e) issuing commission for examination of witnesses.

**13. Protection of action taken in good faith.—(1) No suit, prosecution or other legal proceeding**

shall lie against any person for anything which is in good faith done or intended to be done in pursuance
of this Act or any rule or notification made or issued thereunder.

(2) No suit or other legal proceeding shall lie against the Central Government, the competent

authority or any State Government, or corporation for any damage, loss or injury caused or likely to be
caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule
or notification made or issued there under.

**14. Bar of jurisdiction of civil courts.—Save as otherwise expressly provided in this Act, no civil**

court shall have jurisdiction in respect of any matter which the competent authority is empowered by or
under this Act to determine and no injunction shall be granted by any court or other authority in respect of
any action taken or proposed to be taken in pursuance of any power conferred by or under this Act.

1[15. Penalty.—(1) Whoever wilfully obstructs any person in doing any of the acts authorised by

section 4 or section 7 or section 8 or wilfully fills up, destroys, damages or displaces any trench or mark
made under section 4 or wilfully does any act prohibited under section 9, shall be punishable with
imprisonment for a term which may extend to six months or with fine or with both.

(2) Whoever wilfully makes or causes to make any unauthorised connection with or removes,

destroys, damages or displaces any pipeline laid under section 7, or wilfully inserts any device to extract
petroleum product or minerals from such pipeline, or wilfully disrupts supplies being made through the
pipeline, shall be punishable with rigorous imprisonment for a term which may extend to ten years and
shall also be liable to fine.

(3) If any person convicted of an offence under sub-section (2) is again convicted of an offence under

the same provision, he shall be punishable with rigorous imprisonment for the second and for every
subsequent offence for a term which shall not be less than three years but which may extend to ten years:

Provided that the court may, for any adequate and special reasons to be mentioned in the judgment,

impose a sentence of imprisonment for a term of less than three years.

1. Subs. by Act 9 of 2012, s. 2, for sections 15 and 16 (w.e.f. 3-2-1977).

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(4) Whoever, with the intent to cause or knowing that he is likely to cause damage to or destruction of

any pipeline laid under section 7, causes by fire, explosive substance or otherwise damage to the pipeline
being used for transportation of petroleum products, crude oil or gas with the intent to commit sabotage or
with the knowledge that such act is so imminently dangerous that it may in all probability cause death of
any person or such bodily injury likely to cause death of any person, shall be punishable with rigorous
imprisonment which shall not be less than ten years but may extend to imprisonment for life or death.

**16. Certain offences to be cognizable.—Notwithstanding anything contained in the Code of**

Criminal Procedure, 1973 (2 of 1974), an offence falling under sub-sections (2), (3) and (4) of section 15
shall be deemed to be cognizable and non-bailable within the meaning of that Code.

**16A. Burden of proof in certain cases.—Where any petroleum product together with any tool,**

vehicle or any item used in committing any such offence under sub-section (2) or sub-section (4) of
section 15 are seized under this Act in the reasonable belief that such petroleum product has been stolen
from the pipeline laid under section 7, the burden of proving that they are not stolen property shall be, in
case where such seizure is made from the possession of any person,—

(i) on the person from whose possession the property was seized, and

(ii) on the person who claims to be the owner thereof, if any person other than the person from

whose possession the stolen property was seized.

**16B. Presumption regarding property.—When any proceeding taken under this Act, or in**

consequence of anything done under this Act, a question arises as to whether any petroleum product is the
property of the corporation, the Court shall presume, unless the contrary is shown, that such petroleum
product belongs to the corporation.

**16C. Provisions as to bail.—(1) Notwithstanding anything contained in the Code of Criminal**

Procedure, 1973 (2 of 1974), no person accused of an offence punishable under sub-section (4) of section
15 shall, if in custody, be released on bail or on his own bond unless—

(a) the Public Prosecutor has been given an opportunity to oppose the application for such

release; and

(b) where the Public Prosecutor opposes the application, the court is satisfied that there are

reasonable grounds for believing that he is not guilty of such offence and that he is not likely to
commit any offence while on bail.

(2) The limitations on granting of bail specified in sub-section (1) are in addition to the limitations

under the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force on
granting of bail.

(3) Nothing contained in this section shall be deemed to affect the special powers of the High Court

regarding bail under section 439 of the Code of Criminal Procedure, 1973 (2 of 1974).

**16D. Section 438 of the Code of Criminal Procedure, 1973 not to apply.—Nothing in section 438**

of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply in relation to any case involving the
arrest of any person on an accusation of having committed an offence punishable under sub-section (4) of
section 15.]

**17. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,**

make rules for carrying out the [1][provisions] of this Act.

1. Subs. by Act 13 of 1977, s. 10, for “purposes” (w.e.f. 3-2-1977).

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(2) In particulars and without prejudice to the generality of the foregoing power, such rules may

provide for all or any of the following matters, namely:—

(a) the places at which and the manner in which the substance of the notification may be

published under sub -section (3) of section 3;

(b) the time within which and the manner in which the amount of compensation may be deposited

under sub-section (1) of section 11.

(3) Every rule made under this Act shall be laid as soon as may be after it is made before each Houses

of Parliament while it is in session for a total period of thirty days which may be comprised in one session
or in two or more successive sessions, and if [1][before the expiry of the session immediately following the
session or the successive sessions aforesaid], both Houses agree in making any modification in the rule or
both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so however that any such modification or annulment
shall be without prejudice to the validity of anything previously done under that rule .

**18. Application of other laws not barred.—The provisions of this Act shall be in addition to and**

not in derogation of any other law for the time being in force relating to acquisition of land.

1. Subs. by Act 13 of 1977, s. 10, for “before the expiry of the session in which it is so laid or the successive sessions aforesaid”

(w.e.f. 3-2-1977).

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