Income-tax Act, 1961 · Chapter XXC: Purchase by Central Government of Immovable Properties in Certain Cases of Transfer
Section 269UD: Order by appropriate authority for purchase by Central Government of immovable property
The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.
In plain words
This section allowed the Government to buy immovable property at the price agreed between buyer and seller. After receiving the statement of the transfer under section 269UC, the appropriate authority could order purchase by the Central Government at the apparent consideration.
- The order had to be made within two months of the end of the month in which the statement was received, extended to three months for statements received on or after 1st June 1993.
- The transferor, the occupier, the transferee and other interested persons had to be given a reasonable opportunity of being heard.
- Every order had to state its grounds.
- The Supreme Court in C.B. Gautam held that a hearing was required and that pre-emptive purchase was meant to target undervaluation.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
(1) [Subject to the provisions of sub-sections (1A) and (1B), the appropriate authority], after the receipt of the statement under sub-section (3) of section 269UC in respect of any immovable property, may, notwithstanding anything contained in any other law or any instrument or any agreement for the time being in force, *** make an order for the purchase by the Central Government of such immovable property at an amount equal to the amount of apparent consideration :
Provided that no such order shall be made in respect of any immovable property after the expiration of a period of two months from the end of the month in which the statement referred to in section 269UC in respect of such property is received by the appropriate authority: [Provided further that where the statement referred to in section 269UC in respect of any immovable property is received by the appropriate authority on or after the 1st day of June, 1993, the provisions of the first proviso shall have effect as if for the words —two months‖, the words —three months‖ had been substituted:] [Provided also that the period of limitation referred to in the second proviso shall be reckoned, where any defect as referred to in sub-section (4) of section 269UC has been intimated, with reference to the date of receipt of the rectified statement by the appropriate authority:] [Provided also] that in a case where the statement referred to in section 269UC in respect of the immovable property concerned is given to an appropriate authority, other than the appropriate authority having jurisdiction in accordance with the provisions of section 269UB to make the order referred to in this sub-section in relation to the immovable property concerned, the period of limitation referred to in6[the first and second provisos] shall be reckoned with reference to the date of receipt of the statement by the appropriate authority having jurisdiction to make the order under this sub-section : [Provided also that the period of limitation referred to in the second proviso shall be reckoned, where any stay has been granted by any court against the passing of an order for the purchase of the immovable property under this Chapter, with reference to the date of vacation of the said stay.] [(1A) Before making an order under sub-section (1), the appropriate authority shall give a reasonable opportunity of being heard to the transferor, the person in occupation of the immovable property if the transferor is not in occupation of the property, the transferee and to every other person whom the appropriate authority knows to be interested in the property.
(1B) Every order made by the appropriate authority under sub-section (1) shall specify the grounds on which it is made.]
(2) The appropriate authority shall cause a copy of its order under sub-section (1) in respect of any immovable property to be served on the transferor, the person in occupation of the immovable property if the transferor is not in occupation thereof, the transferee, and on every other person whom the appropriate authority knows to be interested in the property.
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 269UD
- National Highways Authority of India & Others v. Madhukar Kumar & Others
- Sankalp Recreation Private Limited v. Union of India & Ors.
- Krishna Kumar Rawat & Ors. v. Union of India & Ors.
- Delhi Development Authority v. M/S. Karamdeep Finance & Investment (I) Pvt. Ltd. & Ors.
- Unitech Ltd. &Anr. v. Union of India & Anr.
- Mis. Dharampal Satyapal Ltd. v. Deputy Commissioner of Central Excise, Gauhati & Ors.
- Harshad Govardhan Sondagar v. International Assets Reconstruction Co. Ltd.
- Krishnaswamy S. Pd. and Anr. v. Union of India and Ors.
- Union of India v. M/S Shatabadi Trading and Investment Pvt. Ltd. and Ors
- D.L.F. Universal Ltd. v. Appropriate Authority and Anr. Etc.
- Asgar S. Patel and Ors. v. Union of India and Ors.
- The Appropriate Authority and Anr. v. Smt. Sudha Patil and Anr.
- Prima Realty v. Union of India and Ors.
- State Bank of Patiala and Ors. v. S.K. Sharma
- C.B. Gautam v. Union of India and Ors.