The Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962
Administered Ministry: Ministry of Petroleum and Natural Gas
Section 1 Short title, extent and application.
(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.
*. 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.
Section 2 Definitions.
(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 1[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;
1[(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.
Section 3 Publication of notification for acquisition.
(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.
Section 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
for transporting petroleum 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 while 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.
1 Ins. by Act 13 of 1977, s. 6 (w.e.f. 3-2-1977)
Section 5 Hearing of Objections.
(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.
Section 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 1[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 2[, 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. 2[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].
(2) On the publication of the declaration under sub-section (1), the right of user 3[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 4[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 cease to have effect on the expiration of that period.
5[(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.
1. Subs. by Act 13 of 1977, s. 7, for “submit a report accordingly to the Central Government” (w.e.f. 3-2-1977).
2. Ins. by s. 7, ibid. (w.e.f. 3-2-1977).
3. Subs. by Act 13 of 1977, s. 7, for “in the land” (w.e.f. 3-2-1977).
4. Subs. by s. 7, ibid., for “no declaration under this section has been published” (w.e.f. 3-2-1977).
5. Ins. by s. 7, ibid. (w.e.f. 3-2-1977).
Section 7 Central Government or State Government or corporation to lay pipelines.
(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 1***;
2[(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.]
(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.
2. Ins. by s. 8, ibid. (w.e.f. 3-2-1977).
Section 8 Power to enter land for inspection, etc.
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.
Section 9 Restrictions regarding the use of land.
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.]
Section 10 Compensation.
(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.
Section 11 Deposit and payment of compensation.
(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.
(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.
Section 12 Competent authority to have certain powers of civil courts.
(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.
Section 13 Protection of action taken in good faith.
(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.
Section 14 Bar of jurisdiction of civil courts.
Section 15 Punishments.
1[15. 2[Punishments].—3[(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,---
(a) for the first contravention, be liable to penalty which may extend to one lakh rupees;
(b) for the second or any subsequent contraventions, be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one lakh rupees, 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 4[three 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.
(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 5[five years but may extend to imprisonment for life].
1. Subs. by Act 9 of 2012, s. 2, for sections 15 and 16 (w.e.f. 17-2-2012).
2. Subs. by Act 8 of 2026, s. 2 and Sch., for “Penalty” (w.e.f. 2-6-2026).
3. Subs. by s. 2 and Sch., ibid., for sub-section (1) (w.e.f. 2-6-2026).
4. Subs. by s. 2 and Sch., ibid., for “ten years” (w.e.f. 2-6-2026).
5. Subs. by Act 8 of 2026, s. 2 and Sch., for “ten years but may extend to imprisonment for life or death” (w.e.f. 2-6-2026).
Section 15A Adjudication of penalties.
1[15A. Adjudication of penalties.––(1) For the purpose of adjudication of penalties under lause (a) of sub-section (1) of section 15, the Central Government shall appoint an officer not below the rank of Joint Secretary to the Government of India as an adjudicating officer for holding an inquiry and imposing penalties in such manner as may be prescribed:
Provided that no such penalty shall be imposed without giving the person concerned a reasonable opportunity of being heard.]
1. Ins. by Act 8 of 2026, s. 2 and Sch. (w.e.f. 2-6-2026).
Section 15B Appeal.
1[15B. Appeal.—(1) Every appeal against the order of the adjudicating authority under this section shall lie with the Appellate Tribunal referred to in section 30 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006) and the provisions contained in sections 33, 34, 35 and 36 of that Act, shall, mutatis mutandis apply, in relation to every such appeal.
(2) The provisions contained in section 37 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006) shall mutatis mutandis apply, in relation to every appeal against the order of the Appellate Tribunal referred to in sub-section (1).]
1. Ins. by Act 8 of 2026, s. 2 and Sch. (w.e.f. 2-6-2026).
Section 16 Certain offences to be cognizable.
Section 16A Burden of proof in certain cases.
(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.]