Section 11: Acquisition and disposal of land

11. Acquisition and disposal of land (1) This section shall apply to the acquisition and disposal of land by— (a) the Trust or a body controlled by it; (b) Government; or (c) any specified entity. (2) Subject to the approval of the Minister and to subsection (8), a person may convert 2 units of acreage for every unit of acreage sold to Government or any entity designated by Government, provided that the sale is effected at a nominal price of one rupee and he undertakes to plough back the proceeds arising from the conversion to any economic activity in Mauritius. (2A) The total acreage of land to be acquired by Government to which subsection (2) applies shall not exceed 100 hectares (236.918 arpents) in the aggregate or such other increased acreage as may be prescribed. (3) Subject to subsections (4), (5), (6) and (8), a person may convert 3 units of acreage for every unit of acreage sold to Government or any specified entity provided that the sale is effected at nominal rates, within a period of 6 months of the application for land conversion is granted and he undertakes— (a) to plough back at least 60 per cent of the proceeds arising from the conversion, of which at least half to sugar production or diversification within sugar in Mauritius in the schemes specified in the Fifth Schedule and the remainder to any other economic activity in Mauritius; or (b) to use part or the whole of the proceeds arising from the conversion to recoup the expenditure incurred in the context of the VRS pursuant to section 23. (4) The total acreage of land to which subsection (3) applies shall not exceed 1181.8800 hectares (2,800 arpents) in the aggregate. (5) No application for the first 844.2000 hectares (2,000 arpents) of the acreage referred to in subsection (4) shall be entertained after 31 July 2003. (6) No application for the remaining 337.6800 hectares (800 arpents) of the acreage referred to in subsection (4) shall be entertained after 31 July 2006. (7) Notwithstanding subsections (2) and (3) but subject to subsection (8), the Trust or a body controlled by it may, in respect of land acquired by it pursuant to sections 10 and 12, convert up to 20 per cent of that land. [Issue 9] S49 – 8 Revised Laws of Mauritius (8) The conversions referred to in subsection (2), (3), (7) or (11A) shall be subject to the conditions specified in Part V, but shall be exempted from payment of land conversion tax payable under that Part. (9) Notwithstanding the Land (Duties and Taxes) Act, where a deed containing the authorisation for land conversion under Part V and witnessing the transfer of land pursuant to the conversions referred to in— (a) subsection (2) or (3) is presented for registration, it shall be subject to the tax leviable under Part III of the Land (Duties and Taxes) Act at the rate of 5 per cent; (b) subsection (7) is presented for registration, it shall be exempted from the payment of the tax leviable under Part III of the Land (Duties and Taxes) Act. (10) Notwithstanding subsection (9), where the deed is in respect of an acquisition or disposal by a body controlled by the Trust, subsection (9) shall not apply unless the Trust issues a certificate to the effect that the body is controlled by it and that the certificate is contained in the deed. (11) Any land acquired by Government or any specified entity under subsection (2), (3) or (13) may be exchanged with a person who offers such extent of land as may be mutually agreed after effecting the appropria hstanding subsection (9), where the deed is in respect of an acquisition or disposal by a body controlled by the Trust, subsection (9) shall not apply unless the Trust issues a certificate to the effect that the body is controlled by it and that the certificate is contained in the deed. (11) Any land acquired by Government or any specified entity under subsection (2), (3) or (13) may be exchanged with a person who offers such extent of land as may be mutually agreed after effecting the appropriate valuation exercise, both transactions being effected for a nominal price of one rupee. (11A) Notwithstanding the Land (Duties and Taxes) Act, where the person subsequently converts and sells the land obtained in exchange under subsection (11), the deed containing the authorisation for land conversion under Part V and witnessing the transfer of land by that person shall be subject to the tax leviable under Part III of the Land (Duties and Taxes) Act at the rate of 5 per cent. (12) Notwithstanding the Land (Duties and Taxes) Act— (a) an exchange referred to in subsection (11) shall be exempted from payment of the duty or tax leviable under Parts II and III of that Act; (b) any body corporate complying with subsection (2) which transfers its leasehold rights in State land to any of its subsidiaries shall be exempted from payment of the tax under Part VIA of the Land (Duties and Taxes) Act where the deed witnessing the transfer contains an authorisation for land conversion under Part V; or (c) where the person referred to in subsection (2) sells land at concessionary prices to Government, a specified entity or any entity designated by Government, the deed witnessing the transfer shall be exempted from payment of the duty or tax leviable under Part II and Part III of that Act. S49 – 9 [Issue 9] Sugar Industry Efficiency Act (13) Notwithstanding the Land (Duties and Taxes) Act, where a person sells land, other than land referred to in the preceding subsections, to Government or a specified entity at a nominal price of one rupee or at a price of less than 50 per cent of a mutually agreed market value of the land, the deed witnessing the transfer shall be exempted from payment of the duty or tax leviable under Parts II, III and IV of that Act. (14) No land shall be exchanged under subsection (11) or sold to the specified entity in item 5 of the Fourth Schedule under subsection (13), unless the exchange or sale is approved by the Minister to whom responsibility for the subject of finance is assigned. [S. 11 amended by s. 4 of Act 26 of 2001; s. 29 (c) of Act 15 of 2006 w.e.f. 7 August 2006; s. 29 (a) of Act 17 of 2007 w.e.f. 22 August 2007; s. 29 (a) of Act 20 of 2011 w.e.f. 16 July 2011; s. 3 of Act 15 of 2013 w.e.f. 29 June 2013; s. 4 of Act 34 of 2016 w.e.f. 1 January 2017.] PART III – PROVISIONS RELATING TO EFFICIENCY AND VIABILITY OF SUGAR INDUSTRY Sub-Part A – Mergers and Takeovers