(1) In making a settlement or resettlement, the Settlement Officer shall—
(a) divide the lands to be settled into groups and classes; and
(b) fix the rates of assessment for each group or class.
(2) Before lands are divided or rates fixed under sub-section (1), the Settlement Officer shall hold such enquiry as he considers necessary for the purpose and in such manner as may be prescribed.
(3) In fixing the rates according to sub-section (1), regard shall be had to the cost of agricultural land, to the profits of agriculture, consideration paid for leases, sale prices of land and the principal moneys on mortgages, and in the case of nonagricultural land to the value of the land for the purposes for which it is held.
(4) The settlement Officer shall submit to the Government through the Director a report (hereinafter referred to as the Scheme Report) containing proposals for settlement in respect of each zone.
(5) The Government shall, after considering the scheme Report and the comments thereon, if any, of the Director, approve the Scheme Report with or without modification.
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(6) No Scheme Report approved by the Government under subsection (5), shall be brought into force unless it has been laid before the Legislative Assembly of Puducherry and has been approved by a resolution of that Assembly either with or without modification, but upon such approval being given, the Scheme Report shall be published in the Official Gazette in the form in which it has been so approved.
(7) The Government, while publishing the Scheme Report under sub-section (6), shall also specify the fasli from which the settlement covered by the Scheme Report shall be introduced by Settlement Officer.
Term of settlement and reduction, suspension or remission of assessment