AIBE question and official answer

AIBE XX 2025 Set A Question 39

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Question 39 of 100 AIBE XX 2025 Set A

After a government notification is issued for acquiring Mr. Mehta's farmland under the Land Acquisition Act, 1894, he notices that the income from his crops steadily decreases until the authorities finally take possession. He approaches the court claiming compensation for this reduction in profits. According to the Act, what type of loss is compensable in such a case?

  1. A Loss due to falling land prices in the market
  2. B Loss due to cancellation of tenant agreements
  3. C Loss of employment in nearby areas
  4. D Bona fide diminution of profits due to acquisition process

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