East Punjab Holdings (Consolidation and Prevention of Fragmentation) Act, 1948
(1) Notwithstanding anything contained in any law for the time being in force, no land shall be acquired by the [State] Government or any local authority or sold at any sale held under the orders of any Court so as to leave a fragment. (2) If any land acquired by the [State] Government or any local authority is in excess of its requirements, it shall be offered for sale in the first instance to the owners of contiguous survey numbers or recognised sub-divisions of survey numbers at the price at which it was acquired under sub-section (1).