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An Overview
Contents
1. 2. 3. 4. 5. 6. Introduction Background Why a new and combined law? Aims and objectives Purpose Salient Features of the New Law Scope of the Bill Definition of Public Purpose Urgency Clause Definition of Affected Family Safeguarding Food Security Minimum Compensation for Land Minimum R&R Entitlements Special Provisions for SCs/STs Enhanced Role for Panchayati Raj Insitutitions especially Gram Sabhas Special Provisions for Farmers Special Benefits for Tenants and Sharecroppers Infrastructural Amenities under R&R Compliance with Other Laws Process Flow Institutional Structure Safeguards against indiscriminate acquisition Timelines Some other Key Features
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INTRODUCTION
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is a legislation that regulates land acquisition and provides laid down rules for granting compensation, rehabilitation and resettlement to the affected persons in India. The Act has provisions to provide fair compensation to those whose land is taken away, brings transparency to the process of acquisition of land to set up factories or buildings, infrastructural projects and assures rehabilitation of those affected. The Act establishes regulations for land acquisition as a part of India's massive industrialisation drive driven by public-private partnership. The Act will replace the Land Acquisition Act, 1894, a nearly 120-year-old law enacted during British rule. The bill was introduced in Lok Sabha in India on 7 September 2011. Out of the 235 members who voted on the bill, 216 backed it while 19 voted against it. The Act was passed on 29 August 2013 in the Lok Sabha (lower house of the Indian parliament) and on 4 September 2013 in Rajya Sabha (upper house of the Indian parliament). The bill received the ascent of the President of India, Pranab Mukherjee on 27 September 2013. The Act shall come into force from 1 January 2014.
BACKGROUND
The Government of India believed there was a heightened public concern on land acquisition issues in India. Of particular concern was that despite many amendments, over the years, to India's Land Acquisition Act of 1894, there was an absence of a cohesive national law that addressed fair compensation when private land is acquired for public use, and fair rehabilitation of land owners and those directly affected from loss of livelihoods. The Government of India believed that a combined law was necessary, one that legally requires rehabilitation and resettlement necessarily and simultaneously follow government acquisition of land for public purposes. Forty-Fourth Amendment Act of 1978 omitted Art 19(1) (f) with the net result being: The right not to be deprived of ones property save by authority of law has since been no longer a fundamental right. Thus, if government issues a fiat to take away the property of a person, that person has no right to move the Supreme Court under Art 32. Moreover, no one can challenge the reasonableness of the restriction imposed by any law the legislature made to deprive the person of his property. The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 was introduced in Lok Sabha. Two Bills on similar lines were introduced in Lok Sabha in 2007. These Bills lapsed with the dissolution of the 14th Lok Sabha.
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To ensure, in consultation with institutions of local self-government and Gram Sabhas established under the Constitution of India, a humane, participative, informed and transparent process for land acquisition for industrialization, development of essential infrastructural facilities and urbanization with the least disturbance to the owners of the land and other affected families Provide just and fair compensation to the affected families whose land has been acquired or proposed to be acquired or are affected by such acquisition Make adequate provisions for such affected persons for their rehabilitation and resettlement Ensure that the cumulative outcome of compulsory acquisition should be that affected persons become partners in development leading to an improvement in their post-acquisition social and economic status and for matters connected therewith or incidental thereto.
PURPOSE
The Act aims to establish the law on land acquisition, as well as the rehabilitation and resettlement of those directly affected by the land acquisition in India. The scope of the Act includes all land acquisition whether it is done by the Central Government of India, or any State Government of India, except the state of Jammu & Kashmir. The Act is applicable when:
Government acquires land for its own use, hold and control, including land for Public sector undertakings. Government acquires land with the ultimate purpose to transfer it for the use of private companies for stated public purpose. The purpose of LARR 2011 includes public-private-partnership projects, but excludes land acquired for state or national highway projects.
Government acquires land for immediate and declared use by private companies for public purpose.
The provisions of the Act does not apply to acquisitions under 16 existing legislations including the Special Economic Zones Act, 2005, the Atomic Energy Act, 1962, the Railways Act, 1989, etc.
2. Land for infrastructure: (i) items listed in circular of Government of India, Department of Economic Affairs (Infrastructure Section) number 13/6/2009-INF dated the 27th March, 2012 excluding private hospitals, private educational institutions and private hotels (ii) projects involving agro-processing, supply of inputs to agriculture, warehousing, cold storage facilities, marketing infrastructure for agriculture and allied activities such dairy, fisheries, and meat processing as set up or owned by the appropriate. (iii) project for industrial corridors or mining activities, national investment and manufacturing zones as designated in the national manufacturing Policy; (iv) project for water harvesting and water conservation structures, sanitation; (v) project for Government administered and government aided educational and research schemes or institutions; (vi) project for sports, health care, tourism, transportation, space programme, (vii) any infrastructure facility as may be notified in this regard by the Central Government and after tabling of such notification in Parliament; 3. Land for the project affected people 4. Land for planned development or improvement of village or urban sites or for residential purpose to weaker sections; 5. Land for persons residing in areas affected by natural calamities or displaced.
URGENCY CLAUSE:
The Urgency Clause can only be invoked in the following cases: 1. National defense and security purposes 2. Resettlement & Rehabilitation needs in the event of natural calamities such as floods or earthquakes.
In case there is double displacement of any individual they will receive an additional compensation of up to 75% of the compensation already provided for under the new law.
2. Those who are assigned land by the Governments under various schemes; 3. Right holders under the Forest Rights Act, 2006 Livelihood Losers: 1. Over the last three years, a family whose livelihood is primarily dependent on the land being acquired, including agriculture labourers, tenants or sharecroppers. 2. Over the last three years, families which are dependent on forests or waterbodies for their livelihoods when these are acquired; including forest gatherers, hunters, fisher folk and boatmen. 3. Over the last three years, any family whose livelihood is dependent primarily on the land being acquired in the urban areas or any family who is residing on the land being acquired in the urban areas.
the appropriate Government for investment in agriculture for enhancing foodsecurity). 3. States are also required to set a limit on the area of agricultural land that can be acquired in any given district. 1. and 2. above shall not apply in the case of linear projects (such as railways, highways, major district roads, power lines, and irrigation canals)
5. The Company for whom land is being acquired may offer shares limited to 25% of the Compensation amount . In case the project affected family wishes to avail of this offer, an equivalent amount will be deducted from the land acquisition compensation package payable to it.
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In addition to the R&R package, SC/ST families will be entitled to the following additional benefits: 1.Land to be given to each family in every project even in the case of irrigation projects; 2.One time financial assistance of Rs. 50,000 per family; 3.Families settled outside the district shall be entitled to an additional 25% R&R benefits; 4.Payment of one third of the compensation amount at very outset; 5.Preference in relocation and resettlement in area in same compact block; 6.Free land for community and social gatherings; 7.In case of displacement, a Development Plan is to be prepared. 8. Continuation of reservation and other Schedule V and Schedule VI area benefits from displaced area to resettlement area.
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in every Gram Sabha where more than twenty five per cent of land belonging to that Gram Sabha is being acquired. Consent of Gram Sabha : The Consent of Gram Sabha is mandatory for acquisitions in Scheduled Areas under the Fifth Schedule referred to in the Constitution. Representation of Panchayat Chairpersons on R&R Committee at Project Level: The Rehabilitation and Resettlement Committee at Project Level has to have the Chairpersons of the Panchayats located in the affected area or their nominees as representatives. Panchayat Ghars have to be provided as per the list of Infrastructural amenities given in the Third Schedule.
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Income Tax Exemption: All amounts accruing under this act have been exempted from Income tax and from Stamp duty.
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PROCESS FLOW:
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INSTITUTIONAL STRUCTURE:
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TIMELINES:
1. Compensation will be given within a period of three months from the date of the award; 2. Monetary R&R entitlements will be provided within a period of six months from the date of the award; 3. Infrastructure R&R entitlements will be provided within a period of eighteen months from the date of the award; 4. No involuntary displacement will take place without completion of R&R;
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5. In irrigation or hydel projects, R&R shall be completed six months prior to submergence.
Apart from governments limited involvement in acquisition and required consent of affected families, the Bill also talks about the return of acquired land if unutilized after a period of five years. However, it does not elaborate on the mechanism of such return. The same has to be prescribed by the appropriate government. As highlighted by the Standing Committee on Rural Development in regard to this clause, clarity is required on issues like value to be paid to the original landowner in case of return, validity of change land use and cases where only part of the land has been utilized. In light of the possibility that land may have to be returned, the project owner is obligated make fast decisions and implement the envisaged project on the acquired land. Further, the possibility of unutilized land being transferred to the state government also exists. This gives state governments the opportunity to replenish their land banks and reconsider it for alternative development purposes. The Bill will apply retrospectively for cases where no award has been made as per earlier law or where majority of the affected persons have not received compensation or affected persons have not received compensation/not given up possession and the land acquisition proceedings have been pending for five years or more.
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compensation when companies acquire parcels of land for a large project over a period of time leading to inconsistent compensation. The applicability of such rigorous R&R as stipulated is thus bound to increase the input costs for project owners and hence the project.
CONCLUSION
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill lays down the much needed policy framework which will act as a facilitator between the land owner and the acquirer. The Bill empowers the government to some extent for defined purposes in order to support infrastructure development and industrialization. Further, even in case of private projects where a large quantum of land is acquired, the Bill safeguards the interests of the affected families by making an elaborate R&R applicable. However in doing so, it also increases the overall cost and time required for land acquisition, thereby compelling project owners towards more efficient utilization of land. The implementation of the proposed institutional structure and mechanism for acquisition and R&R will be a key in creating a transparent and swift land acquisition process. Only then will the higher cost borne by developers be compensated by faster project implementation and reduction in disruptions due to protests10 and litigations, etc. Large investment plans and projects have been stalled due to land acquisition issues or are moving slow in anticipation of clarity on land acquisition policy. The enactment of the law is expected to expedite investment decisions and aid economic growth. Ultimately the states approach towards adopting and implementing the new policy will be critical in determining its effectiveness in the long term.
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