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Compensation and
Transparency in Land
Acquisition, Rehabilitation
and Resettlement Act,
2013
Constitutional Development of
Right to Property
The 44th amendment act of 1978 deleted the right to property from
the list of Fundamental Rights. A new article, Article 300-A, was
added to the constitution which provided that "no person shall be
deprived of his property save by authority of law".
The
main central Act governing land acquisition is the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act 2013 (2013 Act). It replaced the Land Acquisition Act, 1894 (1894
Act). Many states have also enacted laws to regulate land acquisition. The 2013 Act differed from the 1894 Act in
several ways. It narrowed the definition of public purpose i.e. the types of projects for which land could be acquired. It
required the consent of land owners if the project was for a public private partnership (PPP) or a private company.
Compensation was set at two to four times of prevailing market rates and minimum norms for rehabilitation and
resettlement of affected persons were prescribed. The Act also required a Social Impact Assessment (SIA).
In
December 2014, an Ordinance was promulgated to amend the 2013 Act. The Ordinance was promulgated in a
ordinance issued thrice since last year had to be ratified by parliament within 6 weeks of the start of monsoon
session on July 22 but could not be ratified and passed and due to which land ordinance lapsed on August 31, 2015.
There are total 114 sections in this Act while in the 1894 Act total
section were 55.
There are total four schedule attached with the 2013 Act.
Schedule IV deals with certain laws which are exempted from the
purview of this act.
Forced Acquisition
No safeguards
Urgency clause
Never defined what constitute urgent need under sec 17 but now under sec 40 this provision
restricted to-defence and national security.
Litigation
Even the Supreme Court said that the 1894 act had become a fraud beause of lack of all these
elements.
Under the 1894 Act, the Collector could decide what quantum of compensation could
be paid to those displaced. Under the new law, there is a formula that does not
require the collector to exercise any discretion
Appellate Mechanism
Public Purpose
In the earlier Act-Public Purpose as well company but now only public
purpose.
Fairer Compensation
Consent
Urgency Clause
Government acquires land for its own use for public purpose.
Now its very important that if there is no public purpose then the government
would not be acquiring land and this is the object and philosophy of the 2013 Act.
BUT EARLIER GOVERNMENT USED TO ACQUIRE LAND FOR PUBLIC PURPOSE AS
WELL AS FOR COMPANIES AS THE WHOLE CHAPTER VII (SEC 38 to 44B) WAS
DEVOTED.
Go by Preliminary Notification under sec 4 as well as the object, we will
get to know.
Infrastructure projects
Planned Housing:
Planned Development
Procedure
Preliminary Notification
Once the SIA process has been executed satisfactorily, the proceedings to acquire the identified land can
begin. A Preliminary Notification is issued under Section 11 of the 2013 Act. It is different from the 1894
notification under section 4Firstly under the 2013 act it follow SIA Study, Appraisal which was absent in the 1894 Act.
Secondaly, the 1894 act empowered the govt to publish the notification that government
needed land either for public purpose or for a company, but under the 2013 Act it is only and
the public purpose.
Thirdly, the 2013 Act, requires the Preliminary Notification to state the details of the land and
the nature of public purpose involved and reasons necessating the displacement plus the
summary of the SIA report to be acquired but this was not in the earlier act.
Award
Possession
And it is to be noted that the land will be acquired only when all procedure including the Compensation, R
& R is done.
Section 4(4) of the 2013 Act provides the list of all those guiding principles to be
taken into consideration while preparing the report of SIA. These are-
COMPENSATION
Urban Area
A land owner in urban area whose land is acquired gets 2 times the market
value of his land as compensation.
Rural Area
If rural land is acquired, land owner effectively gets upto four times the
market value as compensation.
Award of Solatium
Section 30 of the New Act provides that the collector having determined the
total compensation to be paid, shall, to arrive at the final award, impose a
solatium amount equivalent to 100% of the compensation amount. Solatium
shall be in addition to the compensation payable to any person whose land
has been acquired.
If a family loses a house in a rural area as a result of the acquisition, then the law
requires a constructed house to be provided to them
Land
In the case of irrigation project, each affected family which has lost agricultural land is
to be allotted, a minimum of one acre of land in the command area of the project.
Offer for developed land
When land is acquired for urbanization, 20% of developed land to be reserved and
offered to land owning project affected families.
Choice of annuity or Government Employment
Other Financial Payments
Fishing Rights
RETROSPECTIVE EFFECT
When the 2013 Act will apply retrospectively
On 24 January 2014, a three judge bench of the Supreme Court of India pronounced the
very first judgment on the Right to Fair Compensation in Land Acquisition, Rehabilitation
and Resettlement Act, 2013.
Facts
Number of cases were combined and in all one thing was common that a period of five or
more years had passed since the land acquisition award had been made under section 11
of the Land Acquisition Act, 1894 and the applicants had refused to accept the
compensation.
In this litigation, the acquiring authority (the Pune Municipal Corporation) argued that
they had deposited the amount in the treasury of the Government in fulfillment of their
obligations and therefore satisfied the requirement of paying compensation.
Judgment
A three judge bench of the SC (Justice Lodha, Madan Lokur and Kurien Joseph) held that
compensation would only be deemed to have been paid if it had been deposited with the
court and after having been offered to the individual concerned. In this case, the
compensation had only been deposited in the treasury.
The
Land Bank
Section 101 of the Act provides that when any land acquired under this act remains
unutilized for a period of 5 years from the date of taking over the possession, the
same shall be returned to the original owner or to the Land bank of the appropriate
government.
Section 104 of the Act provides that the appropriate government be free to exercise
the option of taking the land on lease instead of acquisition, for any public purpose.
1894 Act provided for payment of compensation but was silent in rehabilitating
those who have been displaced but the new 2013 Act contains provisions on
Rehabilitation and Resettlement package in the second schedule to the Act.
Social Impact Assessment has been made mandatory before any land acquisition.
In December 2014, an Ordinance was promulgated to amend the 2013 Act. The
Ordinance was promulgated in a modified form in April 2015, and again in May
2015.
The ordinance issued thrice since last year had to be ratified by parliament within
6 weeks of the start of monsoon session on July 22 but could not be ratified and
passed and due to which land ordinance lapsed on August 31, 2015.
First change..
It
Defence;
rural
infrastructure;
affordable
industrial
housing;
infrastructure
projects.
These five categories of land will be exempted from the 3 provisions of the Act,
and these provisions are obtaining
conducting
limits
Land Acquirer
Business
Not applicable
He is always alone
Share
Work Force
Agriculture
15%
50-60%
Industry
25%
20-30%
Services
60%
20-25%
LARR ACT,2013
THANK YOU
SHIKHAR