Towards a Pragmatic Land

Acquisition Policy for

Industrial Use
 SYNOPSIS
Land Acquisition Act was first enacted in India by British Government in 1824. It used
to be called as Bengal Resolution I of 1824 and it enabled the government to obtain
land and other immovable items at fair valuation. British extended the regulation
through another legislation, The Act 1 of 1850. This law helped British government to
lay railway tracks in India. After Independence, India adopted Land Acquisition Act
1894. In our presentation today we will take you through the history of land acquisition
act in India, and will briefly explain the how industry used to acquire land before
LARRA, 2013. We will explain the about the problems faced by the industry before
introduction LAARA and the major elements of LAARA 2013. After that, we will shed
some light on the pros and cons of LAARA, 2013 and the amendment Modi
government introduced in the new act. At last we will present pragmatic solutions in
which issues can be handled and looked upon by the government

Prepared By: Amit Prasad, PGP/20/008 and Raj Nath PGP/20/043

 Salient Features of Land Acquisition
Act, 1894
Build hospitals,
This act deals with the acquisition of the land Building public educational
by the government for the public purpose office / Industry institutions,
Infrastructure housing societies
This act is divided into 8 parts etc. for poors
Came into effect on 1st March 1894
Extends to all states of India except Jammu & Planned
Needs that arises
Kashmir development or
from natural
improvement of
For private companies, Part 7 is defined village
calamity
specially
Public
Purpose

Part1 Part2 Part3 Part4 Part5 Part6 Part7 Part8

Short title,
Reference to Temporary Acquisitions of
Commenceme Appointment of
Acquisitions Court and Payment occupation of Land for Private Miscellaneous
nt, Definitions Compensation
Companies
Procedure Land
and Extent

Prepared By:
Prepared By: Amit
Amit Prasad,
Prasad, PGP/20/008
PGP/20/008 and Raj Nath,PGP/20/043
and Raj Nath 043
 Land Acquisition Process (Before
LAARA)
Steps
Investigation of land by the
authority who wants land &
application has to filed
Preliminary notice has to be
issued by the authority in 2
daily newspapers
After notification the land
owner is prohibited to sell
land
Prepared By: Amit Prasad, PGP/20/008 and Raj Nath 043
Objections from the persons
interested within 30 days (
additional time for not available
persons)
District Collector to hear the
objections and then forward the
suggestions to government
Final decision is made by the
government and after
notification collector proceeds
with claim
Collector calculates the final
value of the compensation
taking market value of the land
Land owner submits the claims
amount to Collectors office in
writing (if they are not satisfied)
The claim amount has to be
credited to the creditors within
24 months of the date of
publication of the declaration
their projects to government to acquire land
Private companies have to prove the social benefit of
Other interested persons
can file the claim in
collectors office within 6
weeks of the declaration of
the award
In case of any error in the
calculation of the
compensation, collector
shall give immediate notice
of the same to the
interested persons
 Salient Features of LARRA 2013
Pre-Acquisition study of Social Impact Assessment Study, Social Impact Management and Environment Impact
Management by an Independent team. Team of Experts re-examines this report. Multi-level checks and Balances
Public Hearing/ involvement of Gram Panchayats or local bodies to tackle local issues
Affected Family means and includes Laborers, Landless cultivators or Contract farmers also
Compensation shall be four times of the Market Price in rural area and 2 times in urban area and future
compensation also
Rights of bona-fide/innocent purchaser post-notification properly taken care of
Acquisition of Multi-Crop lands prohibited
Market Price= Circle Rate
Consent of 80% farmers and 70% in urban area for PPP/Pvt. Projects must
Rehabilitation and Resettlement -financial support of Rs. 5L or Rs. 2000/-pm -service for one member of the family
for 26 years.
No displacement till compensation is actually paid
Land acquired to go back to Original Owner if remains unused for prescribed period

Prepared By: Aditi Sharma FPM 10/03/M

Problems faced due to Land Acquisition Law
prior 2013
No provision making impact and assessment of acquisition
No Public Hearing/ involvement of Gram Panchayats etc.
(Issues like Public Purpose, Amount of Compensation etc.)
Only Collector was authorized to form opinion regarding area
of acquisition and compensation etc. and to adjudicate upon it
No provision to take care of Landless cultivators or contract
farmers
No distinction was made in favor of Multi-Crop lands
Market Price of land was to be fixed by Collector
Definition of Public Purpose- Vague and Ambiguous
Consent of farmer was not required.
No provision made for rehabilitation and resettlement of
displaced persons.
Prepared By: Aditi Sharma FPM 10/03/M
Remedies available in Land Acquisition,
Rehabilitation and Resettlement Act 2013
Social Impact Assessment Study, by an Independent team at
First stage itself (screening stage)
Hearing of Public/Affected person along by SIA teams, and
involvement of gram panchayats as well
Due to multi-level checks, impact of Collector discretion is less
w.r.t early period
Affected Family definition widened to include Laborers,
Landless cultivators or contract farmers
Upper cap on acquisition of Multi-crops lands (5 %)
Now the Market Price is equal to Circle Rate.
Exhaustive definition of public; 80% and 70% consent rule
established for farmers
Detailed provisions for rehabilitation and resettlement of
displaced persons-financial support of Rs. 5L or Rs. 2000/-pm
and service for one member of the family for 26 years in
Industry established in the Acquired land
 INDUSTRY PURVIEW
Keeping 13 projects like Highways, Railways etc. beyond the reach of LARR Act-a good step

Procedure of SIA Study, SIM, EIA & its appraisal- may result in delay- danger that object itself may be defeated
or frustrated

Too much farmer-oriented

Chances of un-warranted and un-ending litigation at every stage

Acquisition by Government and final decision in litigation with the Government

4 multiples of MV of land as Compensation is too excessive for viability

Interest of industry may suffer from too much of Dos and Donts

Huge scope of exploitation and arbitrariness for executives/Government

No clarity about Land Use and its change to establish an Industry

Prepared By: Aditi Sharma FPM 10/03/M

PROS of LARR 2013
Increased compensation: Compensations that is up to 4 times
the market value in rural areas and 2 times the market value in
urban areas
Consent: Consent of 70% and 80% of the affected families is
required for PPP and private project respectively
Return of unutilized land: Land should be returned to original
owner or the State Land Bank if not used in five years for the
purpose for which it is acquired
Exemption from income tax and stamp duty: No income tax
and stamp duty will be charged on any amount that accrues to
an individual as a result of the provisions of the new law
Compensation for livelihood losers: The Bill also provides
compensation to those who are dependent on the land being
acquired for their livelihood
Amenities like schools, health centres and civic infrastructure in
places where project-affected people are resettled.
Prepared By: Karan Kakkar, PGP/20/008
CONS of LARR 2013
High cost of acquisition: Cost of acquisition will increase 3
times thereby making the projects unviable
Delayed execution of projects: Because of the mandatory
requirement of consent for acquisition of land the project
will be delayed
Loophole in the system: This act applies only for a land
acquisition of more than 100 acres in rural areas or 50 acres
in urban areas so it can be avoided by taking land in multiple
parcels instead of one-time acquisition
No job guarantee: No guarantee of jobs for the members of
the family who are giving away the land neither any
guaranteed return of unused land.
Inadequate compensation: the market price is low
particularly in rural areas or semi-urban areas, and so the
compensation amount may be too little for a
landowner/farmer who is losing his/her livelihood
 Amendments proposed by BJP-led government
LARR-Act 2013
Mandatory 70% consent for PPP projects.
Mandatory 80% consent for private projects.
Mandatory Social impact assessment (SIA) for every projects.
SIA mandatory for every type of project.
Compensation:
4 times the market rate in rural area.
2 times in urban area.
Stringent provisions for relief and rehabilitation (R&R).
Private companies can acquire land for public purpose.
If any mischief played on Governments part then head of the
department will be responsible.
Land Ordinance 2014
Those mandatory things not required for 5 types of projects:
National security and Defence Production
Rural infrastructure, Rural electrification
Infrastructure and Social infrastructure
Industrial corridors
Housing for Poor's
SIA not needed for
Those five categories listed above
PPP projects, IF Government owns the land.
Remains the same.
Remains the same
Private entities can acquire. Meaning private companies,
NGOs, trusts, foundations, charity bodies, proprietors etc. too
can acquire land for public purpose.
Head of the department cant be prosecuted without prior
sanction of government (under CrPC Section 197).
This immunity is given to ensure bureaucrats dont sit on
the files, fearing media-trials and judicial activism.
 Modi Government and New Land
acquisition Policy
Mandatory "consent" clause and Social Impact
Assessment (SIA)
not be applicable if the land is acquired for national security, defence,
rural infrastructure including electrification, industrial corridors and
housing for the poor

Acquisition of fertile land

fertile land will also not be taken into consideration while
acquiring it for these five specific sectors.

Social Infrastructure sector

Social Infrastructure sector was removed
acquisition of land for private hospitals and educational institutions

Prepared by Abhishek Srivastava, FPM/10/02/Q

 Transfer of rights to states
In 2015 Central government transferred rights to states to go ahead
with their own land acquisition laws for boosting infrastructure
development

This has given rise to a set of land acquisition models

which are innovative and at the same time ensure easier
acquisition of land

one person in every affected family be given employment

Prepared by Abhishek Srivastava, FPM/10/02/Q

 Question

Is LARRA 2013 a workable solution to resolve the contentious issue of land

acquisition for industrial and commercial use?
Workable solution
By implementing policy and measures for the usage of unused lands left with the government (via auction or
returning it to owners)
By implementing auction based system on determining the monetary value of the land (It will take care of the
amount demanded by the farmers)
By giving displaced poor appropriate training or Skill Developments for sustainability in future
The land to be acquired from the land owners should be acquired either on a long lease or in the form of
equity of the proposed business
By giving state governments proper incentive to relax Land Acquisition Criteria (if it is not agricultural intensive
land area)
Whatever be the modality of acquisition (lease, equity or outright sale) the act should put in place a
mechanism that helps to educate landowners regarding possible options for putting to productive use the
windfall gains that they are likely to come by
References
Slides 3-4
https://www.quora.com/What-are-the-pros-and-cons-of-the-Land-Acquisition-Act-2013
http://www.civilserviceindia.com/subject/Essay/land-acquisition-bill-the-pros-and-cons.html
https://en.wikipedia.org/wiki/Land_acquisition_in_India
http://www.careerride.com/view/differences-between-land-acquisition-act-of-1894-and-2013-act-20312.aspx
Slides 5-6
http://www.thehindu.com/news/national/land-bill-six-facts-you-need-to-know/article6978832.ece
http://www.livemint.com/Politics/T2tN2OWzJIy9SuFgsGsmHN/The-evolution-of-the-Land-Acquisition-Act-from-1824-to-
2015.html
Slides 7-11
https://www.quora.com/What-is-the-difference-between-the-2015-and-2013-Land-Acquisition-bill
http://shodhganga.inflibnet.ac.in/bitstream/10603/76497/14/14_chapter%206.pdf
Slides 12-13
Ramesh, Jairam and Muhammad Khan. "LAND ACQUISITION FOR INDUSTRIAL USE - IV : Fencing The Farmer Out". The
Hindu (2014)

National Bureau,. "Amendments Relax Requirements Of Consent, Social Impact Assessment". 2014: n. pag. Print