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MrunalExplained:LandOrdinance2014:SalientFeatures,Criticism

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[Polity]LandOrdinance2014vs.LandAcquisitionAct2013:
SalientFeatures,Comparison&Criticism
PostedByMrunalOn12/01/2015@9:29pmInpolity|104Comments

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LARRAct2013
SalientfeaturesofLARR2013Act?
WhyLandordinance?
LandOrdinance2014:SalientFeatures
Landordinance:Critcism/Antiarguments
AppendixI:ExamplesofPublicPurposeacquisition
AppendixII:13centrallawsexempted
MockQuestions

LARRAct2013
1. LandAcquisition,Rehab,ResettlementAct(LARR)2013
2. DepartmentofLandresourcesunderRuralDevelopmentministry,implementsthis
act.
Butwhywasthislawenacted?
1. LandAcquisitionmeansgovernment/privatecompanypurchasingprivatelandfor
publicpurpose.
2. But,undertheBritisheraLandacquisitionactof1894,thetermpublicpurpose
wasambiguousandopentoexecutivediscretion.So,poorpeopleslandwas
acquiredatthrowawaypricesinpretextofdevelopmentprojects.
3. Sometimessuchprojectsneverstarted,andthesamecheaplandwasresoldat
higherpricetorealestatedevelopers,withoutbuildinganythingforpublic
purpose.
4. Withthistacticpoliticians,theirsonsinlawandbureaucratsmadebillionsoutof
thinair.LARRact2013triedtofixthisproblem.

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LandAcquisition,Rehab,ResettlementAct(LARR)2013
ColonialAct1894
Thetermpublic
purposewas
ambiguousandopen
toGovernments
discretion
Landcouldbeacquired
forcibly.

Theyweregivenno
voiceindecision
making.

Governmentwasfree
todecidehowmuch
moneytopaywhile
acquiringprivateland.

SalientfeaturesofLARR2013Act?
LARRAct2013
Clearlydefinesvarioustypesofpublicpurposeprojectsfor
which,Governmentcanacquireprivateland.(Referto
appendix1)
Forprivateproject,80%affectedfamiliesmustagree.
ForPPPproject,70%affectedfamiliesmustagree.
Onlythenlandcanbeacquired.
UnderSocialimpactassessment(SIA)evenneedtoobtain
consentoftheaffectedartisans,laborers,sharecroppers,
tenantfarmers,fishermen,smalltraders,Desiliquorden
ownersetc.whose(sustainable)livelihoodwillbeaffected
becauseofthegivenproject.
Compensationproportiontomarketrates.
4timesthemarketrateinruralarea.
2timesinurbanarea.
Affectedartisans,smalltraders,fishermenetc.willbe
givenonetimepayment,eveniftheydontownany
land.

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Toensurefoodsecurity:
Nosuchrestrictionson
fertileland

1. Fertile,irrigated,multicroppedfarmlandcanbeacquired
onlyinlastresort.
2. Ifsuchfertilelandisacquired,thenGovernmentwill
havetodevelopequalsizeofwastelandforagriculture
purpose.
ifGovernmentacquiresthelandsforprivatecompany
thesaidprivatecompanywillberesponsibleforrelief
andrehabilitationoftheaffectedpeople.
Additionalrehab.packageforSC/STowners.Example
fishingrightsoverdam,25%extramoneyifsettled
outsidetheirnativedistrictandsoon.

Nosuchsafeguards

Nosuchaccountability

StateGovernmentshavetosetupdisputesettlement
authorities.Chairmanmustbeadistrictjudgeorlawyerfor7
years.
Headofthedepartmentwillbemaderesponsible,forany
offenseormischiefplayedfromGovernmentsside.(although
thismadetheofficersverycautiousgiventhemediatrials.
Theydsitonthefilesinsteadoftakinganyaction).

Ifprojectdidnotstart,
thenacquiredlandwas
Ifprojectdoesntstartin5years,landhastobereturnedto
secretlysold/leasedto
theoriginalowner.
privateplayersatsky
highprices.

WhyLandordinance?
1894slandactwasbogusandexploitive.SoCongressgovernmentenactednew
lawin2013,withprovisionsforsocialimpactassessment,faircompensation,
disputesettlementandotherfancythings.
LARR2013Actbecameeffectivefrom1stJanuary2014.
But,thisLARRAct2013establishedanextremelycomplexandimpracticalland
acquisitionprocess.
Holdouts:JholachhapNGOswouldinstigate2025%oftheaffectedfamiliesto
stageholdoutpromisingthemitllfetchthemevenhigherprices.andGiventhe70
80%consentrequirement,theprojectwillneverkickoff.
Litigation:becauselocal(andthereforecorruption)PatwariandTehsildarsnever
maintainproperlandrecordsofwhoownshowmuchland.
Thisraisedthelandprices,redtapismandthustheoverallprojectcost.
Neitherthefarmercouldsellitslandandmovetourbanareas,notheentrepreneur
couldbuythelandandmovetowardsruralareas.
CombinedwithEnvironmentactivismandpolicyparalysisofUPAregime,theend
resultwasinfrastructurebottleneck,highinflationandfallinGDP.

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WhyModihadtobringLandOrdinance2014?
AssuchthosestringentLARRprovisionsdidnotapplyto13centrallawse.g.ifland
wasacquiredunderRailwaysActorAtomicEnergyAct,thenSocialimpact
assessment,marketratecompensationetc.werenotapplicable.
ButthisExemptionwasgivenonlyforayeari.e.upto1stJanuary2015.Bythe
time,Governmentneededtoamendthose13actssothatLARRlikehigh
compensationratescanbegiventofarmersinthoseprojectsalso.Butitwasno
possibletoamend13centrallawsbecause:
A. FrequentDisruptionsinWintersession(December2014)
B. ModidoesntenjoymajorityinRajyaSabha.
C. someoftheunionministrieshadnotevenpreparedthebills.
Therefore,GovernmentdecidedtouseordinancerouteunderArticle123ofthe
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Constitution.

LandOrdinance2014:SalientFeatures
LARRAct2013
LandOrdinance2014
Thosemandatorythingsarenolongerrequiredfor
Mandatory70%consent 5typesofprojects:
forPPPprojects.
Mandatory80%consent
1. NationalsecurityandDefenseProduction
forprivateprojects.
2. Ruralinfrastructure,Ruralelectrification
MandatorySocialimpact
3. InfrastructureandSocialinfrastructure
assessment(SIA)for
4. Industrialcorridors
everyprojects.
5. HousingforPoors.
SIAnotneededfor
SIAmandatoryforeverytype

1. Thosefivecategorieslistedabove

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ofproject.

2. PPPprojects,IFGovernmentownstheland.
Buildingprivatehospitalsandprivateeducational
instituteswillalsocountaspublicpurpose.Means,
theytoocanacquirelandif80%affectedfamilies
agreed.

Compensation:

1. 4timesthemarketratein
Remainsthesame.
ruralarea.
2. 2timesinurbanarea.
Stringentprovisionsforrelief
andrehabilitation(R&R).

remainsthesame

Privatecompaniescan
acquirelandforpublic
purpose.

Privateentitiescanacquire.Meaningprivate
companies,NGOs,trusts,foundations,charitybodies,
proprietorsetc.toocanacquirelandforpublic
purpose.

Ifanymischiefplayedon
Governmentspartthenhead
ofthedepartmentwillbe
responsible.

Headofthedepartmentcantbeprosecuted
withoutpriorsanctionofgovernment(under
CrPCSection197).
Thisimmunityisgiventoensurebureaucrats
dontsitonthefiles,fearingmediatrialsand
judicialactivism.

Landordinance:Criticism/Antiarguments
1. GiventheImmunityagainstprosecution,Bureaucratswillplaymischiefinland
acquisition,tohelpRaabertVaadratypesunabated.
2. Thosefiveexemptedcategoriesareverybroadparticularlyinfrastructureand
socialinfrastructure.So,Prettymuchallprojectscanbedonewithoutsocial
impactassessmentortakingconsentof7080%ofaffectedfamilies.EntireLARR
2013ismadeinvalidthroughcleverwordplay.
3. Socialimpactassessment(SIA)notrequiredinfivetypesofprojects.So,local
laborers,artisans,smalltraderswilleithergetzeroorverysmallreliefpackage,
eveniftheirlivelihoodislostbecauseofindustrial/infrastructureproject.
4. Privatecollegesandhospitalstoocanacquireland.BUTiftheycontinuetocharge
heftyfeesthennorealpublicpurposeisserved.Mushroomingofselffinanced
bogusqualityEngineering,PharmacyandMCAcollegesdoesnthelpreaping
Indiasdemographicdividend.
5. Ordinancedoesntspecificallysaythatsuchprivatehospitalsandschool/colleges
areexemptfromSocialimpactassessment(SIA).ButtheytoocandodgeSIA
bulletbyclaimingitsasocialinfrastructureproject.
6. Inparliamentarydemocracy,Ordinanceshouldbeusedonlyfordireemergency.
Modicouldhavewaitedtillbudgetsession,andgetproperapprovalfrom
parliament.[Counterargument:therewasdeadlineof1/1/2015].

AppendixI:ExamplesofPublicPurposeacquisition
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1. Strategicprojectse.g.missilesilos,antiaircraftbatteries,artilleryinstallmentsand
armybunkers.
2. AlltypeofinfrastructureprojectsandPPPprojects.
3. Coldstorage,PackagingProcessingunitsforAgricultureproduce,dairy,fisheries
andmeat.
4. Industrialcorridorsandmanufacturingclusters.
5. Education,research,vocationalinstitutes.
6. Sports,healthcare,tourism,spacetech.
7. Housingforlowincomegroup.
8. Creatingnewhouses/townsforpeopleaffectedinnaturalormanmadedisasters.

AppendixII:13centrallawsexempted
Iflandisacquiredforanyofthese13centrallaws,thenLARR2013Acts
provisionswillnotapply(Forayear).
Withinthattime,Governmenthadtoamendthose13lawstogivefair
compensation.SinceModicouldntdoit,hegotanordinanceclearedtoextends
LARRhighcompensationratestothesecentrallaws:
TheseActswereexemptedfromLARRAct2013butcoveredvia
Ordinance
OldAct
Year
LandAcquisition(Mines)Act
1885
IndianTramwaysAct
1886
DamodarValleyCorporationAct
1948
ResettlementofDisplacedPersons(LandAcquisition)Act 1948
RequisitioningandAcquisitionofImmovablePropertyAct 1952
NationalHighwaysAct
1956
CoalBearingAreasAcquisitionandDevelopmentAct
1957
AncientMonumentsandArchaeologicalSitesAct
1958
AtomicEnergyAct
1962
PetroleumandMineralsPipelinesAct
1962
MetroRailways(ConstructionofWorks)Act
1978
RailwaysAct
1989
ElectricityAct
2003

MockQuestions
Q1.Suppose,Governmentenactedanewlawtoacquireanylandfromanybody
withoutanycompensation,thenwhichofthefollowingfundamentalrightswillbe
affected?
A. 19/b
B. 19/c
C. 19/d
D. 19/e
Q2.UnderLandordinance2014,consentofaffectedfamiliesandsocialimpact
assessmentismandatoryforwhichofthefollowingprojects?
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1. Defenseproduction
2. Housingforlowincomegroup
3. Ruralelectrification
Answerchoices
A. Only1and2
B. Only2and3
C. Only1and3
D. Noneofthem
Q3.UnderLandordinance2014,whoamongthefollowingcanacquireprivateland
forpublicpurpose?
1.
2.
3.
4.
5.

Onepersoncompany
Publiclimitedcompany
privatelimitedcompany
Educationaltrust.
Religiouscharityorganization

Answerchoices
A. Only2and3
B. Only1,2and3
C. Only1,2,3and4
D. Allofthem
Q4.UnderLandordinance2014
A. Revenueofficialsatdistrictandstatelevel,canbeprosecutedwithoutprior
approvalofGovernment.
B. Everystateismandatedtosetupadisputesettlementauthorityunderretirechief
justiceofhighcourt.
C. BothAandB
D. NeitherAnorB
Q5.LandAcquisition,Rehab,ResettlementAct(LARR)2013
1. Providescompensationof4xtimesmarketratesforlandacquirednearurbanareas.
2. Putscertainrestrictiononacquisitionoffertilizelandtoensurefoodsecurityfor
India.
3. Makesheadofthedepartmentpersonallyaccountableforanyillegalitiescommitted
bystaffunderhim.
Answerchoices
A. Only1and2
B. Only2and3
C. Only1and3
D. Allofthem
Q6.WhichofthefollowingCentraldepartmentisresponsibleforimplementing
LandAcquisition,Rehab,andResettlementAct(LARR)2013?
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A. DepartmentofLandresources
B. DepartmentofLandDevelopment
C. Departmentofagriculture
D. NonebecauseitfallsunderStateGovernment.
Q7.Whichofthefollowingact/ordinanceexcludethejurisdictionofautonomous
councilduringlandacquisitionprocessin6thScheduleareas?
1.
2.
3.
4.

UPAsLandAcquisition,Rehab,ResettlementAct(LARR)2013.
ModisLandordinance2014
BothAandB
NeitherAnorB.

Q8.PresidentsordinancemakingpowersaredefinedinArticle___?
A. 121
B. 122
C. 123
D. 124
Q9.PresidentofIndiacanmakeordinanceonwhichofthefollowingmatters?
1. Pricecontrol
2. Lunacy
3. Gasandgasworks
Answerchoices
A. Only1and2
B. Only2and3
C. Only1and3
D. Noneofthem
Q10.IFparliamentdoesntapproveanordinance,itllexpirein___.
A. Sixdays
B. Sixweeks
C. Sixmonths
D. Immediatelywhenbothhousesareadjournedsinedie.
Q11.Considerfollowingstatementsabouttheordinancemakingpowersofthe
PresidentofIndia.
1. Hecanissueordinancesinretrospectivemanner.
2. Hecanrepealanyactmadebyparliamentusinganordinance.
3. HisordinancepowersareinspiredfromAmericanConstitution.
Answerchoices
A. Only1and2
B. Only2and3
C. Only1and3
D. Noneofthem
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Q12.Thefundamentalrighttoacquire,holdanddisposeofproperty,was
eliminatedbywhichamendment?
A. 41st
B. 42nd
C. 43rd
D. 44th
DescriptiveQuestionsforMainsexam
1. Lackofcoherentpolicyonlandacquisitionhasharmedboththefarmersand
entrepreneurs,discussinthebackdropofLARRAct2013andLandOrdinance
2014.
2. NarratethecircumstancesleadingtoenactmentofLandOrdinance2014andits
likelyimpactonIndianeconomy.
3. (Mains2014)TheRighttoFairCompensationandTransparencyinLand
Acquisition,RehabilitationandResettlementAct,2013hascomeintoeffectfrom
1stJanuary,2014.WhatarethekeyissueswhichwouldgetaddressedwiththeAct
inplace?Whatimplicationswouldithaveonindustrializationandagriculturein
India?
4. (Interview)WhatreviewsonthiswholecontroversysurroundingModisordinance
raj?
FormorearticlesonPolityandRightsissues,visitMrunal.org/POLITY.

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