Land Acquisition Bill

Deepesh Seth Aman Jatale

MBA-REUI
Section-A
Praveen Kumar Ganesh Vivekananth
How do we get the land to
build those projects?
 How Much Land We have?
Existing Land Pattern

4%
13%

23%

60%

Agriculture Forest Land Use Unusable Land

 Land Acquisition
Land acquisition in India refers to the process by which the union or
a state government in India acquires private land for the purpose
of industrialization, development of infrastructural facilities or urbanization of
the private land, and provides compensation to the affected land owners and
their rehabilitation and resettlement.

 Eminent Domain (US)

 Compulsory Purchase (United Kingdom, New Zealand, Ireland)
 Resumption (Hong Kong)
 Compulsory Acquisition (Australia)
 Expropriation (South Africa, Canada)
History
• Land Acquisition Act, 1894 created by the British.
1894

• Independent India choose to continue this Act even after independence

1947

• UPA Government replaced this Act with The Right to Fair Compensation &
2013 Transparency in Land Acquisition, Rehabilitation & Resettlement Act .

• Modi Government wants to make some further amendments to the Bill.

2015
Land Acquisition Act 1894
OBJECTIVE

 To provide a law which will enable the State to acquire the land of others for
public purposes and for companies.

 Act also states provisions relating to taking over of possession and payment of
compensation whose land is acquired.

 Provisions of the Act relating to acquisition of Land are substantive and those
related to taking over of possession and payment of compensation are subsidiary.
WHEN APPLICABLE/ REQUIRED

 Whenever, it appears to the Government that the land is required for

a) Public Purpose, or

b) Company.

 Company means Company as defined under Section 3 of the Companies Act,

1956 (except the Government Companies) and includes a society and Co-
operative society registered under relevant law.
WHEN APPLICABLE/ REQUIRED

 Public Purpose defined under Section 3 (f) of this Act, means which is in
interest of public at large such as:

 town or rural planning

 Corporation owned or controlled by State

 Residential purpose to accommodate people affected by any scheme of the

government, or natural calamity, or who are poor and landless.

 This is an inclusive list and not exclusive.

PROCESS OF REQUISITION

Preliminary Notification

Survey and Analysis

Objections to Collector

Hearing and Report

Declaration of Requirement

Acquisition of Award

Possession
DRAWBACKS OF 1894 ACT

 The term “public purpose” was ambiguous and open to Government’s discretion

 Land could be acquired forcibly.

 They were given no voice in decision making.

 Government was free to decide how much money to pay while acquiring private
land.

 No such restrictions on fertile land

 If project did not start, then acquired land was secretly sold/leased to private
players at sky-high prices.
NEEDED A CHANGE…
Land Acquisition and Rehabilitation and
Resettlement Bill (LARR) Act, 2013
WHY… ??

Rehabilitation
&
Resettlement

Land Acquisition
And
Rehabilitation &
Resettlement

Land
Acquisition
SALIENT FEATURES OF LARR - 2013

 Social impact assessment (SIA) even need to obtain consent of the affected
people, labourers, share-croppers, tenant farmers, fishermen, small traders, etc.
whose (sustainable) livelihood will be affected because of the given project.

 Compensation proportion to market rates.

4 times the market rate in rural area.
2 times in urban area.
Affected artisans, small traders, fishermen etc. will be given one-time payment, even
if they don’t own any land.

 If project doesn’t start in 5 years, land has to be returned to the original owner.
SALIENT FEATURES OF LARR - 2013

To ensure food security:

1. Fertile, irrigated, multi-cropped farmland can be acquired only in last resort.
2. If such fertile land is acquired, then Government will have to develop equal size
of wasteland for agriculture purpose.
 Clearly defines various types of “public purpose” projects for which, Government
can acquire private land.

 Land Acquire only when

o For private project, 80% affected families must agree.

o For PPP project, 70% affected families must agree.

ACQUISITION

Ultimate Aim
Immediate
Govt. To Transfer To
Use Of Private
Acquires For Private/PPP –
– Public
Own Use Public
Purpose
Purpose

80% Projects Affected Families Give Prior

Consent
 Rails,
Highway,
Defense Ports,
Irrigations

Project Plan
PUBLIC
PURPOSE
Affected Developmen
People t

Govt.
Natural Administrat
Calamities ed
Institution
CONSENT

Acquired By Govt Public Sector PPP / Private

For Itself For Projects For
Other Purpose Companies Public Services
PROCESS OF REQUISITION
Social Impact Assessment

Evaluation Of SIA

Preliminary Notification

Survey And Analysis

Objection To Collector

Hearing And Report

Preparation Of Draft R&R

Approval From Collector

Declaration Of Requirement

Acquisition Of Award

R &R Award

Possession
Land Acquisition Act, 1894
&
LAAR Act, 2013
Comparison b/w 1894 & 2013 Act
ISSUE 1894 ACT
Includes Infra Structure
Development, Housing Projects
Public Purpose
& Use By Companies under
certain Conditions
Consent of land Owners. No Requirements.
Social Impact Assessment No Provision
2013 ACT
Includes
 Strategic project
Infra Projects
Projects for affected families
Project from planned
development
Residential project for the poor.
Govt acquiring land for Private
companies(80%) & for PPP
(70%)
Mandatory.
Comparison b/w 1894 & 2013 Act

ISSUE 1894 ACT 2013 ACT

Market rate in Urban area &

Compensation Same as market Value
double the rate in Rural area.
Estimated from
Market Value Determined as per circle rates.  Circle rate.
Sale instances.
Solatium (Compensation for
30% 100%
emotional loss)

To be returned to land owners if

Unused Land No provision. unused for 5 yrs from the date of
possession.
Comparison b/w 1894 & 2013 Act

ISSUE 1894 ACT 2013 ACT

R&R No provision Compulsory.

Govt can take the land on lease

Lease. No Provision.
instead of acquiring it.
Only in emergency situations
Acquisition of land without
 National Defence
Urgency clause. giving prior notice or token
National Security.
compensation.
National Calamities.
If the acquired land is unused
and is transferred with in 5yr of
Sharing of profit. No provision. acquisition, 40% of the
appreciated land value will have
to be shared.
LAAR (Second Amendment) Bill,
2015
WHY.. ??

 1894’s land act was bogus and exploitive. So Congress government enacted new
law in 2013, with provisions for social impact assessment, fair compensation,
dispute settlement and other fancy things.

 LARR-2013 Act became effective from 1st January 2014.

 But, this LARR Act-2013 established an extremely complex and impractical land
acquisition process.

 Litigation: because local (and therefore corruption) Patwari and Tehsildars never
maintain proper land records of who owns how much land.
WHY.. ??

 This raised the land prices, red tapism and thus the overall project cost.

 Neither the farmer could sell its land and move to urban areas, nor the
entrepreneur could buy the land and move towards rural areas.

 Combined with Environment-activism and policy paralysis of UPA regime, the

end result was infrastructure bottleneck, high inflation.
 Defence

PPP- Govt •NO SIA

Rural Infra
Owns Land
•NO 80%, 70%

•Multi-Crop
Irrigated land

Industrial Affordable
Corridor Housing
Return of Land

Then (2013) 5 Years

Now
(Ordinance) 5 Years Or
Specified Time
Time Wasted in Litigation

Counted in 5
Then (2013) Years

Now Not Counted In 5

(Ordinance) Years Specified
Time
Offences by Govt. Servants

HoD- Assumed
Then (2013) guilty

Now
(Ordinance) Prior Sanction
for Prosecution
Lapse of ORDINANCE

 The Ordinance Was Lapsed On August 31, 2015.

 The Ordinance Proposed By Modi Govt. Was Considered To Be Anti Farmer.

 Faced Lot Of Protest By Farmers And Political Parties.

 Political Benefits.

 And so LARR Act-2013 is Applicable .

THANK YOU…

From: Team 2 States