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The Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act, 2013-An Unattainable Utopia?

Article · July 2017

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The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013- An Unattainable Utopia?

Vrinda Bhardwaj
Amity Law School, Delhi
(Under the guidance of Mr. Anil Sharma, Chief Legal Advisor at Delhi Development Authority)
Introduction

“The Land Acquisition Act, 1894 was a flawed legislation based on arbitrary norms which later
assumed a controversial dimension.”

The act had attracted trenchant criticism as it was a defective legislation with major shortcomings in the
name of being a welfare provision. The title of the old act itself signifies that the main purpose of the act
was the acquisition and development then allotment of the land thereafter.

This act was undemocratic as the concept of ‘forced acquisition’ was the foundation of the acquisition
mechanism wherein if the authority intended to acquire land, it could do so without considering the
number of people being displaced. Though the acts lays down a procedure of issuing notice and holding
inquiry but these were mere formalities as private interest had to succumb in front of public interest i.e.
construction of railways, highways, infrastructure development, etc.1

The act provides for a hearing before such arbitrary acquisition but it was more of a negotiation to seal
the lips of the displaced by luring them with a meagre compensation amount based on the market rates.
The rates paid for the land acquired were circle rate which were a grossly miscalculated parameter of the
actual market rates of the land.2 As a result, the compensation given to landowners used to be
substantially less than the actual market value of the land.

Under the Land Acquisition Act 1864, the government can take over land of private land owners only for
“public purposes”. But this term ‘public purposes’ has been given a very wide definition under this Act
and it includes any extension or improvement or development of existing infrastructure , any rural town
or city planning, any development in pursuance of any scheme or policy of the government.3

Section 17 of the Act laid down another absolutist provision known as the ‘Urgency clause’. In cases of
urgency, whenever the appropriate Government so directs and award hasn’t been made, the Collector
may on the expiration of fifteen days from the publication of the notice mentioned in Section 9(1), take
possession of any land needed for a public purpose. There shall be a provision of 80% of the estimated
compensation while taking possession and fixing of award thereafter.4

The most misused and dogmatic law being the clause of ‘Grave Urgency’ wherein the authorities needn’t
hold inquiry as under Section 5; thus they can straightaway issue declaration under Section 6 and take
possession after giving the required eighty percent of the estimated compensation. This was a punitive
measure as there were no criteria for characteristics of urgency so the authorities could dispossess masses
without following the fundamental procedures.5

The lack of provision for the resettlement and rehabilitation of those displaced was clearly the most
egregious deficiency of this obsolete legislation. It is imperative to understand that monetary
compensation without time bound implementation shows the feebleness of the law. This allowed
considerable laxity to the officials further annoying the already affected people. A lack of rehabilitation
policy violates Right to Life under Article 21 and Right to Equality under Article 14 (interpreted as right
against arbitrariness) of the Constitution of India.6

1
http://www.mondaq.com/india/x/386234/agriculture+land+law/Indias+Controversial+Land+Acquisition+Law
2
http://www.livemint.com/Politics/FXZ9CrJApxRowyzLd8mb2O/All-you-wanted-to-know-about-new-land-
acquisition-Bill.html
3
http://jlsr.thelawbrigade.com/wp-content/uploads/2016/08/Kritya-Neha-Singh.pdf
4
Section 17(1) & 17(3), https://indiankanoon.org/doc/1797812/
5
Section 17(4), https://indiankanoon.org/doc/1797812/
6
https://socialissuesindia.wordpress.com/2012/09/07/land-acquisition-law-in-india/
 Lastly, these arbitrary norms in the name of welfare and development piled up matters of litigation as the
rights of the people were severely infringed. These matters could be attributed to non payment of
adequate compensation, arbitrary acquisition, non adhering to procedures laid in the act, etc. This resulted
in stalling of legitimate infrastructure projects. This only resulted in worsening of the sordid condition of
the displaced and sabotaging development of infrastructure projects.

The most affected class was the farmers who were snatched into a vicious circle of exploitation and
poverty as land acquisition rendered them useless. They didn’t have land to do farming which was the
only skill they possessed and the meagre amount of compensation was usually wasted which threw them
into a more pitiable state.7

Comparative Analysis

Land Acquisition Provisions LARR Act, 2013 Amendments

Act, 1894
No Provision No Provision Section 2(2)- The government is supposed to acquire
Application of Act consent of at least 80% of the affected
families in case of acquisition of private
companies and 75% in case of public private
projects.
Section 3 (b)- Interested person Section 3 (x)- The amended definition includes tribals and
Definitions includes claimant of Definitions other traditional forest dwellers that have lost
compensation or any any traditional rights, persons having tenancy
person interested in an rights under the relevant State laws or any
easement affecting the person whose primary source of livelihood is
land. likely to be adversely affected.
No provision No provision Section 3 (ccc)- Cost of Acquisition includes compensation
Definitions granted, demurrage for damage, cost of
resettlement of displaced and development at
those sites, additional cost of rehabilitation
and resettlement, administrative costs
acquisition or planning or resettling the
displaced families.
Section 3(ee)- Appropriate government Section 3(e)- The amended definition of appropriate govt
Definitions means Central Govt for Definitions includes state govt for acquisition of any land
acquisition of land for within the territory of that state, the central
the purpose of union and govt in consultation with the state govt or UT
State Govt for any other concerned for acquisition of land in more
purpose. than one state and the collector of district as
notified by the appropriate government.
Section 3(f)- The expression “public Omitted Omitted
Definitions purpose”
Section 3(ff)- The expression Omitted Omitted
Definitions “infrastructure project”
No provision No provision Section 3(r)- Land owner includes any person whose name
Definitions is recorded as the owner, person whose
granted forest rights, person whose entitled to

7
Ibid.
 be granted Patta rights or person declared by
court.
Section 4- Notification for Section 4,5,6,7,8 & 9- The govt shall appoint a committee for SIA
Publication of acquisition should be Provisions for Social report and an authority for
preliminary made in Official Gazette Impact Assessment rehabilitation/resettlement plan. The SIA
notification and and the Collector shall report shall be made after a public hearing
power of officers make public notice of and shall be available in local language. An
thereupon this notification. expert group shall make recommendations as
to the effects of the acquisition. The govt
officers can enter or survey land or fix
boundaries after notification and inquiry by
district collector. The SIA report shall be
made again if there is delay and land requires
assessment.
No Provision No Provision Section 10- Special Any double crop wet land cannot be acquired
provision to safeguard and if it is acquired then the govt shall make
food security equivalent land of similar nature under
cultivation. An exemption is laying railways,
highways, canals or other transport line to
provide food to isolated places.
Section 4- Objections to be filed Section 11- Objections to be filed within 60 days from
Publication of within 30 days from the Publication of the date of publication of the notification.
preliminary date of publication of the preliminary
notification and notification. notification and
power of officers power of officers
thereupon
No provision No provision Section 11- Preliminary notification shall be issued in a
Publication of prescribed manner and the contents shall be
preliminary made public by calling a special meeting at
notification and municipal level. The officers/collector have
power of officers special powers of allowing transaction on
such land or updating records, etc.
Section 5- Payment Damage for entering or Section 13- Payment Damage for entering or surveying shall be
for damage surveying shall be paid. for damage paid. The competent authority is the district
The competent authority collector in case of disputes.
is the collector or other
chief revenue officer of
the district in case of any
dispute.
No Provision No Provision Section 14- Lapse of SIA report to be finalized within 12 months
Social Impact but if it isn’t or notification under Section 11
Assessment report is not issued then report is considered lapsed
and fresh inquiry commenced.
Section 5A- Hearing Objections to be made Section 15- Hearing Objections to made within 60 days from the
of objections within 30 days to the of objections. date of preliminary notification.
collector who sends
report after further
inquiry, to the
 appropriate govt for final
decision.
Section 6- Land declared after Section 19- The appropriate govt shall issue notification
Declaration that hearing objections and Publication of of acquisition and summary of
land is required for a then the collector takes declaration and rehabilitation/resettlement once the scheme
public purpose orders of acquisition. summary of is approved.
Rehabilitation and
Resettlement
No Provision No Provision Section 17&18- Preparation and review of the
Review of the rehabilitation/resettlement scheme which is
Rehabilitation and made public after approval.
Resettlement Scheme
& Approved Scheme
to be made public.
No Provision No Provision Section 24- Land If the proceedings are initiated under the old
acquisition process act but the award isn’t made, then the
under Act No. 1 of compensation is determined according to the
1894 shall be deemed new revised act. When award is made
to have lapsed in according to the 1894 act and 5 years or more
certain cases have passed from date of commencement of
new act, and either possession isn’t taken or
compensation isn’t paid then such
proceedings are deemed to have elapsed.

Section 11A- Period The Collector shall make
shall be which an an award under S.11
award within made within a period of two
years from the date of
the publication of the
declaration and if no
award is made then
entire proceeding shall
lapse
Section 34- Payment Solatium was 30 percent
of Interest of the total
compensation.
No Provision No Provision
Section 25- Period The Collector shall make an award within a
within which an period of twelve months from the date of
award shall be made publication of the declaration under section
19 and if no award is made, the entire
proceedings shall lapse
Section 30- Award of Solatium will also be increased up to 100 per
Solatium cent, of the total compensation. The
Collector shall award an amount calculated at
the rate of 12% pa on such market value for
the period commencing on and from the date
of the publication of the notification of the
SIA study till the date of the award of the
Collector or the date of taking possession of
the land, whichever is earlier.
Section 32- Provision In every resettlement area, the Collector shall
of infrastructural ensure the provision of all infrastructural
amenities in facilities and basic minimum amenities.
resettlement area
No Provision No Provision Section 39- No family displaced earlier can be displaced
Additional again but if so then, additional compensation
compensation in case according to the act to be paid
of multiple
displacements
Section 17- Special The Collector can take Section 40- Special The Collector can take possession of any land
powers in case of possession of any land powers in case of after expiry of 30 days which shall vest in the
urgency after expiry of 15 days urgency to acquire govt, free from all encumbrances. The powers
which shall vest in the land in certain cases above is restricted to the minimum area
govt, free from all required for the defence, national security,
encumbrances. emergencies arising out of natural calamities,
etc. The collector must give a 48 hour notice
and give 80% of estimated compensation. An
additional compensation of 75% of the total
compensation shall be paid for acquisition of
which proceedings have been initiated.
No Provision No Provision Section 41- Special Land acquired in Scheduled areas or from
provisions for members of SC/ST, shall be paid additional
Scheduled Castes and compensation and should be resettled
Scheduled Tribes preferably in the scheduled areas in a compact
block so that they can retain their ethnic,
linguistic and cultural identity. Further
compensation & additional reliefs due in
resettled outside area. The reservation policy
shall continue in new location.

No Provision Section 45- Where land is equal to or more than 100

Rehabilitation and acres, the appropriate Government shall
resettlement No constitute a Rehabilitation and Resettlement
Provision committee Committee headed by the Collector to
at project level monitor/review the scheme and to carry out
post-implementation social audits in
consultation with the Gram Sabha in rural
areas and municipality in urban areas.

Section 18- If any person is not Section 64- Reference If any person is not satisfied with the order of
Reference to Court satisfied with the order to Authority the collector then it shall make an application
of the collector then it within 30 days then give statement to
shall make an application authority and proceeding shall be held in
within 6 weeks from the public.
date of the Collector's
award or within 6 weeks
of the receipt of the
notice from the Collector
or within 6 months from
the date of the
 Collector's award,
whichever period shall
first expire.
No Provision No Provision Section 85 & 86- Person shall be liable to a punishment of 6
Penalty for months which may extend to 3 years or with
contravention of fine or with both on contravention of
provisions of Act and provisions relating to compensation or
Offences by rehabilitation/resettlement.
companies

No Provision No Provision Section 99, 100,101 & No change of ownership without permission
102- No change of to be allowed. If land unused for 5 years then
purpose or change of return to the owner. The difference in price
ownership without of land when transferred for higher
permission to be consideration shall be shared. The provisions
allowed, return of shall be in addition and not derogation to
unutilised land& existing laws. Provisions of this act not to
difference in price of apply in certain cases but can apply with
land when transferred certain modifications.
for higher
consideration to be
shared
No Provision No Provision Schedule 1,2,3 & 4 First schedule contains some components
available which are kept in mind while
deciding compensation for land owner,
second schedule contains elements of
rehabilitation and resettlement entitlement for
all affected families, third schedule contains
provisions of infrastructure amenities and
fourth schedule contains list of thirteen
enactments regulating land acquisition and
rehabilitation/resettlement which are
exempted the application of this Act.

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and

Resettlement Act, 2013 – A Misnomer?

The name of the act itself suggests that the act is based on the idea of impartial, fair and transparent land
acquisition mechanisms as well as functioning of the authorities. But this legislation has generated more
impediments to facilitate public welfare than done any good.

The most damaging provision is the “Retrospective Provision” enshrined under Section 24 Clause 2. It
has brought more than 2200 disputed matters to light in the Legal Department of the Delhi Development
Authority. These cases are mere repetition of the earlier disputes which has rattled the administration of
the entire DDA due to mere gravity of the amendments. Approximately 900 of such cases were decided
recently out of which 500 were Special Leave Petition. Such multiplicity of cases has become a huge
burden on the judiciary as well as the administration of DDA and paved the way for gross misuse of law.8

Moreover, the compensation is calculated by multiplying the factor of 1 in urban areas and 2 in rural
areas. Multiplying factor for rural areas might range from 1-2 depending upon the distance from the
urban area. The market value is calculated according to the value of the land in the last three years with
respect to the sale deeds. It is impossible to calculate exact market value in India because of the prevalent
corruption, illiteracy, black money, non registration of sale deeds, etc. This often leads to exploitation of
the land owners as they given compensation far below the actual price of the property.9

The Act was extended to13 legislations such as The Atomic Energy Act, 1962, The Indian Tramways Act,
1886, The Land Acquisition (Mines) Act, 1885, The Metro Railways (Construction of Works) Act, 1978,
The National Highways Act, 1956; etc;10 for the land acquisition to facilitate development projects. This
amendment brought these 13 Acts under the dominion of this stringent piece of law, within a year of the
commencement of the Act11 of 2013 for the purpose of compensation, rehabilitation and resettlement
which facilitates instrumental growth of the farmers, poor and backward community.

It is quintessential to curb the exercise of unchecked power by the land acquisition machineries of the
government and this Act connives just functioning by making the officials liable to prosecution if they
contravene provisions relating to compensation or resettlement and rehabilitation. Where such
contravention is committed by a company, every person who at the time the offence was in charge or
responsible of such offence, shall be deemed to be guilty of the offence.12 The same applies to
government officials13 which brings a power of sanction to act as a preventive force against any corrupt
practices.

This act provides for the rehabilitation and resettlement of the displaced in an effort to give farmers,
poor, backward society and tribal community14 a better footing. But the 2014 Ordinance has raised some
serious questions regarding the intention if the drafters. The National Sample Survey Office in a report
revealed that only 57.8% of rural households are engaged in agriculture. The question regarding the
rehabilitation of the rest of the population is another complication which needs immediate attention.

It was reviewed by two Parliamentary Standing Committees, headed by BJP leaders, Sumitra Mahajan
and Kalyan Singh. The new BJP government amended this much appreciated and novel piece of
legislation by introducing the 2014Ordinance. This only made the 2013 Act undemocratic and callous.
The government needs a system of checks and balance to form a harmony between democracy and
development. None of the two could be put in a backburner.15

8
DDA Record Files
9
http://docs.manupatra.in/newsline/articles/Upload/F6D173D-E5C5-4954-A73A-9D77708DD9B6.pdfF
10
Fourth Schedule, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013
11
Section 105, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013
12
Section 86, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013
13
Section 87, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013
14
Section 41, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013
15
https://souravroy.com/2015/01/07/back-to-colonial-ways/
The Act propounds a novel concept of food security16 which states that no irrigated multi-cropped land
shall be acquired except “under exceptional circumstances, as a demonstrable last resort”. When it is
inevitable to acquire such land holdings, it is imperative for the concerned authorities to invest or develop
similar agricultural lands.17

The Consent clause18 is a well appreciated provision which considers the needs and issues of the
landowners. It gave more power to the people which rattled the old dogmatic law of arbitrary acquisition.
However, no consent is required when the government is acquiring land for its own projects or use.
Parenthetically, the term ‘affected families’19 in the Act has vast purview as it now includes people whose
livelihood has been endangered as well as the people whose land was acquired. This has lead to a
considerable increase in the number of claimants as the locus standi is extended to not just the owners
which further led to a plethora of cases plaguing our judiciary. Thus, the pro of this provision is the
propaganda whereas the con is the reality that is the implantation.

The concept of Social Impact Assessment20 is another welfare provision which encompasses Social
Justice and equity, community acceptance, maximized economic and social benefits, minimized
environmental cost, protection of vulnerable groups and areas and lastly sustainable development. But
this provision leads to conflict of opinion whether we should include social equity in the place of
industrial growth. A thin line of parity between the two needs to be drawn to facilitate proper
development. Another few drawbacks are politicization of process, limited community understanding,
financial and logistical constraints and lastly policy implication.

Conclusion

(The road ahead for Delhi Development Authority to combat the issues arising out of the recent
amendments)

The fundamental objective of the formulation of land acquisition legislations, followed by

debates/discussions and stringent scrutiny is to maximize development and progress. The very basic
economic assumption is that resources are scarce and need to be used judiciously. The scarcity
assumption has been particularly dominant when it comes to land. Land is one of the most scare
resources and hence we need legislations that draw parity between development, democracy and
economic capacity.

The quintessential need in our country is proper planning with prudence and precaution. There is a need
to implement the concept of ‘Sustainable Development’ which states that development shouldn’t just
address the needs of our generation but of the future generations as well. Instead of plugging in the
problem, the competent authorities must devise such plans and schemes which facilitate development
without hindering social justice.

16
Section 10, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013
17
http://www.cpsindia.org/index.php/current-articles/743-land-acquisition-legislation-the-core-issues-
involved/755-land-acquisition-legislation-the-core-issues-involved
18
Section 2, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013
19
Section 3(c), The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013
20
Chapter 2, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013
 The maximum consumption of land is taken up in roadways or other methods of transportation and thus
we need alternative methods such as Bombay Sea route to make space in such a congested country
especially in metropolitan cities.

Another impediment to proper land management is the influx of population. There is a requirement to
‘De-intensify Delhi’ so that infrastructure projects can pick up pace. The policy of decreasing the amount
of basic incentives given to new immigrants can be one such way to curb the issues arising out of space
crunch.

Moreover, the growing amount of vehicles in the city is a huge predicament. Delhi alone has
96,34,976 number of vehicles. The legislature must make laws to cease the rampant growth in the
vehicular population to facilitate development within the restricted space. A classic example is Singapore
wherein people cannot buy additional vehicles unless they have parking space and they have to pay
pollution tax which considerably reduces the problem of transportation congestion.

A new concept of land pooling is the much required solution. Delhi Development Authority needn’t
acquire land for development. The land owners can pool the small fragments of land and surrender it to
DDA to carry out external development as per the provisions of the Delhi Development Act, 1957.
DDA can retain 40%-60% of the land according to the land pooled (2 to 20 hectares or more), for
compensation for such development. The FAR given to the landowners is 100% which facilitates vertical
development. It is considered a very efficient policy to facilitate affordable housing within the periphery
of Delhi.

The government shall organize think tanks to promote recommendations from scholars, lawyers, experts
and developers who are better equipped and skilled in this field. Niti Ayog is an exemplary example of
such a provision.

The magnified compensation amount falls heavily on the pockets of DDA and thus instead of paying
such extensive compensation when the proceedings elapse, DDA shall give property on leasehold basis
so that it repudiates the filling for enhanced compensation.

Lastly, regarding the problems arising due to the plethora of cases due to the ‘Retrospective Provision’
given under Section 24(2) of 2013 Act, the competent authorities shall indemnify the land they already
have and compensate the rest. Moreover, the planning of land acquisition procedures and development
thereafter shall be done in a systematic way and implemented in a time bound manner to avoid
superfluous litigation. The DDA must act as a regulatory authority only and not extend its work to
development and protection of land. It shall make master plans and implemented it in a sustainable
manner.

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