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ACQUISITION OF LAND
INTRODUCTION
• Land Acquisition in India refers to the process of land acquisition by the central or state
government of India for various infrastructure and economic growth initiatives for public
purposes. Several controversies have arisen with claims that land owners have not been
adequately compensated.
• Given the growing controversies, chaos and confusion over the land acquisition during the
past few years, the then Union government re-examined the existing land acquisition
mechanism as given under the Land Acquisition Act 1894.
• The Land Acquisition Act, 1894 allowed the government to acquire the private land for
public purposes, which could be used for large developmental projects like building roads,
industries, mining, etc. but the Government in 2013 passed the Right To Fare Compensation
and Transparency in Land acquisition, Rehabilitation and Re-settlement Act (RFCTLARR)
to repeal the previous Act.
LAND ACQUISITION ACT, 1894
LAND ACQUISITION ACT, 1894
• Features of the Act:
• Definition of Public purpose: The acquisition under the law could be for the use of land
not only for the central or state governments or for companies or corporations owned by
them but also for privately owned companies.
• Possession: After the award had been made, the Collector would take possession of land. In
cases of urgency, the Collector would take possession of the land even before the award of
compensation once notice had been given of the intention of the government to acquire the
land.
REPEAL OF LAND ACQUISITION ACT, 1894
• The following are the reasons for repeal of the LA Act, 1894:
• Forced Acquisitions: Once the acquiring authority intends to acquire a land, it can carry
out acquisition regardless of how the person’s land sought to be acquired is affected.
• Lack of safeguards: There is no real appeal mechanism to stop the process of the
acquisition.
• Silent on Resettlement & Rehabilitation of those displaced: There are no provisions to
resettle or rehabilitate those displaced by the acquisition.
• Urgency Clause: The urgency clause does not define what constitutes an urgent need,
and leaves it to the discretion of the acquiring authority.
• Low Rates of Compensation: The rates paid for the land acquired are outdated, and not
even indicative of the actual rates prevailing in the area.
• These shortcomings led to a host of litigations, stalling up the process for years on end.
THE LAND ACQUISITION ACT, 2013
THE LAND ACQUISITION ACT, 2013
• To abridge the shortcomings of the previous Land Acquisition Act, 1894, the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013 was enacted.
• It is also called as Land Acquisition Act, 2013. It is an Act of Indian Parliament that
regulates land acquisition and lays down the procedure and rules for granting compensation,
rehabilitation and resettlement to the affected persons in India.
• The Act has provisions to provide fair compensation to those whose land is taken away,
brings transparency to the process of acquisition of land to set up factories or buildings,
infrastructural projects and assures rehabilitation of those affected.
• The Act establishes regulations for land acquisition as a part of India’s massive
industrialization drive driven by public-private partnership.
DEFINITIONS : SEC 3
• Sec 3 (c) : affected family includes –
• a family whose land or other immovable property has been acquired;
• a family which does not own any land but a member or members of such family may be agricultural
labourers, tenants including any form of tenancy or holding of usufruct right, share-croppers or
artisans or who may be working in the affected area for three years prior to the acquisition, whose
primary source of livelihood stand affected by the acquisition of land;
• the Scheduled Tribes and other traditional forest dwellers who have lost any of their forest rights
recognised under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest
Rights) Act, 2006 due to acquisition of land;
• family whose primary source of livelihood for three years prior to the acquisition is dependent on
forests or water bodies and includes gatherers of forest produce, hunters, fisher folk and boatmen and
such livelihood is affected due to acquisition of land;
• a member of the family who has been assigned land by the State Government or the Central
Government under any of its schemes and such land is under acquisition;
• a family residing on any land in the urban areas for preceding three years or more prior to the
acquisition of the land or whose primary source of livelihood for three years prior to the acquisition
of the land is affected by the acquisition of such land;
• Sec 3 (p) : land includes benefits to arise out of land, and things attached to the earth or
permanently fastened to anything attached to the earth.
• Sec 3 (n) : holding of land means the total land held by a person as an owner, occupant or
tenant or otherwise
SOCIAL IMPACT ASSESSMENT
• Survey Of Land
• Section 12 provides for the preliminary survey of land and power of officers to carry out such
survey.
• For the purposes of enabling the appropriate Government to determine the extent of land to be
acquired, it shall be lawful for any officer, either generally or specially authorised by such
Government in this behalf, and for his servants and workmen:
• to enter and survey the land in the locality; dig or do other acts to ascertain whether the
land is adapted for such purpose; set out boundaries of the proposed land and mark such
boundaries by placing marks.
NOTIFICATION AND ACQUISITION – CHAPTER IV
• Payment for Damages:
• Section 13 provides that the officer shall at the time of entry under section 12 pay for any
damage caused. It is payment for the intended damage.
• Damage means any harm done to land during the course of surveying it and other acts
necessary to ascertain whether it is capable of being adapted for public purpose.
• In case of dispute as to the sufficiency of the amount so paid the officer shall at once refer the
dispute to the decision of the Collector or other chief revenue officer of the district, and such
decision shall be final.
NOTIFICATION AND ACQUISITION – CHAPTER IV
• Payment for Damages:
• Section 13 provides that the officer shall at the time of entry under section 12 pay for any
damage caused. It is payment for the intended damage.
• Damage means any harm done to land during the course of surveying it and other acts
necessary to ascertain whether it is capable of being adapted for public purpose.
• In case of dispute as to the sufficiency of the amount so paid the officer shall at once refer the
dispute to the decision of the Collector or other chief revenue officer of the district, and such
decision shall be final.
NOTIFICATION AND ACQUISITION – CHAPTER IV
• Hearing Objections
• Section 15 is consistent with the basic principle that no man’s property shall be acquired unless he has
been given an opportunity of being heard. It provides that any person interested in any land which has
been notified as being required or likely to be required for a public purpose, may within 60 days from the
date of the publication of the preliminary notification, object to the area and suitability of land ;
justification offered for public purpose; and the findings of the Social Impact Assessment report.
• Every objection shall be made to the Collector in writing. The Collector shall give the objector an
opportunity of being heard in person or by any person authorised by him or by an Advocate and shall,
make a report to the appropriate Government, containing his recommendations on the objections.
• If no objections are made, the Collector has got to make a report. It is thereafter that the Government is
empowered to proceed further. Section 15(3) provides that the decision of the appropriate Government on
the objections shall be final.
NOTIFICATION AND ACQUISITION – CHAPTER IV
• Rehabilitation & Resettlement Scheme
• Section 16 states upon the publication of preliminary notification by the Collector, the Administrator for
Rehabilitation and Resettlement shall conduct a survey and undertake a census of the affected families, in
such manner, which shall include–
• (a) particulars of lands and immovable properties being acquired of each affected family;
• (b) livelihoods lost in respect of landless who are primarily dependent on the lands being acquired;
• (c) a list of public utilities Government buildings, amenities and infrastructural facilities which are
affected or likely to be affected, where resettlement of affected families is involved;
• (d) details of any common property resources being acquired.
• The Administrator shall, based on the survey and census before, prepare a draft Rehabilitation and
Resettlement Scheme. On completion of public hearing, he shall submit the draft Scheme for
Rehabilitation and Resettlement along with a specific report on the claims and objections raised in the
public hearing to the Collector.
NOTIFICATION AND ACQUISITION – CHAPTER IV
• Review & Approval of Scheme:
• Under Section 17 the Collector shall review the draft Scheme submitted by the Administrator with the
Rehabilitation and Resettlement Committee at the project level constituted under section 45. The
Collector shall submit the draft Scheme with his suggestions for approval to the Commissioner
Rehabilitation and Resettlement.
• If the scheme is approved then the Commissioner shall under Section 18 cause the approved
Rehabilitation and Resettlement Scheme to be made public
• Declaration
• Section 19 provides that the final declaration shall be published by the authority within a period of 12
months from the date of issuance of preliminary notification. When the appropriate Government is
satisfied, that any particular land is needed for a public purpose, a declaration shall be made to that effect,
along with a declaration of an area identified as the “resettlement area” for the purposes of rehabilitation
and resettlement of the affected families.
NOTIFICATION AND ACQUISITION – CHAPTER IV
• Public Notice:
• Under Section 21 the Collector shall publish the public notice on his website and cause public
notice to be given at convenient places on or near the land to be taken, stating that the
Government intends to take possession of the land, and that claims to compensations and
rehabilitation and resettlement for all interests in such land may be made to within a period not
be less than 30 days and not more than 6 months after the date of publication of the notice.
• Statement to Collector:
• Under Section 22 the Collector may also require any interested person to make or deliver to
him a statement within 30 days
REMEDIES AVAILABLE UNDER THE ACT
REMEDIES AVAILABLE UNDER THE ACT
• The Act of 2013 differentiates itself from the previous Act of 1894 through the presence of
the following four compensatory or remedial mechanisms:
• (b) the compensation as determined under Section 27 along with Rehabilitation and Resettlement
Award as determined under Section 31 and which in his opinion should be allowed for the land; and
• (c) the apportionment of the compensation among all the persons known or believed to be interested in
the land, or of whose claims, he has information, whether or not they have respectively appeared
before him.
• Under Section 25 the Collector shall make an award within a period of 12 months from the date of
publication of the declaration and if no award is made within that period, the entire proceedings for the
acquisition of the land shall lapse.
• Determination of Compensation:
• The Collector having determined the market value of the land to be acquired shall
under Section 27 calculate the total amount of compensation to be paid to the land owner whose land
has been acquired by including all assets attached to the land. U/s 28, the amount of compensation
must be calculated by the Collector by taking into consideration:
• the market value as determined u/s 26 and award amount in accordance with the 1 st and 2nd Schedules
• in consequence of the acquisition of the land by the Collector, the person interested is compelled to
change his residence or place of business, the reasonable expenses incidental to such change;
• the damage bona fide resulting from diminution of the profits of the land between the time of the
publication of the declaration u/s 19 and the time of the Collector’s taking possession of the land: and
• any other ground which may be in the interest of equity, justice and beneficial to the affected families.
Award of Solatium:
• The Collector after having determined the total compensation shall arrive at the final award,
by imposing under Section 30, a “Solatium” which is the amount equivalent to 100% of the
compensation amount.
• This solatium amount shall be in addition to the compensation payable to any person whose
land has been acquired. The Collector shall issue individual awards detailing the particulars
of compensation payable and the details of payment of the compensation as specified in the
First Schedule.
• In addition to the market value of the land provided under section 26, the Collector shall,
award an amount calculated at the rate of 12% per annum on such market value for the
period commencing from the date of the publication of the notification of the Social Impact
Assessment study till the date of the award of the Collector or the date of taking possession
of the land, whichever is earlier.
• Under Section 75, when there are several persons interested, then the compensation shall be
apportioned and on agreement by such persons, the particulars of such apportionment shall be
specified in the award.
• But when any dispute arises as to the apportionment of the same or as to the persons to whom
the same is payable, the Collector may under section 76 refer such disputes to the Land Acquisition,
Rehabilitation and Resettlement Authority.
• Payment of Compensation
• Section 77 states on making an award under section 30, the Collector shall pay it to those
persons by depositing the amount in their bank accounts.
• If the person entitled to compensation shall not consent to receive it, or if there be no person
competent to alienate the land, or if there be any dispute as to the title to receive the
compensation the Collector shall deposit the amount of compensation in the Authority to which a
reference under section 64 would be submitted.
REHABILITATION AND RESETTLEMENT
• The rehabilitation and resettlement package granted by the Act includes a constructed house if a house
is lost in the land acquisition. Affected persons are provided with one of three options:
• a job to at least one member of the affected family, or
• one-time payment of Rs.5,00,000 or
• annuity policies that pay not less than Rs. 2,000 per month per family for 20 years.
• Each affected family displaced from the acquired land is also entitled to a subsistence allowance of
Rs.3,000 per month for 12 months.
• Substantially, the same package has to be offered to those who lose livelihood as a result of the
acquisition, including the landless. Besides compensation and the R&R package, 26 infrastructural
facilities have to be provided in the resettlement area.
• A private company purchasing land through private negotiations equal to or more than the limits
prescribed by government also has liability to provide for an R&R package as may be determined by
the Collector.
• In the case of irrigation projects, as far as possible, affected families owning land lost due to
acquisition are to be allotted a minimum area of one acre of land in the command area of the project.
• Similarly, in the case of urbanisation projects, 20 percent of developed land has to be reserved for
allotment on a proportionate basis to those whose land has been acquired, on payment of the cost of
acquisition plus the cost of development.
• All of these awards are passed under Section 31 which states, the Collector shall pass Rehabilitation &
Resettlement Awards for each affected family in terms of entitlements provided in Second Schedule.
• The appropriate Government shall, for the purpose of providing speedy disposal of disputes relating to
land acquisition, compensation, rehabilitation and resettlement, by notification under Section 51,
establish one or more Authorities to be known as the Land Acquisition, Rehabilitation and
Resettlement Authority to exercise jurisdiction, powers and authority conferred by or under this Act.
• As per Section 52, the Authority shall consist of one person called the Presiding Officer appointed by
the appropriate Government in consultation with Chief Justice of High Court.
• The Presiding Officer should have been / be a District Judge or he is a qualified legal practitioner for
not less than seven years, according to Section 53.
• According to Section 54, he can hold his office for three years or until he attains 65 years of age,
whichever is earlier.
• Section 60 : Powers of Authority and Procedures before it:
• The Authority shall have the same powers of a civil court under the Code of Civil Procedure, 1908,
while performing its functions. The Authority shall have original jurisdiction to adjudicate upon every
reference made to it under Section 64.
• The Authority shall not be bound by the procedure laid down in the Code of Civil Procedure,
1908 but shall be guided by the principles of natural justice and subject to the other
provisions of this Act, the Authority shall have the power to regulate its own procedure.
• The Authority shall, after receiving reference under section 64 and after giving notice of such
reference to all the parties concerned and after affording opportunity of hearing to all parties, dispose
of such reference within a period of six months from the date of receipt of such reference and make an
award accordingly and deliver copies of it within fifteen days.
• Section 63 bars all Civil Courts other than High Court under Article 226 or Article 227 of Constitution
or the Supreme Court to entertain or try any dispute relating to land acquisition in respect of which
the Collector or the Authority is empowered by or under this Act, and no injunction shall be granted by
any court in respect of any such matter.
• Section 64 : Reference to Authority :
• Any person interested who has not accepted the award, may in writing apply to the Collector, to refer
the matter to the Authority, irrespective of his objection being to the measurement of land, the amount
of compensation, etc.
• The Collector shall, within a period of thirty days from the date of receipt of application,
make a reference to the appropriate Authority.
• When the Collector fails to make such reference within the period so specified, the applicant
may apply to the Authority, as the case may be, requesting it to direct the Collector to make
the reference to it within a period of thirty days. The application shall state the grounds on which
objection to the award is taken.
• Provided further that the Collector may entertain an application after the expiry of the said
period, within a further period of one year, if he is satisfied that there was sufficient cause for
not filing it within the period specified in the first proviso.
• Section 69 : Determination of award by authority :
• In determining the amount of compensation to be awarded for land acquired including the
Rehabilitation and Resettlement entitlements, the Authority shall take into consideration whether
the Collector has followed the parameters set out under section 26 to section 30 and the
provisions under Chapter V of this Act.
• Where in an award under this Chapter, the Authority concerned allows to the applicant any
amount of compensation in excess of the amount awarded by the Collector under section 23,
the persons interested in all the other land covered by the same preliminary notification under
section 11, and who are also aggrieved by the award of the Collector may, notwithstanding
that they had not made an application to the Collector, by written application to the Collector
within three months from the date of the award of the Authority concerned require that the
amount of compensation payable to them may be re-determined on the basis of the amount of
compensation awarded by the Authority.
• Section 74 : Appeal to High Court
• Any person aggrieved by the Award passed by an Authority under section 69 may file an appeal
to the High Court within sixty days from the date of Award with a condonation of delay not
exceeding 60 days due to sufficient cause.
• Every appeal referred to shall be heard as expeditiously as possible and endeavour shall be
made to dispose of such appeal within six months from the date on which the appeal is
presented to the High Court.
• For the purposes of this section, High Court means the High Court within the jurisdiction of
which the land acquired or proposed to be acquired is situated
FEATURES OF THE ACT
FEATURES OF THE ACT OF 2013
• No land is acquired forcefully. The new law stipulates mandatory consent of at least 70% of affected
landowners for acquiring land for public-private-partnership (PPP) projects and 80% of affected
landowners acquiring land for private companies.
• Offer compensation, up to 4 times the market value in rural areas & 2 times the market value in urban
areas. In addition to those losing land, the Act provides compensation to those who are dependent on
the land being acquired for their livelihood.
• Rehabilitate those displaced by the land acquisition process. The Land Acquisition Act of 1894 is silent
on the issue of resettlement and rehabilitation of those displaced by acquisition of land. The 2013 Act
dedicates over five chapters and two entire Schedules outlining elaborate processes (and entitlements)
for resettlement and rehabilitation. The Second Schedule outlines the benefits such as land for land,
housing, employment and annuities that shall accrue in addition to the one-time cash payments.
• Special Safeguards for Tribal Communities and other disadvantaged groups: No land can be acquired
in Scheduled Areas without the consent of the Gram Sabhas.
• Safeguards against displacement: No one to be dispossessed until and unless all payments are made
and alternative sites for the resettlement and rehabilitation have been prepared.
• Return of Unutilised Land: In case land remains unutilised after acquisition, the new Bill empowers
states to return the land either to the owner or to the State Land Bank.
• Share in appreciated land value: Where acquired land is sold to a third party for a higher price then 40
per cent of the appreciated land value (or profit) will be shared with the original owners.
• Choice of annuity or employment: All affected families are given a choice of annuity or employment.
If employment is not forthcoming they are entitled to a one time grant of 5 lakh rupees per family.
Alternatively they will provided with an annuity payment of Rupees 2000 per month per family for
twenty years (adjusted for inflation). In addition subsistence allowance, and training and skill
development programmes also to be provided.
• The definition of affected families includes not just landowners, but also tenants.
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