Presentation on

Land Acquisition
Act
• Land acquisition is the process by which
the government acquires private property
for public purpose.

• Till 2013, land acquisition in India was

governed by Land Acquisition Act of
1894 .
LAND ACQUISITION
ACT 1894
• Under the 1894 Act, the government could
acquire any land as it wishes to, in the name
of "public purpose“. The term “public
purpose” was ambiguous and open to
executive-discretion. So, poor peoples’ land
was acquired at throwaway prices in pretext
of development projects.

• Sometimes such projects never started, and the

same cheap land was resold at higher price to
real estate developers, without building
anything for “public purpose”.
• Urgency clause: This is the most criticized section of
the Law. The clause never truly defines what
constitutes an urgent need and leaves it to the
discretion of the acquiring authority.

• No safeguards: There is no real appeal mechanism to

stop the process of the acquisition. A hearing (under
section 5A) is prescribed but this is not a discussion or
negotiation. The views expressed are not required to
be taken on board by the officer conducting the hearing.

• Silent on resettlement and rehabilitation of those

displaced: There are absolutely no provisions in the
1894 law relating to the resettlement and rehabilitation of
those displaced by the acquisition.
• Low rates of compensation: The rates paid for
the land acquired are the prevailing circle rates in
the area which are notorious for being outdated
and hence not even remotely indicative of the
actual rates prevailing in the area.

• Litigation: Even where acquisition has been

carried out the same has been challenged in
litigations on the grounds mentioned above. This
results in the stalling of legitimate infrastructure
projects.
 LAND ACQUISITION,
REHABILITATION AND
RESETTLEMENT
ACT,2013
• The Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013, which
came into force from 1 January 2014.

• The title of the old law conveyed that its primary purpose
was to expedite the acquisition of land. However, the
principle objective of the new Bill is fair compensation,
thorough resettlement and rehabilitation of those affected,
adequate safeguards for their well-being and complete
transparency in the process of land acquisition. The title
has been amended to reflect this.

• Retrospective operation: To address historical injustice

it applies retrospectively to cases where no land
acquisition award has been made. Also in cases where
the land was acquired five years ago but no compensation
has been paid land acquisition process will be started
afresh
 Social Impact Assessment

Consent of Families (70-80%)

>Market rate Price (2x-4x)

Additional Relief to SC/ST

Restriction on Fertile Land

Dispute Settlement Mechanism

Accountability of HOD
1. COMPENSATION : COMPENSATION IN RURAL AREAS WOULD BE
CALCULATED BY
MULTIPLYING MARKET VALUE BY TWO AND ADDING ASSETS
ATTACHED TO THE LAND OR
BUILDING AND ADDING A SOLATIUM. IN URBAN AREAS IT WOULD
BE MARKET VALUE
PLUS ASSETS ATTACHED TO THE LAND AND SOLATIUM.
ILLUSTRATION
Suppose the market value of a piece of land in rural area is 10,00,000.
Multiplying it by 2 ----- 10,00,000 x 2 = 20,00,000
Adding value of assets (2,00,000) attached to land ------ = 22,00,000
Adding 100% solatium, the final compensation = 44,00,000

A piece of land of market value 10,00,000 in urban area ----- Adding

value of asset (2,00,000) attached to land ------ = 12,00,000 Adding 100%
solatium , the final compensation = 24,00,000
• Compensation for livelihood losers: In addition to those
losing land, the Bill provides compensation to those who
are dependent on the land being acquired for their
livelihood. To qualify for benefits under this Act the time
period has been reduced to three years of dependence (on
the acquired land) from five
• Fishing rights: In the case of irrigation or hydel projects,
affected families may be allowed fishing rights in the
reservoirs.
• Share in appreciated land value: Where the acquired land
is sold to a third party for a higher price, 40% of the
appreciated land value (or profit) will be shared with the
original owners.
• CONSENT: Consent of up to 80 per cent of people
required for private projects. For PPP projects, the
approval of 70 per cent of the same is mandatory
• Multi-cropped, irrigated land cannot be acquired unless it
is for defence or emergency caused by natural calamity
• 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
• The government will not acquire land for private
companies for private purpose
• Exemption from income tax and stamp duty: No
income tax shall be levied and no stamp duty shall be
charged on any amount that accrues to an individual as a
result of the provisions of the new law.
• The Bill also proposes amenities like schools, health
centres and civic infrastructure in places where project-
affected people are resettled
The urgency clause should be exercised in the rarest of
rare cases like national defense or for resettlement
purposes.
The Social Impact Assessment (SIA) has to be carried out in
consultation with the representatives of the Panchayati Raj
Institutions (PRIs) Reports prepared under the Social Impact
Assessment are to be shared with these representatives
PROCEDURE FOR THE LAND ACQUISITION
1.INVESTIGATION PROCESS
• When a local authority or a company requires a land, an
application is required to be made by it to the revenue
authority,accompanied with a copy of the plan showing
survey nos., purpose of acquisition and the reason for the
particular site to be chosen and the provision made for the
cost of the acquisition.
• After the government has been fully satisfied about the
purpose, the least area needed, and other relevant facts
as provided under land acquisition rules, it will issue a
notification under Section 4 of the act that the particular
land is required for public purpose.
2. OBJECTION AND CONFIRMATION
• Objections are invited from all persons interested in
land within thirty days from the date of
notification.
• The objections will be valid on one or more of the
following grounds:
i. That the purpose for which the land is proposed
for acquisition is not a public purpose.
ii. That the land is not or less suitable than another
piece of land for the said purpose.
iii. That the area under acquisition is excessive.
iv. That the acquisition will destroy or impair
historical or artistic monuments or will
desecrate religious buildings, graveyards and
the like.
3. Claim and Award
• The collector will issue notices under Section 9 to all
persons interested in the acquisition
to file their claim reports.
• In determining the compensation the market value of
the land is determined at the date of notification. The
rise and fall in the value during the period of
transaction and notification is taken into consideration.
• Compensation is also payable when:
i. Part of the property is proposed for acquisition in
such a manner that the remainder depreciates in
value.
ii. When the land notified for acquisition has standing
crops or trees.
• Compensation is also payable when:
i. Part of the property is proposed for acquisition in such a manner
that the remainder depreciates in value.
ii. When the land notified for acquisition has standing crops or
trees.
iii. If the person interested has to change his place of residence or
business then the excess rent payable for the new premises is
also considered for compensation
• After necessary inquiries the collector declares his award showing
true area of the land, total amount of compensation payable and
apportionment of compensation if there are more than one
owners or claimants.

4. Reference to Court
• Any person interested to whom the award is not satisfactory can
submit a written application to the court.
• This application should be made within six weeks from the date
of declaration of the award.
Land Acquisition Bill

The new government passed an

ordinance on Land Acquisition on
29th December 2014 introducing
major changes to the 2013 Act.
• LARR Act-2013 established an extremely complex and
impractical land acquisition process.

• Holdouts: Jholachhap NGOs would instigate 20-25% of the

affected families to stage holdout- promising them it’ll fetch
them even higher prices. and Given the 70-80% consent
requirement, the project will never kickoff.

• Litigation: because local (and therefore corruption) Patwari

and Tehsildars never maintain proper land records of who owns
how much land.

•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.
The existing Act kept 13 most frequently used acts for Land
Acquisition for Central Government Projects out of the purview.
These acts are applicable for national highways, metro rail,
atomic energy projects, electricity related projects, etc. The
present amendments bring all those exempted from the 13 acts
under the purview of this Act for the purpose of compensation,
rehabilitation and resettlement. Therefore, the amendment
benefits farmers and affected families.
The proposed changes in the Land Acquisition Act would
allow a fast track process for defence and defence
production, rural infrastructure including electrification,
affordable housing, industrial corridors and infrastructure
projects including projects taken up under Public Private
Partnership mode where ownership of the land continues
to be vested with the government. As per the changes
brought in the Ordinance, multi-crop irrigated land can
also be acquired for purposes like national security,
defence, rural infrastructure including electrification,
industrial corridors and building social infrastructure.
 CON
S
The original Land Acquisition Act, 2013 had a
consent clause for acquiring land – industrial
corridors, Public Private Partnership projects, rural
infrastructure, affordable housing and defence. But
after the central government changed, it exempted
these five categories from the rule of acquitting
land in the Bill tabled on February 24.
 Social assessment which was mandatory before
acquitting land has also been exempted in the Bill
tabled in the Lok Sabha.
 As per the existing law, land will be given back to the
farmer if it remains unused for five years. The proposed
amendment says the land will be returned only if the
specified project on the land fails to complete the
deadline.
 Also whether the land is fertile or not will also not be
taken into consideration while acquiring it for these five
specific sectors.
• Anti-corruption crusader Anna Hazare launched a two-day token
agitation against the new land acquisition act on February 23 and
24. His agitation has received support from thousands of activists
and farmers
• Hazare pressed for repeal of the ordinance issued by the
union government on 29 December 2014
• In a post on his blog, Hazare has criticised this amendment as anti-
farmer and pro-corporate
• He opposed the various clauses in the ordinance like removal of
SIA,Consent Requirement,multi crop land provision,Return of Land
to Farmers if unused.
Comparison between 1984
Law , 2013 Act and 2014
Ordinance
 In an attempt to placate the opposition
and some unhappy allies, government
brought nine official amendments and
added two clauses to the controversial
legislation.
 The amendments have been passed in
the Lok Sabha setting the stage for its
consideration in Rajya Sabha where the
numbers are loaded against the
government.
 The social impact asssessment of land to be acquired will be the
prerogative of the state governments
 The amendments include dropping of exemption to "social
infrastructure" projects as there were fears that private individuals
may use this clause to open colleges and hospitals which are
actually business models
 Multi-crop lands will not be acquired
 Land will be returned to the farmer if the project is not completed,
but the time consumed by court cases and injunctions will not be
counted.

The most important clause- the Consent Clause has not been dealt
with yet , this being the major reason for the widespread opposition
against the ordinance
 Government has decided to prorogue the Rajya Sabha
and repromulgate the Land Ordinance in the next session,
as the existing ordinance lapses on April 5 with the end of
the Rajya Sabha Session.
 Sources said that the government will its best to bring the
land bill in Rajya Sabha to replace the ordinance in the
second half of the Budget session after it reconvenes on
April20
 It may agree to reintroduce the provision of taking farmers'
consent for acquiring land. The earlier 80 percent consent
requirement can be reduced to 51 percent.
 Similarly, instead of the earlier social impact assessment (SIA),
the government may involve expert groups to examine the land
deals to find out whether excess land has been acquired for a
project and whether it has affected the original inhabitants.
THANK YOU