land acquisition act 2013

for law,real estate and management students

1. Land acquisition act 2013

2. WHAT IS LAND ACQUISITION? Land acquisition refers to the process by which the union or a state government acquires private land for the purpose of industrialisation, development of infrastructural facilities or urbanisation of the private land. Till 2013, land acquisition act in India was governed by land acquisition act 1894.   It allows the acquisition of land for some public purpose by a government agency from individual landowners after paying a government-determined compensation to cover losses incurred by landowners from surrendering their land to the agency . Under 1894 act, the term public purpose was ambiguous and open to executive discretion. So poor people 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.

3. KEY PROBLEMS WITH THE LAND ACQUISITION ACT, 1894 Low rate 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– The rates paid for the land acquired are the prevailing circle rates in the area which are notorious for being outdated and hence not even remotely indicative of the actual rates prevailing in the area.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 ground mentioned above. This results in the stalling of legitimate infrastructure projects. No safeguards – There is no real appeal mechanism to stop the process of acquisition. A hearing is prescribed but this is not a discussion or negotiation. The views expressed are not required to be taken on board by the officers conducting the hearing. Silent on resettlement and rehabilitation of those displaced - T here were absolutely no provisions in the 1894 law relating to the resettlement and rehabilitation of those displaced by acquisition.    

4. INTRODUCTION TO LARR - 2013 Right to fair compensation and transparency in land acquisition, rehabilitation and resettlement act, 2013 which came into force from 1 st January 2014. The title of 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 for five years ago but no compensation has been paid land acquisition process will be started afresh.    

5. AIMS AND OBJECTIVES The aims and objectives of the Act include : To ensure, in consultation with institutions of local self-government and Gram Sabha’s established under the Constitution of India, a humane, participative, informed and transparent process for land acquisition for industrialisation, development of essential infrastructural facilities and urbanisation with the least disturbance to the owners of the land and other affected families Provide just and fair compensation to the affected families whose land has been acquired or proposed to be acquired or are affected by such acquisition Make adequate provisions for such affected persons for their rehabilitation and resettlement Ensure that the cumulative outcome of compulsory acquisition should be that affected persons become partners in development leading to an improvement in their post-acquisition social and economic status and for matters connected therewith or incidental thereto.    

6. SALIENT FEATURES OF LARR - 2013 SIA even need to obtain consent of the affected people, labourers, share croppers, tenant farmers, fishermen, small traders etc. Compensation proportion to market rates 2 times the market rate in rural area 1 times in urban area Affected artisans, small traders, fisherman etc will be given one-time payment, even if they don’t own any land.   If the project doesn’t start in 5 years, land has to be returned to the original owner. To ensure food security    

7. SALIENT FEATURES OF LARR - 2013 Fertile, irrigated, multi-cropped farm land can be acquired only in last resort. 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” project for which government can acquire private land. Land acquire only when: For private project, 80% affected families must agree. For PPP project, 70% affected families must agree.    

8. NEED OF LARR - 2013 India's Land Acquisition Act of 1894, there was an absence of a cohesive national law that addressed fair compensation when private land is acquired for public use, and fair rehabilitation of land owners and those directly affected from loss of livelihoods A combined law was necessary, one that legally requires rehabilitation and resettlement necessarily and simultaneously follow government acquisition of land for public purposes. Forty-Fourth Amendment Act of 1978 omitted Art 19(1) (f) with the net result being:- (Constitution 44th Amendment, w.e.f. 10.6.1979) . The amendment ensured that the right to property‟ is no more a fundamental right but rather a constitutional/legal right/as a statutory right. Moreover, no one can challenge the reasonableness of the restriction imposed by any law the legislature made to deprive the person of his property.    

9. NEED OF LARR - 2013 State must pay compensation at the market value for such land, building or structure acquired (Inserted by Constitution, Seventeenth Amendment Act, 1964), The word "Compensation" deployed in Article 31(2) implied full compensation, that is the market value of the property at the time of the acquisition. The Legislature must "ensure that what is determined as payable must be compensation, that is, a just equivalent of what the owner has been deprived of the fundamental right to property has been abolished because of its incompatibility with the goals of "justice" social, economic and political and "equality of status and of opportunity" and with the establishment of "a socialist democratic republic, as contemplated by the Constitution. The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 was introduced in Lok Sabha.    

10. BENEFITS AND EFFECTS OF LARR - 2013 The 2013 Act is expected to affect rural families in India whose primary livelihood is derived from farms. The Act will also affect urban households in India whose land or property is acquired. Per an April 2010 report, over 50% of Indian population (about 60 crore people) derived its livelihood from farm lands. With an average rural household size of 5.5, LARR Bill 2011 R&R entitlement benefits may apply to about 10.9 crore rural households in India. According to Government of India, the contribution of agriculture to Indian economy's gross domestic product has been steadily dropping with every decade since its independence. As of 2009, about 15.7% of India's GDP is derived from agriculture. Act will mandate higher payments for land as well as guaranteed entitlements from India's non-agriculture-derived GDP to the people supported by agriculture-derived GDP. It is expected that the Act will directly affect 13.2 crore hectares (32.6 crore acres) of rural land in India, over 10 crore land owners, with an average land holding of about 3 acres per land owner.    

11. BENEFITS AND EFFECTS OF LARR - 2013 Families whose livelihood depends on farming land, the number of livelihood-dependent families per acre varies widely from season to season, demands of the land, and the nature of crop. Act provides to compensate rural households – both land owners and livelihood losers. The Act goes beyond compensation, it mandates guaranteed series of entitlements to rural households affected. For a typical rural household that owns the average of 3 acres of land, the Act will replace the loss of annual average per capita income of Rs 11,136 for the rural household, with - four times the market value of the land, - an upfront payment of Rs1,36,000 for subsistence, transportation and resettlement allowances, and - an additional entitlement of a job to the family member, or a payment of Rs 5,00,000 - a monthly annuity totalling Rs 24,000 per year for 20 years with adjustment for inflation – the option from these three choices shall be the legal right of the affected land owner family, not the land acquirer, and    

12. BENEFITS AND EFFECTS OF LARR - 2013 - a house with no less than 50 square meters in plinth area, - if the land is resold without development, used for urbanization, or if the land owner belongs to SC/ST or other protected groups per rules of the Government of India. If the affected families on the above rural land demand 100% upfront compensation from the land acquirer, and the market value of land is Rs 1,00,000 per acre, the Act mandates the land acquirer to offset the loss of an average per capita 2010 income of Rs 11,136 per year created by this 3 acre of rural land, with the following: Rs 18,36,000 to the rural land owner; which is the total of R&R allowances of Rs 6,36,000 plus Rs 12,00,000 – which is four times the market value of the land, plus a house with no less than 50 square metres in plinth area additional payments of Rs 6,36,000 each to any additional families claiming to have lost its livelihood because of the acquisition, even if they do not own the land    

14. PROCESS OF LAND ACQUISITION

15. PROVISION AND COMPENSATION OF LARR – 2013 When government declares public purpose and shall control the land directly, consent of the land owner shall not be required. When government acquires land for different purposes, consent of natives is obtained for different types of projects for which the land is acquired: For private companies – consent of at least 80% of affected families shall be obtained . [ section 2(2-i), as defined in sub-clauses (i) and (v) of clause (c) of section 3] For public-private project – consent of at least 70% of affected families shall be obtained . [section 2(2-ii), as defined in sub-clauses (i) and (v) of clause (c) of section 3]    

16. PROVISION AND COMPENSATION OF LARR – 2013 Minimum Compensation : (According to the “ FIRST SCHEDULE ”) Minimum compensation package to be given to those whose land is acquired and to the tenants. Multiple of total market value, Value to assets attached to the property, Solatium equal to 100% of the market value. Rural areas: At least two times the market value. Urban areas: Same as the market value.    

17. PROVISION AND COMPENSATION OF LARR – 2013 Provision for farmers, landless and livelihood losers [According to the “ SECOND SCHEDULE ”, [See sections 31(1), 38(1) and 105(3 )] Elements of Rehabilitation and Resettlement entitlements for all the affected families, (owners and those whose livelihood is dependent on the land acquired) in addition to the “FIRST SCHEDULE” Return of unutilized land: In case land remains unutilized after acquisition, the new Bill empowers states to return the land either to the owner or to the State Land Bank. Houses for all affected families: All affected families are entitled to a house provided they have been residing in an area for five years or more and have been displaced. If they choose not to accept the house they are offered a one-time financial grant in lieu of the same. Choice of annuity or employment: all affected families are given a choice of annuity or employment; I. If employment is not forthcoming they are entitled to a one-time grant of rs.5 lakh per family. Ii. Alternatively they will provided with an annuity payment of rs.2,000 per month per family for 20 years.  

18. PROVISION AND COMPENSATION OF LARR – 2013 Provision for farmers, landless and livelihood losers Subsistence allowance: All affected families which are displaced from the land acquired shall be given a monthly subsistence allowance equivalent to Rs.3,000 per month for a period of one year from the date of award. [Section 31(2)] Training and skill development: All affected families are also given training and skill development while being offered employment. [Section 31(2)] Miscellaneous amounts: All affected families are given multiple monetary benefits such as transport allowance of Rs.50,000 and resettlement allowance of Rs.50,000. [Section 31(2)] One-time financial assistance: Each affected family of an artisan, small trader or self-employed person shall get one-time financial assistance of such amount as the appropriate government may, by notification, specify subject to a minimum of Rs.25,000 . [Section 31(2)]  

19. PROVISION AND COMPENSATION OF LARR – 2013 Provision for farmers, landless and livelihood losers R&R to be completed in all aspects for irrigation projects: in case of acquisition of land for irrigation or hydel project the rehabilitation and resettlement shall be completed six months prior to submergence of the lands proposed to be so acquired. Possession upon fulfilment of conditions under act : [Section 38] Full payment of compensation is paid. Tendered to the entitled person within a period of three months and six months for monetary part of rehabilitation and resettlement entitlements commencing from the date of award. Families will not be displaced from this land till their alternative R&R sites are ready for occupation. Time limit for provision of R&R entitlements: Infrastructural entitlements shall be provided within a period of 18 months from the date of the award.  

20. PROVISION AND COMPENSATION OF LARR – 2013 Provision for farmers, landless and livelihood losers Special powers in case of urgency to acquire land in certain cases : [Section 40] In cases of urgency, whenever the appropriate Government so directs, the Collector , on the expiration of 30 days from the publication of the notice mentioned in section 21 (Gov. notice to the public), take possession of any land needed for a public purpose and such land shall thereupon vest absolutely in the Government, free from all encumbrances. Before taking possession of any land under sub-section ( 1 ) or sub-section ( 2 ), the Collector shall tender payment of 80% of the compensation for such land as estimated by him to the person interested entitled thereto. In the case of any land to which, in the opinion of the appropriate Government, the provisions of sub-section ( 1 ), sub-section ( 2 ) or sub-section ( 3 ) are applicable, the appropriate Government may direct that any or all of the provisions of Chapter II to Chapter VI shall not apply, and, if it does so direct, a declaration may be made.  

21. PROVISION AND COMPENSATION OF LARR – 2013 Provision for farmers, landless and livelihood losers An additional compensation of 75% of the total compensation as determined under section 27(market value of land), shall be paid by the Collector in respect of land and property for acquisition of which proceedings have been initiated under sub-section ( 1 ) of this section. Provided that no additional compensation will be required to be paid in case the project is one that affects the sovereignty and integrity of India , the security and strategic interests of the State or relations with foreign States.  

22. PROVISION AND COMPENSATION OF LARR – 2013 Provision for scheduled castes and scheduled tribes [Section 41] As far as possible no acquisition shall take place in the Scheduled Areas. And where such acquisition does take place it has to be done with the approval/ consent of the local institutions of self-governance. One-third to be paid up-front: In case of land been acquired – 1/3 rd of compensation amount is paid to the affected families as the first instalment, rest shall precede the taking over of the possession of the land.   Resettlement in the same scheduled area: The Scheduled Tribes affected families shall be resettled preferable in the same Scheduled Area in a compact block so that they can retain their ethnic, linguistic and cultural identity.

23. PROVISION AND COMPENSATION OF LARR – 2013 Provision for scheduled castes and scheduled tribes [Section 41] Alienation of tribal lands to be void: Any alienation of tribal lands or lands belonging to members of the Scheduled Castes in disregard of the laws and regulations for the time being in force shall be treated as null and void : and in the case of acquisition of such lands, the rehabilitation and resettlement benefits shall be available to the original tribal land owners or land owners belonging to the Scheduled Castes. Fishing rights: The affected Scheduled Tribes, other traditional forest dwellers and the Scheduled Castes families having fishing rights in a river or pond or dam in the affected area shall be given fishing rights in the reservoir area of the irrigation or hydel projects. If resettled outside scheduled area then additional benefits: Where the affected families belonging to the Scheduled Castes and the Scheduled Tribes are relocated outside of the district then they shall be paid an additional 25% rehabilitation and resettlement benefits to which they are entitled in monetary terms along with a one-time entitlement of Rs. 50,000 .

24. PROVISION AND COMPENSATION OF LARR – 2013 Provision for scheduled castes and scheduled tribes [Section 41] Higher land-for-land area for scs/sts: In every project those losing land and belonging to the scheduled castes or scheduled tribes will be provided land equivalent to land acquired or two-and-a-half acres , whichever is lower (this is higher than in the case of non-SC/ST affected families). Additional amounts: In addition to a subsistence amount of rupees 3000 per month for a year (which all affected families get), the Scheduled Castes and the Scheduled Tribes displaced from Scheduled Areas shall receive an amount equivalent to rupees 50,000.

25. PROVISION AND COMPENSATION OF LARR – 2013 L aw that ensures food security [Section 10] Special provisions have been inserted in the Law to ensure that multi-crop land is acquired only in exceptional cases. States are also required to impose limits on the area of agricultural/ multi-crop land that can be acquired in a State. No acquisition of such lands in excess of that limit can take place. When acquiring agricultural land, the state has to cultivate an equivalent area of land elsewhere as agricultural land. If they cannot do this then they must deposit an amount equivalent to its value in an account to be used for the purposes of enhancing food security. These provisions does not apply for projects which are linear in nature such as highways, railways, power lines, etc.

26. PROVISION AND COMPENSATION OF LARR – 2013 Temporary occupation of land [Section 81] When it appears to the appropriate Government that the temporary occupation and the use of waste of arable land is needed for any public purpose , the government may direct the Collector to procure the occupation and use the same for such terms, not exceeding three years from the commencement of occupation. The Collector gives notice in writing to the person interested to in such land of the purpose for which the same is needed and shall use the land for the occupation. The government to pay them such compensation, either in gross sum of money or monthly, whichever is appropriate for the occupation. Government Collector Person Appointed (paid by Gov.)

27. PROVISION AND COMPENSATION OF LARR – 2013 Provided that, if the land has become permanently unfit to be used for the purpose for which it was used immediately before the commencement of such term, and if the persons interested shall so require, the appropriate Government shall proceed under this Act to acquire the land as if it was needed permanently for a public purpose. Parameters to be considered by Collector in determination of award : [Section 28] In determining the amount of compensation to be awarded for land acquired under this Act, the Collector shall take into consideration – If the damage sustained by the person interested, by reason of taking of any standing crops and trees which may be on the land or injuriously affecting his property at the time of the Collector's taking possession.

28. PROVISION AND COMPENSATION OF LARR – 2013 Infrastructural f acilities and basic amenities provided: [Section 32, According to SCHEDULE THREE ] The following infrastructure facilities and minimum amenities are provided for the resettlement populations to ensure that the resettled population in the new village or colony can secure themselves a reasonable standard of community life and can attempt to minimise the trauma involved in displacement . Roads within the resettled villages and an all-weather road link to the nearest pucca road, passages and easement rights for all the resettled families be adequately arranged. Proper drainage as well as sanitation plans executed before physical resettlement . One or more assured sources of safe drinking water for each family as per the norms prescribed by the Government of India. Provision of drinking water for cattle. Grazing land as per proportion acceptable in the State. A reasonable number of Fair Price Shops. Panchayat Ghars , as appropriate.

29. PROVISION AND COMPENSATION OF LARR – 2013 Infrastructural f acilities and basic amenities provided: Village level Post Offices , as appropriate, with facilities for opening saving accounts. Appropriate seed-cum-fertilizer storage facility if needed. Efforts must be made to provide basic irrigation facilities to the agricultural land allocated to the resettled families if not from the irrigation project, then by developing a cooperative or under some Government scheme or special assistance. All new villages established for resettlement of the displaced persons shall be provided with suitable transport facility which must include public transport facilities through local bus services with the nearby growth centres/urban localities. Burial or cremation ground , depending on the caste- communities at the site and their practices. Facilities for sanitation, including individual toilet points. Individual single electric connections (or connection through non-conventional sources of energy like solar energy), for each household and for public lighting. Anganwadi‘s providing child and mother supplemental nutritional services.

30. PROVISION AND COMPENSATION OF LARR – 2013 Infrastructural f acilities and basic amenities provided: Sub-health centre within 2 km range. Primary Health Centre as prescribed by the Government of India. Playground for children. One community centre for every hundred families. Places of worship and chowpal /tree platform for every fifty families for community assembly, of numbers and dimensions consonant with the affected area. Separate land must be earmarked for traditional tribal institutions. The forest dweller families must be provided, where possible, with their forest rights on non-timber forest produce and common property resources, if available close to the new place of settlement and, in case any such family can continue their access or entry to such forest or common property in the area close to the place of eviction, they must continue to enjoy their earlier rights to the aforesaid sources of livelihood. Appropriate security arrangements must be provided for the settlement, if needed. Veterinary service centre as per norms.

31. SOME FACTS ABOUT L.A.R.R.2013

33. NAGPUR-AURANGABAD- MUMBAI HIGHWAY IN AURANGABAD CITY This is the main route of the city leading to two cities Pune an Mumbai This route also lead to industrial area ( Waluj ) The part of land at the entrance of the city in a cantonment area (which is exempted from the L.A.R.R. ACT ) thus this land cannot be acquired for the “public purpose” as under cantt . Hence the four way highway at the entrance of the city diverts the traffic to 9m wide single lane road which makes it a accident prone zone as traffic congestion is always at this point.

34. YAMUNA EXPRESS WAY YAMUNA EXPRESSWAY IS ONE OF THE EXAMPLE FROM RECENT TIMES WHERE LAND WAS AQIRED BY GOVNMENT AND HANDED TO BIG BUSINESSES OVER 44,000 HECTORS THAT WERE ACQUIRED FROM FARMERS OUT OF WHICH ONLY 4092 HECTORS WENT INTO BUILDING THE EXPRESSWAY THE REST OF THE LAND WAS SOLD TO THE REAL ESTATE AGENTS TO BUILD TOWNSHIPS AND MYULTIPLEX THE COST OF THIS LAND HIKE UPP TO 40 TIMES THE VALUE GIVEN AS COMPENSATION TO THE FARMERS .

35. SAMPLE OF NOTICE PROVIDED TO THE FARMER

36. THANK YOU Presented By : Priya Swami Sonali Vaidya Priti Patwari Nupur Bobde