Presentation on RFCTLARR Act 2013 -09.02.2023.pptx

Useful information

1. RFCTLARR Act 2013 – a Step toward L and R eform M easures Dr. Hukum Singh Meena IAS , A dditional Secretary Department of Land Resources , Ministry of Rural Development Government of India

2. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 : Salient features Effective from 01.01.2014 Land owner/user/dependent - centric Public Purpose – sharply defined Social Impact Assessment before Acquisition Transparent, Consultative & Participatory approach R&R – an integral part, applicable on purchase also Sustainable livelihood for project affected families No displacement before compensation R&R within 18 months of displacement Urgency limited to defense, national security and natural calamities Dedicated Authority for disposal of disputes

3. Public Purpose (Section 2 ) Strategic : relating to national security, police, safety of the people; Infrastructure: Activities listed in circular no.13/6/2009-INF, dated 27th March, 2012 of DEA, GoI excluding private hospitals, private educational institutions and private hotels Agriculture and allied activities, agro-processing, marketing facilities to be set up or owned by the Govt. or co-op or statutory institution Designated industrial corridors or mining, national investment and manufacturing zones

4. Public Purpose…contd/… (i v ) W ate r harvestin g an d wate r conservation sanitation; structures, Governmen t an d aide d educationa l an d research schemes or institutions; Sports , healt h care, tourism , transportation , space programme, an y infrastructur e facilit y notifie d b y th e Central Government and tabled in Parliament; Project for the project affected people Planned development or improvement of village or urban sites or for residential purpose for specified income group or affected by national calamities to weaker sections;

5. Acquisition for Private Company [Section 2(2)] Prior consent of at least 80% of the land owners/assignees in cases of land acquisition for Private Companies. Prior consent of at least 70% of the land owners in case of Public Private Partnership Projects where the ownership of land continues to vest with the Government Consent to be obtained along with SIA study Procedure to be prescribed by the Government. I ncase o f partia l acquisition , R& R entitlemen t applie s on purchased area also.

6. Loser of land or other immovable property Loser of land assigned by the Govt. Loser of primary source of livelihood dependent on land (labourer, tenant, rightful user, artisan ; Loser of traditional forest rights; Loser of primary source of livelihood dependent on forest or water bodies or urban land; Project Affected Family (PAF) (Section 3)

7. Social Impact Assessment(SIA) Study Consultative in nature Notification in local language to be made available to Local body(ies) O/o DM, SDM, Tehsildar Affected area Website of the Govt. Adequate representation to the Local Body(ies) Public hearing in affected area after adequate publicity Views of the PAF to be recorded and included the Study Report. Study (including SI Mgt Plan) to be completed within 6 months

8. Social Impact Assessment(SIA) Study … contd Subject matter of SIA: Assessment of Public Purpose. Estimation of Project Affected likely to be displace families Estimation of land, assets and Infrastructure likely to be affected. Whether the Proposed land area is bare minimum Availability of alternate feasible site Comparison of likely benefits vis –a-vis the costs Environmental Impact Assessment study to be carried out simultaneously.

9. Social Impact Assessment(SIA) Study … contd Publication of SIA Report and SIMP in local language in the local area. Constitutio n o f independen t multidisciplinary Expert Group for appraisal of SIA and SIMP. Recommendations for go-ahead or abandoning the project within 2 months. Recommendations to be shared with Local Body Decisions of the Govt. to be shared with Local Body. Exemptions : acquisition under urgency Irrigation projects where EIA is essential

10. Special Provision to Safeguard Food Security(Section 10) Irrigated multi-cropped land shall not be acquired If acquired under exceptional and demonstrably last resort circumstances Such acquisitions to be limited in area In other cases, the acquisition of agricultural land should not exceed such limits of the net sown area as may be notified by the Government Not applicable on linear projects

11. Notification for Acquisition Preliminary notification to be published in Official Gazette 2 Daily Newspapers (1 in regional language) In local language in LB/DB/SDM/Teh. On Govt. Website In the affected areas (prescribed) Special meeting of the LB to inform its General Body No survey in the absence of land owner/ authorised person

12. Notification for Acquisition …….. Contd. No entry in the house, garden without 7 days notice in writing Payment of damages on such entry Interested person to file objection within 60 days to Collector Collector to hold hearing/enquiry, if needed Submission of report to Govt. whose decision final

13. Rehabilitation and Resettlement Scheme Appointment of Administrator /Commissioner Survey & Census of PAFs Preparation of Draft R&R Scheme Publicity in the locality Discussion in local body Public hearing (in all GS where 25% land) Review by Collector in R&R Committee Approval by Commissioner (R&R) Approved Scheme to be published Publication of Declaration and Summary of R & R Scheme by the Govt. after receiving money from the requiring Body

14. Special Power in case of urgencies Purposes (u/s 40) Defence National Security Natural Calamities Process 30 days from notice u/s 21 48 hours to take possession of residential buildings Additional compensation of 75% of the total compensation No compensation that affects Sovereignty and integrity of Nation Strategist interests Relation with foreign countries

15. Special Provisions for Weaker Sections Preferably land to be given in case of irrigation projects; One time financial assistance of Rs. 50,000 per family; Families to be settled outside the district to get an additional 25% R&R benefits; Payment of one third of the compensation at the very outset; Preference for relocation and resettlement in the same community block; Free land for community and social gatherings; In case of displacement, a Development Plan is to be prepared. Continuation of reservation and other Schedule V and Schedule VI area benefits from displaced area to resettlement area.

16. R&R applicable on purchased cases also (Section 46 ) If private purchase is beyond certain limits as specified by the appropriate Governments then R&R benefits to be extended to the PAFs R & R scheme to be approved by the Commissioner on the reference of Collector No land use change permitted if R & R is not complied with in full Purchase of land without compliance of R&R ab-initio void Interest of the owner of land on 5.9.2011 protected (if acquired within 3 years, 40% compensation)

17. Compensation and R&R- A comparision 1 Item LA Act 1894 RFCTLARR Act 2013 1. Market Value Average value of last three years registered transactions A v e r a g e v alue o f 5 % o f highe s t v alue transactions registered in last three years 2. Multiplying factor Not available Between 1-2 (from urban to rural) 3. Solatium 30% (60% urgency) 100% after multiplying factor 4. Total Compensation 1.3 times the Market value 2-4 times the Market value 5. Enforceability of R&R Not binding Binding 6. Inclusive of PAFs Compensation to only land losers Compens a tio n t o lan d lose r s , labou r e r s and artisans 7. Employment No provision Statutory provision in II schedule 8. Land for land No provision Essential in case of irrigation project 9. Payment of c ompens a tion No t necessa r y b e f o r e dispossession Necessary before dispossession 1 . Time limit for R&R No time limit 18 months 11. Special provision for weaker section No such provision Provided in Section 41 & 42 16

18. Grievance Redressal Administrator R&R Commissioner Single member authority Reference to Authority within six weeks of the Collector’s award Cases to be decided in six months Jurisdiction of civil courts barred Appeals to High Court with in sixty days Stringent Penalty Regime for Companies and Government(S-84 to 90) for false information, mala fide action, contravention, etc. of provisions of Act.

19. Other major changes Exemption from Income Tax, Stamp Duty and Fees except under section 46 (Sec.96) No change of purpose allowed (Sec. 99) No Change Of Ownership without specific permission (Sec. 100) Return of land if not used in 5 years (Sec. 101) Appreciated Value to be shared with original owners (Sec.102) Option to lease (Section 104)

20. Compensation and R & R provisions and applicable on these Acts (Section 105) LIST OF ENACTMENTS REGULATING LANDACQUISITION AND REHABILITATION AND RESETTLEMENT The Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958). The Atomic Energy Act, 1962(33of1962). The Damodar Valley Corporation Act, 1948(14of1948). The Indian Tramways Act, 1886 (l t ofl886)' The Land Acquisition (Mines)Act, 1885 (l8ofl885). The Metro Railways (Construction of Works)Act, 1978 (33 of 1978). The National Highways Act, 1956 (48 of 1956). The Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (50 of 1962). The Requisitioning and Acquisition of immovable Property Act, 1952(30of1952). The Resettlement of Displaced Persons (Land Acquisition) Act, 1948 (60 of 1948)' The Coal Bearing Areas Acquisition and Development Act,1957 (20 of 1957). The ElectricityAct,2003 (36 of2003). The Railways Act, 1989(24of1989).

21. Acts Exempted for one Year (Section 105) (Fourth Schedule) LIST OF ENACTMENTS REGULATING LANDACQUISITION AND REHABILITATION AND RESETTLEMENT The Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958). The Atomic Energy Act, 1962(33of1962). The Damodar Valley Corporation Act, 1948(14of1948). The Indian Tramways Act, 1886 (l t ofl886)' The Land Acquisition (Mines)Act, 1885 (l8ofl885). The Metro Railways (Construction of Works)Act, 1978 (33 of 1978). The National Highways Act, 1956 (48 of 1956). The Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (50 of 1962). The Requisitioning and Acquisition of immovable Property Act, 1952(30of1952). The Resettlement of Displaced Persons (Land Acquisition) Act, 1948 (60 of 1948)' The Coal Bearing Areas Acquisition and Development Act,1957 (20 of 1957). The ElectricityAct,2003 (36 of2003). The Railways Act, 1989(24of1989).

22. Cutoff date on Market Value determination for transition cases Succinctly, the essence of the legal opinions is as below: one: for cases under section 24 (1) (a) the reference date for calculation of 12 % interest would be the date of preliminary notification under the LA Act 1894. two: for cases under section 24 (1) (a) the reference date for calculation of market value would be 01.01.2014 i.e. the day on which the RFCTLARR Act 2013 came into force. Position clarified vide d.o. letter dated 26 th October 2015

23. Additional Market Value Payable on Section 26(1) or (2) Initially Department of Legal Affairs was of the view that ‘the 12% additional amount provided in Section 30(3) is to be calculated on the market value as provided under Section 26(1) or 26(3)’ as correct Subsequently, it was opined that that additional amount provided in Section 30(3) is to be calculated on the market value as provided under Section 26(2) ’ as correct It is not applicable on 13 Acts mentioned in Fourth Schedule of the RFCTLARR Act as: (a) there is no SIA Notification; (b) Section 30(3) not mentioned in First Schedule States References /Court Judgments and Clarifications

24. Supreme Court’s Judgement on interpretation of Section 24 What is the meaning of the expression paid'/tender' in Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Act of 2013') and Section 31 of the Land Acquisition Act, LA (Act of 1894')? Whether non-deposit of compensation in court under section 31(2) of the Act of 1894 results into lapse of acquisition under section 24(2) of the Act of 2013. What are the consequences of non- deposit in Court especially when compensation has been tendered and refused under section 31(1) of the Act of 1894 and section 24(2) of the Act of 2013? Whether such persons after refusal can take advantage of their wrong/conduct? Whether the word or' should be read as conjunctive or disjunctive in Section 24(2) of the Act of 2013? What is the true effect of the proviso, does it form part of sub-Section (2) or main Section 24 of the Act of 2013?

25. Question nos.1 to 3 are interconnected and concern the correct interpretation of Section 24(2) of the Act of 2013. Following questions are required to be gone into to interpret the provisions of Section 24(2) of the Act of 2013: Whether the word “or” in Section 24(2) of the Act of 2013 used in between possession has not been taken or compensation has not been paid to be read as “and”? Whether proviso to Section 24(2) of the Act of 2013 has to be construed as part thereof or proviso to Section 24(1)(b)? What meaning is to be given to the word "paid" used in Section 24(2) and "deposited" used in the proviso to Section 24(2)? What are the consequences of payment not made? What are the consequences of the amount not deposited? What is the effect of a person refusing to accept the compensation?

26. 4. What is mode of taking possession under the Land Acquisition Act and true meaning of expression the physical possession of the land has not been taken occurring in Section 24(2) of the Act of 2013? 5. Whether the period covered by an interim order of a Court concerning land acquisition proceedings ought to be excluded for the purpose of applicability of Section 24(2) of the Act of 2013 ? 6. Whether Section 24 of the Act of 2013 revives barred and stale claims? In addition, question of per incuriam and other incidental questions also to be gone into.”

27. Interpretation by the apex court 1. Under the provisions of Section 24(1)(a) in case the award is not made as on 1.1.2014 the date of commencement of Act of 2013, there is no lapse of proceedings. Compensation has to be determined under the provisions of Act of 2013. 2. In case the award has been passed within the window period of five years excluding the period covered by an interim order of the court, then proceedings shall continue as provided under Section 24(1)(b) of the Act of 2013 under the Act of 1894 as if it has not been repealed. 3. The word ‘or’ used in Section 24(2) between possession and compensation has to be read as ‘nor’ or as ‘and’. The deemed lapse of land acquisition proceedings under Section 24(2) of the Act of 2013 takes place where due to inaction of authorities for five years or more prior to commencement of the said Act, the possession of land has not been taken nor compensation has been paid. In other words, in case possession has been taken, compensation has not been paid then there is no lapse. Similarly, if compensation has been paid, possession has not been taken then there is no lapse.

28. 4 . The expression 'paid' in the main part of Section 24(2) of the Act of 2013 does not include a deposit of compensation in court. The consequence of non-deposit is provided in proviso to Section 24(2) in case it has not been deposited with respect to majority of land holdings then all beneficiaries (landowners) as on the date of notification for land acquisition under Section 4 of the Act of 1894 shall be entitled to compensation in accordance with the provisions of the Act of 2013. In case the obligation under Section 31 of the Land Acquisition Act of 1894 has not been fulfilled, interest under Section 34 of the said Act can be granted. Non-deposit of compensation (in court) does not result in the lapse of land acquisition proceedings. In case of non-deposit with respect to the majority of holdings for five years or more, compensation under the Act of 2013 has to be paid to the "landowners" as on the date of notification for land acquisition under Section 4 of the Act of 1894.

29. 1894, it is not open to him to claim that acquisition has lapsed under Section 24(2) due to non-payment or non-deposit of compensation in court. The obligation to pay is complete by tendering the amount under Section 31(1). Land Owners who had refused to accept compensation or who sought reference for higher compensation, cannot claim that the acquisition proceedings had lapsed under Section 24(2) of the Act of 2013. 6. The proviso to Section 24(2) of the Act of 2013 is to be treated as part of Section 24(2) not part of Section 24(1)(b). 7. The mode of taking possession under the Act of 1894 and as contemplated under Section 24(2) is by drawing of inquest report/ memorandum. Once award has been passed on taking possession under Section 16 of the Act of 1894, the land vests in State there is no divesting provided under Section 24(2) of the Act of 2013, as once possession has been taken there is no lapse under Section 24(2).

30. case authorities have failed due to their inaction to take possession and pay compensation for five years or more before the Act of 2013 came into force, in a proceeding for land acquisition pending with concerned authority as on 1.1.2014. The period of subsistence of interim orders passed by court has to be excluded in the computation of five years. 9. Section 24(2) of the Act of 2013 does not give rise to new cause of action to question the legality of concluded proceedings of land acquisition. Section 24 applies to a proceeding pending on the date of enforcement of the Act of 2013, i.e., 1.1.2014. It does not revive stale and time-barred claims and does not reopen concluded proceedings nor allow landowners to question the legality of mode of taking possession to reopen proceedings or mode of deposit of compensation in the treasury instead of court to invalidate acquisition.

31. Thank You