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MrunalExplained:LandOrdinance2014:SalientFeatures,Criticism

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[Polity]LandOrdinance2014vs.LandAcquisitionAct2013:Salient
Features,Comparison&Criticism
PostedByMrunalOn12/01/2015@9:29pmInpolity|123Comments
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LARRAct2013
SalientfeaturesofLARR2013Act?
WhyLandordinance?
LandOrdinance2014:SalientFeatures
Landordinance:Critcism/Antiarguments
AppendixI:ExamplesofPublicPurposeacquisition
AppendixII:13centrallawsexempted
MockQuestions

LARRAct2013
1. LandAcquisition,Rehab,ResettlementAct(LARR)2013
2. DepartmentofLandresourcesunderRuralDevelopmentministry,implementsthisact.
Butwhywasthislawenacted?
1. LandAcquisitionmeansgovernment/privatecompanypurchasingprivatelandforpublic
purpose.
2. But,undertheBritisheraLandacquisitionactof1894,thetermpublicpurposewasambiguous
andopentoexecutivediscretion.So,poorpeopleslandwasacquiredatthrowawaypricesin
pretextofdevelopmentprojects.
3. Sometimessuchprojectsneverstarted,andthesamecheaplandwasresoldathigherpricetoreal
estatedevelopers,withoutbuildinganythingforpublicpurpose.
4. Withthistacticpoliticians,theirsonsinlawandbureaucratsmadebillionsoutofthinair.LARR
act2013triedtofixthisproblem.

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LandAcquisition,Rehab,ResettlementAct(LARR)2013
SalientfeaturesofLARR2013Act?
LARRAct2013

ColonialAct1894
Thetermpublicpurpose
Clearlydefinesvarioustypesofpublicpurposeprojectsforwhich,
wasambiguousandopento
Governmentcanacquireprivateland.(Refertoappendix1)
Governmentsdiscretion
Landcouldbeacquired
forcibly.

Theyweregivennovoice
indecisionmaking.

Governmentwasfreeto
decidehowmuchmoneyto
paywhileacquiringprivate
land.

Forprivateproject,80%affectedfamiliesmustagree.
ForPPPproject,70%affectedfamiliesmustagree.
Onlythenlandcanbeacquired.
UnderSocialimpactassessment(SIA)evenneedtoobtainconsentofthe
affectedartisans,laborers,sharecroppers,tenantfarmers,fishermen,
smalltraders,Desiliquordenownersetc.whose(sustainable)livelihood
willbeaffectedbecauseofthegivenproject.
Compensationproportiontomarketrates.
4timesthemarketrateinruralarea.
2timesinurbanarea.
Affectedartisans,smalltraders,fishermenetc.willbegivenone
timepayment,eveniftheydontownanyland.
Toensurefoodsecurity:

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1. Fertile,irrigated,multicroppedfarmlandcanbeacquiredonlyin
lastresort.
2. Ifsuchfertilelandisacquired,thenGovernmentwillhaveto
developequalsizeofwastelandforagriculturepurpose.

Nosuchrestrictionson
fertileland

ifGovernmentacquiresthelandsforprivatecompanythesaid
privatecompanywillberesponsibleforreliefandrehabilitationof
theaffectedpeople.
Additionalrehab.packageforSC/STowners.Examplefishing
rightsoverdam,25%extramoneyifsettledoutsidetheirnative
districtandsoon.

Nosuchsafeguards

Nosuchaccountability
Ifprojectdidnotstart,then
acquiredlandwassecretly
sold/leasedtoprivate
playersatskyhighprices.

StateGovernmentshavetosetupdisputesettlementauthorities.
Chairmanmustbeadistrictjudgeorlawyerfor7years.
Headofthedepartmentwillbemaderesponsible,foranyoffenseor
mischiefplayedfromGovernmentsside.(althoughthismadetheofficers
verycautiousgiventhemediatrials.Theydsitonthefilesinsteadof
takinganyaction).
Ifprojectdoesntstartin5years,landhastobereturnedtotheoriginal
owner.

WhyLandordinance?
1894slandactwasbogusandexploitive.SoCongressgovernmentenactednewlawin2013,with
provisionsforsocialimpactassessment,faircompensation,disputesettlementandotherfancy
things.
LARR2013Actbecameeffectivefrom1stJanuary2014.
But,thisLARRAct2013establishedanextremelycomplexandimpracticallandacquisition
process.
Holdouts:JholachhapNGOswouldinstigate2025%oftheaffectedfamiliestostageholdout
promisingthemitllfetchthemevenhigherprices.andGiventhe7080%consentrequirement,the
projectwillneverkickoff.
Litigation:becauselocal(andthereforecorruption)PatwariandTehsildarsnevermaintainproper
landrecordsofwhoownshowmuchland.
Thisraisedthelandprices,redtapismandthustheoverallprojectcost.
Neitherthefarmercouldsellitslandandmovetourbanareas,notheentrepreneurcouldbuythe
landandmovetowardsruralareas.
CombinedwithEnvironmentactivismandpolicyparalysisofUPAregime,theendresultwas
infrastructurebottleneck,highinflationandfallinGDP.

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WhyModihadtobringLandOrdinance2014?
AssuchthosestringentLARRprovisionsdidnotapplyto13centrallawse.g.iflandwasacquired
underRailwaysActorAtomicEnergyAct,thenSocialimpactassessment,marketrate
compensationetc.werenotapplicable.
ButthisExemptionwasgivenonlyforayeari.e.upto1stJanuary2015.Bythetime,
Governmentneededtoamendthose13actssothatLARRlikehighcompensationratescanbe
giventofarmersinthoseprojectsalso.Butitwasnopossibletoamend13centrallawsbecause:
A. FrequentDisruptionsinWintersession(December2014)
B. ModidoesntenjoymajorityinRajyaSabha.
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C. someoftheunionministrieshadnotevenpreparedthebills.
Therefore,GovernmentdecidedtouseordinancerouteunderArticle123oftheConstitution.

LandOrdinance2014:SalientFeatures
LARRAct2013
LandOrdinance2014
Thosemandatorythingsarenolongerrequiredfor5typesof
Mandatory70%consentfor
projects:
PPPprojects.
1. NationalsecurityandDefenseProduction
Mandatory80%consentfor
2. Ruralinfrastructure,Ruralelectrification
privateprojects.
3. InfrastructureandSocialinfrastructure
MandatorySocialimpact
4. Industrialcorridors
assessment(SIA)forevery
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projects.

5. HousingforPoors.
SIAnotneededfor

SIAmandatoryforeverytypeof
project.

1. Thosefivecategorieslistedabove
2. PPPprojects,IFGovernmentownstheland.
Buildingprivatehospitalsandprivateeducationalinstituteswill
alsocountaspublicpurpose.Means,theytoocanacquireland
if80%affectedfamiliesagreed.

Compensation:

1. 4timesthemarketrateinrural
Remainsthesame.
area.
2. 2timesinurbanarea.
Stringentprovisionsforreliefand
rehabilitation(R&R).

remainsthesame

Privatecompaniescanacquire
landforpublicpurpose.

Privateentitiescanacquire.Meaningprivatecompanies,
NGOs,trusts,foundations,charitybodies,proprietorsetc.too
canacquirelandforpublicpurpose.

Ifanymischiefplayedon
Governmentspartthenheadofthe
departmentwillberesponsible.

Headofthedepartmentcantbeprosecutedwithoutprior
sanctionofgovernment(underCrPCSection197).
Thisimmunityisgiventoensurebureaucratsdontsiton
thefiles,fearingmediatrialsandjudicialactivism.

Landordinance:Criticism/Antiarguments
1. GiventheImmunityagainstprosecution,Bureaucratswillplaymischiefinlandacquisition,to
helpRaabertVaadratypesunabated.
2. Thosefiveexemptedcategoriesareverybroadparticularlyinfrastructureandsocial
infrastructure.So,Prettymuchallprojectscanbedonewithoutsocialimpactassessmentortaking
consentof7080%ofaffectedfamilies.EntireLARR2013ismadeinvalidthroughclever
wordplay.
3. Socialimpactassessment(SIA)notrequiredinfivetypesofprojects.So,locallaborers,artisans,
smalltraderswilleithergetzeroorverysmallreliefpackage,eveniftheirlivelihoodislostbecause
ofindustrial/infrastructureproject.
4. Privatecollegesandhospitalstoocanacquireland.BUTiftheycontinuetochargeheftyfeesthen
norealpublicpurposeisserved.MushroomingofselffinancedbogusqualityEngineering,
PharmacyandMCAcollegesdoesnthelpreapingIndiasdemographicdividend.
5. Ordinancedoesntspecificallysaythatsuchprivatehospitalsandschool/collegesareexemptfrom
Socialimpactassessment(SIA).ButtheytoocandodgeSIAbulletbyclaimingitsasocial
infrastructureproject.
6. Inparliamentarydemocracy,Ordinanceshouldbeusedonlyfordireemergency.Modicouldhave
waitedtillbudgetsession,andgetproperapprovalfromparliament.[Counterargument:therewas
deadlineof1/1/2015].
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AppendixI:ExamplesofPublicPurposeacquisition
1.
2.
3.
4.
5.
6.
7.
8.

Strategicprojectse.g.missilesilos,antiaircraftbatteries,artilleryinstallmentsandarmybunkers.
AlltypeofinfrastructureprojectsandPPPprojects.
Coldstorage,PackagingProcessingunitsforAgricultureproduce,dairy,fisheriesandmeat.
Industrialcorridorsandmanufacturingclusters.
Education,research,vocationalinstitutes.
Sports,healthcare,tourism,spacetech.
Housingforlowincomegroup.
Creatingnewhouses/townsforpeopleaffectedinnaturalormanmadedisasters.

AppendixII:13centrallawsexempted
Iflandisacquiredforanyofthese13centrallaws,thenLARR2013Actsprovisionswillnot
apply(Forayear).
Withinthattime,Governmenthadtoamendthose13lawstogivefaircompensation.SinceModi
couldntdoit,hegotanordinanceclearedtoextendsLARRhighcompensationratestothese
centrallaws:
TheseActswereexemptedfromLARRAct2013butcoveredvia
Ordinance
OldAct
Year
LandAcquisition(Mines)Act
1885
IndianTramwaysAct
1886
DamodarValleyCorporationAct
1948
ResettlementofDisplacedPersons(LandAcquisition)Act 1948
RequisitioningandAcquisitionofImmovablePropertyAct 1952
NationalHighwaysAct
1956
CoalBearingAreasAcquisitionandDevelopmentAct
1957
AncientMonumentsandArchaeologicalSitesAct
1958
AtomicEnergyAct
1962
PetroleumandMineralsPipelinesAct
1962
MetroRailways(ConstructionofWorks)Act
1978
RailwaysAct
1989
ElectricityAct
2003

MockQuestions
Q1.Suppose,Governmentenactedanewlawtoacquireanylandfromanybodywithoutany
compensation,thenwhichofthefollowingfundamentalrightswillbeaffected?
A.
B.
C.
D.

19/b
19/c
19/d
19/e

Q2.UnderLandordinance2014,consentofaffectedfamiliesandsocialimpactassessmentis
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mandatoryforwhichofthefollowingprojects?
1. Defenseproduction
2. Housingforlowincomegroup
3. Ruralelectrification
Answerchoices
A.
B.
C.
D.

Only1and2
Only2and3
Only1and3
Noneofthem

Q3.UnderLandordinance2014,whoamongthefollowingcanacquireprivatelandforpublic
purpose?
1.
2.
3.
4.
5.

Onepersoncompany
Publiclimitedcompany
privatelimitedcompany
Educationaltrust.
Religiouscharityorganization

Answerchoices
A.
B.
C.
D.

Only2and3
Only1,2and3
Only1,2,3and4
Allofthem

Q4.UnderLandordinance2014
A. Revenueofficialsatdistrictandstatelevel,canbeprosecutedwithoutpriorapprovalof
Government.
B. Everystateismandatedtosetupadisputesettlementauthorityunderretirechiefjusticeofhigh
court.
C. BothAandB
D. NeitherAnorB
Q5.LandAcquisition,Rehab,ResettlementAct(LARR)2013
1. Providescompensationof4xtimesmarketratesforlandacquirednearurbanareas.
2. PutscertainrestrictiononacquisitionoffertilizelandtoensurefoodsecurityforIndia.
3. Makesheadofthedepartmentpersonallyaccountableforanyillegalitiescommittedbystaffunder
him.
Answerchoices
A. Only1and2
B. Only2and3
C. Only1and3
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D. Allofthem
Q6.WhichofthefollowingCentraldepartmentisresponsibleforimplementingLandAcquisition,
Rehab,andResettlementAct(LARR)2013?
A.
B.
C.
D.

DepartmentofLandresources
DepartmentofLandDevelopment
Departmentofagriculture
NonebecauseitfallsunderStateGovernment.

Q7.Whichofthefollowingact/ordinanceexcludethejurisdictionofautonomouscouncilduring
landacquisitionprocessin6thScheduleareas?
1.
2.
3.
4.

UPAsLandAcquisition,Rehab,ResettlementAct(LARR)2013.
ModisLandordinance2014
BothAandB
NeitherAnorB.

Q8.PresidentsordinancemakingpowersaredefinedinArticle___?
A.
B.
C.
D.

121
122
123
124

Q9.PresidentofIndiacanmakeordinanceonwhichofthefollowingmatters?
1. Pricecontrol
2. Lunacy
3. Gasandgasworks
Answerchoices
A.
B.
C.
D.

Only1and2
Only2and3
Only1and3
Noneofthem

Q10.IFparliamentdoesntapproveanordinance,itllexpirein___.
A.
B.
C.
D.

Sixdays
Sixweeks
Sixmonths
Immediatelywhenbothhousesareadjournedsinedie.

Q11.ConsiderfollowingstatementsabouttheordinancemakingpowersofthePresidentofIndia.
1. Hecanissueordinancesinretrospectivemanner.
2. Hecanrepealanyactmadebyparliamentusinganordinance.
3. HisordinancepowersareinspiredfromAmericanConstitution.
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Answerchoices
A.
B.
C.
D.

Only1and2
Only2and3
Only1and3
Noneofthem

Q12.Thefundamentalrighttoacquire,holdanddisposeofproperty,waseliminatedbywhich
amendment?
A.
B.
C.
D.

41st
42nd
43rd
44th

DescriptiveQuestionsforMainsexam
1. Lackofcoherentpolicyonlandacquisitionhasharmedboththefarmersandentrepreneurs,discuss
inthebackdropofLARRAct2013andLandOrdinance2014.
2. NarratethecircumstancesleadingtoenactmentofLandOrdinance2014anditslikelyimpacton
Indianeconomy.
3. (Mains2014)TheRighttoFairCompensationandTransparencyinLandAcquisition,
RehabilitationandResettlementAct,2013hascomeintoeffectfrom1stJanuary,2014.Whatare
thekeyissueswhichwouldgetaddressedwiththeActinplace?Whatimplicationswouldithave
onindustrializationandagricultureinIndia?
4. (Interview)WhatreviewsonthiswholecontroversysurroundingModisordinanceraj?
FormorearticlesonPolityandRightsissues,visitMrunal.org/POLITY.
ArticleprintedfromMrunal:http://mrunal.org
URLtoarticle:http://mrunal.org/2015/01/politylandordinancefeaturescriticismland
acquisition.html
Copyright2014Mrunal.Allrightsreserved.

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