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This Law Will Give Farmers A Chance To Refuse Land
Acquisition
Ulka Mahajan started the Sarvahara Jan Andolan (SJA) in Raigad district, Maharashtra. She has worked for
several years for the protection of tribal and Dalit rights, especially land rights. In an interview with Ushinor
Majumdar, she discusses the provisions of and problems with the new Land Acquisition, Resettlement and
Rehabilitation Bill.

USHINOR MAJUMDAR
August 30, 2013

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Ulka Mahajan Photo: Bachchan Kumar/ Hindustan Times

What is your opinion of the bill?

We welcome it because the land acquisition act of 1894 was a colonial law and had to be removed. The new act talks of
rehabilitation and resettlement along with acquisition. One of the gaps is that the law does not incorporate the Standing
Committees recommendation that the government should not acquire land for private corporations. Although 80%
consent of landowners is required under the enacted law, the government has taken responsibility to acquire land for
private corporations. It is not acceptable. The other is that for acquisition by the government for its own projects, there is
no consent of landowners required. This is problematic considering that sometimes the government transfers land to
private parties after acquiring it.
What other key Standing Committee recommendations were ignored?

For industrial corridors and SEZs, state governments acquire land under their own laws. The state act is applied and it is
not clear if it comes under the purview of this new act. In the original bill, Section 98 said that there are 17 other laws
which are not under the purview of this act. These include state laws for land acquisition for infrastructure projects, mining
and state industrial development projects amongst others such as the Ancient Monuments Act, Atomic Act and Damodar
Valley Act. I dont now if that version of Section 98 has been incorporated or modified or left out. It is said that this new
act would not cover these 17 acts. The Standing Committee had recommended that Section 98 should be removed. It was
not deleted from the second version of the bill. What I hear is that only three of these acts are covered.
Why shouldnt the government acquire land for private corporations?
Private corporations should go into the open market and purchase land. At present, in rural areas, whenever a project is
announced, MLAs/MPs and higher-level bureaucrats come to know of this in advance and some of them start investing
money in property before the announcement. There is a strong network of agents, even in small villages and they start
capturing land from farmers and pressurise them. We have seen this in the Delhi-Mumbai Industrial Corridor (DMIC). The
network of agents start operating even before farmers can be organised. Without being organised, they cannot counter
large-scale land acquisition. If the government is helping corporations acquire land, then farmers cannot counter the land
acquisition process. We have seen this before when land was being acquired for Special Economic Zones (SEZ). Farmers
are not in a position to bargain, so the government should not play the role of a middleman in land acquisition for private
companies.
How is land acquired in other countries?
In the United States of America, following protests, they stopped acquisition by the government for private corporations in
the states of Oklahoma, Illinois and South Carolina. In 2006, former president George Bush passed an executive order that
the government would acquire land for public purposes and not for use by private corporations. This is the case in Canada,
Japan and several countries of the European Union too.
Will this law hamper industrial and infrastructural growth?
This law was made because of the need to protect farmers, who are marginalised and underprivileged as compared to
corporate giants. Corporations acquire land on their own terms and farmers arguments are not heard at all. This law will
give farmers some space to bargain and also to agree or refuse the acquisition. Corporations approach the government for
land for their projects and the government always readily agrees. Besides, in most cases, arable land is acquired. In every
state, there is a lot of non-cultivable land that is available. Maharashtra has around 17 lakh hectares of non-cultivable land,
so why not use that land. In every state you can find such land and the government owns it. When the acquisition is for
infrastructure projects, people readily agree to acquisition.
But if the government doesnt enable acquisition, some fear that corporations might build a nexus and acquire land
using violence, misinformation and other unfair methods. Wont it enable transparency and monitoring if the
government is in charge of acquisition?
Private corporations should buy the land in the open market. If the land being acquired is more than 100 acres, then the
corporation must take responsibility for proper compensation to and rehabilitation and resettlement of the farmers who are
losing the land. In some cases, we see that a corporation buys the administration and the police. It then creates pressure on
farmers and there is constant surveillance on them and any organization working for them. When the corporation is
socially, economically and politically powerful and the government supports it and acts in its favour, ordinary people feel
helpless and pressurized. In such cases, the corporation ultimately succeeds.
What happens in cases where there are several naysayers to land acquisition for infrastructure projects even
those that benefit people? For example, farmers in submergence zones of major irrigation projects might resist
acquisition because the water will not benefit them, but farmers downstream.
The question automatically arises if such large projects are required. In several cases, it is often local experts and not just
organisations who provide suitable and smaller alternatives. But, giant projects are preferred because there are vested
interests, such as the contractor lobby, behind them.
Corporations often acquire more land than required. Why does it go unchecked?

For the DMIC, 67,000 acres of land was notified for acquisition and notices were issued to 78 villages. After we
challenged them, the director of the Maharashtra Industrial Development Corporation admitted that they didnt need so
much land.
So it is only recently that people have started questioning why such huge tracts of land are required and violent revolts
against large acquisitions has led the government to take cognisance.
There are several cases where land was acquired and transferred, but not utilized because ultimately the project
was declared unviable. Does the new land acquisition law deal with such cases by taking retrospective action?
We had asked that the act be enforced with retrospective effect from 1950 onwards. It would ensure proper resettlement
and rehabilitation.
Is passing this law also an indication that the government is giving up on specialized laws such as the Schedule V to
the Constitution of India that is supposed to protect tribals in parts of the country? How will the government
enforce this new law?
Not just Schedule V, but Panchayat (Extension to Schedule Areas or PESA) Act gives more powers to governments to
protect tribal people in scheduled areas. The special act was enacted after a constitutional amendment. In many states,
PESA was diluted and because Panchayati Raj is a state subject, many governments did not want to give power to them
under PESA. In Maharashtra, the government still hasnt framed rules under PESA though the act was enacted in 1997.
This defeats the purpose of the law. It would have been sufficient to challenge land acquisition as the consent of Gram
Sabhas is required under the act. So PESA also needs to be strengthened.
What are the major welcome additions?
The inclusion of social and environmental impact assessments are a welcome move.
What is your opinion of the land bank provision which says that land can be returned if not used for five years
after acquisition or be vested in a land bank with the government?
It is a very dangerous provision. In Karnataka and Tamil Nadu, it has been implemented and the government does not
need to specify any purpose and can simply transfer it to whoever they want for any use. Land in these states was acquired
for only Rs 20,000 per acre, but the government earned crores. The same thing happened in the Mumbai SEZ.

http://www.tehelka.com/why-the-land-acquisition-bill-wontstop-a-million-mutinies/
Why The Land Acquisition Bill Wont Stop A Million Mutinies
Revati Laul explains why the Land Acquistion, Resettlement and Rehabilitation Bill benefits neither landowners,
nor industry

REVATI LAUL | @revatilaul

August 30, 2013

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File Photo

Not far away from the Parliament house where a three-hour-long debate led to the passing of the Land Acquisition,
Resettlement and Rehabilitation Bill, former Planning Commission memberNC Saxena looked on with disapproval. The
way the bill stands right now, he told TEHELKA, is actually anti-growth and anti-farmers and will not sort things out
for the economy either.
For one thing, Saxena pointed out, the number of clearances and officials any land acquisition has to go through with the
new proposed bill will delay an average project by as much as two years. That will be terrible for the economy. On the
other hand, there is no provision in the bill that makes it mandatory to tell the farmer exactly what compensation is being
offered so that he can make an informed choice of whether or not he wants his land to be acquired.
Some of the biggest problems with the bill are in its clauses, and we look at them here one by one.
Unclear definition of public purpose Public purpose. as listed in the act right now, encompasses everything from
building railway lines to PPP projects, to institutions for government administered educational, health and research
schemes and for the provision of land in public interest to private companies for the production of goods for the public.
None of this explains what will happen if Tata Motors, for instance, wanted to acquire land for the production of cars an
issue that led to one of the biggest land wars in recent times in Singur in West Bengal that brought the CPI-M government

down after a continuous 30-year rule in 2011. Is the production of cars included in public purpose? With the way things
are specified in this act, any state government could argue that it does.
Activists that have come together under the broad umbrella of the NAPM (National Alliance of Peoples Movement) raise
another important question: Why is agriculture as an activity not included in the definition of public purpose?
The right to say no In theory, this act says that the consent of at least 70% of the landowners consent is essential for
land to be acquired. However, activists, who have for long been fighting battles along with tribals and farmers from
people displaced by the Narmada dam to those in the Niyamgiri hills of Orissa say that the caveats within this act leave
the door wide open for business as usual.
It does not lay down with precision the circumstances in which land can be acquired under an emergency clause, but does
say that in those particular cases, the need for a social impact assessment by an expert group can be overlooked by the
state government. Not too long ago, land wars that erupted across the state of Uttar Pradesh were mired in exactly this
kind of controversy: the government acquired land under the emergency clause, sat on it and then finally changed the land
use specification and sold it to corporate real estate companies. Activists say that there is nothing in this act to prevent
such a case from happening again.
Indeed, the definition of who can acquire land fits in with the overall language of the act that can stretch either way to
suit various competing interests, without protecting those who are most vulnerable to its misuse.
It says in the act: Requiring Body means a company, a body corporate, an institution, or any other organisation for whom
land is to be acquired by the appropriate government, and includes the Appropriate Government, if the acquisition of land
is for such Government either for its own use or for subsequent transfer of such land in public interest to a company, body
corporate, an institution, or any other organisation, as the case may be, under lease, licence or through any other mode of
transfer of land. (Emphasis mine)
This last clause is crucial because it does not say that a government can be penalised for acquiring land, transferring it to a
land bank and then selling it as it sees fit.
The current war the state government of Orissa is engaged in with tribals from the Niyamgiri hills is in fact one where the
tribals have repeatedly said NO to acquisition of any part of the land, no matter what the compensation offered.
The experience of disadvantaged groups has been one where price X is offered for acquiring land. But then the project for
which it is acquired takes the overall price in the region up to 10X or a 100 X, which almost immediately devalues the
compensation X, rendering a marginal or even middling farmer into an immediate state of penury.
This complicated algorithm is the crux of land wars in the country, but there isnt much farmers can turn to in the current
act to say: Can the immediate escalation of prices be determined in advance and can the purpose of the project remain
fixed so we can know right away whether the compensation figure offered makes sense or not?
Many permissions and no clarity Returning to the point N C Saxena made at the beginning of this piece, corporates
may find themselves in a space where acquiring land gets much more complicated, making it even less clear if the backlog
of projects sitting with various ministries and state governments will actually go through or not.
In short, the way the act stands now, it pleases neither the impoverished, vulnerable farmer nor an industry anxious to get
pending projects off the ground.
revati@tehelka.com

http://www.tehelka.com/land-acquisition-bill-2013/
FAQ By Jairam Ramesh On The Land Bill
Union Minister of Rural Development Jairam Ramesh answers frequently asked questions on the Land Acquisition,
Rehabilitation and Resettlement Bill 2011

JAIRAM RAMESH

August 29, 2013

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1- What is the significance of the new Title The Right To Fair Compensation And Transparency In Land
Acquisition, Rehabilitation And Resettlement Bill 2012?
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.
The Title of the New Bill conveys the Congress led UPA Governments determination to address widespread and
historical injustices that occur in the wake of land acquisition by establishing strong legal prerequisites that need to be
discharged first.

2-Why is there a need for a new Bill?

There is unanimity of opinion across the social and political spectrum that the current Law (The Land Acquisition Act
1894) suffers from various shortcomings. Some of these include:
Forced Acquisitions: Under the 1894 legislation once the acquiring authority has formed the intention to acquire a
particular plot of land then then it can carry out the acquisition regardless of how the person whose land is sought to be
acquired is affected.

 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 & Rehabilitation of those displaced: There are absolutely no provisions in the Bill relating to
the resettlement and rehabilitation of those displaced by the acquisition.
Urgency Clause: This is the most criticised section of the Law. The clause never truly defines what constitutes an urgent
need and leaves it to the discretion of the acquiring authority. As a result almost all acquisitions under the Act invoke the
urgency clause. This results in the complete dispossession of the land without even the token satisfaction of the processes
listed under the Act.
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.
Litigations: 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 infrastructural projects.
Recent Observations by the Supreme Court: Justice Ganpat Singhvi of the Supreme Court of India has observed, in
the wake of repeated violations that have come to light over the last few months, that the Land Acquisition Act 1894 has
become a fraud. He further observed that the law seems to have been drafted with scant regard for the welfare of the
common man.
Another bench of the Honble Supreme Court has echoed this sentiment in its observation that
[T]he provisions contained in the Act, of late, have been felt by all concerned, do not adequately protect the interest of
the land owners/persons interested in the land.
The Act does not provide for rehabilitation of persons displaced from their land although by such compulsory acquisition,
their livelihood gets affected To say the least, the Act has become outdated and needs to be replaced at the earliest by
fair, reasonable and rational enactment in tune with the constitutional provisions, particularly, Article 300A of the
Constitution.
We expect the law making process for a comprehensive enactment with regard to acquisition of land being completed
without any unnecessary delay.

3- Why does the Government need to acquire land for private companies as well as public-private partnership
projects?
Land Records in most parts of the country are fragmented and disorganised. In most cases they havent been updated for
decades. The new law overcomes that by ensuring the Collector updates the land records and also pays up to four times the
value to correct any inaccuracies.
If land is purchased then there are no benefits for livelihood losers who are usually far greater in number than the land
owners. This Bill ensures that they are taken care of and not simply displaced.
The sheer inequality in terms of bargaining power between large-scale corporations and small farmers and other
marginalised groups increases the likelihood of unfair agreements. Contracts tend to be signed in favour of the party
negotiating from a greater position of strength. That is why government is required to bridge the gap and bring balance to
this relationship.
A legitimate need for acquisition by the state itself (to build public goods such as roads, schools and hospitals) can be
undermined and stalled by groups with vested interests. If there is no sovereign power to compel these groups, a single
individual or group of individuals can hold a process hostage, if they so desire, merely by refusing to part with land for

selfish reasons. Or sometimes, even without reason. Furthermore, in times of crisis such as war, famine and floods,
coupled with absence of legislation clarifying and guiding the states exercise of eminent domain, situations can emerge
jeopardizing human lives.

4- What are the Highlights of this New Bill?

Compensation: Given the inaccurate nature of circle rates, the Bill proposes the payment of compensations that is up to
4 times the market value in rural areas and 2 times the market value in urban areas.
R&R: This is the very first law that links land acquisition and the accompanying obligations for resettlement and
rehabilitation. Over five chapters and two entire Schedules have been dedicated to outlining elaborate processes (and
entitlements) for resettlement and rehabilitation. The Second Schedule in particular outlines the benefits (such as land for
land, housing, employment and annuities) that shall accrue in addition to the one-time cash payments.
Retrospective Operation: To address historical injustice the Bill 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 or no possession has taken place then the land acquisition process will be started afresh in accordance with the
provisions of this act.
Multiple Checks and Balances: A comprehensive, participative and meaningful process (involving the participation of
local Panchayati Raj Institutions) has been put in place prior to the start of any acquisition proceedings. Monitoring
Committees at the National and State Level to ensure that R&R obligations are met have also been established.
Special Safeguards for Tribal Communities and other disadvantaged groups:No law can be acquired in Scheduled
Areas without the consent of the Gram Sabhas. The Law also ensures that all rights guaranteed under such legislations as
the Panchayat (Extension to Scheduled Areas) Act 1996 and the Forest Rights Act 2006 are taken care of. It has
special enhanced benefits (outlined in a dedicated chapter) for those belonging to the Scheduled Castes and Scheduled
Tribes.
Safeguards against displacement: The law provides that no one shall be dispossessed until and unless all payments are
made AND alternative sites for the resettlement and rehabilitation have been prepared. The Third Schedule even lists the
infrastructural amenities that have to be provided to those that have been displaced.
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.
Consent: In cases where PPP projects are involved or acquisition is taking place for private companies, the Bill requires
the consent of no less than 70% and 80% respectively (in both cases) of those whose land is sought to be acquired. This
ensures that no forcible acquisition can take place.
Caps on Acquisition of Multi-Crop and Agricultural Land: To safeguard food security and to prevent arbitrary
acquisition, The Bill directs States to impose limits on the area under agricultural cultivation that can be acquired.
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.
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.
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.

5- How are interests and concerns of farmers protected?

Retrospective Effect. Where awards are made but no compensation has been paid or possession has not been taken
then compensation shall be paid at the rate prescribed under the new Act. Where the Award has not been made the

entire process shall be considered to have lapsed. Also where acquisition has taken place five years prior to the
commencement of the new law but no compensation/ possession has taken place then the proceedings shall be deemed
to have lapsed.
Consent: shall be prior-consent required from 70 per cent of land losers and those working on government assigned
lands only in the case of Public-Private Partnership projects and 80 per cent in the case of private companies. This consent
also includes consent to the amount of compensation that shall be paid.
Return of Unutilised land: Land not used can now be returned to the original owners if the State so decides.
Share in Sale of Acquired Land Increased: The share that has to be distributed amongst farmers in the increased land
value (when the acquired land is sold off to another party) has been set at 40%.
Income Tax Exemption: All amounts accruing under this act have been exempted from Income tax and from Stamp
duty.
Strict Restrictions on Multi-Crop Acquisition: The acquisition of agricultural land and multi-crop land has to be
carried out as a last resort. There will be definite restrictions on the extent of acquisition of such land in every state to be
determined by the States concerned.
Safeguards to ensure fair price: Given the way in which market value is to be calculated and the imposition of a
solatium of 100 per cent over and above the amount, the farmers are guaranteed a fair price for their land.
Acquisition only if necessary: The Collector has to make sure that no other unutilised lands are available before he
moves to acquire farm land.
Damage to crops to be included in price: The final award has to include damage to any standing crops which might
have been harmed due to the process of acquisition (including the preliminary inspection).
Share in Developed Land: In case their land is acquired for urbanisation purposes twenty per cent of the developed land
will be reserved and offered to these farmers in proportion to the area of their land acquired and at a price equal to the cost
of acquisition and the cost of development.
Fishing Rights: In the case of irrigation or hydel projects, affected families may be allowed fishing rights in the
reservoirs, in such manner as may be prescribed by the appropriate Government.
Additional R&R Benefits: Farmers are also entitled to the various rehabilitation and resettlement benefits which are
enumerated in response to question 2.
Time Bound Social Impact Assessment: The Bill mandates a Social Impact Assessment of every project which must be
completed within a period of six months.

6- What are the Rehabilitation and Resettlement provisions for farmers, landless and livelihood losers?
Reduced Qualifying Criteria: To qualify for benefits under this Act the time period has been reduced to 3 years of
dependence (on the acquired land) instead of 5.
Affected Family to include tenants: The definition of affected family includes agricultural labourers, tenants including
any form of tenancy or holding of usufruct right, share-croppers or artisans who may be working in the affected area for 3
years prior to the acquisition, whose primary source of livelihood stand affected by the acquisition of land
Houses for all affected families: All affected families are entitled to a house provided they have been residing in an area
for 5 years or more and have been displaced. If they chose 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 5 lakh rupees per family.
ii. Alternatively they will provided with an annuity payment of Rupees 2000 per month per family for twenty years (this
will be adjusted for inflation).
Subsistence Allowance: All affected families which are displaced from the land acquired shall be given a monthly
subsistence allowance equivalent to rupees 3000 per month for a period of one year from the date of award.
Training and Skill Development: All affected families are also given training and skill development while being
offered employment.
Miscellaneous Amounts: All affected families are given multiple monetary benefits such as transport allowance of
rupees 50,000 and resettlement allowance of rupees 50,000.
One-Time Financial Assistance: Each affected family of an artisan, small trader or self-employed person shall get onetime financial assistance of such amount as the appropriate Government may, by notification, specify subject to a
minimum of twenty-five thousand rupees.
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: The Collector shall take possession of land only ensuring that full
payment of compensation as well as rehabilitation and resettlement entitlements are paid or tendered to the entitled
persons within a period of three months for the compensation and a period of six months for the monetary part of
rehabilitation and resettlement entitlements commencing from the date of the award. However, 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: The components of the Rehabilitation and Resettlement Package in the
Second and Third Schedules that relate to infrastructural entitlements shall be provided within a period of eighteen months
from the date of the award.

7- How are interests and concerns of Scheduled Castes and Schedules Tribes protected?
Separate Chapter: A separate Chapter has been carved out to protect interests of tribals and those belonging to the
Scheduled Castes. Where acquisition does take place it shall be done as a demonstrable last resort.
Approval: 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 (including the
autonomous councils where they exist).
Development Plan: A Development Plan has to be prepared laying down the details of procedure for settling land rights
due but not settled and restoring titles of tribals on alienated land by undertaking a special drive together with land
acquisition. The Plan must also contain a programme for development of alternate fuel, fodder and non-timber forest
produce resources on non-forest lands within a period of five years sufficient to meet the requirements of tribal
communities as well as the Scheduled Castes.
One-third to be paid up-front: In case of land being acquired from members of the Scheduled Castes or the Scheduled
Tribes, at least one-third of the compensation amount due shall be paid to the affected families at the outset as first
instalment and the 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.
Land for Community: The resettlement areas predominantly inhabited by the Scheduled Castes and the Scheduled
Tribes shall get land, to such extent as may be decided by the appropriate Government free of cost for community and
social gatherings.

 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
twenty-five per cent rehabilitation and resettlement benefits to which they are entitled in monetary terms along with a onetime entitlement of fifty thousand rupees
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 one-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.

8- How are interests and concerns of Panchayati Raj Institutions protected?

SIA in consultation with PRIs: The Social Impact Assessment has to be carried out in consultation with the
representatives of the Panchayati Raj Institutions. In fact, the appropriate Government is required by the law to ensure
adequate representation of these institutions during the discharge of the process.
SIA Reports To Be Shared: Reports prepared under the Social Impact Assessment are to be shared with these
individuals in their local language along with a summary.
Representation in Expert Group: The Expert Group has to have two members belonging to the Panchayati Raj
Institutions. This is a powerful body that has the power to reject a project.
Hearings in All Gram Sabhas: In case where an affected area involves more than one Gram Panchayat or Municipality,
public hearings shall be conducted in every Gram Sabha where more than twenty five per cent of land belonging to that
Gram Sabha is being acquired.
Consultation in compliance with PESA: Consultation with the Gram Sabha in Scheduled Areas under the Fifth
Schedule referred to in the Constitution shall be in accordance with the provisions of the Provisions of the Panchayats
(Extension to the Scheduled Areas) Act, 1996.
Representation of Panchayat Chairpersons on R&R Committee at Project Level: The Rehabilitation and
Resettlement Committee at Project Level has to have the Chairpersons of the Panchayats located in the affected area or
their nominees as representatives.
Panchayat Ghars have to be provided as per the list of Infrastructural amenities given in the Third Schedule.

9- How are States Interests and Concerns Protected?

Only a Baseline: The Bill only provides the baseline for compensation and has devised a sliding scale which allows
States to fix the multiplier (which will determine the final award) depending on distance from urban centres.
Choice for return to Land Bank or Owner: Where unutilised land is returned the State can decided whether it goes to
the original owner or to the Land Bank.

 Threshold for Private Purchase left to Government: While the Bill requires the discharge of obligations related to
Resettlement and Rehabilitation (R&R) even in the case of private purchase provided the purchase exceeds a certain
threshold, it leaves the said threshold to the discretion of the State Governments.
In Extreme Cases, Equivalent Amount for Multi-Crop Land: While the Bill seeks to discourage acquisition of
irrigated multi crop or agricultural land it gives the choice of earmarking how much of such lands should be reserved for
protection against acquisition to the States. Furthermore if no alternative land is available to replace the multi-crop land
acquired, the State can instruct the payment of an equivalent amount.
R&R Procedure at Discretion of State: The procedure related to the functioning of the R&R Committee at projectlevel has been left to the State Government if the acquisition is by the State.
States free to enact other laws: The State governments are free to enact any law to enhance or add to the entitlements
enumerated under the Bill which confers higher compensation than payable under the Bill or make provisions for
rehabilitation and resettlement which are more beneficial than those provided under the Bill.

10- How does the Compensation Mechanism work?

In Urban Areas there is no multiplier. This means no enhancement of the market value calculated occurs.
However a solatium of 100% (which currently exists at 30%) is imposed on this market value calculated. This solatium
amount is a compensation to ameliorate the pain of forcible acquisition.
In Rural Areas the multiplier has been left entirely to the discretion of State Governments which may range on a sliding
scale from 1 to 2 depending on the radial distance from urban centres.

11- What are the safeguards in the law to ensure food security?
Special Provisions have been inserted in the Law to ensure that multi-crop land is acquired only as a last resort.
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.

12- How are investor concerns addressed?

Consent: In the case of Public Private Partnership projects consent has been reduced from 80 per cent to 70 per cent. In
additional only the consent of land owners is required.
Definition of Market Value has been amended to ensure that acquisition price doesnt form the basis for compensation
calculation in future acquisitions. Also power has been given to the Collector to not consider transactions which he feels
are outliers and not indicative of true value while calculating market value. Earlier there was a danger of a price-spiral as
(a multiple of) price of first acquisition in an area would go into calculation of land price for any subsequent acquisitions
States given large flexibility: A sliding scale will give states flexibility to fix compensation in rural areas (between 2
and 4 times market value), depending on their distance from urban areas. Earlier Compensation in rural areas was to be 4
times market value.
Restrictions/thresholds on amount of irrigated multicrop land and net sown area per district or State available for
acquisition left to the discretion of States. Earlier amount of irrigated multi-cropped irrigated land that could be acquired
was capped at 5 per cent, and amount of net sown area that could be acquired was also capped.
Land size thresholds on when R&R on private purchase of land becomes applicable has now been left to the
discretion of States. Earlier R&R on private purchases was to apply to all acquisitions above 100 acres in rural areas and
50 acres in urban areas.
Payment for R&R costs by acquirer made a oneoff Acquirer to put all monies in an escrow account, and ongoing
commitments like annuities and benefits to be administered by agency established under this Act. Earlier the Buyer would
have had to pay and be involved with R&R infrastructure building until complete, and R&R annuities to perpetuity.
However, families will not be displaced from this land till their alternative R&R sites are ready for occupation.
Collector can be considered Appropriate Government: In cases where the land sought to be acquired is below a
certain threshold then the Collector can be the acquiring authority.

13- Why are 157 amendments being made to this Bill?

It must be understood that most of these amendments are non-consequential in nature. Out of these 157
amendments, 103 amendments

are

typographical/

definitional, 28 Amendments

are

minor

in

nature

and

only 26 Amendments are substantive in nature. This classification is explained below.

Substantive changes: These are significant changes. They bring about new provisions or thoroughly alter existing
provisions on any area. Example: Changes in quantum of consent required, process for determining compensation etc.
Minor changes: These are changes which are new additions but are of such a nature that they do not alter the provisions
of the Bill as it was originally drafted. Example: adding time limits to existing processes. These do not fundamentally alter
the process.

 Typographical /Nomenclature/ Definitional changes: These are minor modifications which correct errors in type or
clarify definitions which already exist. Example: replacing the term project affected persons with project affected
families.

14- What are the 26 major/ substantive amendments to this Bill?

The 26 Substantive Amendments are given below. 13 amendments that have been made in accordance with the
recommendations of the Standing Committee are as follows:
1. Revised Definition of Public Purpose and Revised Consent Requirements (*): Given the observations made by the
Standing Committee that the definition of public purpose needed reworking, an amendment has been made which collates
the previously scattered definition of public purpose and streamlines it to make it easier to understand.
2. Restrictions on Multi-Crop Land Acquisition left to the States(*): In response to the recommendations made by the
Standing Committee that since States better understand the peculiar and unique circumstances in their regions, the fixation
of the cap should be left to them, an amendment has been made to allow State Governments to fix the limits on the
acquisition of multi-crop land.
3. Restrictions on Agricultural Land Acquisition left to the States(*): In response to the recommendations made by the
Standing Committee that since States better understand the peculiar and unique circumstances in their regions, the fixation
of the cap should be left to them, an amendment has been made to allow State Governments to fix the limits on the
acquisition of agricultural land.
4. Restrictions on Private Purchase of Land left to the States(*): In response to the recommendations made by the
Standing Committee that since land purchase falls within the legislative domain of the States they should be allowed to fix
the limits of private purchase. If these limits are crossed then the Rehabilitation and Resettlement provisions of this law
will apply.
5. Second Amendment on Restriction of Private Purchase (*): A second amendment in furtherance of the preceding
amendment has been made to empower states in the fixation of purchase limits.
6. Additional Compensation in case of double displacement (*): A new section has been inserted to provide for
additional compensation if n affected family is displaced twice.
7. Special Provisions for Scheduled Castes and Scheduled Tribes (*): Special provisions have been inserted
specifically for Scheduled Castes and Scheduled Tribes in the body of the Act. These include greater benefits and
enhanced safeguards.
8. Provision for Reservation and other benefits (*): This amendment has been inserted specifically for Scheduled
Castes and Scheduled Tribes in the body of the Act in continuation of the previous amendment.
9. State Level Monitoring Committee (*): A State Level Monitoring Committee has been established on the
recommendations of the Standing Committee to provide supervision over R&R functions.
10. Period for return of unutilised land reduced (*): The period for the return of unutilised land has been reduced to 5
years from 10 years.
11. Unutilised land may be returned to the original owners (*): An amendment has been made which allows the State
Governments the option to return the land to the original owners if they so decide.
12. Extension of the new law to exempted Acts (*): In response to the recommendation made by the Standing
Committee, an amendment has been made to extend the provisions of this Act to all the exempted legislations in the
Fourth Schedule within a period of one year of its commencement.
13. The provisions relating to Scheduled Castes and Scheduled Tribes have been removed from the Schedule to the
Law (*): And bought into the main legislation as recommended by the Standing Committee.

The 13 amendments have been made in accordance with the recommendation of the Group of Ministers are as follows:
1. Deposit of amount in case of acquisition of agricultural land: A new amendment allows states the option, while
acquiring agricultural land, to deposit an amount equivalent to the value of the agricultural land acquired if they are unable
to find alternative land to cultivate in lieu of the acquired agricultural land (this was the original requirement).
2. Retrospective Operation: To correct historical injustices, a retrospective clause allowing certain classes of individuals
to benefit from enhanced compensation and rehabilitation and resettlement has been provided for.
3. Revised Social Impact Assessment Process: A revised provision for a more thorough Social Impact Assessment
process in consultation with Panchayati Raj Institutions has been drafted.
4. Power to override recommendations of Expert Group: It was felt by many individuals that a non-elected group of
individuals should not be given final authority over whether acquisition should be allowed to proceed or not. As a result an
amendment has been made to allow the Government concerned to override them but only if they have sufficient reasons
that are recorded in writing.
5. New Responsibilities for the Collector: New amendments have been made to ensure the Collector updates the land
records so that compensation can be paid on true and accurate values.
6. Power to Appropriate Government to raise R&R: An amendment has been made to enable the appropriate
Government to raise the rate of rehabilitation and resettlement to take into account for inflation.
7. Power to taking possession only AFTER satisfying obligations: Section 37 which deals with taking possession of the
land has been strengthened to ensure that the Collector shall only take possession of the land after ensuring that the
compensation/ R&R responsibilities have been discharged.
8. Waiver of Income Tax and Stamp Duty: To further ameliorate the suffering of displaced families, the Act has
exempted them from the payment of income tax and stamp duty for amounts received under this law.
9. Power to divert land in exceptional cases: If land acquired for one purpose cannot be used for that purpose due to an
unforeseen calamity, then the appropriate Government may use it for another purpose.
10. Increase in share of appreciated value: If the Government after acquiring the land sells it to a third party then 40 per
cent of the appreciated value will be shared with the original owners. This has been increased from 20 per cent.
11. Limit on benefit from sale of acquired land: In addition to the preceding amendment, an additional amendment has
been made to limit this benefit to only the first time the land is sold after acquisition.
12. Multiplier to calculate compensation: Flexibility has been given to the States to fix the multiplier by which the
compensation will be calculated. In other words States can give up to 4 times the market value but it can be lower if they
chose to fix a lower multiplier (See answer to question 8).
13. Offer for Developed Land: A new amendment has been made which provides that in the case of acquisition for
urbanisation purposes, 20 per cent of the developed land will be reserved and offered to the original owners at a price
equal to the cost of acquisition and development.

http://www.business-standard.com/article/news-ians/land-acquisition-invalid-if-compensation-notpaid-to-owner-says-sc-114012800005_1.html

Land acquisition invalid if compensation not paid

to owner, says SC
IANS | New Delhi
January 28, 2014 Last Updated at 00:06 IST

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In a significant judgment, the Supreme Court has held that if compensation for land acquired under the 1894
act has not been paid to the land owner or deposited with a competent court and retained in the treasury,
then the acquisition would be deemed to have lapsed and would be covered under the 2013 law entitling the
landowners to higher compensation.
However, the only rider is that such an award of compensation should be five years or more prior to the
enactment of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013, which was notified on Jan 1, 2014.
"The deposit of compensation amount in the government treasury is of no avail and cannot be held to be
equivalent to compensation paid to the landowners/persons interested," said a bench of Justice R.M.Lodha,
Justice Madan B. Lokur and Justice Kurian Joseph in their recent judgment.
"Under section 24(2) (of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013), land acquisition proceedings initiated under the 1894 (Land Acquisition) Act by
legal fiction, are deemed to have lapsed where award has been made five years or more prior to the
commencement of 2013 act and possession of the land is not taken or compensation has not been paid," the
court said.
The court's ruling came while addressing the question what is the "true meaning" of the expression:
"compensation has not been paid" occurring in Section 24(2) of the 2013 act.
The court said that the 1894 Land Acquisition Act being "an expropriatory legislation has to be strictly followed.
The procedure, mode and manner for payment of compensation are prescribed in Part V (sections 31-34) of

the 1894 Act. The collector, with regard to the payment of compensation, can only act in the manner so
provided".
"It is settled proposition of law that where a power is given to do a certain thing in a certain way, the thing
must be done in that way or not at all. Other methods of performance are necessarily forbidden," the court
said while dismissing the plea by Pune Municipal Corporation challenging theBombay High Court verdict by
which it has quashed the acquisition of 43.94 acres for development of a Forest Garden.
The award for the compensation for acquiring these lands was made Jan 31, 2008, and notices were issued to
the landowners to receive the compensation but since they did not receive the compensation, the amount
(Rs.27 crore) was deposited in the government treasury.
"Can it be said that deposit of the amount of compensation in the government treasury is equivalent to the
amount of compensation paid to the landowners/persons interested? We do not think so," the court said
answering its own poser.