5/17/2015

LandAcquisitionBill:BeneficialorNot?|MyIndia

Vacantlandisalwaysrequiredbothbyprivateaswellaspublicsectorinruralandurbanareas.Butwhataboutthe
compensationforacquiringtheland?ThismainconcernofthegovernmentresultedintheRighttoFair
CompensationandTransparencyinLandAcquisition,RehabilitationandResettlementBill2013thatwaspassedby
theParliament.ItisanewlandacquisitionBillthatlooksverydifficultbutbeneficial.ThebillreplacedtheLand
AcquisitionActof1894.ThenewBillisallaboutthewaythelandistobeacquiredandcompensationtobemade
inIndia.ObjectiveofthenewBillisfaircompensationwhichcanbethroughresettlementandrehabilitationand
transparencyintheentireprocessofacquiringaland.Earlierbillwasmeantjusttoacquirethelandnot
rehabilitation.(TitlesoftheBillsayitall).ThenewBillwastheneedofthedaytostoptheforcefulacquisitionof
theland,tosafeguardtheinterestoftheaffectedfamiliesandtoredefinetheratesofcompensation.
Publicandprivatepartnershipresultedinmoredemandforlandandthustheregulationsofacquiringit.Thenew
BillwaspassedbecausetheLandAcquisitionAct1894hadmanyflaws.Accordingtothepreviouslaw,theland
couldbeacquiredforcefullyregardlessoftheaffectedperson,thelawwassilentasfarasrehabilitationand
resettlementoftheaffectedpersonswasconcerned,urgencyclausewasnotdefinedproperlysoalmostallthe
casesofacquiringlandwereunderthisclause,andcompensationratesweretoolow.
HighlightsoftheRighttoFairCompensationandTransparencyinLandAcquisition,Rehabilitationand
ResettlementBill2013
Thisisthefirstlawthatdealswithbothacquisitionandrehabilitation.TheBillwillmakesureoftherehabilitation
ofthefamilywhoselandisbeingacquiredformakingfactoriesorotherinfrastructuralproject.Affectedfamilies
mustberehabilitatedandresettled.
TheBillisretrospectiveinnature.Thismeansitwillbeapplicabletothecaseswherelandwasacquiredearlierand
nocompensationhadbeenpaid.Theentirelandacquisitionprocesswilltakeplaceaccordingtothenewprovisions
ifthelandacquisitionhastakenplacefiveyearsagowithoutcompensationorlandpossession.
Itisaknownfactthatcircleratesareoftenmiscalculatedorinaccurateattimes.Tobalancethis,ifthelandis
acquiredinruralareasthenthecompensationwillbefourtimesmorethanthecirclerateandifacquiredinurban
areasthenitwillbetwotimesmorethanthat.Forcirclerate,averagesalepriceforthelastthreeyearsorlast
threemonths(whichsoeverwillbehigher)willbeconsidered.
Forlandacquisition,localPanchayatiRajinstitutionsandmonitoringcommitteeatthenationalandstatelevels
willplaytheirroles.Theywillmakesurethatalltheobligationsaremetaccordingtothesaidclauseand
provisions.
TheGramSabhaswillprovidesanctionincasethelandisinscheduledareas.Thishasbeenprovidedtosafeguard
therightsoftribalcommunitiesanddisadvantagedgroups.
Withoutprovidingproperalternativesitesforrehabilitationandresettlementnoonecanbeevicted.
IncasetheprojectisforPublicprivatepartnershipthenminimumof70%consentandincasethelandacquisition
isforprivatecompaniesthen80%consentofaffectedpeopleisrequired.Thisistostoptheforcibleacquisitionof
theland.
Statemustimposethelimitsontheareaunderagriculturalcultivation
IncasethelandisnotutilizedthenitmustbereturnedbackeithertotheoriginalownerortotheStateLand
Bank.
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5/17/2015

LandAcquisitionBill:BeneficialorNot?|MyIndia

Incasethelandissoldathigherpricetothethirdparty,then40%oftheprofitmustbesharedwiththeoriginal
landowner.
Howfarmersarebenefitted?
Certainprovisionssuchasretrospectiveeffect,consentofthemajority,returnofunutilizedland,shareinprofitif
thelandissoldtothethirdpartyathigherprice,incometaxexemption,protectingfairprice,anydamagetothe
croptobeincludedinthepriceandacquisitiononlyifrequiredaretheassociatedbenefits.
RehabilitationandresettlementprovisionsintheBill
Incasetheaffectedfamilieshavebeenlivingonthelandtobeacquiredforthepastfiveyearsthentheyare
entitledtoahouse.Theycanalsohaveonetimefinancialgrantinsteadofahouse.Affectedfamilycaneither
acceptajoborannuity.IncasethereisnoemploymentthentheyareentitledtoreceiveRs5lakhperfamily.
ApartfromthistheyarebenefittedwiththeSubsistenceallowance,Trainingandskilldevelopment,Onetime
financialassistanceetc.
Howitisbeneficialforschedulecasteandscheduletribes?
Fortribalpeopleaswellasforthepeoplebelongingtoschedulecaste,separatechapterintheBillhasbeen
written.Itissaidthatifacquisitionisrequiredthentheirlandshouldbethelastresort.Firstofallnoacquisition
shouldbemadeintheScheduledAreasandifatallitisrequiredthenitneedsapproval/consentofthelocal
institutionsofselfgovernance.Itmustbeaccompaniedbyacompletedevelopmentplan.Onethirdofthe
compensationmustbepaidasfirstinstallmenttotheaffectedfamilies.Ifpossiblethenthesefamiliesmustbe
rehabilitatedinthesamearea,maybeinacompactblock,sothattheiroriginalitycanberetained.
CriticismofLandBill
Thisbillwillincreasethecostofthelandmakingmostoftheprojectsunviable.Alsoitwillincreasetheland
acquiringtime.TheBillisinthefavoroflandownersbutnotinthepoorstrataofthesocietywhoneedaffordable
housing.
Incaseofurgency,thegovernmentcanacquirealandbyignoringallthepresetconditions.ForthistheBillhas
anurgencyclause.
Itispossiblethatcompensationcalculatedmightbelessthanmarketrateascompensationisnotalignedtothe
lossbuttothecategory.
Railways,highways,defence,nuclearprojects,lowcosthousingandindustrialareaorparksareexemptedfrom
someoftheclausesandactofthebill.
Projectsmaybedelayedbyaffectedfamiliesforadditionalcompensation.

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