Monday, August 22, 2011

Land Acquisition Bill - Limitation & Salient Features

The Land Acquistion Act 1894, was criticised by everyone, and the government came with a new draft of the Bill, which will be presented in Parliament for debate. I have gone through the draft of the Bill. Please find the details of the Bill.


The Para 1 (A) doesn’t bind government acquisition to take 80% consent from the land owners before acquiring, this is only when the land will be used by Private Companies.

Inference :

The difference between Government acquisition in normal case & Urgency Clause will be of time.


The Para (2) states that only the provisions relating to rehabilitation and resettlement shall apply when:-

(a) Private companies purchase or acquire land, equal to or more than one hundred
acres, on their own;

(b) a private company approaches the Appropriate Government for partial acquisition
of an area so identified for a public purpose.

PROVIDED that where a private company seeks Government intervention for partial acquisition then the rehabilitation and resettlement entitlements shall be applicable for the entire area identified for acquisition by the private company and not just the area for which the intervention is sought.

Inference :

What about R&R scheme, when Government is acquiring land under Para 1(A) of 1 (a )

There is huge gap between understandings of the law due to Point 2. There is no proper relation between Para 1(A) 1 (b) being read with Para (2) and then reading Para 3.


The Part II of Para 7 (2) d states that Irrigated Agriculture Land can be acquired as last resort, whereas NO Irrigated Multi-crop land can be acquired.

Inference :

There is no definition of Multi – Crop land in this Act, everyone is aware there are two types of Crop in India – RABI & KHARIF, this become 2 types of crop thus all agriculture land will become multi crop. The only difference is Irrigated or not, thus Non – irrigation Land having multi crop can be acquired.


Para 3 states that Social impact assessment will be done only when the land acquired is equal to or more than 100 Acres and will not be done in URGENCY Clause.

Inference :

If in one step a 99 acre land is acquired then it will not be covered under Resettlement & rehabilitation scheme, there is no clarity after how many months of days the land adjacent to the acquired land can be acquired. Thus giving a loophole of acquiring land in multiple stages upto 99 acres to avoid R&R scheme.


Change of Land Use, there is no provision in this act to demoralize transfer of Agriculture Land to Non – Agriculture activity.


The Definition of INFRASTRUCTURE PROJECTS in para 2 (n) includes TOURISM, the definition of tourism will be vague and even building HOTELS or Government Guest House can come under this definition.


The Definition of PUBLICC PURPOSE in PARA 2 (y) 4 is again very wide and open for interpretation, the condition of Consent of 80% through Prior informed process is not clear, and no provision is their to check whether the consent is taken under pressure or threat.


The ACT doesn’t show effort of providing LAND for LAND, the principle seems to be abandon.

The SCHEDULE II Para 2 only states land for land, whereas not able to understand why only for Irrigation Project ? Whereas in case of ST they will get land for land in every project.

There is no clarity that only Canals will be treated as Irrigation Projects or DAMS too, if DAM then the government may use word HYDRO Project which will be a scape route for IRRIGATION project, whereas we know DAMs and Hydro Project are same and multi purpose.

The land for land rehabilitation is less than already exists, this Act provide ONE ACRE per family whereas in Sardar Sarovar Project 2 acres where given.


Land Acquisition Provisions will apply when:

1. Government acquires land for its own use, hold and control.

2. Government acquires land with the ultimate purpose to transfer it for the use of private companies for stated public purpose (including PPP projects but other than national highway projects)

3. Government acquires land for immediate and declared use by private companies for public purpose

Note I: Public purpose for 2. & 3. above, once stated, cannot be changed

Note II: Land Acquisition under 2. & 3. above can take place provided 80% of the project affected families give consent to the proposed acquisition.

Scope of LARR, 2011

1. Land for private companies for private purposes.

The Urgency Clause

1. National defense and security purposes

2. R&R needs in the event of emergencies or natural calamities

3. To be exercised in ‘rarest of rare’ cases

Who will be Affected Families ?

Land Owners:

1. Family whose land/other immovable properties have been acquired;

2. Those who are assigned land by the Governments under various schemes;

3. Right holders under the Forest Rights Act,2006

Livelihood Losers:

1. A family whose livelihood is primarily dependent on the land being acquired

2. May or may not own property

Minimum Compensation for Land

A Comprehensive Compensation Package (Schedule I)

1. Market value of the land:

a) the minimum land value, if any, specified in the Indian Stamp Act, 1899 for the registration of sale deeds in the area, where the land is situated; or

b) the average of the sale price for similar type of land situated in the village or vicinity, ascertained from fifty per cent of the sale deeds registered during the preceding three years, where higher price has been paid; or whichever is higher:


2. Value of the assets attached to land:

Building/Trees/Wells/Crop etc as valued by relevant govt. authority;

Total compensation = 1+2

3. Solatium: 100% of total compensation

This implies that in case of urban areas, the award amount would be not less than twice that of the market value determined, whereas in rural areas it would be not less than six times the original market value

Minimum R&R Entitlements

A Comprehensive R&R Package (Schedule II and Draft Bill)

For Land Owners:

1. Subsistence allowance at Rs. 3000 per month per family for 12 months;

2. Rs 2000 per month per family as annuity for 20 years, with appropriate index for inflation;

3. If house is lost, a constructed house of plinth area of 150 sq mts of house site in rural areas or 50 sq mts plinth area in urban area;

4. One acre of land to each family in the command area, if land is acquired for an irrigation project;

5. Rs 50,000 for transportation;

6. Where land is acquired for urbanization, 20% of the developed land will be reserved and offered to land owners, in proportion to their land acquired;

7. Upon every transfer of land within 10 years of the date of acquisition, 20% of the appreciated value shall be shared with the original owner whose land has been acquired;

8. Mandatory employment for one member per affected family or 2 lakh rupees if employment is not offered;

9. Offer of shares up to 25% of the Compensation amount

For Livelihood losers (including landless)

1.Subsistence allowance at Rs. 3000 per month per family for 12 months;

2.Rs 2000 per month per family as annuity for 20 years, with appropriate index for inflation;

3. If home-less, a constructed house (plinth area) on 150 sqmts of house site in rural areas or 50 sqmts in urban area, provided free of cost;

4.A one-time ‘Resettlement Allowance’ of Rs 50,000;

5.Rs 50,000 for transportation;

6.Mandatory employment for one member per affected family or 2 lakh rupees.

Special Provisions for ST’s

1. One acre of land to each ST family in every project;

2. One time financial assistance of Rs 50,000 for ST families;

3. ST families settled outside the district shall be entitled to an additional 25% R&R benefits (and a one time payment of Rs 50,000) to which they are entitled in monetary terms;

4. Payment of one third of the compensation amount at very outset to ST families;

5. Preference in relocation and resettlement in area in same compact block;

6. Free land for community and social gatherings;

7. In case of displacement of 100 or more ST families, a Tribal Displacement Plan is to be prepared:

Continuation of reservation and other benefits from
displaced area to resettlement area for both SCs and STs

25 infrastructural amenities to be provided in the
Resettlement area, including:

• Schools and playgrounds;

• Health Centres;

• Roads and electric connections;

• Assured sources of safe drinking water for each family;

• Panchayat Ghars;

• Anganwadi’s providing child and mother supplemental nutritional services;

• Places of worship and burial and/or cremation ground;

• Village level Post Offices, as appropriate, with facilities for opening saving accounts;

• Fair price shops and seed-cum-fertilizer storage Facilities

Return of Land:

Land returned to original owner if not used in 5 years for the purpose for which it is acquired, one-fourth of the award amount for the land acquired

– Provided government can use land acquired for a department to some other department

1 comment:

  1. Dear Dinkar,

    If the Government is acquiring land for Dam, can it acquire multi-crop irrigation land?