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• Introduction
• History of the Land Acquisition Act, 2013
o Timeline for the Land Acquisition Act
• Need for the Land Acquisition Act
• Jurisprudence behind the Land Acquisition Act
• Objectives of the Land Acquisition Act, 2013
• Applicability of the Land Acquisition Act, 2013
• Important provisions of the Land Acquisition Act, 2013
o Important definitions
▪ Public purposes
▪ Landowner
▪ Agricultural land
▪ Company
▪ Displaced family
▪ Family
▪ Interested persons
▪ Re-settlement area
o Determination of the social impact of public purpose
o Section 5
o Preliminary notification
o Publication of notification
o Restraint on transaction
o Survey of land
o Restriction
o Compensation for damages
o Report on the remarks
o Scheme for rehabilitation and resettlement
o Drafting the scheme
o Declaration
o Publication of the declaration
o Summary of rehabilitation and resettlement scheme
o Lapse of notification
o Notice to interested persons
o Public notice
o Statement to collector
• Compensation under the Act
o Period for award
o Market value determination
o Determination of compensation
o Value of attached items
o Award of solatium
• Contravening provisions and problematic issues of the Land Acquisition
Act
• Landmark case laws on the Land Acquisition Act, 2013
o Land Acquisition Officer, A.P v. Ravi Santosh Reddy (2016)
o Balakrishnan v. UOI (2017)
o G. Padmanabhan and Others v. Tamil Nadu State and Others
(2015)
▪ Facts
▪ Issue
▪ Judgment
o Guru Nanak Vidya Bhandar Trust Vs. Union of India and Ors
(2017)
▪ Facts
▪ Issue
▪ Judgment
o Indore Development Authority v. Manohar Lal (2020)
• The Nandi gram Land Grab Case
• Chennai Metro case
o Background
o Judgment
• The Tata Singur Case
o Background
o The outcome of case
• Conclusion
• Frequently Asked Questions (FAQs)
o In India, can the government acquire your land?
o Is the Land Acquisition Act of 1894 still in effect?
o What exactly is the Land Acquisition Act?
• References
Introduction
Land acquisition in India refers to the procedure by which the Union or a state
government in India acquires private land for industrialisation, the advancement of
infrastructural facilities, or the urbanisation of privately owned land, and offers
compensation to the impacted landowners as well as their rehabilitation and
resettlement.
An ordinance with the formal mandate to “meet the dual objectives of farmer welfare;
coupled with speedily satisfying the strategic and developmental demands of the
country” was issued by the President of India on December 31, 2013. The Land
Acquisition Act of 1894 helped institutionalise involuntary acquisition during the
course of its 120-year existence, with little respect for the rights of individuals who
were evicted from their lands and left without a means of subsistence, security, or
community. Under this colonial statute, there was no effective consultation
procedure, which was indicative of the larger premise supporting the whole law on
land acquisition at the time, which was founded on the idea of eminent domain. The
legislation’s tone assumed that the needs of the State for the common good would
always take precedence over the interests of landowners and characterised them as
tragic “victims of growth.”
The Statement of Objects and Reasons of the Land Acquisition (Amendment) Act,
1984, which discussed the “sacrifices” of the affected people who were “unavoidably”
being deprived of their property rights for the greater interests of the society, seemed
to indicate this. By seeking to make the land acquisition process more facilitating
and collaborative, the Land Acquisition Act of 2013 seeks to rectify this imbalanced
paradigm of development.
The Indian Government approved the Right of Fair Compensation and Transparency
in Land Acquisition, Rehabilitation, and Resettlement Act, 2013. It was passed in
order to provide transparent rehabilitation and resettlement processes and equitable
compensation in the event of land acquisition. The former 1894 land acquisition Act
has been repealed in favour of this one. Due to the gaps and openings in the previous
land acquisition Act of 1894, this Act was passed. Its foundation was laid in 2007
when the UPA administration proposed the Rehabilitation and Resettlement Bill of
2007. The Rehabilitation and Resettlement Bill of 2009 and the Land Acquisition
Act of 2009 were then introduced in Parliament. Both Bills in Parliament have
expired. After carefully examining the circumstances and problems surrounding the
land acquisition, the National Advisory Council recommended the “National
Development, Land Acquisition, Resettlement, and Rehabilitation Act.” as opposed to
the two separate pieces of legislation, the Land Acquisition (Amendment) Bill 2009
(LAA 2009) and the Resettlement and Rehabilitation Bill, 2009. (R&R 2009). The
LARR Bill, which was proposed in 2011 and then passed by the Parliament in 2013
to promote the cause, became law as a result.
This is a law that governs land acquisition and lays out guidelines for providing
compensation, rehabilitation, and resettlement to those impacted in India is the
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation,
and Resettlement Act, 2013. The Act includes measures for equitable compensation
for landowners who lose their property, more openness in the land acquisition process
for industries, buildings, and infrastructure projects, and guarantees the
rehabilitation of individuals who are impacted.
• The need for urbanisation and land has grown as a result of industry expansion,
globalisation, Special Economic Zones, etc. On the other hand, reasonable
compensation, relocation, and restoration plans must be offered to landowners
whose property must be acquired by the government. The land is therefore
necessary for industrialisation and economic progress, but the affected
populations must not suffer as a result of the acquisition.
• The term “public purpose” has produced significant issues. The Supreme Court has
expanded the definition of “public purpose” in decisions like Yamuna
Expressway, Smt. Somavanti & ors. case (1962), and several such cases. In
certain situations, the court has ruled that it is legal to acquire property and give
it to a private firm for projects that do not truly use it for public purposes. As a
result, one of the primary justifications for the acquisition of new property is the
wide interpretation and absence of precise criteria.
• In the instance of eminent domain acquisition by the state or acquisition for a
private enterprise for a project connected to a public purpose, the prior laws provided
no provisions for relocation and rehabilitation. Despite receiving compensation, the
impacted individuals still face significant difficulties.
• Previously, the collector had the ability to decide on compensation. The quantum
of the compensation was to be determined using the worth of the local market.
However, there was no detailed process for calculating compensation or any other
rules. In certain instances, the landowner was deceived.
• The previous law lacked a provision requiring permission from the owner of the
property the government intended to acquire. Instances like Nandigram, where the
government chose to acquire the land of the farmers and gave them short notice so
that a Special Economic Zone could be established, occurred as a result of the lack
of such laws.
• Section 17 of the 1894 legislation, which discusses the urgency clause, was a
significant flaw. The government and private businesses have abused this
urgency clause a great deal.
Jurisprudence behind the Land Acquisition Act
The Act’s first goal focuses on purchasing public lands in order to enhance the
nation’s infrastructure and businesses. The goal of infrastructure development and
industrialisation contributes to the nation’s economic growth, and other goals follow
from it and work to mitigate its effects. The purpose also discusses the acquisition of
property for public use. Public well-being is included in the definition of “public
purpose” in its broadest sense. The Supreme Court stated in Dev Sharan v. State of
Uttar Pradesh (2011) that the public purpose in cases of land acquisition should be
examined from a perspective consistent with the idea of a welfare state. The welfare
state discusses societal and public interests.
It was noted when outlining the objectives of the Acts that the jurisprudence behind
these Acts is connected to the economic approach and the sociological approach. Now
that the purpose has been thoroughly explained, it is clear that the Act takes an
economic and sociological approach.
• The Act’s first goal is to define and direct a land acquisition process that involves
consultation with local self-government and the Gram Sabha and is transparent,
educational, and participatory. This land acquisition process’s goal is the
development of vital infrastructure and urbanisation, both of which are required
for public purposes.
• The second objective is to guarantee that the landowners whose property is being
acquired receive equitable and fair compensation while taking into account all the
economic and social factors. likewise to guarantee appropriate procedures and rules
for the same.
• Aside from the landowners, other families that depend on the property either
directly or indirectly also suffer when it is bought. The rehabilitation and
resettlement of the affected landowners and their families is the third primary
objective, which was not included in the previous Land Acquisition Act.
Applicability of the Land Acquisition Act, 2013
The government acquires property for its own use, possession, and control, including
public sector enterprises. The land is acquired by the government with the ultimate
goal of transferring it to private corporations for a specific public purpose. Projects
involving public-private partnerships are included in LARR 2013, but those
involving property acquired for state or national highway projects are not. The land
is acquired by the government for declared and immediate use by private businesses
for public purposes. Acquisitions made under 16 current laws, such as the Special
Economic Zones Act of 2005, the Atomic Energy Act of 1962, the Railways Act of
1989, etc., are exempt from the terms of the Act.
• For any work essential to the national security, defence, or safety of the people, or
for strategic reasons pertaining to the navy, military, air force, and armed forces
of the State, including central paramilitary forces; or
• For infrastructure projects, such as those listed below, specifically:
1. All actions or things mentioned in the notice issued by the Government of India’s
Department of Economic Affairs (Infrastructure Section) number 13/6/2009-
INF, dated March 27, 2012, with the exception of private hospitals, private schools,
and private lodging;
2. Projects which involve agro-processing, the provision of agricultural inputs,
warehousing, cold storage facilities, and marketing infrastructures for
agriculture and related industries like dairy, fisheries, and meat processing,
established or owned by the relevant government, a farmers’ cooperative, or an
institution established by statute;
3. A plan for mining operations or industrial corridors, as well as national
investment and manufacturing zones, as specified in the National
Manufacturing Policy;
4. A project to provide sanitary facilities and water harvesting buildings;
5. A project for institutions or programmes for education and research that are run or
supported by the government;
6. A project for sports, healthcare, tourism, and space programme transportation;
7. Any infrastructural facility that the Central Government may notify in this
respect after notifying Parliament of the notification;
The cooperation of the landowner is not necessary when the government announces a
public purpose and immediately controls the land. However, before using its
authority under the Act to acquire the remaining land for the public good, the
government must first obtain the consent of at least 80% of the project’s affected
families through an informed process. In the case of a public-private project, at least
70% of the affected families must also consent to the acquisition process.
The Act contains a provision for quick land acquisition. The urgency clause may
only be used in cases of catastrophes or natural disasters affecting national defence,
security, or the rehabilitation of those impacted.
Landowner
The following people have deemed landowners under the Act:
1. A person whose name appears in the records of the relevant authorities as the owner
of the property, building, or a portion thereof; or
2. A person who has been given forest rights by the Scheduled Tribes and
Other Traditional Forest Dwellers (Recognition of Forest Rights) Act of 2006 or
by any other currently enacted law; or
3. A person who is qualified to receive Patta rights under any State legislation,
including those pertaining to assigned lands; or
4. Someone who has been designated as such by a court or authority order
Agricultural land
“Agricultural land” is defined as land utilised for—
1. agriculture or horticulture;
2. raising animals or producing medicinal plants in nurseries or in the dairy and
poultry industries, as well as in pisciculture and sericulture;
3. cultivating plants, trees, grass, or products from the garden;
4. land utilised for livestock grazing.
Company
“Company” means
Family
“Family” refers to an individual, his or her spouse, minor children, and minor
siblings who are reliant on him or her:
As long as widows, divorcees, and women who have been deserted by their families are
regarded as separate families;
Explanation: For the purposes of this Act, an adult of either gender who is married,
has children, has dependents, or has none of these things is deemed to constitute a
separate family.
Interested persons
“Interested person” means—
1. Any individuals who have a claim to compensation due to the acquisition of land
under this Act;
2. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest
Rights) Act, 2006, who have forfeited any forest rights recognised under the Act;
3. A party with an interest in a land-related easement;
4. Those with tenancy rights under the pertinent State legislation, such as
sharecroppers, regardless of their name; and
5. Anybody whose main source of income is likely to be negatively impacted.
Re-settlement area
“Re-settlement Area” refers to a location where the appropriate Government has
relocated the impacted households that have been displaced due to land acquisition;
Section 5
The appropriate government shall ensure that a public hearing is held in the affected
area whenever a social impact assessment is required to be prepared pursuant to
Section 4, after providing adequate publicity regarding the date, time, and venue for
the public hearing, in order to ascertain the opinions of the affected families to be
recorded and included in the social impact assessment report.
Preliminary notification
The Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation, and Resettlement Act of 2013 states that the acquisition process
starts with the issue of preliminary notification. A preliminary notification
under Section 11 in rural or urban areas shall be issued if it seems to the appropriate
government that land in any area is necessary or likely to be required for any public
purpose.
Publication of notification
The preliminary notification must be published in the manner described below:
In every case of land acquisition, the concerned Gram Sabha or municipality must
be notified of the details of the notification issued at a meeting specifically scheduled
for this purpose as soon as it is issued.
The notification that will be sent out must include information about the land that
will be acquired, a description of the public purpose that will be served, the reasoning
for the need to relocate the affected parties, a summary of the Social Impact
Assessment Report, and information about the administrator who will be in charge
of rehabilitation and resettlement.
The Court found that the language of Section 4(1) of the Land Acquisition Act,
1984, plainly implies that the provision is an obligatory one in the case of Khub
Chand v. State of Rajasthan (1966). According to the Act’s later structure,
publication of the notification in the manner specified in Section 4(1) of the Act is a
requirement for a legitimate acquisition.
The Allahabad High Court ruled in Habib Ahmed v. State of Uttar Pradesh (1964)
that the acquisition of the property was not necessary for a public purpose, and so
neither the notification nor the declaration could be revoked. The state government
alone must assess whether or not the land is needed for a public purpose.
Although the aforementioned instances were handled in accordance with the previous
legislation, the Land Acquisition Act of 1984, the new Act’s provisions, and the
previous law’s, are substantially similar. As a result, the guidelines established in
the important decisions made under the previous legislation are still applicable to the
current Act.
Restraint on transaction
From the date of publication of the preliminary notice until the conclusion of the
acquisition procedures, no one may transact on or cause to be transacted on any of
the lands indicated in the notification. According to the proviso the Collector may,
upon the owner of the land so notified in the application, exempt such owner from the
application of this limitation under unusual circumstances that are documented in
writing. However, the Collector shall not be liable for any damage or harm incurred
by any person as a result of his willful breach of this article.
Survey of land
Section 12 outlines the preliminary survey of land and gives officers the authority
to do it. It should be legal for any officer, either generally or expressly authorised by
such Government in this regard, and for his servants and labourers, in order to
enable the appropriate Government to decide the area of land to be acquired.
1. to access any land in such area and survey and level it;
2. to drill or dig into the soil;
3. to carry out any additional actions required to determine whether the land is
suitable for such a purpose;
4. to outline the boundaries of the land that is being considered for acquisition and
the anticipated path of any proposed activity (if any); and
5. to mark such levels, borders, and lines by planting markers and digging
trenches; and, in cases where the survey cannot be finished, levels taken,
boundaries indicated, or clear away any part of a standing crop, fence, or jungle
away.
Restriction
No action under sections (a) to (e) relating to land may be taken without the owner
of the land or without a person authorised in writing by the owner being present. If
the owner has been given a reasonable chance to be present during the survey and has
been given at least sixty days’ notice, the survey may be conducted without the
owner’s presence.
If there is a disagreement over whether the sum paid is sufficient, the officer must
immediately report the matter to the Collector or another district chief revenue officer,
whose judgment is binding.
The fundamental rule that no man’s property may be acquired without providing
him with a fair opportunity to be heard is upheld by Section 15. The major goal of
sending out a preliminary notification is to solicit any objections, if any, from the
owners or other parties with an interest in the property, giving them a chance to voice
their grievances with the government’s plan to acquire their holdings. According to
Section 15(1), any party with an interest in land that has been informed that it is
necessary or likely to be required for a public purpose may object to the notice within
60 days of the preliminary notification’s publication date.
If concerns are raised, the collector will take them into account and, in his report to
the government, propose a course of action. The collector is required to provide a report
if no objections are raised. The government is then given the green light to continue.
According to Section 15(3), the competent government’s decision regarding the
objections is binding.
• details on the lands and other immovable property each impacted household is
buying;
• livelihoods lost for those who are landless and who depend heavily on the lands
being acquired;
• a list of public utilities, government structures, amenities, and infrastructure that
are impacted or are anticipated to be impacted, where relocation of impacted
families is concerned;
• information on any resources that are obtained as common property.
Specifics about the government structures, amenities for the general public, and
infrastructure facilities that must be supplied in the resettlement area must be made
known locally by holding a public hearing in the impacted region before being
considered in the relevant Gram Sabhas or Municipalities.
After the public hearing is over, the administrator must give the collector the draft of
the Rehabilitation and Resettlement Scheme, along with a detailed report on the
claims and objections made during the hearing.
In accordance with Section 17, the Collector must consult the Rehabilitation and
Resettlement Committee established under Section 45 at the project level on the draft
scheme that the Administrator has provided. The proposed Rehabilitation and
Resettlement Scheme will be submitted by the Collector along with his
recommendations to the Commissioner of Rehabilitation and Resettlement for
approval.
• In the local language to the Tehsil, the District Collector, the Sub-divisional
Magistrate, and the offices of the Panchayat, Municipality, or Municipal
Corporation, as applicable;
• In the areas impacted;
• Posted on the appropriate government’s website.
Declaration
A final statement dismissing the claims will be made by the appropriate authorities
following consideration of any objections that have been raised. According to Section
19 of the new Act, the authority must publish the final declaration within 12 months
of the date the preliminary notification under Section 11 of the Act was issued.
The Court ruled in Habib Ahmed v. State of UP that the acquisition of the property
was not necessary for a public purpose, and hence neither the notification nor the
declaration could be revoked. The state government must be the exclusive authority to
determine whether the land is needed for a public purpose or not.
Lapse of notification
If a declaration is not submitted within 12 months after the preliminary notification
date, the notice will be presumed to be revoked. According to the proviso, any time
during which the land acquisition procedures were stalled due to a stay or injunction
by a court order will be disregarded for calculating the 12-month timeframe. If the
appropriate government determines that there are reasons to justify doing so, it may
decide to extend the 12-month period. In this case, the decision must be made in
writing, notified, and published on the authority’s website. After making the
declaration, the appropriate government may acquire the land in the manner
described by this Act. The declaration shall be conclusive proof that the land is
necessary for a public purpose.
The public notice must outline the specifics of the needed property and demand that
all parties interested in the land come before the collector at the time and location
specified in the notice to make their claims for compensation, rehabilitation, and
resettlement, as well as any written objections.
The time frame shouldn’t be less than 30 days or longer than 6 months from the day
the notification was published.
If any interested party lives elsewhere and does not have an agent, the collector will
see to it that the notice is published in at least two national daily newspapers,
forwarded to him by mail at his last known addresses of home and business, and
made available on his website.
In State of Madras v. B.V. Subramania Iyer (1961), the Court decided that any
dispute over a single claimant’s title is included in the term “dispute.” Public funds
must be used to pay compensation to the rightful owner of the property, not just to
any claimant who wishes to show up on the scene, when the government uses its
power of eminent domain to acquire it. In this regard, the government has a specific
duty and cannot afterwards hide behind the justification that the compensation was
given to the claimant who showed up while others did not.
Statement to collector
According to Section 22, the collector may also require any interested party to make
or deliver to him a statement within 30 days that includes the name of every other
person who has an interest in the land or any part of it as a co-proprietor, sub
proprietor, mortgagee, tenant, or in any other capacity, as well as information about
the type of interest they have, as well as any rents and profits they have received or
are due for the three years immediately prior to the date of the statement.
According to the 2013 Act, the minimum payment must be a multiple of the
assessed market value of the property, the value of any attached assets, and a
settlement equivalent to 100% of the assessed market value of the property, including
the value of any attached assets.
Compensation under the Act
According to Section 23, the collector must investigate the objections that any
interested party has raised in response to a notice given under Section 21 and the
respective interests of the people requesting compensation, rehabilitation, and
resettlement, and he must then issue an award under his signature of-
1. The minimum land value required under the Indian Stamp Act of 1899 for the
registration of sale documents in the region where the land is located, if any; or
2. The top fifty percent of the sale deeds filed over the previous three years in the
closest village or area to the property being acquired, which gives the average
selling price for similar types of land being acquired; or
3. The accepted amount in the event that the site is acquired for private businesses or
initiatives involving public-private partnerships.
For land acquired in rural regions, the market value would be multiplied by a factor
of at least one to two times, while for land acquired in urban areas, the market value
would be multiplied by at least one.
Determination of compensation
The collector will compute the entire amount of compensation to be given to the
landowner whose land has been acquired by adding all assets connected to the land
under Section 27 after determining the market value of the land to be acquired. The
collector is required by Section 28 to take the following factors into account when
assessing the amount of compensation to be given for land acquired under this Act:
1. The award amount is determined in accordance with the First and Second
Schedules and the market value as assessed in accordance with Section 26;
2. The harm incurred by the interested party as a result of the removal of any
standing crops and trees that may have been on the property at the time the
Collector obtained control of it;
3. The damage incurred by the interested party upon the collector’s taking control of
the property as a result of disconnecting it from his other property;
4. The harm incurred by the interested party when the collector took possession of the
property as a result of the acquisition negatively impacting his other property,
whether movable or immovable, in any other way, or his earnings;
5. The interested party must relocate or change his place of business as a result of the
collector’s acquisition of the land, and shall bear all reasonable moving-related
costs;
6. The genuine harm brought on by the reduction in the land’s revenues between the
time the declaration under Section 19 was published and when the collector took
control of the property; and
7. Any other basis that would be beneficial to the affected families and in the
interests of equality and justice.
1. The collector may use the assistance of experts in the fields of agriculture, forestry,
horticulture, sericulture, or any other subject he may see as essential in order to
assess the worth of the trees and plants related to the property acquired.
2. The services of experienced individuals in the agricultural sector may be used by
the collector, as he may deem them essential for determining the worth of the
standing crops destroyed during the land acquisition procedure.
Award of solatium
The collector must impose a “solatium” equal to 100% of the compensation amount
after determining the total compensation to be paid in order to determine the final
award under Section 30.
In addition to the compensation due to everyone whose land has been acquired, this
solatium sum must be paid. According to the First Schedule of the Land Acquisition
Act, the collector must issue specific awards that include information on the
compensation that is due as well as how it will be paid. In addition to the market
value of the land specified in Section 26, the collector must also award a sum
calculated at a rate of 12% annually on that market value for the period beginning
on the date that the social impact assessment study was published until the date of
the award by the collector or the date that the land was actually taken into
possession, whichever comes first.
Contravening provisions and problematic issues of the Land
Acquisition Act
The Act being discussed is essentially opposed to land acquisition for public
purposes. The word “public purpose” now encompasses a wider range of activities. (Sec.
2(l)) This expanded scope includes a wide range of tasks. As a result, the likelihood
of exploitation has grown as the definition of “public purpose” has been expanded. The
likelihood of abuse will undermine the fundamental goal of industrialisation-based
economic development.
Acquisition by private enterprises is the main change. There are several provisions
under the new legislation that must be met in the event of an acquisition by a
private corporation. The new statute demands 80% permission in the case of a private
company and 70% consent in the case of a public company with impacted families.
It has provided an SIA evaluation method for this.
However, the legislation lacks clarity on important aspects of SIA evaluation, such
as how it will be done and by which authority or agency. As a result, private
corporations might use various improper tactics to get approval. However, the
legislation does not need the approval of affected people if the property is acquired by
the government under specific circumstances, as specified in Section 2(l) public
purpose clause. Now, the provided clause contradicts the purpose, which calls for
participatory, informational, and transparent land acquisition.
The “Rehabilitation and Resettlement” clause is one of the major provisions included
in the new land acquisition laws. On the one hand, the legislation provides
rehabilitation and relocation measures for impacted persons, which include not just
landowners but also other affected families. Section 69 states that the “rehabilitation
and resettlement cost” shall be calculated in line with Sections 26 and 30. Section
26 discusses calculating the market value of land, while Section 30 discusses
“solatium” based on the market value calculated in Section 26. A question might
occur as to “how can the cost of rehabilitation and resettlement be calculated using
market value, and how realistically does it depend on market value?” There is no
answer to this question.
Section 40 also empowers the government to seize land in an emergency if the 30-
day notice provided in Section 30 expires, even if such awards are not made by the
collector. This part runs counter to the third goal.
The Act takes economic loss into account, but it does not take other losses into
consideration. When families are separated, they suffer not just economic loss but
also social, psychological, and status loss. Because it is not required that the
compensation and arrangements created for them provide them with the same status
and wealth as the land may provide.
Furthermore, Section 105 exempts land acquired by specific acts from the scope of
this Act. The new statute, although including certain modifications, fails to address
key issues and contains loopholes.
Issue
Whether land acquisition proceedings were deemed to have lapsed in light of Section
24(2) of Act, 2013?
Judgment
Petitioners were still in control of the land; they were not evicted, and the
compensation payment was not made through the civil court. As a result, acquisition
procedures were deemed to have ceased in accordance with Section 24(2) of the Act of
2013, hence the petition was allowed.
Guru Nanak Vidya Bhandar Trust Vs. Union of India and Ors (2017)
Facts
In this case, Respondent No. 1 is the property’s lessor. The land was first leased to
Sardar Ram Singh Kabli, and afterwards, ownership of the property was transferred
to the petitioner. It is also undisputed that the petitioner’s land was encroached upon
by the NDMC (New Delhi Municipal Council) and that possession was obtained
illegally. In accordance with that provision, the petitioner filed a petition for
possession in 1979, which was decreed by a learned single judge of this Court in a
decision and decree dated March 8, 2006. The NDMC’s appeal to the Division Bench
and then to the Supreme Court likewise failed. Following that, the NDMC asked that
the Land Acquisition Authority acquire land, and the current acquisition processes
were launched.
Issue
Whether reprieve of the proviso in Section 24 of the 2013 Act can be taken or not, in
the facts of the present case?
Judgment
A review of the facts reveals that the compensation was deposited in the court
unilaterally and without being offered to the persons interested, as interpreted in the
Pune Municipal Corporation case, and no facts have been brought to the court’s
attention to suggest that the same was offered to the petitioner. As a result,
compensation for a “majority” of land holdings has not been put in the accounts of
the “beneficiaries.” As a result, the petitioner would be eligible for compensation under
the 2013 Act. The writ petition is granted to the extent that the acquisition will
stand, but compensation will be provided to the petitioner in accordance with the
amended Land Acquisition Act of 2013. The amount previously released to the
petitioner, as stated above, will be deducted from the total amount determined in
accordance with the 2013 Act.
The Supreme Court declared in this significant decision that outstanding cases
under the 2013 Act will expire under two conditions, and the acquisition procedure
will have to be restarted. The Supreme Court declared that new procedures under the
Land Acquisition Act of 2013 will be required only if the following conditions are
met:
The 5-judge bench also ruled that landowners cannot seek compensation under
Section 24(2) of the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation, and Resettlement Act, 2013, if they declined the
supplied compensation or requested for greater compensation. However, if
compensation is not made under the provisions of Section 24(1)(a) of the Right to
Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and
Resettlement Act, 2013, as of the date of the 2013 Act’s commencement, i.e.,
1.1.2014, the proceedings will not be deemed to have lapsed, and compensation must
be awarded in accordance with the provisions of the Act of 2013.
1. If no award has been granted under Section 11 of the said Land Acquisition Act,
then all provisions of this Act related to compensation determination shall apply;
or
2. Where an award has been given under said Section 11, such processes must
continue in accordance with the terms of the said Land Acquisition Act, as if the
said Act had not been repealed.
3. Regardless of what is stated in sub-section (1), in the case of land acquisition
proceedings initiated under the Land Acquisition Act, 1894 (1 of 1894), where an
award under said Section 11 has been made five years or more prior to the
commencement of this Act, but physical possession of the land has not been taken
or compensation has not been paid, the said proceedings shall be deemed to have
lapsed, and the appropriate government, if it so desires, shall initiate new
proceedings.
“Provided, however, that where an award has been made and compensation for a
majority of land holdings has not been deposited in the accounts of the beneficiaries,
all beneficiaries stated in the notification for acquisition under section 4 of the said
Land Acquisition Act shall be entitled to compensation in accordance with the
provisions of this Act,”
1. “If the award was made within the five-year window period, except the period
covered by an interim order of the court, then proceedings shall continue as
provided in Section 24(1)(b) of the Act of 2013 under the Act of 1894 as if it had
not been repealed.”
2. In Section 24(2), the term ‘or’ between possession and compensation must be
interpreted as ‘nor’ or ‘and.’ The assumed lapse of land acquisition procedures
occurs under Section 24(2) of the Act of 2013, where possession of land has not
been obtained or compensation has not been paid owing to the inaction of
authorities for five years or more previous to the beginning of the said Act.
3. The term ‘paid’ does not include a deposit of compensation in court in the main
section of Section 24(2) of the Act of 2013.
4. If a person is offered compensation under Section 31(1) of the Act of 1894, he
cannot argue that the acquisition has expired under Section 24(2) owing to non-
payment or non-deposit of compensation in court. By presenting the sum specified
in Section 31(1), the obligation to pay is fulfilled.
5. The proviso to Section 24(2) of the Act of 2013 is to be considered part of Section
24(2), not Section 24(1)(b).
6. Under the Act of 1894 and as envisioned by Section 24(2), the way of obtaining
possession is by drawing an inquest report/memorandum. Once an award is
made on taking possession under Section 16 of the Act of 1894, the land vests in
the State; there is no divesting provided under Section 24(2) of the Act of 2013,
as there is no lapse under Section 24(2).
7. Section 24(2) provides for a considered lapse of proceedings in cases where
authorities failed to take possession and pay compensation for five years or more
before the Act of 2013 came into force, in a land acquisition procedure continuing
with the responsible authority as of 1.1.2014. The period of court-issued interim
orders must be excluded from the five-year computation.
8. Section 24(2) of the Act of 2013 does not provide a new cause of action to
challenge the legitimacy of completed land 319 acquisition actions. Section 24
applies to any case that is continuing on the date of the Act of 2013, 1.1.2014. It
does not reopen finished processes or allow landowners to contest the legality of the
way of taking possession to reopen proceedings or mode of depositing
compensation in the treasury instead of the court to invalidate acquisition.”
Farmers’ experiences with land acquisition have been utterly terrible. To address the
complexities of land acquisition, the LARR Act 2013 incorporates the Social Impact
Assessment (SIA) to examine if projects are meeting the claimed public purpose. A
social impact assessment is described as “the identification, analysis, and
evaluation of a social effect arising from a specific event,” with a social impact
defined as “a major improvement or deterioration in people’s well-being or a
significant change in an element of community concern .” Property acquisitions
must result in a social stance that balances the interests of the displaced with the
advantages of the acquired land for the general public.
The key social protection offered by the law is the SIA study and its evaluation by
an impartial committee of experts. This expert committee will assess the SIA and
determine if the project meets the declared public purpose, is in the greater public
interest, and whether the project’s costs and negative consequences outweigh the
possible benefits. Individually, the expert group is expected to voice its judgment on
whether the project should be permitted to proceed or not.
The study draws on consultations with Gram Sabha members to examine the nature
of public interest in the project and its potential benefits compared to social and
environmental costs; the number of affected families and the socioeconomic impact
on neighbouring areas; whether the extent of land proposed for acquisition is the bare
minimum required; and whether acquisition at an alternate location is not feasible.
The evaluation is then assessed by a panel of five external experts, who may
“recommend that the initiative be abandoned” if the consequences are considered
intolerable. Ambiguities in this statement impair the social safeguard’s credibility.
The recommendation’s binding character must be clearly stated, leaving no space for
subsequent interpretation.
In addition to the hefty monetary compensation for landholders, the Act takes a
significant step forward by granting Resettlement and Rehabilitation (R&R)
entitlements to all impacted persons. However, this will only be significant if R&R
efforts are enhanced. Wherever feasible, land of equivalent value should be used to
compensate. After accounting for the social cost of acquiring that specific land, the
public interest would be met only if such an acquisition resulted in community
benefit. As a result, the costs and benefits of the acquisition to society must be
assessed in each situation. Only by focusing on the exact amount of land secured in
each case would it be equitable.
Judgment
Following the enactment of the New Act, the Tamil Nadu Government passed
the Tamil Nadu Land Acquisition Laws (Revival of Operation, Amendment, and
Validation) Act, 2019 using their statutory power under Article 254(2) with the
intent to exempt the application of LARR in three categories of projects for industrial
and infrastructure purposes, which constitute the majority of land acquisition. Their
enactment was challenged in the Supreme Court via writ petition, and the Supreme
Court upheld the enactment on the grounds that, subject to the assent of the
president, a state can depart from the centre law under Article 254(2) of the
Constitution.
1. In May 2006, the West Bengal government granted Tata Motors 700 acres of
fertile agricultural farmland in Singur, Hooghly, for the construction of their
Tata Nano Project.
2. The land was forcibly grabbed and given over to Tata Motors.
3. The affected landowners and non-farming households working in agriculture-
related occupations were highly agitated by the said acquisition.
4. Their anger was later fueled by opposing political groups, and other social workers
became infamous throughout the country.
5. The acquisition was contested in the High Court, and it was discovered throughout
the court processes that 65% of the total 400 acres had been obtained forcibly with
no approval from the government.
6. As a result of the violence and negative publicity, Tata withdrew from the land
and established an industrial plant in Sanand, Gujarat, India.
Conclusion
There is an improvement over the old statute, which provided no compensation
(monetary or non-monetary) to people harmed by the land acquisition process. This
legislation is a start, paying persons who would be impacted by land acquisition
prior to the establishment of the infrastructure or development project, both
monetarily and non-monetarily. In some situations, the statute also provides for
land-for-land compensation.
Furthermore, the lease provision ensures that the landowner does not have to
relinquish land ownership, even though others may lose their livelihoods in the
process and must be suitably compensated and restored. The measure has been
attacked primarily on two grounds. First, there is a heated dispute about whether
such compensation is adequate. Activists argue that prior to the start of a
development project, the market price is quite low, particularly in rural or semi-urban
areas, and that the compensation amount (up to two times the market price) may be
insufficient for a landowner/farmer who is losing a significant portion of his or her
livelihood. Second, those who would be affected after the project’s establishment were
not considered at all in the Act, despite the fact that this was not the primary purpose
of the Bill, and second, these could be addressed through the proper implementation
and enforcement of environmental regulations for air and water (if not for land).
There are faults with such standards, but this is a secondary concern with the
measure itself.