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Land Acquisition Act

Land Laws Under BJP Regimes

In 2014 itself, months after assuming power, the Modi regime tried to test the political waters by bringing in a Land Acquisition Ordinance to  overturn a 2013 Law that had, itself re-visted colonial legislation that empowered the forest official and timber mafia to exploit forest dwellers and tribals. United Opposition protest put the Modisarkar project to dis-enfrancise farmers and land holders on hold. At the Centre. Lo and behold, three states run and ruled by the BJP, Gujarat, Maharashtra and Rajasthan simply passed state land legislations that took away the empowering measures of social audit, prior consent and adequate compensation.

How did BJP ruled states subvert one of independent India’s legislative efforts–The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, (LARR) 2013. This 2013 law replaced the colonial legislation of 1894? Six BJP ruled states have rendered this legislation, a reform driven law enacted after years of pressure from movements and struggles, meaningless.

What Modi could not do in Parliament, the states ruled by the BJP did in their states.But following the failure of the BJP government’s efforts to amend it through its land ordinances issued after 2014, six states have used constitutional provisions to make new laws. Other states have developed rules under the Act to dilute the rights of landowners and land dependent people in the face of land acquisition.

What the Modi government failed to do in early 2015, bring in a fresh law that in the name of making ‘land acquisition’ easier actually snatched away the original owner –be it the peasant, small farmer or tenants –right to have a say in whether or not the land should be acquired—the Gujarat Government, known for its infamous ‘Gujarat Model’ under NarendraModi did in April 2016 through the “Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Gujarat Amendment) Bill, 2016” (RFCTLARR, 2016), just recently passed, in the Assembly.

On April 1, 2016, deliberately on a day when the Opposition had been suspended from the House, the  Government of Gujarat (GOG), passed the “Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Gujarat Amendment) Bill, 2016”. A copy of the Bill, can be read here.

Jharkand erupted in conflict last year (July-November) as amendements in laws were pushed through to dilute the say of peoples and communities over what could or should be done with their lands.

It is BJP ruled States that Have Done Away with ‘Consent’ clause
The social audit provisions and consent by gram sabha were the two hallmarks of the amended 2013 LARR. States have diluted these by putting exceptions to state laws and rules when land acquisition needs to abide by these conditions. The seeking of consent of 70% (for PPP) and 80% (for private projects) of the landowners before acquiring their land was included in the law to address issues of land grab by the state: an individual’s home, farm or occupational right could be grabbed by merely issuing a notice. The provision of social audit is crucial to address the impacts of acquisition on the livelihoods of all those who don’t own land but are dependent on it. This is also crucial for comoensation and rehabilitation packages.

These provisions now stand diluted: In Jharkhand, for example, the quorum for seeking consent from the gram sabha has been reduced from half to one-third.

GujaratRajasthan, MaharashtraJharkhand and Telangana have enacted new laws using Article 254(2) of the constitution by seeking presidential assent. Barring Telangana, all are BJP-ruled states. Their laws replicate or reflect the key amendments proposed in the 2014 ordinance. Gujarat and Telangana exempt a long list of projects from social impact assessment (SIA) and mandatory consent of landowners. These include projects of national security, defence, rural infrastructure, affordable housing, industrial corridors and other infrastructural projects, including projects under public-private partnerships (PPPs). In Maharashtra, PPP projects have been fully exempted from the SIA and consent clauses.

This Legal Brief Traces the History of India’s Land Laws from under British (colonial) rule to 2013 when arguably the first pro-land holder clauses found place. Before this, for decades the government (often with corporations) enjoyed unfettered powers to seize/acquire land.

PART A: LAND ACQUISITION ACT, 1894

KEY PROVISIONS:

Land:

Benefits to arise out of Land, things attached to the Earth or permanently fastened to anything attached to the Earth.

State Amendments-

S. NO STATE ACT AMENDMENT
1. GUJARAT Bombay Act 27 of 1950 and Gujarat Act 20 of 1965 Arable Land includes Garden Land.
2. MAHARASHTRA Bombay Act 27 of 1950 Arable Land- Land fit for Cultivation (cultivated or not cultivated) + garden land.
3. KARNATAKA Mysore Act 17 of 1961 Arable Land includes Garden Land.

 

Company:  

Co. as defined in Section 3 of the Companies Act, 1956 other than a govt. Company as defined in Sec 617 of the Companies Act, 1956.

Society under Societies Registration Act, 1860 or any law in State other than mentioned in clause cc.

Cooperative society referred in any law related to it enforced in any state other than clause cc.

(clause cc) – Corporation owned or controlled by State. Any body corporate established by or under a Central,  Provincial or State Act.

1- Gov. Co. as in sec 617 of the Companies Act,  1956.

2- Society under Societies Registration Act,  1860 or any corresponding law enforced.

3- Cooperative Society enforced in any state but 51% share should be held by Gov. or by State Gov.  or partly by both.

State Amendments:

S. NO. STATE ACT AMENDMENT
1. ANDHRA PRADESH A.P. Act 20 of 1959 Company or Society includes the one in corresponding law in force in transferred territories
2. MADHYA PRADESH M.P. Societies Registration Act,1959

M. P. Co-operative Societies Act,1960

M.P. Act  43 of 1965

M. P. Non-Trading Corporations Act, 1962.

Company under Indian Co. Act, 1882.

English Co. Acts, 1862 to 1890.

Act of Parliament of U.K. or Indian Law or Royal Charter or Letters Patent

3. KARNATAKA Co. Act 1956. Co. formed and registered under any previous Co. Law enforced in any part of India other than J & K.

Co. in J & K.

Co. incorporated in any law enforced in any foreign territory but principal place of business in India.

 

Public Purpose:

State Amendments:

S. NO STATE ACT AMENDMENT
1. BIHAR Bihar Act 11 of 1961 ·                        Sanitary improvements including reclamation ‘and’

·                        Laying out of townships or village sites.

2. GUJARAT Guj. Act 20 of 1965 ·                        ‘and’ should be removed.

·                        Addition of ‘and’ before new clause which says housing scheme by state Gov. For increasing accommodation includes scheme by local authority or company if previous sanction by state govt.

3. MADHYA PRADESH C.P. and Berar Act 20 of 1949.

M.P. Act 23 of 1958

·                       Land for agriculture, residential, business or industrial purpose.

·                       Land incidental to above for resettlement and rehabilitation of displaced persons.

4. MAHARASHTRA Mah. Act 38 of 1964. ·                       Land for development purpose from public revenues.
5. KARNATAKA ·                       Land for relieving congestion.

·                       Residence for any person holding an office of profit under Central or State govt or diplomatic consular or trade representative of Foreign govt.

Land for company

·                      If by construction on it, substantially useful for public.

·                       If needed for construction of houses by building co-operative society or corporation.

·                       Charitable Trust.

6. U.P. U.P. Act 22 of 1954 ·                       Sanitary improvements including reclamation.

·                       Land settlement for agriculture with weaker section of the people.

 

Special Powers in case of urgency-

Forty eight hours or reasonable longer time before notice should be given so that occupier can remove necessary items without any inconvenience

State Amendments:

S. NO. STATE ACT AMENDMENT
1. ANDHRA PRADESH Madras Act 21 of 1948

A.P. Act 32 of 1956.

A.P. Act 20 of 1972.

·                     Acquisition for Nagarjunasagar Project.

·                     Execution of any housing scheme.

·                     Acquisition for Vishakhapatnam Steel Project.

2. BIHAR Bihar Panchayat Raj Act, 1947. ·                    Possession of any waste or arable land notwithstanding the existence of forest , orchard or trees will be taken for public purpose or for company.

·                    If person himself give consent to give land during unforeseen circumstances then it should be in presence of Mukhiya or Sarpanch

·                    Transfer of land to board. .

3. GUJARAT Guj Act 23 of 1962 Waste or arable land is been omitted.
4. HIIMACHAL PRADESH H.P. Cooperation Societies Act, 1969. ·                    Apply to Waste or arable land notwithstanding existence of scattered trees or temporary structures like huts, pandals or sheds.

·                    For any library or educational institution or for any construction of building for common use of any inhabitants or any godown for any society.

5. M.P. Waste or arable land should be omitted.
6. MAHARASHTRA ·                    Failure of Monsoons

·                    Scarcity of water for drinking

·                    Failure of crops in State.

·                    Transfer of land to Trust.

7. KARNATAKA Apply to Waste or arable land notwithstanding existence of scattered trees or temporary structures like huts, pandals or sheds
8. ORISSA Waste or arable should be omitted.
9. PUNJAB, HARYANA AND CHANDIGARH Cooperative Societies Act, 1912. ·                     Apply to Waste or arable land notwithstanding existence of scattered trees or temporary structures like huts, pandals or sheds.

·                     For any construction of building for common use of any inhabitants or any godown for any society.

 

10. T.N. Cooperatives Societies Act, 1932. ·                    Apply to Waste or arable land notwithstanding existence of scattered trees or temporary structures like huts, pandals or sheds.

·                     For any library or educational institution or for any construction of building for common use of any inhabitants or any godown for any society.

·                     Dwelling House for Poor.

·                     Any road.

·                     Any irrigation purpose.

 

11. U.P. U.P. Avas Evam Vikas Parishad Adhiniyam 1965. ·                    For Sanitary improvements

·                    Housing or improvement scheme.

·                    Transfer of land to Mahapalika.

12. W.B. ·                    Sub section 1 and 3 of 1894 Act will apply also to unhealthy.

·                    Transfer of land to Board.

 

PART B: RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION, RESETTLEMENT ACT, 2013

The primary purpose of the 1894 Act as the title suggested was ‘Land Acquisition ‘and its expedition, whereas the 2013 act is titled as ‘Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, which expands the ambit of the act to fair compensation, thorough resettlement and rehabilitation of those affected, adequate safeguards for their well-being and complete transparency in the process of land acquisition.

A. Need for the new act / Major drawbacks in the 1894 Act –

 

Unilateral acquisitions – Under the 1894 act, once the authority develops the intention of acquiring a particular part of land, it could carry the acquisition irrespective of the affect that would have on the person whose land was being acquired.

No safeguards: There was no scope for an efficient appeal mechanism according to the 1894 act. A hearing (under section 5A) was prescribed, but the views are not required to be taken on board by the officers conducting the hearing.

No measures to rehabilitate: There are absolutely no provisions in the 1894 law relating to the resettlement and rehabilitation of those displaced by the acquisition.

What constitutes as urgent: This is one of the most criticized sections of the act. The act does not clarify as to what constitutes as an urgent need to acquire, leaving a lot of discretion in the hands of the acquiring authority. This results to the majority of acquisitions falling under the urgent acquisitions category with literally no scope of challenge.

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.

Recent observations by the Supreme Court: Justice Ganpat Singhvi of the Supreme Court has observed, in the wake of repeated violations that have come to light over the last few months, that the law has “become a fraud”. He observed that the law seems to have been drafted with “scant regard for the welfare of the common man”.

B. Changes brought in by the 2013 Act –

 

Compensation:  Acting on the immense variations in different circle rates, the act provides compensations that are up to 4 times the market value in rural areas and 2 times the market value in urban areas.

C. How are interests and concerns of panchayati raj institutions protected?

 

 

PART D: The Right To Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Second Amendment) Bill, 2015

 

Context of the Bill:

 

Key Features:

 

Act: 2013 Act 2015 Amendment Bill
Consent ·         No consent required for government projects.

·         70% land owners consent required for PPP. (public-private partnerships)

·         80% land owners consent required for private projects.

5 exemptions from consent requirement

·         defence

·         rural infrastructure

·         affordable housing

·         industrial corridors set up by the government/governmental undertakings up to 1 km on either side of the road/railway of the corridor

·         infrastructure including PPP projects where the government owns the land.

Social Impact Assessment ·         SIA is mandatory for all acquisitions except: a) in cases of emergency or b) for irrigation projects where an Environmental Impact Assessment is required. ·         1. Defence, 2. Rural infrastructure, 3. Affordable housing, 4. Industrial corridors, and 5. Infrastructure projects including Public Private Partnership (PPP) projects where the central government owns the land are exempt from SIA

·         The appropriate government is to ensure that the extent of land being acquired is keeping in view the bare minimum land required for such project

Irrigated multi-cropped land ·         Cannot be acquired beyond a specified limit layed down by the state government ·         The 5 categories mentioned above can be exempt from this limitation.

·         The government is to ensure that the extent of land being acquired is keeping in view the bare minimum land required for such project.

Offences by the government officials ·         If an offence is committed by a government department, the head of the department will be deemed guilty unless he can show that he exercised due diligence to prevent the commission of the offence ·         This provision is deleted.

·         Prior sanction of the government will be required before prosecuting a government employee.

Retrospective Application ·         The 2013 Act will apply in case an award has been made five years or more before the commencement of the act, but the physical possession of the land has not been taken or compensation has not been paid. ·         For the purpose of calculating the time period for retrospective application, any period during which the proceedings were held up: i) due to a stay order of the court or ii) for a period specified in the award Tribunal, or iii) for any period where possession was taken but the compensation is lying deposited in a court or any designated account, will not be counted
Return of unutilized land ·         If land acquired under the Act remains unutilized for 5 years from the date of taking possession, it must be returned to the original owners or a land bank ·         The period after which unutilized land has to be returned will be the later of i) five years or, ii) any period specified at the time of setting up the project.
Change from ‘private company’ to ‘private entity’ ·         Private Company defined in the Companies Act, 1956 or the Societies Registration Act, 1860 ·         ‘Private Company’ changed to ‘Private Entity’ which includes a proprietorship, partnership, company, corporation, non-profit, etc.
Rehabilitation and Resettlement Award ·         Includes employment to one member of an affected family ·         Clarifies that this will include employment to ‘one member of such affected family of farm labour’ must be given
Land Acquisition, Rehabilitation and Resettlement Authority ·         In case someone is not satisfied with an award under the Act, they can approach the LARR Authority ·         Adds that the LARR Authority must its hearing in the district where land acquisition is taking place, after a reference form the Collector and giving notice to all concerned parties.
Compensation & Rehabilitation & Resettlement of 13 other laws that govern land acquisition ·         13 Act (such as National Highways Act, 1956 and the Railways Act, 1989) are exempt from provisions of the Act

·         The compensation and R&R provisions of these Acts to be brought in consonance with the Act by January 1, 2015

·         Compensation and R&R provisions of 13 Acts are in consonance with the Act.

 

 

PART E: STATES THAT HAVE ENACTED LAND BILLS TO CIRCUMVENT THE HURDLES AT THE CENTRE

 

  1. GUJARAT:

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Gujarat Amendment) Bill, 2016

(Presidential assent received on the 8th of August, 2016)

 

KEY PROVISIONS:

 

 

 

 

 

 

 

  1. RAJASTHAN

The Rajasthan Land Acquisition Bill, 2014    

The proposed bill has been uploaded on the Revenue Department’s website.

 

KEY PROVISIONS:

 

 

 

 

 

 

 

 

  1. JHARKHAND

Right To Fair Compensation and Transparency In Land Acquisition, Rehabilitation And Resettlement Rules, 2015

 

References:

larr 2013 Act

31st December 2014

3rd April 2015

 

LARR (2nd A) Bill, 2015

May 30 2015

The Rajasthan Land Acquisition Act 2014

The 2016 Gujarat Bill-2