Land Acquisition 2013

Drashti Joshi
Khushali Modi
Milan Prajapati
Shivani Patel
 What Is Land
Acquisition?
• Land acquisition is the process by which the government acquires private
property
for public purpose.

• Till 2013, Land Acquisition in India was governed by Land acquisition Act of
1894.
LandAcquisition Act of
1894
• Purpose of facilitating acquisition of privately held land by the government for public purposes.

• Land Acquisition means the acquisition of land for some public purpose by a government agency
from individual landowners, as authorized by the law, after paying a
government fixed compensation to cover losses incurred by landowners from surrendering their
land to the concerned government agency.
 Problems with the Land acquisition Act, 1894
 In 1894 ACT , The Government acquire any land as it wishes
to, in
the name of “ public purpose”.

 The term public purpose Was ambiguous and open to

executive – discretion. So poor peoples land was acquired at
throwaway prices in pretext of development projects.

 No safeguards – There is no real appeal mechanism to

stop the process of the acquisition.

 Urgency Clause: 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.

 Low rate of compensation.

 Litigation
 Salient Feature Of LARR – 2013
Act
favor's fair compensation rather than fast acquisition of land. Minimum
Compensatio compensa tion for land acquisition
n
Consent of ‘Affected families’ have been defined as ‘land owners’ and ‘livelihood
Families(70- losers’.
80%) In the Resettlement area, 25 infrastructural amenities have to be provided to
Infrastructur minimize the impact of relocation. (Ex.,Roads ,proper drainage and
sanitation, drinking etc.,)
e
farm land will be acquired only when no unutilized land is available, consent of land
Restriction losers, damage to crops will be included in compensation price, 20% of the develop
on fertile ed land (if land was acquired for urbanization purpose) will be offered to the
farmers.
Land Under the new Act, land can be returned to original owners if the State so
Land Return decides, w ith the condition that land is not used within 5 years in accordance
to original with the purpose for which it was acquired.
owner
Additional Relief to Special provisions, in addition to the R& R package, have been given for
SC/ST SCs/STs.
 Important Provision of The New Law
Compensation: Compensation in Rural areas would be calculated by
multiplying value by two and adding attached to the land or building and adding
a solatium.
Compensation for livelihood losers: In addition to those who losing land
the bill provides compensation to those who are depended on the land being
acquired for their livelihood.
The time period has been reduced to three years of dependence from five (on
the acquired land)

Fishing Rights: In the case of irrigation or hydel projects, affected families

may be allowed fishing rights in the reservoirs.

Share In appreciated land value: The acquired land is sold to a third party
for higher price,40 % of the appreciated land value will be shared with the
original owners.
Consent: Consent of up to 80% of people require for private projects.

Multi – cropped, Irrigated Land Cannot be acquired Unless it is for defence or emergency
caused by natural calamity.

Land should be returned to original owner or the state land bank if not used in five years for the
purpose for which it is acquired.

The government will not acquire land for private companies for private purpose.

Exemption from income tax and stamp Duty: No income Tax shall be levied and no stamp
duty shall be charged on any amount that accuse to an individual as a result of the provisions of the
new law.
The Bill also Proposes amenities like, schools, health centres and civil
infrastructure in
places where project – affected people are resettled.
The social impact assessment (SIA) has to be carried out in consultation
with the representatives of the Panchayati raj institutions (PRIs).
 Procedure for the Land Acquisition

1. Investigation
Process: • After the government approve about purpose,
When An application required Made
Local area, and other facts as provided under land
authority
by it to the revenue authority acquisition rules , issue a notification under
Require section 4 of the act that the particular land is
a land
Accompanied with a copy of the
required for public purpose.
plan
Showing survey nos.
2. Objection :
Purpose of acquisition  Purpose for which the land is proposed for
acquisition is not a public purpose.

Reason of choosing this side  Area under acquisition is excessive.

 Acquisition will destroy or impair historical

Cost of Acquision or artistic monuments or will desecrate
religious buildings.
3. Claim and 4. Reference to court
Award:
 The collector will issue notices under section 9 to  Any person interested to whom the award is
all person interested in the acquisition to file their not satisfactory can submit a written
claim reports. application to the court.

 Determining the compensation the market value of  Application should be made within six weeks
the land is determined at the date of notification. from the date of declaration of the award.

 Compensation is also payable when

--->The land notified for acquisition has
standing
crops or trees.
---> Person interested has to change his place
of residence or business then the excess rent
payable for the new premises is also considered for
compensation.

 After Inquires the collector Declare His award

showing true value, total amount of compensation
payable and apportionment of compensation if
there are more than owners or claimants.
 Case Study 1: Tata Nano Project, Singur

• This case is based on Divya Gupta (2014). In the

second half of 2006, the West Bengal
government acquired 997 acres of prime
agricultural land in Singur are of West Bengal
state in order to enable M/s Tata Motors, a
leading industry house in India, to build a factory
for manufacturing Nano car, its new model
touted as small and cheap car.

• In order to do so, the State government used its

power of eminent domain under the aegis of the
1894 Land Acquisition Act.

• A household survey in 12 Singur villages, which

were acquired for Tata Car Factory, was
conducted by Ghatak et al. (2013).
• The West Bengal government
subsequently decided to acquire the area
required for the car factory and offer
compensation to the farmers and other
land owners whose lands were being
acquired as required by the 1894 Act.

• The local community of Singur was

incensed by this action, and put up
resistance led by farmer households
against forced acquisition and
displacement.

• land was acquired from marginal

landowners, and from those engaged in
cultivation on the acquired plots.

• For most affected owners, more than half

the land they owned in 2005 was
acquired.
• Acquisition of land resulted in 40% lower income growth
for owners and half that for tenants.

• compared with unaffected agricultural workers, who in

turn, experienced smaller earnings growth compared with
non-agricultural workers. land acquisition large fraction of
affected owners, tenants and workers.

• A large fraction of owners were under-compensated

relative to market values.

• Tenants were under-compensated and agricultural workers

were not compensated at all.

• Singur case clearly expressed the ground level hurdles that

need to be overcome for successful land acquisition.
 Parameter LAA, 1894 RFCT LAR&R, 2013 RFCT LARR, 2015

Public Purpose No effect of this clause would have No effect of this clause would have No effect of this clause would have
affected affected affected

Consent of affected purpose As there was no provision of consent, it This would have increased the time It would have the same effect as that
reduced the time for acquisition but this for acquisition but later people of 2013 Act
was the main cause of Tata Nano Plant’s wouldn’t have complained about
Failure. forceful acquisition of their land

Social Impact Assessment (SIA) Since there was no provision of this clause, This would have certainly helped It would have been same as 2013 act.
it was also the reason of failure of Tata Tata’s project, as all the parameters
Nano Plant. As people who were affected would have already looked upon to
later on rose up together in a group along avoid any problem at later stage
with the Political support.

Compensation Market prices of the lands were The compensation in this act is much It would have been same in case of
determined by land records of already sold higher which would increase the cost 2013 Act.
lands. But the records were misclassified in of the project, but certainly it would
order to save Stamp Duty. Due to this many lead to satisfaction of owners of
farmers were under compensated, which acquired land. And it would lead to
was also the reason of failure this project. the success of the project.
Market Value The market values were misclassified, this lead to under The market price in this case would be higher Same as 2013 Act.
compensation of many farmers which lead to which increase the cost of the project but certainly
dissatisfaction among these farmers and then they rose it would beneficial during the operation stage of
up together, which caused the project to go in vain the project

Solatium This was low only 30% of the market value. As already 100% solatium will certainly cost more for the Same as 2013 Act.
stated market value was misclassified, the farmers didn’t project during the acquisition stage. But the
get proper solatium which in turn affected the project’s chances of project getting successful will be much
success. higher.

R&R The affected families were not provided with job security providing Job security to the members of affected same as 2013 Act
and the shelter of their livelihood which created a more family and shelter for their livelihood would
hurdles in the project which lead to failure of project. increase project cost and also some portion of
employment would be unqualified for the project
thereby creating project hurdle.

Food security Many lands where multi crops were cultivated were Only 5% of multi cropped land can be acquired Same as 2013 Act as the
acquired; this reduced the production of many crops under this act which would help to ensure the project doesn’t fall under
which affected the supply of these crops across the state. Food security for all the people across the stat and the 5 exempted
Thus food security to the people was reduced. Moreover help to ensure the lower cost of acquisition. categories.
the cost of multi cropped land was more so it increased
acquisition cost.

Reference: https://www.researchgate.net/publication/281062269_Comparative_analysis_of_Land_acquisition_acts_in_India_Case_based_approach