Current Affairs
Land Acquisition Bill: The main points of debate and controversy
Prime Minister Modi is now leading the government from the front and has directed all his MPs to aggressively defend the Bill and not be affected by the oppositions' charges. The Bill will replace the ordinance promulgated by the government in December 2014, which had brought changes in the Right to Fair Compensation and Transparency in Land Acquisition, Resettlement and Rehabilitation (Amendment) Act (RFCTLARR) passed in 2013 by the UPA government. If the Bill is not passed in this session, then the ordinance will lapse and cannot be introduced again.
Till now whenever the government acquires a land, it is done under the Land Acquisition Act 1894. In 2007, the UPA government brought in The Rehabilitation and Resettlement Bill to replace the Act.
After the Modi government took over in May 2014, it decided to make some amendments in the Bill which have become a bone of contention. According PRS Legislative Research these are:
1.Excluded Acts brought under the RFCTLARR Act:
According to the Act 2013, 13 Acts were excluded from the RFCTLARR Act but with the new ordinance they are now brought under its purview. Thus, it brings the compensation, rehabilitation and resettlement provisions of these 13 laws in consonance with the Act.
2. Removal of consent clause in five areas:
The ordinance removes the consent clause for acquiring land for five areas - industrial corridors, public private partnership projects, rural infrastructure, affordable housing and defence.
The ordinance also exempts projects in these five areas from Social Impact Assessment and acquisition of irrigated multi-cropped land and other agricultural land, which earlier could not be acquired beyond a certain limit.
3. Return of unutilised land:
According to the Act 2013, if the land remains unutilised for five years, then it needs to be returned to the owner. But according to the ordinance the period after which unutilised land needs to be returned will be five years, or any period specified at the time of setting up the project, whichever is later.
4. Time frame:
The ordinance states that if the possession of acquired land under Act 1984 is not taken for reasons, then the new law will be applied.
5. Word 'private company' replaced with 'private entity':
While the Act 2013 stated that the land can be acquired for private companies, the ordinance replaced it with private entity. A private entity is an entity other than a government entity, and could include a proprietorship, partnership, company, corporation, non-profit organisation, or other entity under any other law.
6. Offence by government officials:
If an offence is committed by a government official or the head of the department, then s/he cannot be prosecuted without the prior sanction of the government.
What are the highlights of the new Bill?
Compensation:
Given the inaccurate nature of circle rates, the Bill proposes the payment of compensations that are up to four times the market value in rural areas and twice the market value in urban areas.
R&R:
This is the very first law that links land acquisition and the accompanying obligations for resettlement and rehabilitation. Over five chapters and two entire Schedules have been dedicated to outlining elaborate processes (and entitlements) for resettlement and rehabilitation. The Second Schedule in particular outlines the benefits (such as land for land, housing, employment and annuities) that shall accrue in addition to the one-time cash payments.
Retrospective operation:
To address historical injustice the Bill applies retrospectively to cases where no land acquisition award has been made. Also in cases where the land was acquired five years ago but no compensation has been paid or no possession has taken place then the land acquisition process will be started afresh in accordance with the provisions of this act.
Multiple checks and balances:
A ‘comprehensive, participative and meaningful’ process (involving the participation of local Panchayati Raj institutions) has been put in place prior to the start of any acquisition proceeding. Monitoring committees at the national and state levels to ensure that R&R obligations are met have also been established.
Special safeguards for tribal communities and other disadvantaged groups:
No law can be acquired in scheduled areas without the consent of the Gram Sabhas. The law also ensures that all rights guaranteed under such legislation as the Panchayat (Extension to Scheduled Areas) Act 1996 and the Forest Rights Act 2006 are taken care of. It has special enhanced benefits (outlined in a dedicated chapter) for those belonging to Scheduled Castes and Scheduled Tribes.
Safeguards against displacement:
The law provides that no one shall be dispossessed until and unless all payments are made and alternative sites for the resettlement and rehabilitation have been prepared. The Third Schedule even lists the infrastructural amenities that have to be provided to those that have been displaced.
Compensation for livelihood losers:
In addition to those losing land, the Bill provides compensation to those who are dependent on the land being acquired for their livelihood.
Consent:
In cases where PPP projects are involved or acquisition is taking place for private companies, the Bill requires the consent of no less than 70% and 80% respectively (in both cases) of those whose land is sought to be acquired. This ensures that no forcible acquisition can take place.
Caps on acquisition of multi-crop and agricultural land:
To safeguard food security and to prevent arbitrary acquisition, the Bill directs states to impose limits on the area under agricultural cultivation that can be acquired.
Return of unutilized land:
In case land remains unutilized after acquisition, the new Bill empowers states to return the land either to the owner or to the State Land Bank.
Exemption from income tax and stamp duty:
No income tax shall be levied and no stamp duty shall be charged on any amount that accrues to an individual as a result of the provisions of the new law.
Share in appreciated land value:
Where the acquired land is sold to a third party for a higher price, 40% of the appreciated land value (or profit) will be shared with the original owners.
How are interests and concerns of farmers protected?
Retrospective effect:
Where awards are made but no compensation has been paid or possession has not been taken, compensation shall be paid at the rate prescribed under the new Act. Where the Award has not been made the entire process shall be considered to have lapsed. Also where acquisition has taken place five years prior to the commencement of the new law but no compensation/ possession has taken place the proceedings shall be deemed to have lapsed.
Consent:
Prior-consent shall be required from 70% of land losers and those working on government assigned lands only in the case of public-private partnership projects and 80% in the case of private companies. This consent also includes consent to the amount of compensation that shall be paid.
Return of unutilized land:
Land not used can now be returned to the original owners if the state so decides.
Share in sale of acquired land increased:
The share that has to be distributed among farmers in the increased land value (when the acquired land is sold off to another party) has been set at 40%.
Income-tax Exemption:
All amounts accruing under this act have been exempted from income tax and from stamp duty.
Strict restrictions on multi-crop acquisition:
The acquisition of agricultural land and multi-crop land has to be carried out as a last resort. There will be definite restrictions on the extent of acquisition of such land in every state to be determined by the States concerned.
Safeguards to ensure fair price:
Given the way in which market value is to be calculated and the imposition of a solatium of 100% over and above the amount, the farmers are guaranteed a fair price for their land.
Acquisition only if necessary:
The Collector has to make sure that no other unutilized lands are available before he moves to acquire farm land.
Damage to crops to be included in price:
The final award has to include damage to any standing crops which might have been harmed due to the process of acquisition (including the preliminary inspection).
Share in developed land:
In case their land is acquired for urbanization purposes 20% of the developed land will be reserved and offered to these farmers in proportion to the area of their land acquired and at a price equal to the cost of acquisition and the cost of development.
Fishing rights:
In the case of irrigation or hydel projects, affected families may be allowed fishing rights in the reservoirs.
Additional R&R benefits:
Farmers are also entitled to the various rehabilitation and resettlement benefits which are enumerated in response to question 2.
Time-bound social impact assessment:
The Bill mandates a social impact assessment of every project which must be completed within a period of six months.