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OVERVIEW ON

THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013

� 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 1894�

• Key problems with land acquisition act 1894

Under the 1894 Act Govt could 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 people’s land was acquired at throw away price in pretext of development project.

Sometimes such projects never started and the same cheap land was sold at higher price to real estate developers without building anything for “public purpose” .

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• No safeguards: No real appeal mechanism to stop the process of acquisition. A hearing under section 5 is prescribed but this was not a discussion for negotiation. The views expressed are not required to be taken on board by the officer conducting the hearing .
• Silent on resettlement and rehabilitation of those displaced: No provisions in the 1894 law relating to the resettlement and rehabilitation of those displaced by the acquisition.
• Urgency clause: This is the most criticized section of the law the clause never truly defines what constitutes an urgent need and leaves it to the discretion of the acquiring authority.
• key problems with the land acquisition act 1894
• 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The rates paid for the land acquired are the prevailing circle rates in the area which are notorious for being outdated and hence not even remotely indicative of the actual rates prevailing in the area .
• Litigation: Even where acquisition has been carried out the same has been challenged in litigation on the grounds mentioned above. This results in the stalling of legitimate infrastructure project.

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• The Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement(RFCTLARR) Act 2013 which came into force from 1st January 2014 .
• The principal objective of the new Act is fair compensation, thorough resettlement and rehabilitation of those affected, and complete transparency in the process of land acquisition. The title has been amended to reflect this .
• Retrospective operation: To address historical injustice it applies retrospectively to cases where no land acquisition award has been made . Also in case where the land was acquired 5 years ago but no compensation has been paid and acquisition process will be started a fresh.

• Land is a scarce natural resources
• Article 300 (A) of the Constitution says no person can be deprived of his property save by authority of law. Land Acquisition Act fulfils the constitutional obligation.
• LA Act 1894 was 120 year old.
• Absence of cohesive national law that address fair compensation, rehabilitation and resettlement to the land owner
• Absence of provision to address the issues directly affected from the loss of livelihood
• Absence of proper mechanism for arriving market value of land
• Absence of provision for weaker sections of the society (Sec. 41)

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Introduction & Need for a new Act

Salient features of RFCTLAR&R Act 2013

• First time provision of Social Impact Assessment Study for proposed projects prior to Preliminary Notification.
• Recognize non owners as Affected Families like Share Croppers, Tenants and Agricultural Labourers
• A mode of Acquisition requiring consent of displaced persons ( for private companies 80% and for PPP projects 70%)
• Statutory rehabilitation and resettlement entitlements for the project affected families
• Restricted the grounds on which land may be acquired under the urgency clause
• Recognition of principle of Social cost minimisation
• Special Provision for food security U/S 10 of the Act( no irrigated multi-cropped land shall be acquired).
• Return of land to Land Bank/Original Owners as per section 101 of the Act.

Important Provisions of the RFCTLAR&R Act 2013

Difference between Old and New Act

Difference between Old and New Act

Step by Step Procedure followed for Land Acquisition as per RFCTLAR&R Act , 2013

Requisitioning Authority submit Proposal for Land Acquisition to Collector

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Collector sends Proposal to State Unit, Omeo Kumar Das Institute of Social Change and Development (OKDISCD/OKD) for SIA Study

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OKD prepare Terms of Ref( ToR) and Estimate for conducting the SIA Study and intimate to Collector

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Requisitioning Authority Deposit the money

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Collector select Agency from empaneled list and request Government for Notification U/S 4 of the Act to conduct SIA study

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SIA study by OKD and publication in the locality

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Formation of Expert group by Collector and Conducting of Gram Sabha

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Collector to submit Specific proposal and Expert Group Recommendation to Govt.

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Notification by the Government U/S 8(2) and publication in the locality

Preliminary Notification U/S 11(1) of the Act for Acquisition

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Objection hearing U/S 15 of the Act

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Declaration U/S 19(1), after verifying the Sanction Estimate, Fund certificate, R&R Certificate and no objection certificate

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Notice to Awardees U/S -21 and Payment of compensation U/S 23 of the Act

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Power to take possession U/S 38 of the Act

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Challenges Faced by the Authority

• Timely completion of SIA study.
• Consent of displaced persons ( for private companies 80% and for PPP projects 70%)
• Conducting Gram Sabha and getting people consent.
• Calculation of Market Value of land.
• Identifying the Affected Families(In addition to to land owner).
• Litigation due to inheritance.
• Multiple sales which have not been properly recorded.
• Tough Resettlement and Rehabilitation laws.
• More need of land for Big Institution and Industries .
• Land Record updation.

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Way Ahead

• Complete digitization and real time updation of land records.
• Using of latest technology in revenue offices for land record updation.
• Assurance of stable high speed internet connectivity for real time land records updation.
• Rent Abatement and Revision of Records in a time bound manner
• Effective R&R Mechanism

• END

Details of the Land Acquisition Act

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• Under this Act land will be acquired for public purpose for (i) the appropriate Govt., including P.S.U.s, for (ii) P.P.P. projects, (iii) private companies.

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Requisition for acquisition of land

• Requiring Body shall submit detailed proposal for acquisition of land to the Collector and Commissioner, Rehabilitation & Resettlement.
• Collector shall conduct preliminary enquiry about the correctness of the particulars furnished in the requisition and shall calculate the approximate cost of acquisition of the land and other charges and arrive at the administrative cost.

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Consent

• For P.P.P. projects :

70 % of the affected families.

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• For private companies :

80% of the affected families.

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Sec-2 (2)

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�Social Impact Assessment Study �

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• An S. I. A. study needs to be carried out, when it is intended to acquire land for public purpose Sec-4
• There will be an S.I.A. Unit in the State.
• The State Govt. will issue Notification for S.I.A. after receipt of the processing fees from the RD.
• The SIA will be completed within 6 months from its commencement.
• The State Govt. will select the S.I.A. team from the empanelled list of S.I.A. Units with the State Govt.

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�S.I.A. study to include (Sec-4.4) :�

• (i) Whether it serves public purpose
• (ii) Affected families & families likely to be displaced
• (iii)Land proposed is absolute bare minimum
• (iv) If L.A. at alternate place has been considered and found not feasible.
• (v) study of social impacts of the project & the nature and cost of the addressing them vis-a-vis the benefits of the project.

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Social Impact Management Plan {Sec-4 (6)}

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• The authority conducting S.I.A. study shall prepare a Social Impact Management Plan also, which will present the ameliorative measures to be undertaken to address the social impacts identified in the course of the assessment and submit the SIMP along with the S.I.A. report.

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�Public hearing for Social Impact Assessment (Sec-5) :�

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• Public hearing in the affected areas to be conducted, giving wide publicity about the date, time & venue seeking feedback on the findings of the SIA
• Views of the affected families to be recorded and included in the final Social Impact Assessment study Report.

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��Appraisal of S.I.A. report by an Expert Group (Sec-7) : ��

• Report of the S.I.A. shall be evaluated by an independent multi-disciplinary Expert Group, constituted by the Govt.
• The Expert Group includes:
• 2 non official social scientists
• 2 reps of Panchayat/Gram Sabha/Municipality/ Municipal Corporation as the case may be
• 2 experts on rehab.
• 1 technical expert in the subject relating to the project

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Recommendations of the Expert Group {Sec-7 (5)}

Expert Group shall furnish its recommendations on the proposed acquisition within 2 months to the appropriate Govt.

• To abandon the project, if

(i) the project does not serve any public purpose.

(ii) the social cost & adverse social impact of the project outweigh the potential benefits

• To make specific recommendations ,if

(i) The project will serve any public purpose

(ii) the potential benefits outweigh the social cost & adverse social impact of the project.

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�Examination by the Govt. and its decision as regard to the proposed acquisition (Sec-8) :�

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• The Govt. after considering all the reports of the Expert Group and of the Collector, if any, will recommend such area for acquisition which would ensure minimum displacement of people, minimum disturbance to the infrastructure, ecology and minimum adverse impact of the individuals affected.

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�Preliminary Notification {Sec-11 (1)}:�

• A preliminary Notification U/S 11(1) along with details of the land to be acquired shall be published in

(a) Official Gazette;

(b) two daily news papers circulating in the locality;

(c) in the local language to the Panchayat, Municipality or Municipal Corporation as the case may be, and in the offices of District Collector, the Sub Divisional Magistrate & the Tehsil ;

(d) uploaded in the website of the Govt. and

(e) in the affected areas.

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• Immediately after issuance of the Notification the Gram Sabhas / Municipalities / Autonomous Councils shall be informed about the contents of the Notification and a meeting shall be called specially for this purpose {Sec-11 (2)}.

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�Lapse of the Social Impact Assessment report (Sec-14) :�

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• If the Preliminary Notification U/S 11(1) is not issued within 12 months from the date of appraisal of the S.I.A. report submitted by the Expert Group U/S 7 then such report shall be deemed to have been lapsed.

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• Govt. shall have the power to extend the period of 12 months, if in its opinion circumstances exist justifying the same.

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�Hearing of Objections (Sec-15) :�

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• Any person interested in any land which has been notified U/S 11(1), may within 60 days from the date of the publication of the preliminary Notification object to
• (a) the area and suitability of the land proposed to be acquired
• (b) justification offered for public purpose
• (c) the findings of the Social Impact assessment report in writing to the Collector.
• Collector shall send the report on objection with his recommendations to the appropriate Govt.

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Administrator for Rehabilitation & Resettlement

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• Administrator R & R is an officer not below the Rank of ADC, SDO or equivalent official of Revenue Deptt. appointed by the State Govt. by notification for the project.

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�Preparation of Rehabilitation & Resettlement Scheme (Sec-16) :�

• After publication of the preliminary notification, the Administrator for Rehabilitation & Resettlement shall conduct a survey and census of the affected families, based on which he shall prepare a draft Rehabilitation & Resettlement scheme.
• The survey and census part will be completed within 2 months.
• The draft Scheme shall be made known locally by wide publicity in the affected area and a public hearing shall be conducted.
• The Administrator shall submit the draft Rehabilitation & Resettlement Scheme along with the objections and claims raised in the public hearing to the Collector.

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�Approval of the Rehabilitation & Resettlement Scheme �

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• Collector shall review the draft Scheme within 1 month and submit along with his recommendations to the Commissioner, Rehabilitation & Resettlement for approval (Sec-17).
• The approved R & R scheme shall be published in the affected area by affixing a copy of it in a notice board of the District Collector, Sub-Divisional Officer, Circle Officer, Panchayat, Municipality or Municipal Corporation and will be uploaded in the web site of the Government and the District Collector (Sec-18).

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Elements of Rehabilitation & Resettlement

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• The affected families of the Projects where

preliminary notification under sub-section (1) of section 11 of the Act, is issued are entitled to receive elements of rehabilitation and resettlement as per Second and Third Schedule

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Entitlement as per Second Schedule

• House to be allotted  
• Land to be allotted
• Transportation cost
• Housing allowances 
• Annuity
•  Employment
•  Subsistence grant
• Cattle shed
•  Petty shop
• Fishing rights
•  One time grant
•  One time resettlement allowance

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Entitlement as per Third Schedule

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State Monitoring Committee for Rehabilitation and Resettlement (Sec -50)

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• The State Government shall constitute a State Monitoring Committee for monitoring and reviewing the progress of implementation of the Rehabilitation and Resettlement Schemes or plans under the Act

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The Rehabilitation and Resettlement Committee at Project Level (Sec-45)

• The State Government shall constitute a Rehabilitation and Resettlement Committee at project level if land proposed to be acquired is equal to or more than 100 acres to monitor and review the progress and implementation of the Rehabilitation and Resettlement Scheme and to carry out post-implementation social audits in consultation with the Gram Sabha in rural area and municipality in urban areas.

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Provisions of R&R in case of land purchased through private negotiation (Sec-46)

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• Application of the provisions relating to Rehabilitation & Resettlement is extended in case of land purchased through private negotiation by any persons other than the Government, Government Company and Trust or Society aided or controlled by the Government.

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• The limit of area for such purchase shall be determined by the appropriate Govt.

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Publication of Declaration :�

• When the appropriate Govt. is satisfied, after considering the report of the Collector, if any, that any particular land is needed for a public purpose, a Declaration shall be made to that effect, along with a declaration of an area identified as the “resettlement area” for the purposes of rehabilitation and resettlement of the affected families {Sec-19 (1)}.
• A summary of the Rehabilitation & Resettlement scheme shall also be published along with the Declaration {Sec-19 (2)}.

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• No Declaration shall be made unless the Requiring Body deposits an amount, in full or part, toward the cost of acquisition of the land {Sec-19 (2)}.

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• Where no declaration is made U/S 19(1) within a period of 12 months from the date of publication of the preliminary Notification, then such notification shall be deemed to have lapsed. Govt. shall have the power o extend the period of 12 months, if in its opinion circumstances exist justifying the same {Sec-19 (7)}.

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�Public notice to persons interested (Sec-21) : �

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• The Collector shall publish public notice on his websites and cause public notice to be given at convenient places on or near the land to be acquired, stating that the Govt. intends to take possession of the land and inviting claims to compensations and rehabilitation & resettlement for all interests in such land.

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Making of Award (Sec-23) :�

• The Collector shall make an Award within a period of 12 months from the date of publication of the Declaration U/S 19 and if no Award is made within that period, the entire proceedings for the acquisition shall lapse.

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Compensation to be awarded (Sec-26, 30 & First Schedule)

• (i) Market value of the land

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• (ii) Multiplication by a factor in the case of rural area :: 1.00 to 2.00 based on the distance of the project from urban area.

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• (iii) Multiplication by a factor in the case of urban area :: 1.00

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• (iv) Value of assets attached to land or building

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• (v) Solatium :: 100% of the market value of land, multiplied by the factor specified for rural areas or urban areas above plus Value of assets attached to land or building

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• The Collector shall, in every case, award an amount calculated @ 12 % per annum on the market value of the land, for the commencing on and from the date of publication of the Notification of the SIA study in respect of the land, till the date of the Award or the date of taking possession of the land, whichever is earlier.

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Factor notified by the Govt. of Assam for rural area

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• Within a radial distance of 10 Km from urban area =1.5

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• Beyond a radial distance of 10 Km from urban area = 2

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�Rehabilitation & Resettlement Award {Sec-31 (1)} :�

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• The Collector shall pass Rehabilitation & Resettlement Awards for each affected families in terms of the entitlements provided in the Second Schedule.

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Compensation for acquisition of land under the 13 nos. of Acts specified in the Third Schedule

• The provisions relating to compensation in accordance with the First Schedule of the Act,

R&R specified in the Second Schedule of the Act and infrastructure amenities specified in the Third Schedule of the Act shall be extended to acquisition of land under the 13 (thirteen) Acts mentioned in the Fourth Schedule of the Act (which also includes N.H. Act, 1956) w.e.f. 1^st January, 2015.

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�Power to take possession of land to be acquired {Sec-38 (1)} :�

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• The Collector shall take possession of the acquired land after ensuring full payment of compensation as well as rehabilitation & resettlement entitlements are paid or tendered to the entitled persons, within a period of 3 months for the compensation & a period of 6 months for the monetary part of rehabilitation & resettlement entitlements from the date of the award made U/S 30.

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�Specials powers in case of Urgency (Sec-40) :�

• In cases of urgency, whenever the Govt. so directs, the Collector though no such awards have been made, may, on the expiration of 30 days from the publication of the notice U/S 21, take possession of any land needed for a public purpose (minimum area for defence of India or national security or any emergencies arising out of natural calamities or any other emergency with the approval of Parliament) free from all encumbrances.

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• Before taking possession of any land the Collector shall tender payment of 80 percent of the compensation for such land to the person interested entitled to.

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• In case of urgency Govt. may direct that any or all of the provisions of Chapter-II to Chapter-VI shall not apply.

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Acquisition in the Scheduled areas (Sec-41)�

• As far as possible no acquisition of land shall be made in the Scheduled areas.

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• For acquisition or alienation of land in Scheduled areas prior consent of the Gram Sabha/Panchayat/ Autonomous District Council shall be obtained, in all cases of acquisition, including in cases of urgency.
• A development plan shall be prepared for settling the land right dues and restoring the titles of the SC & ST families displaced by the acquisition

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� Land Acquisition, Rehabilitation and Resettlement Authority {Sec-51 (1)}:�

• Any person interested, who has not accepted the Award, by written application to the Collector, require that the matter may be referred by the Collector for the determination of the Authority, whether his objection be to the measurement of the land, the amount of the compensation, the person to whom it is payable, apportionment of the compensation among the persons interested etc. {Sec-64 (1)}.

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• The Collector shall within 30 days from the date of receipt of application, make a reference to the appropriate Authority.

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Return of unutilized land (Sec-101) :�

• When any land acquired under this Act remains unutilized for a period specified for setting up of any project or for 5 years, whichever is later from the date of taking over possession, the same shall be returned to the original owner/legal heirs of the owner or to the Land Bank of the Govt. by reversion.

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�END

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