Land Acquisition

1. Electronic copy available at: http://ssrn.com/abstract=2554903
RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION AND REHABILITATION &
RESETTLEMENT AMENDMENT ORDINANCE NO.9 OF 2014—A CRITICAL REVIEW.
Binod Chandra Mishra
binodbam@gmail.com
+91 9437966037
Abstract
Government of India came up with Gazette Notification on 31st
December 2014 amending the large
awaited “Right to Fair Compensation and Transparency in Land Acquisition and Rehabilitation &
Resettlement Act” through an ordinance on the ground that Parliament is not in session and the
President is satisfied with circumstances existed, which referred it necessary for him to take immediate
action.
It was strongly objected by Congress and its allies. But the fact is that the stalemate that has occurred
due to induction of new Act w.e.f 1st
January 2014 will now start moving with positive direction. The
ordinance will create confidence in the minds of the investors as the consent clauses has been diluted
and investment atmosphere crated which will facilitate for industrial growth of the country. Even if the
new NDA government in India has made a slogan of “Make in India” and has made several round of
meeting with investors to attract them for investment in India the Land Acquisition Act 2013 was one of
the biggest bottlenecks for the investors to think investing in large scale in India. Other than this the 2nd
tailbacks is mining lease. Uncertainty in mining lease and uncertainty in land acquisition will certainly
create doubt in the mind of investors, who will probably think thrice before investing in India. This
article is intended to make lucid analysis of various provisions of Ordinance-9, 2014 with an intention to
make it understandable to the common man and view of the investor who might be searching and
surfing with a good intention to participate in make in India programme of the new government.
THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN
LAND ACQUISITION, REHABILITATION AND RESETTLEMENT
(AMENDMENT) ORDINANCE No. 9 OF 2014
Amendment to the Provision of Sec 2(2)(B)(i)
Private Company
The word Private company in the Principal Act is
substituted as Private entity.
It implies not only the companies are covered in this
Act also private trust, NGO, society are included for
land acquisition under this Act.

2. Electronic copy available at: http://ssrn.com/abstract=2554903
Minor change like incorporation of companies act
2013 instead of companies Act 1956 in Sec. 3(j)(i).
Since Act 18 of 2013 has came into force as
Companies Act 2013 , its natural at Act 1 of 1956
that is the companies act 1956 has been replaced
Incorporation of Sec. 10-A
Incorporation of Sec. 10-A, which reads as
the appropriate government may in the public
interest by notification exempt any of the
following projects from the application of the
provisions of Chapter-II (Determination of Social
Impact on Public purpose) and Chapter-III
(Special provision for safeguard food security).
They are :
(a) such projects vital to national security or
defence of India and every part thereof, including
preparation for defence; or defence production;
(b) rural infrastructure including electrification;
(c) affordable housing and housing for the poor
people;
(d) industrial corridors ; and
(e) infrastructure and social infrastructure projects
including projects under public private partnership
where the ownership of land continues to vest with
the Government.".
It is intended to facilitated land acquisition for
industrial corridors to be notified by the
government and PPP projects. However all these
cases for LA to be made through organisation so
that the ownership to be continued by the
government.
Amendment of Sec. 24, Sub.Sec. 2
"Provided further that in computing the period
referred to in this sub-section, any period or periods
during which the proceedings for acquisition of the
land were held up on account of any stay or injunction
issued by any court or the period specified in the
award of a
Tribunal for taking possession or such period where
possession has been taken but the compensation
lying deposited in a court or in any account
maintained for this purpose shall be excluded.“
In recent amendment cases starting from Pune
Municipality case, dt. 24.01.2014 on fist ordr of LA Act
u/s 1984 to the Rajasthan HC order dt. 15.5.2014
(Vidyasagar vrs. State of Rajasthan), the delay beyond 5
years is mostly due to lock up in the Court case. And
the money is deposited in the court. The period has to
be excluded as computation for 5 years. This will save
mostly land cases to be treated lapse under Sec.24 as
delayed in 5 years is naturally lined to locked up in the
court cases.

3. Sec. 46, sub.se 6 in the explanation clause B, the word
any person shall be “other than” shall be omitted.
A minor change not impacting anything excepting
clarity.
Amendment of Sec. 87 of the Act
"87. Where an offence under this Act has been
committed by any person who is or was
employed in the Central Government or the State
Government, as the case may be, at the time of
commission of such alleged offence, no court shall
take cognizance of such offence except with
the previous sanction of the appropriate
Government, in the manner provided in section 197
of the Code of Criminal Procedure."
This is a protective amendment intend to
protect the government officials from the
mistakes in the procedure followed may be
committed by unintentional/
oversight to the process flow time schedule
which normally happens because of engage of
officers linked to the land officer in various kind of
immense of job like natural disaster/ calamities
where the intension of
officer and his machinery is very often diverted
to the emergency nature of job.

4. Amendment of Sec. 101, 105,
The provision in the principal Act u/s 101 that, if a
land is acquired remains unutilized for a period of 5
years from the date of possession shall be returned to
the original land owner or his legal hairs. The period
of 5 years is now substituted with a period for
setting up of a project or for 5 years which ever is
later.
It is an welcome provision since there are many
project coming in India including FDI whose
gestation period is more than 5 years. So this
restrictive plus is a bottleneck for the setting up
of the project in India.
Sec. 105(3) will read as " The provisions of this Act
relating to the determination of compensation in
accordance with the First Schedule, rehabilitation and
resettlement in accordance with the Second Schedule
and infrastructure amenities in accordance with the
Third Schedule shall apply to the enactments relating
to land acquisition specified in the Fourth Schedule
with effect from 1st January, 2015.
Sub.Sec. 4 shall be omitted.
Impact of this amendment is huge on the
government PSUs as Sec. 105 protected almost
13 Acts which are used for Land Acquisition of
different PSUs. The most important is the
payment of compensation in the revised rate and
follow up of the long process. The advantage of
this ordinance is that the land acquisition to be
under Coal bearing Act will not face much
difficulties in acquiring land for associated
activities like water pipeline, township etc which
will be covered under Principal Act.
Sec. 105(3) will read as
" The provisions of this Act relating to the
determination of compensation in accordance with the
First Schedule, rehabilitation and resettlement in
accordance with the Second Schedule and
infrastructure amenities in accordance with the Third
Schedule shall apply to the enactments relating to land
acquisition specified in the Fourth Schedule with effect
from 1st January, 2015.
Sub.Sec. 4 shall be omitted.
Impact of this amendment is huge on the
government PSUs as Sec. 105 protected almost 13
Acts which are used for Land Acquisition of
different PSUs. The most important is the
payment of compensation in the revised rate and
follow up of the long process. The advantage of
this ordinance is that the land acquisition to be
under Coal bearing Act will not face much
difficulties in acquiring land for associated
activities like water pipeline, township etc which
will be covered under Principal Act.

5. Impact of Changes
•It has three important amendments through ordinance which was will impact future LA
• Inclusion of 10 A , amendment to section 24 to exclude the court locked period and the
revision of the 5 year gress period to the projected time under section 101 are the important
high lights of the amendment ordinance
•This will facilitate inviting Big FDIs like POSCO and will stop application of retrospective clause
widely
N B: The author is an experienced Administrative Officer in Government of Odisha and has long
periods of experience in Land Acquisition.

7. The Gazette of India
EXTRAORDINARY
PART II —Section 1
PUBLISHED BY AUTHORITY
31, 201410, 1936 (SAKA)
No. 50] NEW DELHI, WEDNESDAY, DECEMBER 31,2014/PAUSA 10,1936 (SAKA)
Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE (Legislative Department)
New Delhi, the 31st December, 2014, Paus a 10,1926 (Saka)
THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN
LAND ACQUISITION, REHABILITATION AND RESETTLEMENT (AMENDMENT) ORDINANCE, 2014
No. 9 OF 2014
Promulgated by the President in the Sixty-fifth Year of the Republic of India.
An Ordinance to amend the Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013.
WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which
render it necessary for him to take immediate action;
NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution,
the President is pleased to promulgate the following Ordinance:—
1. (1) This Ordinance may be called the Right to Fair Compensation and Short title and Transparency in
Land Acquisition, Rehabilitation and Resettlement commencement (Amendment) Ordinance, 2014.
(Short title and commencement).
(2) It shall come into force at once.
Substitution of certain expression throughout the Act),
2. In the Right to Fair Compensation and Transparency in Land Acquisition, 30 0f 2013 Rehabilitation and
Resettlement Act, 2013 (hereinafter referred to as the Principal Act) for the words "private company"
wherever they occur, the words "private entity" shall be substituted. (30 of 2013)
Amendment of - section 2.
3. In the principal Act, in section 2,
(i) in sub-section (l).-in clause (b), in sub-clause (i), the words "private hospitals', private educational
institutions and" shall be omitted;
(ii) in sub-section (2), after the second proviso, the following proviso shall be inserted, namely: -
"Provided also that the acquisition of land, for the projects listed in section 10A and the purposes
specified therein, shall be exempted from the provisions of the first proviso to this sub-section.".

8. Amendment of section 3
4. In the principal Act, in - section3.
(i) in clause (j) in sub-clause (i), for the words and figures "the Companies Act, 1956", the words
and figures "the Companies Act, 2013" shall be substituted;
1 of 1956,
18 of 2013
(ii) after clause (y), the following clause shall be inserted, namely:-
'(yy)"private entity" means any entity other than a Government entity or undertaking and includes a
proprietorship, partnership, company, corporation, non-profit organisation or other entity under any
law for the time being in force.
Insertion Of new Chapter IIIA.
5. In the principal Act, after Chapter III, the following Chapter shall be inserted, namely:-
"CHAPTER IIIA
PROVISIONS OF CHAPTER II AND CHAPTER III NOT TO APPLY
TO CERTAIN PROJECTS
Power of appropriate Government to exempt certain projects.
10. (a) The appropriate government may, in the public interest, by notification, exempt any of the
following projects from the application of the provisions of Chapter II and Chapter III of this Act, namely:
(a) such projects vital to national security or defence of India and every part thereof, including
preparation for defence; or defence production;
(b) rural infrastructure including electrification;
(c) affordable housing and housing for the poor people;
(d) industrial corridors ; and
(e) infrastructure and social infrastructure projects including projects under public private
partnership where the ownership of land continues to vest with the Government.".
6. In the principal Act, in section 24, in sub-section (2), after the proviso, the following proviso
shall be inserted, namely: -
(Amendment of Sec.24)
"Provided further that in computing the period referred to in this sub-section, any period or periods
during which the proceedings for acquisition of the land were held up on account of any stay or
injunction issued by any court or the period specified in the award of a Tribunal for taking possession or
such period where possession has been taken but the compensation lying deposited in a court or in any
account maintained for this purpose shall be excluded."
7. In the principal Act, in section 46, in sub-section (6), in the Explanation, in clause (b), the words
"any person other than" shall be omitted.
8. In the principal Act, for section 87, the following section shall be substituted, namely: -
sections?.
"87. Where an offence under this Act has been committed by any person who is or was employed in the
Central Government or the State Government, as the case may be, at the time of commission of such
alleged offence, no court shall take cognizance of such offence except with the previous sanction of the
appropriate Government, in the manner provided in section 197 of the Code of Criminal Procedure."

9. 9. In the principal Act, in section 101, for the words, "a period of five years" the words, "a period
specified for setting up of any project or for five years, whichever is later," shall be substituted.
Amendment of section 105
10. In the principal Act, in section 105,- .
(i) for sub-section (3), the following sub-section shall be substituted, namely: -
"(3) The provisions of this Act relating to the determination of compensation in accordance with the
First Schedule, rehabilitation and resettlement in accordance with the Second Schedule and
infrastructure amenities in accordance with the Third Schedule shall apply to the enactments relating to
land acquisition specified in the Fourth Schedule with effect from 1st January, 2015."
(ii) sub-section (4) shall be omitted.
Amendment of section 113,
11. in the principal Act- section 113. , in sub-section (1),
(i) for the words "the provisions of this Part", the words "the provisions of this Act" shall be
substituted;
(ii) in the proviso, for the words "a period of two years", the words "a period of five years" shall be
substituted.
PRANAB MUKHERJEE,
President.
DR. SANJAY SINGH,
Secy, to the Government of India.