RIGHT TO FAIR COMPENSATION AND REHABILITATION ACT, 2013

RIGHT TO FAIRRIGHT TO FAIR
COMPENSATION ANDCOMPENSATION AND
REHABILITATION ACT, 2013REHABILITATION ACT, 2013
1
Gopal K Agarwal
Member
National Executive BJP
Land Acquisition Issue Committee
gopal.agarwal@bjp.org

History of Land AcquisitionHistory of Land Acquisition
The Pr imary Land Acquisit ion Act was t he
Land Acquisit ion Act of 1894.
Non consult at ive, Non t r ansparent , Low
compensat ion.
Large scale acquisit ion of land, especially
under Special Economic Zone (SEZ) Act ,
2005 led t o hue and cr y.
No pr oper gr ievance redr essal mechanism.
Requirement f or f ocus on rehabilit at ion
Need f elt f or a mor e balanced Act .
2

3
Farmers ProblemFarmers Problem
High dependence on rain f all and nat ur al
calamit ies.
I nsuf f icient irr igat ion Facilit y.
Low pr oport ion of irr igat ed Land.
Minimum Support Pr ice (MSP) – High
dependence on demand / supply.
Seeds availabilit y.
Fert ilizers subsidy.
Credit availabilit y & cost .
Lack of Agricult ur e market ing net work.
Disguised and Under employment .

SolutionsSolutionsFar m I nsurance
Compensat ion in case of nat ural calamit ies
 I dent if icat ion of Loss.
 Assessment of loss.
I ncreasing penet r at ion of ir rigat ion f acilit ies
Minimum Support Price based on input cost
Power availabilit y and cost
No Tax on Agr icult ure income
Subsidy / Direct Transf er / t ar get ed subsidy
t o t he f armer s inst ead of payment t o
indust r ies.
Kisan Cr edit on lower int er est r at e
Nat ional Agricult ure Market ing set upgopal.agarwal@bjp.org
4

M. S Swaminathan CommitteeM. S Swaminathan Committee
RecommendationsRecommendations
5
Swaminat han commit t ee report which came out
in 2006, give very exhaust ive r oadmap ahead
f or agr icult ur e sect or development in ar eas like
ir rigat ion, f ar m cr edit , improve pr oduct ivit y f or
small & medium f armer s, import dut y
mechanism, village knowledge cent ers,
agricult ure r isk f und, af f or dable healt h
insur ance, and land ref or ms including land
dist r ibut ion t o land landless f ar mer s.
Shanta Kumar CommitteeShanta Kumar Committee
RecommendationsRecommendations
Ref orms on pr ocur ement policy and public
dist ribut ion syst em including f ood securit y
wher e some of t he r ecommendat ions of Shant a
Kumar Commit t ee in relat ion t o FCI can be
implement ed

BackgroundBackground
Mor e t han 60% of t he count r y' s populat ion is
dependent on agricult ur e which cont r ibut es
only about 14% in t he Gr oss Domest ic
Pr oduct ion (GDP).
The solut ion is t o r educe t he dependence of
t his populat ion on agricult ur e by providing
t hem alt er nat ive means of gainf ul employment
and incr ease t he overall cont r ibut ion of
agr icult ur e sect or t o t he GDP.
For t his set t ing up of cot t age, small and
village indust r ies in t he r ur al areas is
requir ed along wit h development of r ural
inf rast ruct ure f acilit ies. gopal.agarwal@bjp.org
6

Special Economic ZonesSpecial Economic Zones
40 per cent of t he area acquired f or special
economic zones in t he count r y r emain
unut ilized.
Out of 45,782.64 hect ares of land acquir ed
f or t he 365 not if ied special economic zones
(SEZs) across I ndia, as much as 18,023.71
hect ares is lying vacant , Minist er of St at e f or
Commer ce and I ndust r y Nir mala Sit haraman
t old par liament in a wr it t en reply.
I ndiscriminat e acquisit ion of Land t ook place
under UPA gover nment .
7
For 365 notified SEZ Total Land Acquired
45782.64 hectares
Vacant 18023.71 hectares

StakeholdersStakeholders
Far mers / Land Owner s
Pr oj ect af f ect ed Families
Government
Development al and inf rast r uct ure
requir ement s
I ndust r ialist and I nf r ast r uct ur e developer s
Bureaucr at s
8

Objectives of Land acquisition lawObjectives of Land acquisition law
Land acquisit ion f or development al
requir ement .
 Adequat e Compensat ion
 Pr oper Rehabilit at ion
 Proper Reset t lement
 Alt er nat ive employment gener at ion
 Part ner ship in progress
 Monit oring syst em f or implement at ion of
regulat ion and dispensat ion
 Gr ievances r edr essal mechanism
9
Obj ect ive was
t o link it t o
compensat ion

Consent Clause (2013 Act)Consent Clause (2013 Act)
Government acquisit ion in about 12 cat egor ies
under sect ion 2 (1) of t he Act 2013 were
exempt ed f r om consent and only SI A was
requir ed.
Consent of 80% of t he af f ect ed f amilies and
SI A is st ill r equired f or pr ivat e pr oj ect
acquisit ion wher e it does not come u/ s sect ion
10 A (1).
13 Act s under Schedule Four of t he Act
t hrough which most of t he land acquisit ion
t akes place wer e also exempt f rom consent as
well as SI A.
The compensat ion under t hese act s wasgopal.agarwal@bjp.org
10

Social Impact AssessmentSocial Impact Assessment
(Inclusive Definition)(Inclusive Definition)
11
a) Pr oposed acquisit ion serves public purpose;
PurposehasbeenclearlydefinedinAct, itcanbemodifiedthere.
b) Est imat ion of af f ect ed f amilies;
c) Ext ent of lands likely t o be af f ect ed by t he
pr oposed acquisit ion;
d) whet her t he acquisit ion is t he absolut e bare
minimum ext ent needed f or t he pr oj ect ;
independentauthoritytoassessbareminimumrequirementthatonly willbeacquired.
e) An alt ernat e place has been consider ed and
f ound not f easible; Arid&barrenlandbank.
f ) Social impact s of t he pr oj ect , and t he
nat ur e and cost of addr essing t hem.

Compensation Package to Land OwnerCompensation Package to Land Owner
and Tenants (Schedule I)and Tenants (Schedule I)
12
i. Based on market value of Land
a) t he market value, if any, specif ied in t he
I ndian St amp Act 1899 f or t he area; or
b) t he aver age sale price f or similar t ype of
land sit uat ed in t he near est village or
near est vicinit y area; or
c) consent ed amount of compensat ion in case
of acquisit ion of lands f or pr ivat e
companies or f or public pr ivat e
par t nership pr oj ect s,
whichever is higher.
i. Mult iplying f act or
ii. Value of asset s at t ached t o land or building

Rehabilitation and Resettlement ofRehabilitation and Resettlement of
Project Affected FamilyProject Affected Family
Schedule IISchedule II
13
a) Pr ovision of housing unit s in case of
displacement
b) Land f or Land in case of irr igat ion pr oj ect s
c) Of f er f or Developed Land
d) Choice of Annuit y / Employment / Lump sum
payment
e) Subsist ence gr ant f or displaced f amilies f or
a Per iod of one year
f ) Tr anspor t at ion cost f or displaced f amilies
g) Cat t le shed/ pet t y shops cost
h) One-t ime gr ant t o art isan, small t r ader s and
cer t ain ot her s

Infrastructural Amenities ScheduleInfrastructural Amenities Schedule
IIIIII
14
a) Roads wit hin t he r eset t led villages
b) Pr oper dr ainage, sanit at ion and drinking
wat er
c) Gr azing land as per pr opor t ion accept able in
t he St at e’
d) Panchayat Ghar s, Post Of f ices, Fair Price
Shops, Schools and Pr imary Healt h Cent er s
e) I r rigat ion f acilit ies t o t he agr icult ural land
allocat ed t o t he reset t led f amilies

Ordinance 2014 & LARROrdinance 2014 & LARR
(Amendment) Bill 2015(Amendment) Bill 2015
15

Need for theNeed for the
Ordinance/Amendment - 1Ordinance/Amendment - 1
 As per Sect ion 105 (3) of t he LARR Act , t he
13 Act s under t he For t h Schedule of t he Act
wer e t o be br ought in line wit h LARR in
mat t er s of compensat ion, r ehabilit at ion and
reset t lement and inf r ast r uct ur e f acilit ies by
31st December 2014.
 All t he short comings in any Act can not be
ident if ied by a t heoret ical exer cise. I t
comes t o light only af t er t he Act is
implement ed and af t er widespread
consult at ion wit h st ake holders and t he
implement ing agency
16

Need for theNeed for the
Ordinance/Amendment – 2Ordinance/Amendment – 2
Feedback to Department of LandFeedback to Department of Land
Revenue (Ministry of RuralRevenue (Ministry of Rural
Development):Development):
Some pr ovisions like Social I mpact
Assessment & 70-80% consent clause f rom
af f ect ed f amilies, were making t he
implement at ion of t he Act dif f icult .
Conf er ence of St at e Revenue Minist ers was
or ganized in Vigyan Bhavan on 27t h J une,
2014.
Consult at ions wit h Secret aries and of f icers
17

ConclusionConclusion
Necessary t o br ing changes in t he Act , while
saf eguar ding t he int erest of t he f armers and
af f ect ed f amilies in cases of land acquisit ion.
Pr ocedural dif f icult ies in SI A & consent were
t o be mit igat ed.
To bring mor e act ivit ies under t he pr eview of
exempt ion of consent .
18

Effects of Ordinance/ AmendmentEffects of Ordinance/ Amendment
- 1- 1
1. Pr ovisions r elat ing t o consent , Social I mpact
Assessment (SI A) and Food Secur it y not t o
apply t o f ollowing addit ional f ive cat egor ies
of pr oj ect s:
(a) def ence; or def ence pr oduct ion
(b) rural inf rast ruct ur e including
elect rif icat ion;
(c) af f or dable housing and housing f or t he
poor people;
(d) indust r ial corr idors; and
(e) inf r ast r uct ur e and social inf rast ruct ure
pr oj ect s including pr oj ect s under publicgopal.agarwal@bjp.org
19

13 Act s list ed in t he Fourt h Schedule of t he
Act brought under pr ovisions relat ed t o LARR
2013 f or compensat ion, r eset t lement and
rehabilit at ion.
Pr osecut ion under t he Act against t he head
of t he depar t ment t o be wit h in t he provision
of Sect ion 197 of I PC only.
“87. Where an of f ence under t his Act
has been commit t ed by any person who is or
was employed in t he Cent ral Government or
t he St at e Gover nment , as t he case may be,
at t he t ime of commission of such allegedgopal.agarwal@bjp.org
20
Effects of Ordinance/ AmendmentEffects of Ordinance/ Amendment
- 2- 2

24 (1) Not wit hst anding anyt hing cont ained in
t his Act . in any case of land acquisit ion
proceedings init iat ed under t he Land
Acquisit ion Act . 1894,-
(a) wher e no award under sect ion I I
of t he said Land Acquisit ion Act has been
made, t hen, all pr ovisions of t his Act r elat ing
t o t he det erminat ion of compensat ion shall
apply; or
(b) where an awar d under said
sect ion I I has been made, t hen such
proceedings shall cont inue under t he
provisions of t he said Land Acquisit ion Act , asgopal.agarwal@bjp.org
21
Section 24 (Post Amendment)Section 24 (Post Amendment)

(2) Not wit hst anding anyt hing cont ained in
sub-sect ion (1), in case of land acquisit ion
proceedings init iat ed under t he Land
Acquisit ion Act . 1894, wher e an awar d under
t he said sect ion I I has been made f ive year s
or more pr ior t o t he commencement of t his
Act but t he physical possession of t he land
has not been t aken or t he compensat ion has
not been paid t he said pr oceedings shall be
deemed t o have lapsed and t he appropr iat e
Gover nment , if it so chooses, shall init iat e
t he pr oceedings of such land acquisit ion
af r esh in accor dance wit h t he pr ovisions ofgopal.agarwal@bjp.org
22
Section 24 contd.Section 24 contd.

Pr ovided t hat where an awar d has been made
and compensat ion in respect of a maj or it y of
land holdings has not been deposit ed in t he
account of t he benef iciar ies, t hen, all
benef iciaries specif ied in t he not if icat ion f or
acquisit ion under sect ion 4 of t he said Land
Acquisit ion Act , shall be ent it led t o
compensat ion in accor dance wit h t he
pr ovisions of t his Act .
"Providedfurtherthatincomputingtheperiodreferredtointhissub-section, any periodor
periodsduringwhichtheproceedingsforacquisitionofthelandwerehelduponaccountofany
stay orinjunctionissuedby any courtortheperiodspecifiedintheawardofatribunalfor
takingpossessionorsuchperiodwherepossessionhasbeentakenbutthecompensationlyinggopal.agarwal@bjp.org
23
Section 24 ProvisoSection 24 Proviso

101. When any land acquired under t his Act
remains unut ilized f or "aperiodspecifiedforsettingupofanyproject
orforfive years, whicheveris later”, f rom t he dat e of t aking
over t he possession, t he same shall be
ret ur ned t o t he or iginal owner or owner s or
t heir legal heir s, as t he case may be, or t o
t he Land Bank of t he appr opr iat e Gover nment
by r eversion in t he manner as may be
prescr ibed by t he appropr iat e Gover nment .
Explanat ion. - For t he purpose of t his sect ion,
"Land Bank" means a government al ent it y t hat
f ocuses on t he conversion of Gover nment algopal.agarwal@bjp.org
24
Section 101 (Post Amendment)Section 101 (Post Amendment)

LARR Amendment Bill, 2015 – PostLARR Amendment Bill, 2015 – Post
AmendmentAmendment
Removes ‘social inf r ast r uct ur e’ f r om t he f ive
exempt ed cat egor ies.
Rest rict ing acquisit ion f or I ndust rial
Cor ridor s t o one one Km on bot h sides of
designat ed r oads and railways only.
Removes privat e hospit als and pr ivat e
educat ional inst it ut ions f rom ‘Public Purpose’.
Bef or e acquisit ion gover nment t o ensur e t hat
t he ext ent of land t o be acquired is kept at
minimum.
25

LARR Amendment Bill, 2015 – PostLARR Amendment Bill, 2015 – Post
AmendmentAmendment
Compulsor y employment t o one member of
proj ect af f ect ed f amily of f ar m labours.
LARR Aut hor it y t o set up Dist r ict Tr ibunals
and hold hear ing at t he local level.
‘67A. The Aut hor it y shall, af t er r eceiving
ref er ence under sect ion 64 and af t er giving
not ice of such ref er ence t o all par t ies
concer ned, hold t he hear ing in t he dist r ict
wher e t he land acquisit ion t akes place f or
set t lement of t he obj ect ions r aised in t he
ref er ence.’.
26

Position of Corporate SectorPosition of Corporate Sector
Corpor at e Sect or is int er est ed in direct
negot iat ion and purchase of land f rom
f ar mer s. I t is more comf ort able t hat t he
St at e Government s records t he pur chase and
gives permission t o t heir pr oj ect t hrough
Change in Land Use (CLU).
St at e Gover nment s are also comf or t able wit h
t his appr oach.
The above process is not in f avor of f armer s.
Farmer s can get bet t er and highergopal.agarwal@bjp.org
27

Suggested Way AheadSuggested Way Ahead
The or dinance and amendment is mor e of a
bat t le of per cept ion.
Need t o engage wit h t he f ar mer s and explain
t he pr ovision in det ail.
Only t he dif f icult ies and shor t comings of
LARR 2013, exper ienced f r om ground level
implement at ion, have been sought t o be
removed/ ir oned out :-
a) I n ef f ect ive t er ms, only t he scope of SI A
has been narr owed down and main saf eguar d
have been ret ained in t he Act .
b) Gr ievance r edr essal mechanism has now
been made available at t he dist r ict level.
28

Suggested Way AheadSuggested Way Ahead
Land acquisit ion is in t he Concur rent list , so
t hat t he St at e Gover nment s ar e f ree t o
implement t he New Act or not .
For est Right s Act and Tribal Right s Act
prot ect t he r ight s of t r ibal people and t heir
f or est land and t her ef or e t hese are not
af f ect ed by t he provision of New Act . Their
right s are also prot ect ed under sect ions 5
and 6 of t he Const it ut ion.
29

Thank YouThank You
Gopal K Agarwal
Member
National Executive BJP
Land Acquisition Issue Committee
30

RIGHT TO FAIR COMPENSATION AND REHABILITATION ACT, 2013

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