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LAND ACQUISITION SYSTEM IN INDIA
Land Acquisition
Land acquisition in India refers to the process by which the union or a
state government in India acquires private land for the purpose of
industrialization, development of infrastructural facilities or urbanization of the
private land, and provides compensation to the affected land owners and their
rehabilitation and resettlement.
❖ Eminent Domain (US)
❖ Compulsory Purchase (United Kingdom, New Zealand, Ireland)
❖ Resumption (Hong Kong)
❖ Compulsory Acquisition (Australia)
❖ Expropriation (South Africa, Canada)
Timeline
1894
• Land Acquisition Act, 1894 created by the British.
1947
• Independent India choose to continue this Act even after independence
2013
• The Right to Fair Compensation & Transparency in Land Acquisition,
Rehabilitation & Resettlement Act .
2015
• Further amendments to the Bill.
Investigation
&
Notification
Objection
&
Confirmation
Claim & Reward Settlement of Dispute Appointment
DRAWBACKS OF 1894 ACT
❑ The term “public purpose” was ambiguous and open to Government’s discretion
❑ Land could be acquired forcibly.
❑ They were given no voice in decision making.
❑ Government was free to decide how much money to pay while acquiring private
land.
❑ No such restrictions on fertile land
❑ If project did not start, then acquired land was secretly sold/leased to private
players at sky-high prices.
Land Acquisition and Rehabilitation and
Resettlement Bill (LARR) Act, 2013
Rehabilitation
&
Resettlement
Land
Acquisition
Land
Acquisition,
Rehabilitation
&
Resettlement
Act 2013
WHY… ??
SALIENT FEATURES OF LARR - 2013
❑ Social impact assessment (SIA) even need to obtain consent of the affected
people, labourers, share-croppers, tenant farmers, fishermen, small traders, etc.
whose (sustainable) livelihood will be affected because of the given project.
❑ Compensation proportion to market rates. 4 times the market rate in rural area. 2
times in urban area.
❑ Affected artisans, small traders, fishermen etc. will be given one-time payment,
even if they don’t own any land.
❑ If project doesn’t start in 5 years, land has to be returned to the original owner.
SALIENT FEATURES OF LARR - 2013
❑ To ensure food security:
1. Fertile, irrigated, multi-cropped farmland can be acquired only in last resort.
2. If such fertile land is acquired, then Government will have to develop equal size
of wasteland for agriculture purpose.
❑ Clearly defines various types of “public purpose” projects for which, Government
can acquire private land.
❑ Land Acquire only when
o For private project, 80% affected families must agree.
o For PPP project, 70% affected families must agree.
Govt.
Acquires For
Own Use
Ultimate Aim
To Transfer
To
Private/PPP –
Public
Purpose
Immediate
Use Of Private
– Public
Purpose
80% Projects Affected Families Give
Prior Consent
ACQUISITION
Rails,
Highway,
Ports,
Irrigations
Defense
Project
Affected
People
Plan
Developmen
t
Govt.
Administrat
ed
Institution
Natural
Calamities
PUBLIC
PURPOSE
Acquired By Govt
For Itself For
Other Purpose
Public Sector
Companies
PPP / Private
Projects For
Public Services
CONSENT
PROCESS OF REQUISITION
Social Impact Assessment
Evaluation Of SIA
Preliminary Notification
Survey And Analysis
Objection To Collector
Hearing And Report
Preparation Of Draft R&R
Approval From Collector
Declaration Of Requirement
Acquisition Of Award
R &R
AwardPossession
Land Acquisition Act, 1894
&
LAAR Act,2013
Comparison b/w 1894 & 2013 Act
ISSUE 1894 ACT 2013 ACT
Public Purpose
Includes Infra Structure
Development, Housing Projects
& Use By Companies under
certain Conditions
Includes
▪ Strategic project
▪Infra Projects
▪Projects for affected families
▪Project from planned
development
▪Residential project for the poor.
Consent of land Owners. No Requirements.
Govt acquiring land for Private
companies(80%) & for PPP
(70%)
Social Impact Assessment No Provision Mandatory.
Comparison b/w 1894 & 2013 Act
ISSUE 1894 ACT 2013 ACT
Compensation Same as market Value
Market rate in Urban area &
double the rate in Rural area.
Market Value Determined as per circle rates.
Estimated from
▪ Circle rate.
▪Sale instances.
Solatium (Compensation for
emotional loss)
30% 100%
Unused Land No provision.
To be returned to land owners if
unused for 5 yrs from the date of
possession.
Comparison b/w 1894 & 2013 Act
ISSUE 1894 ACT 2013 ACT
R&R No provision Compulsory.
Lease. No Provision.
Govt can take the land on lease
instead of acquiring it.
Urgency clause.
Acquisition of land without
giving prior notice or token
compensation.
Only in emergency situations
▪ National Defence
▪National Security.
▪National Calamities.
Sharing of profit. No provision.
If the acquired land is unused
and is transferred with in 5yr of
acquisition, 40% of the
appreciated land value will have
to be shared.
LAAR (Second Amendment)
Bill, 2015
Defence
Rural Infra
Affordable
Housing
Industrial
Corridor
PPP- Govt
Owns Land
•NO SIA
•NO 80%, 70%
•Multi-Crop
Irrigated land
EXEMPTIONFROMRESTRICTION
Then (2013)
Now
(Ordinance)
5
Years
5 Years Or
Specified
Time
Return of Land
Then (2013)
Now
(Ordinance)
Counted in 5
Years
Not Counted In 5
Years Specified
Time
Time Wasted in Litigation
Then (2013)
Now
(Ordinance)
HoD- Assumed guilty
Prior Sanction
for Prosecution
Offences by Govt. Servants
THANK YOU…

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Understand India's Land Acquisition System and Recent Reforms

  • 2. Land Acquisition Land acquisition in India refers to the process by which the union or a state government in India acquires private land for the purpose of industrialization, development of infrastructural facilities or urbanization of the private land, and provides compensation to the affected land owners and their rehabilitation and resettlement. ❖ Eminent Domain (US) ❖ Compulsory Purchase (United Kingdom, New Zealand, Ireland) ❖ Resumption (Hong Kong) ❖ Compulsory Acquisition (Australia) ❖ Expropriation (South Africa, Canada)
  • 3. Timeline 1894 • Land Acquisition Act, 1894 created by the British. 1947 • Independent India choose to continue this Act even after independence 2013 • The Right to Fair Compensation & Transparency in Land Acquisition, Rehabilitation & Resettlement Act . 2015 • Further amendments to the Bill.
  • 5. DRAWBACKS OF 1894 ACT ❑ The term “public purpose” was ambiguous and open to Government’s discretion ❑ Land could be acquired forcibly. ❑ They were given no voice in decision making. ❑ Government was free to decide how much money to pay while acquiring private land. ❑ No such restrictions on fertile land ❑ If project did not start, then acquired land was secretly sold/leased to private players at sky-high prices.
  • 6. Land Acquisition and Rehabilitation and Resettlement Bill (LARR) Act, 2013
  • 8. SALIENT FEATURES OF LARR - 2013 ❑ Social impact assessment (SIA) even need to obtain consent of the affected people, labourers, share-croppers, tenant farmers, fishermen, small traders, etc. whose (sustainable) livelihood will be affected because of the given project. ❑ Compensation proportion to market rates. 4 times the market rate in rural area. 2 times in urban area. ❑ Affected artisans, small traders, fishermen etc. will be given one-time payment, even if they don’t own any land. ❑ If project doesn’t start in 5 years, land has to be returned to the original owner.
  • 9. SALIENT FEATURES OF LARR - 2013 ❑ To ensure food security: 1. Fertile, irrigated, multi-cropped farmland can be acquired only in last resort. 2. If such fertile land is acquired, then Government will have to develop equal size of wasteland for agriculture purpose. ❑ Clearly defines various types of “public purpose” projects for which, Government can acquire private land. ❑ Land Acquire only when o For private project, 80% affected families must agree. o For PPP project, 70% affected families must agree.
  • 10. Govt. Acquires For Own Use Ultimate Aim To Transfer To Private/PPP – Public Purpose Immediate Use Of Private – Public Purpose 80% Projects Affected Families Give Prior Consent ACQUISITION
  • 12. Acquired By Govt For Itself For Other Purpose Public Sector Companies PPP / Private Projects For Public Services CONSENT
  • 13. PROCESS OF REQUISITION Social Impact Assessment Evaluation Of SIA Preliminary Notification Survey And Analysis Objection To Collector Hearing And Report Preparation Of Draft R&R Approval From Collector Declaration Of Requirement Acquisition Of Award R &R AwardPossession
  • 14. Land Acquisition Act, 1894 & LAAR Act,2013
  • 15. Comparison b/w 1894 & 2013 Act ISSUE 1894 ACT 2013 ACT Public Purpose Includes Infra Structure Development, Housing Projects & Use By Companies under certain Conditions Includes ▪ Strategic project ▪Infra Projects ▪Projects for affected families ▪Project from planned development ▪Residential project for the poor. Consent of land Owners. No Requirements. Govt acquiring land for Private companies(80%) & for PPP (70%) Social Impact Assessment No Provision Mandatory.
  • 16. Comparison b/w 1894 & 2013 Act ISSUE 1894 ACT 2013 ACT Compensation Same as market Value Market rate in Urban area & double the rate in Rural area. Market Value Determined as per circle rates. Estimated from ▪ Circle rate. ▪Sale instances. Solatium (Compensation for emotional loss) 30% 100% Unused Land No provision. To be returned to land owners if unused for 5 yrs from the date of possession.
  • 17. Comparison b/w 1894 & 2013 Act ISSUE 1894 ACT 2013 ACT R&R No provision Compulsory. Lease. No Provision. Govt can take the land on lease instead of acquiring it. Urgency clause. Acquisition of land without giving prior notice or token compensation. Only in emergency situations ▪ National Defence ▪National Security. ▪National Calamities. Sharing of profit. No provision. If the acquired land is unused and is transferred with in 5yr of acquisition, 40% of the appreciated land value will have to be shared.
  • 19. Defence Rural Infra Affordable Housing Industrial Corridor PPP- Govt Owns Land •NO SIA •NO 80%, 70% •Multi-Crop Irrigated land EXEMPTIONFROMRESTRICTION
  • 20. Then (2013) Now (Ordinance) 5 Years 5 Years Or Specified Time Return of Land
  • 21. Then (2013) Now (Ordinance) Counted in 5 Years Not Counted In 5 Years Specified Time Time Wasted in Litigation
  • 22. Then (2013) Now (Ordinance) HoD- Assumed guilty Prior Sanction for Prosecution Offences by Govt. Servants