The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, a Boon for Land Speculators.

1. 6/26/2015 Shridev Sharma
http://sharmashridev.blogspot.in/ 1/2
Shridev Sharma
Monday, 2 March 2015
The Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettlement Act,
2013, a Boon for Land Speculators.­ Shridev Sharma
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013, a Boon for Land Speculators.
The history of acquiring immovable property goes back to the Bengal Regulation 1 of 1824, which
was enacted by the British East India Company. Subsequently there were multiple enactments by
different presidencies which were replaced by the Act of 1870. This Act too was amended in 1894,
and existed until “The Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013” replaced it.
The preamble to the Act reads:
“…to ensure, in consultation with institutions of local self­government and Gram Sabhas
established under the Constitution, a humane, participative, informed and transparent
process for land acquisition for industrialisation, development of essential infrastructural
facilities and urbanisation with the least disturbance to the owners of the land and other
affected families and provide just and fair compensation to the affected families whose land
has been acquired or proposed to be acquired or are affected by such acquisition and make
adequate provisions for such affected persons for their rehabilitation and resettlement and for
ensuring that the cumulative outcome of compulsory acquisition should be that affected
persons become partners in development leading to an improvement in their post acquisition
social and economic status and for matters connected therewith or incidental thereto.”
Subsequent to the Act, Bill no. 20 of 2014 was introduced by the present government in the Lok
Sabha. The bill became a subject matter for controversies and agitations, as the amendments
proposed in the Bill were termed anti­farmers. The government seems to be softening up while going
forward with the amendments.
One needs to go deeper into the provisions of the Act to understand the far­reaching negative
implications of the Act on vital developments of the country. The Atomic Energy Act, 1962, The
Land Acquisition (mines) Act, 1885, The Metro Railways (Construction of Works) Act, 1978, The
National Highways Act, 1956, The Petroleum and Minerals Pipelines (Acquisition of Right of User in
Land) Act, 1962, The Reliquinshing and Acquisition of Immovable Property Act, 1952, The Coal
Bearing Areas Acquisition and Development Act, 1957, the Electricity Act, 2003, The Railways Act,
1989, among other Acts, were incorporated under the 4th Schedule of this Act. According to Section
105(1), subject to subsection (3), the provisions of this Act shall not apply to enactments relating to
Land Acquisition specified in Schedule 4.
Subsection (3) specifies that:
“The Central Government shall, by notification, within one year from the date of
commencement of this Act, direct that any of the provision of this Act relating to the determination of
compensation in accordance with the First Schedule and rehabilitation and resettlement
specified in the Second and Third Schedule, being beneficial to the affected families, shall apply
to the cases of land acquisition under the enactments specified in the Fourth Schedule, or shall
apply with such exceptions or modifications that do not reduce the compensation or dilute the
provisions of this Act relating to the compensation or rehabilitation, and resettlement as may
be specified in the notification, as the case may be.“
In short, to establish any atomic energy plant, or to construct a metro railway, or for making a
national highway or for laying out a petroleum or gas pipeline, or erecting power transmission lines,
the government would be required to pay an award in rural areas of the market value of the land
multiplied by the factor specified, plus the value of assets attached to the land and building, and a
solatium. The final award in urban areas is similarly determined.
Thus, on an approximation, the government should be ready to cough up to about five times the
market value of the land under acquisition for undertaking any project, besides providing for the
rehabilitation, resettlement and entitlement for the land owners and families whose lives are wholly
dependent on the land acquired, as well as the infrastructure and amenities.
The powers relating to the rehabilitation and resettlement of this Act shall also apply when a private
company purchases land equal to or more than such limits in the rural or urban areas, as may be
prescribed by the appropriate government, through private negotiation with owners of the land, the
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Labels: Land Acquisition Act, Rehabilitation and Resettlement Act, Shridev Sharma
cost of which can be quantified into a monetary amount, which the collector shall allow to deposit
into the account in complete satisfaction of the obligation.
One can image the scenario in the areas earmarked for laying petro or gas pipelines, or putting up an
industrial corridor, or making national highways, if some shrewd players register the land at many­
folds the current market value. As per the prescribed formula of the Act of 2013, this will escalate
the compensation to unacceptable heights.
The Government needs to seriously make an endeavor in order to understand how much land it
needs to acquire for the aforesaid vital infrastructure and, in view of non­regulation of speculation
activities, what are going to be the implications on all such upcoming projects.
­Shridev Sharma
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