On this page you will read detailed information about Land Acquisition Act 2013.
As a landowner in India, you need to stay informed about laws that affect your property rights. The Land Acquisition Act of 2013 is one such law that you should understand, as it has implications for how the government can acquire private land for public purposes. This article provides an overview of the key provisions of this important legislation. In 100 words, you will learn the background of the law, the land acquisition process under it, how compensation is determined, and the safeguards it establishes for landowners. Understanding the framework created by this law will help you protect your interests if your land becomes subject to acquisition. With this knowledge, you will be equipped to engage constructively in the process.
Background of the Land Acquisition Act 2013
Historical Context
The Land Acquisition Act 1894 was the main law governing land acquisition in India until 2013. It was enacted during British rule and allowed the government to acquire private land for public purposes. However, it was criticized as an unfair law that favored the government and did not adequately compensate or protect the interests of landowners. There were demands for amendments to the law to make the process of land acquisition fairer and more transparent.
Key Provisions of the 2013 Act
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, commonly known as the Land Acquisition Act 2013, was passed to replace the 1894 law. Some of the key provisions of the 2013 Act include:
- Higher compensation: The compensation paid to landowners was increased to up to four times the market value in rural areas and two times in urban areas.
- Consent requirement: The consent of at least 70% of landowners is required for land acquisition for private projects and 80% for public-private partnerships.
- Social impact assessment: A social impact assessment is required to determine whether the benefits of a project outweigh the social costs. The assessment has to be approved by an Expert Group.
- Rehabilitation and resettlement: The Act provides for rehabilitation and resettlement of landowners and those affected by the land acquisition. Developers have to provide housing, employment, annuities, and other amenities.
The 2013 Act aimed to balance the need for land acquisition for development with the need to protect the interests of landowners and those dependent on the land. It made the process fairer but also more cumbersome for developers and the government. There have been demands to amend the Act to simplify the procedures while still protecting landowners. The Act continues to be controversial, with arguments for making the law more flexible as well as strengthening safeguards.
In the previous post, we had shared information about Piracy in India: A Review of Relevant Legislation, so read that post also.
Key Features of the Land Acquisition Act 2013
To understand the Act, it is important to be familiar with some of its key features.
Fair Compensation
The Act aims to provide fair compensation to land owners and those affected by the acquisition. It requires that the compensation provided must be four times the market value in rural areas and two times the market value in urban areas. The Act also provides for additional compensation in the form of annuity and jobs. Those who lose livelihoods are entitled to additional compensation.
Consent
The Act makes consent of 80% of land owners mandatory for acquisition of land for private projects and 70% for public-private partnership projects. This aims to safeguard the interests of land owners. The government can acquire land without consent only for public purpose projects in national interest.
Rehabilitation and Resettlement
The Act provides a comprehensive rehabilitation and resettlement package for land owners and those affected by land acquisition. It provides for jobs, houses, monetary benefits, and civic amenities. The rehabilitation and resettlement must be completed within 5 years.
Return of Unutilized Land
The Act directs the government to return unused acquired land to the original land owners or their heirs. This prevents unnecessary acquisition and hoarding of land. The period within which the acquired land must be used depends on the purpose for which it is acquired.
Dispute Resolution
The Act establishes a robust grievance redress mechanism to resolve disputes related to compensation, rehabilitation and resettlement. It provides for establishment of Land Acquisition Rehabilitation and Resettlement Authority to adjudicate disputes related to land acquisition. Appeals against the orders of the Authority can be filed in the High Court.
The key features of the Act aim to establish a transparent, participatory and fair process for land acquisition while also providing adequate safeguards for land owners and those dependent on the land being acquired. The Act balances the need for land acquisition for public purpose projects with the interests of land owners.
Improvements Over the Land Acquisition Act 1894
The Land Acquisition Act 2013 aimed to address the shortcomings of the Land Acquisition Act 1894 by improving the compensation, rehabilitation and resettlement of land owners and those affected by land acquisition.
Enhanced Compensation
The 2013 Act increased the compensation amount significantly by factoring in the market value of the land and considering the value of acquired land over the past 3 years. It also provides annuity and employment for landless owners. This is a major improvement over the 1894 Act which did not account for the market value.
Rehabilitation and Resettlement
The 2013 Act has dedicated provisions focused on rehabilitation and resettlement of land owners and those affected by land acquisition, which were absent in the previous act. It requires rehabilitation and resettlement to precede the actual acquisition. Affected parties are entitled to housing, employment and annuity along with the compensation amount.
Consent and Social Impact Assessment
The 2013 Act makes consent of 80% of land owners mandatory before any private acquisition. It also requires a social impact assessment to determine the impact of acquisition on livelihoods, environment and society. These provisions ensure participatory and transparent process which safeguards the interests of land owners and communities.
Dispute Resolution
The 2013 Act established dedicated dispute resolution mechanisms like the Land Acquisition Rehabilitation and Resettlement Authority to address grievances and disputes related to compensation, rehabilitation and resettlement in a time bound manner. This provides an avenue for redressal that was lacking in the previous act.
In summary, the Land Acquisition Act 2013 addresses the key shortcomings of the 1894 Act by enhancing compensation, providing rehabilitation and resettlement, making the process participatory, and establishing dispute resolution mechanisms. It aims to strike a balance between facilitating land acquisition for public and private projects while upholding the interests of land owners and communities.
Fair Compensation Under the New Act
The new Act aims to establish a fair compensation framework for land owners and affected families.
Market Value of Land
Under the Act, the compensation amount will be determined based on the market value of the land, which is the higher of: -The minimum land value specified under the Indian Stamp Act, 1899 for the registration of sale deeds; or -The average of the sale price for similar type of land situated in the vicinity, ascertained from the highest 50% of the sale deeds of the preceding 3 years; or -The consented amount in case of acquisition of lands for private companies or public private partnership projects.
Additional Compensation
The Act provides additional compensation for the assets attached to the land including trees, plants, standing crops as well as structures. The Collector will determine the value of each asset based on relevant government guidelines. Owners will receive compensation for loss of livelihood based on the minimum wages for agricultural labor.
Solatium
The Act grants solatium of 100% on the total compensation amount to provide relief for the compulsory nature of acquisition. The solatium amount aims to compensate land owners for non-monetary losses like emotional distress or loss of ancestral property.
Interest on Delayed Compensation
To discourage inordinate delays, the government will pay an additional interest of 75% per annum on the total compensation amount, if physical possession of land is not taken over within 2 years from the award date. The interest amount will continue annually until the date of actual payment.
The above provisions demonstrate the Act’s objective to provide fair and just compensation to land owners affected by acquisitions. The determination of market value based on recent local sales data ensures that the compensation amount reflects the current prevailing rates in that area. The additional benefits aim to compensate land owners for various losses suffered due to surrendering their property and livelihood. Overall, the new compensation framework under the Act can be viewed as a step towards establishing fair and transparent land acquisition practices in India.
Social Impact Assessment Requirements
The LAA 2013 introduced the requirement of Social Impact Assessments (SIA) for land acquisition.### Identification of Project Affected Families The SIA must identify all families that stand to be affected by the proposed acquisition, whether through loss of land, livelihood or shelter. All families residing in the area proposed to be acquired for two years prior to the acquisition are deemed ‘Project Affected Families’ (PAFs). The SIA must record the number of PAFs, as well as their demographic details and asset holdings to determine livelihood impact.
Public Hearing
The SIA must conduct a public hearing inviting all PAFs and other interested parties. The public hearing aims to understand the views of PAFs regarding the proposed acquisition, record any objections, and understand what rehabilitation and resettlement provisions would be acceptable to the majority of PAFs.
Livelihood Impact Assessment
The SIA must analyze the livelihood patterns of PAFs and assess the impact of land acquisition on their livelihoods. This includes impacts on agricultural activities, wage labor, business, artisanship, etc. The SIA must suggest measures to mitigate livelihood impacts such as job reservations for PAFs, skill development for alternative livelihoods, preference in resettlement site allotments, etc.
Social Infrastructure Assessment
The SIA must also evaluate the availability of and access to resources such as schools, hospitals, roads, etc. for PAFs. It must suggest measures to provide and improve access to such social infrastructure facilities at resettlement sites in consultation with relevant government departments.
The SIA provides critical inputs to determine appropriate rehabilitation and resettlement provisions for PAFs. With the SIA making rehabilitation and resettlement an integral part of the land acquisition process, the LAA 2013 aims to minimize the social costs of land acquisition and protect the interests of India’s most vulnerable groups.
Consent Provisions for Land Acquisition
The Land Acquisition Act of 2013 aimed to make the land acquisition process more equitable and transparent. One of the major reforms introduced was consent provisions, requiring the consent of affected families for acquisition of land for public purpose projects.###
Under section 2(2) of the Act, the government must obtain the consent of at least 70% of the total affected families for private projects and 80% for public-private partnership projects. The consent process must be carried out through a transparent and participatory process. Affected families have the right to review and verify records related to the ownership of land.
Acquisition of tribal lands also requires the consent of the village assembly (Gram Sabha) concerned. The government must ensure that the terms of acquisition of tribal lands adhere to the provisions of the Panchayat (Extension to Scheduled Areas) Act, 1996 (PESA).
The consent provisions aim to empower landowners and safeguard them from unjust acquisition. However, critics argue that the high consent thresholds could potentially delay land acquisition and infrastructure projects. The government may also find it difficult to obtain consent in areas with large number of land owners.
To address these concerns, the Act allows the government to acquire land without consent in case of urgency or national defense projects. The government can also acquire land for private hospitals, educational institutions and housing for poor subject to certain conditions. Some states have also made amendments to the central act to ease the consent requirements.
The consent provisions are a step in the right direction to make the land acquisition process more fair and transparent. However, there is scope for improvement to address practical challenges in implementation and strike a balance between development needs and interests of landowners. The rules for acquisition in case of urgency also need to be strengthened to prevent their misuse.
Overall, the Land Acquisition Act 2013 has made the consent of landowners central to the acquisition process. Effective implementation of the consent provisions along with other reforms can help build trust in the system and address the long-standing grievances of farmers and landowners.
Exemptions From Social Impact Assessment
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) stipulates certain projects are exempted from social impact assessment (SIA). These exceptions pertain to projects concerning national security, defense and development of infrastructure relating to such projects.
Acquisition of land for the purpose of defense or national security is excluded from the SIA stipulation. The government can acquire any land for the army, navy or air force for their training, deployment or any other purpose concerned with national security without an SIA.
Linear infrastructure projects such as railways, highways, and irrigation canals are also exempt from SIA. The development of these key infrastructure projects are considered to be in the larger public interest. The land acquisition for these linear projects can proceed without the SIA study. However, the other provisions of compensation, resettlement and rehabilitation would still apply to these projects.
Land acquisition for urban infrastructure projects such as industrial corridors or affordable housing are also excluded from SIA. Given the need for development of urban infrastructure to accommodate the growing population, land acquisition for such predefined urban infrastructure projects can proceed without the SIA. The LARR Act specifies these projects should be part of the planned development of the city.
In summary, any project concerning national security, defense establishments, linear infrastructure projects, and predefined urban development projects are excluded from the requirement of conducting the social impact assessment study. While land acquisition for such projects can proceed without SIA, other provisions of compensation and rehabilitation would still be applicable as per the LARR Act.
Challenges in Implementation of the Act
The Land Acquisition Act 2013 aims to establish a transparent process for land acquisition in India. However, there are several challenges in the implementation of this act that remain to be addressed:
First, the act requires a Social Impact Assessment (SIA) to determine the impact of land acquisition on affected families and the community. However, there is a lack of professionals and agencies equipped to conduct high-quality SIAs across India. There is also ambiguity around the scope and methodology of SIAs, which can lead to inconsistent outcomes.
Second, the act requires consent from 70-80% of landowners for public-private partnership (PPP) projects and private companies. This can delay or stall important infrastructure and development projects in India. The government may need to revisit the consent clauses to find an equitable balance between the interests of landowners and the larger public good.
Third, the act substantially increased compensation for landowners, including provisions for rehabilitation and resettlement. However, state governments find it difficult to fund the higher costs of land acquisition. The Central Government needs to allocate more funds and resources to assist state governments in this regard.
Finally, there is a lack of awareness about the provisions and benefits of the act among landowners and communities. The government needs to launch awareness campaigns to educate people about their rights and entitlements under the Land Acquisition Act 2013.
In summary, while the intent and provisions of the Land Acquisition Act 2013 are commendable, overcoming the challenges in its implementation requires the coordinated efforts of Central and State Governments to ensure its objectives are fully realized. With judicious use of resources and political will, the act can become a model for transparent and equitable land acquisition.
FAQs on the Land Acquisition Act 2013
The Land Acquisition Act 2013 aims to establish a transparent and fair process for land acquisition in India. If your land is being acquired under this Act, you likely have some questions about the process and your rights. Here are some frequently asked questions and their answers:
The Act’s purpose is to establish a fair, transparent, and equitable process for land acquisition that balances the interests of landowners and society’s need for development. It provides safeguards to landowners and ensures rehabilitation and resettlement.
You will receive a preliminary notification with details of the land being acquired in your area. A notice will also be published in newspapers and on the website of the appropriate Government stating that your land is proposed to be acquired. You will then have the opportunity to file objections within 60 days.
Yes, you are entitled to compensation for your land and any assets attached to it, as well as additional benefits. The compensation amount will be the market value of the land and assets, determined by registered valuers. You will also receive a solatium of 100% of the compensation amount, and 12% additional market value for the first year and 12% per year for the next 20 years.
You have the right to object to the acquisition within 60 days of the notice. The Government will then conduct a public hearing to consider your objections. If they still proceed with the acquisition, you may appeal to the appropriate High Court. As a last resort, you can challenge the acquisition in the Supreme Court. However, if the court upholds the acquisition, you will be required to surrender your land.
The Act aims to balance the needs of society and protect landowners’ rights. Make sure you understand your rights and entitlements under this important legislation. Let me know if you have any other questions!
Conclusion
As we have explored, the Land Acquisition Act of 2013 is a landmark legislation for land reform in India. Through its provisions for fair compensation, rehabilitation, resettlement and transparency, it aims to balance development needs with protecting landowner rights. While not without critics, the act represents a significant step forward. As India continues to rapidly develop, effective implementation and evolution of the law’s safeguards will be key. Looking ahead, you can stay informed on this important issue by following policy developments and engaging in public discourse. With balanced policy and collective goodwill, India can pursue progress in a way that uplifts across society. Through understanding and participating in the process, you can contribute to shaping an inclusive future.
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