Land acquisition bill PRS

7/28/2019 Land acquisition bill PRS

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Legislative BriefThe Land Acquisition, Rehabilitation and ResettlementBill, 2011The Land Acquisition,Rehabilitation andResettlement Bill, 2011was introduced in the LokSabha by the Minister forRural Development onSeptember 7, 2011. TheBill has been referred tothe Standing Committeeon Rural Development(Chairperson Ms. SumitraMahajan). The report isdue on May 11, 2012.

Highlights of the Bill The Bill provides for land acquisition as well as rehabilitation and

resettlement. It replaces the Land Acquisition Act, 1894.

The process for land acquisition involves a Social Impact Assessmentsurvey, preliminary notification stating the intent for acquisition, adeclaration of acquisition, and compensation to be given by a certain time.All acquisitions require rehabilitation and resettlement to be provided tothe people affected by the acquisition.

Compensation for the owners of the acquired land shall be four times themarket value in case of rural areas and twice in case of urban areas.

In case of acquisition of land for use by private companies or publicprivate partnerships, consent of 80 per cent of the displaced people will berequired. Purchase of large pieces of land by private companies willrequire provision of rehabilitation and resettlement.

The provisions of this Bill shall not apply to acquisitions under 16 existinglegislations including the Special Economic Zones Act, 2005, the AtomicEnergy Act, 1962, the Railways Act, 1989, etc.

Key Issues and Analysis

It is not clear whether Parliament has jurisdiction to impose rehabilitationand resettlement requirements on private purchase of agricultural land.

The requirement of a Social Impact Assessment for every acquisitionwithout a minimum threshold may delay the implementation of certaingovernment programmes.

Projects involving land acquisition and undertaken by private companiesor public private partnerships require the consent of 80 per cent of thepeople affected. However, no such consent is required in case of PSUs.

Recent Brief:

The Lokpal Bill, 2011November 29, 2011

The Pension FundRegulatory andDevelopment AuthorityBill, 2011November 28, 2011

Pallavi [email protected]


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The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 PRS Legislative Research

PART A: HIGHLIGHTS OF THE BILL1

Context

Land acquisition refers to the process by which government forcibly acquires private property for public purpose. The

Land Acquisition Act, 1894 (1894 Act) governs all such acquisitions. Additionally, there are 16 Acts with provisions for

acquisition of land in specific sectors such as railways, special economic zones, national highways, etc. The 1894 Act

does not provide for rehabilitation and resettlement (R&R) for those affected by land acquisition. Currently, the R&R

process is governed by the National Rehabilitation and Resettlement Policy, 2007. In 2007, two Bills were introduced in

the Lok Sabha: one to amend the Land Acquisition Act, 1894, and the other to provide statutory status to the R&R policy

of 2007. These Bills lapsed with the dissolution of the 14th Lok Sabha in 2009.

In May 2011, the National Advisory Council recommended combining the provisions of land acquisition and R&R2

within a single Bill. In July 2011, the Draft Land Acquisition and Rehabilitation and Resettlement Bill was published bythe Ministry of Rural Development for public comments.3 In September 2011, the government introduced the Land

Acquisition and Rehabilitation and Resettlement Bill in the Lok Sabha. This Bill will replace the 1894 Act.

Key Features

The Bill specifies provisions for land acquisition as well as R&R. Some of the major changes from the current provisions

are related to (a) the process of land acquisition; (b) rights of the people displaced by the acquisition; (c) method of

calculating compensation; and (d) requirement of R&R for all acquisitions.

Public purpose Land may be acquired only for public purpose. The Bill defines public purpose to include: defence and national

security; roads, railways, highways, and ports built by government and public sector enterprises; land for the project

affected people*; planned development; and improvement of village or urban sites and residential purposes for the

poor and landless, government administered schemes or institutions, etc. This is broadly similar to the provisions of

the 1894 Act.

In certain cases consent of 80 per cent of the project affected people is required to be obtained. These includeacquisition of land for (i) use by the government for purposes other than those mentioned above, and (ii) use by

public-private partnerships, and (iii) use by private companies.

Process of land acquisition

The government shall conduct a Social Impact Assessment (SIA) study, in consultation with the Gram Sabha in ruralareas (and with equivalent bodies in case of urban areas). After this, the SIA report shall be evaluated by an expert

group. The expert group shall comprise two non-official social scientists, two experts on rehabilitation, and a

technical expert on the subject relating to the project. The SIA report will be examined further by a committee to

ensure that the proposal for land acquisition meets certain specified conditions.

A preliminary notification indicating the intent to acquire land must be issued within 12 months from the date ofevaluation of the SIA Report. Subsequently, the government shall conduct a survey to determine the extent of land tobe acquired. Any objections to this process shall be heard by the Collector. Following this, if the government is

satisfied that a particular piece of land must be acquired for public purpose, a declaration to acquire the land is made.

Once this declaration is published, the government shall acquire the land. No transactions shall be permitted for the

specified land from the date of the preliminary notification until the process of acquisition is completed.

In case of urgency, the above provisions are not mandatory. The urgency clause may be used only for defence,national security and in the event of a natural calamity Before taking possession of land in such cases 80 per cent


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First, the market value of the acquired land is computed as the higher of (i) the land value specified in the IndianStamp Act, 1899 for the registration of sale deeds; or (ii) the average of the top 50 per cent of all sale deeds in the

previous three years for similar type of land situated in the vicinity.

Once the market value is calculated, it is doubled for land in rural areas. There is no doubling of value in urbanareas. Then, the value of all assets attached to the land (trees, buildings, etc) is added to this amount. On this

amount, a 100 per cent solatium, (i.e., extra compensation for the forcible nature of acquisition), shall be given to

arrive at the final compensation figure.

Land owners whose property is acquired using the urgency provisions shall be given an additional 75 per cent of themarket value of the land.

Process of Rehabilitation and Resettlement

The Bill requires R&R to be undertaken in case of every acquisition. Once the preliminary notification foracquisition is published, an Administrator shall be appointed. The Administrator shall conduct a survey and preparethe R&R scheme. This scheme shall then be discussed in the Gram Sabha in rural areas (equivalent bodies in case of

urban areas). Any objections to the R&R scheme shall be heard by the Administrator. Subsequently, the

Administrator shall prepare a report and submit it to the Collector. The Collector shall review the scheme and submit

it to the Commissioner appointed for R&R. Once the Commissioner approves the R&R scheme, the government

shall issue a declaration identifying the areas required for the purpose of R&R. The Administrator shall then be

responsible for the execution of the scheme. The Commissioner shall supervise the implementation of the scheme.

In case of acquisition of more than 100 acres, an R&R Committee shall be established to monitor the implementationof the scheme at the project level. In addition, a National Monitoring Committee is appointed at the central level tooversee the implementation of the R&R scheme for all projects.

In case the land is being privately purchased (100 acres in rural areas and 50 acres in urban areas), an applicationmust be filed with the Collector who shall forward this to the Commissioner for approval. After the application has

been approved, the Collector shall issue awards as per the R&R scheme.

Rehabilitation and Resettlement entitlements

Every resettled area is to be provided with certain infrastructural facilities. These facilities include roads, drainage,provision for drinking water, grazing land, banks, post offices, public distribution outlets, etc.

The Bill also provides the displaced families with certain R&R entitlements. These include, among other things, (i)land for a house as per the Indira Awas Yojana in rural areas or a constructed house of at least 50 square metres

plinth area in urbanareas; (ii) a one-time allowance of Rs 50,000 for affected families; and (iii) the option of

choosing either mandatory employment in projects where jobs are being created or a one-time payment of Rs 5 lakh

or an inflation adjusted annuity of Rs 2,000 per month per family for 20 years.

Other provisions

A Land Acquisition and Rehabilitation and Resettlement Authority shall be established for settling any disputesrelating to the process of acquisition, compensation, and R&R.

There shall be no change of ownership of acquired land without prior permission from the government. Land maynot be used for any purpose other than for which it is acquired.

Acquired land which has been unused for 10 years from the date of possession shall be returned to the Land Bank ofthe government. If any unused acquired land is transferred to another individual, 20 per cent of the appreciated land

value shall have to be shared amongst the original land owners.


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PART B: KEY ISSUES AND ANALYSIS

Comparison between the 1894 Act and the proposed Bill

The Bill aims to balance the need for land for development with fair compensation to the land owners and R&R for theaffected families. The table below highlights some of the significant changes from the 1894 Act.

Table1: Comparison of some key features between the 1894 Act and the 2011 Bill

Issue 1894 Act 2011 Bill

Public Purpose Includes several uses such as infrastructure, developmentand housing projects. Also includes use by companies undercertain conditions.

No significant change.

Consent fromaffected people

No requirement. Consent of 80 % of displaced people required in case of acquisitionfor private companies and public-private partnerships.

SIA No provision. SIA has to be undertaken in case of every acquisition.

Compensation Based on the market value. Market value doubled in rural areas and not in urban area.

Market Value Based on the current use of land. Explicitly prohibits usingthe intended use of land while computing market value.

Higher of: (a) value specified for stamp duty, and (b) average of thetop 50% by recorded price of sale of land in the vicinity.

Solatium 30 % 100 %

Resale of land No provision. Prior permission of the government required.

Sharing of profit No provision. If the acquired land is unused and is transferred, 20% of the profitsshall be shared with the original land owners.

R&R No provision for R&R. R&R necessary for all affected families. Minimum R&R entitlements

to be provided to each a ffected family specified.Sources: Land Acquisition Act, 1894 and Land Acquisition and Rehabilitation and Resettlement Bill, 2011; PRS.

Exemption of certain Acts

Absence of R&R provisions for some acquisitions

The Bill specifies 16 Acts such as the Atomic Energy Act, 1962, and the National Highways Act, 1956 which will be

exempt from its provisions. The central government has the power to modify this list. The compensation and R&R

provisions under some of these Acts are different from this Bill. For example, the National Highways Act and the Atomic

Energy Act provide that the compensation shall be based on the market value of the land on the date the notification ispublished. Both these Acts do not stipulate any R&R provisions.

Purchase of land by private companies

The Bill provides that R&R provisions are mandatory for all private purchases through private negotiations if the land

purchased is over 100 acres in rural areas or 50 acres in urban areas. This raises two issues (i) jurisdiction of Parliament

to makes laws on purchase of land; and (ii) possible circumvention of R&R provisions.

Jurisdiction of Parliament to make laws on purchase of land

It is not clear whether Parliament has jurisdiction to require R&R on purchase of agricultural land through privatenegotiations. Parliament derives its power to make laws on acquisition and requisition of property from Item 42 of the

Concurrent List. Further, transfer of property, other than agricultural land, registration of documents and deeds is

included in the Concurrent List (Item 6). However, transfer and alienation of agricultural land is included in t he State

List (Item 18). If it is interpreted that the R&R arises out of transfer of agricultural land, the issue may fall within the sole

jurisdiction of state legislatures. On the other hand, if the interpretation is that this subject is primarily related to R&R,

which is not specified in any of the three lists, then it may fall within the ambit of the residuary power of Parliament

Clause 98 &

FourthSchedule

Clause 2 (2) (a)

& Proviso 2 (b)


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Social Impact Assessment

No threshold for the SIA

The Bill requires an SIA study to be conducted for every acquisition of land. There is no minimum threshold for the landto be acquired. This could lead to delays in the implementation of various government welfare schemes such as building

public toilets under the Total Sanitation Campaign or building bus shelters.

No detailed guidelines for the Expert Group appraising the SIA

The Bill provides for an independent multi-disciplinary expert group which shall evaluate the SIA. This group would be

required to assess whether (i) the project serves the stated public purpose; (ii) it is in the larger public interest; and (iii) the

potential benefits outweigh the costs and adverse impact. There are no guidelines to determine the methodology for such

assessment and the Bill does not provide for such guidelines to be delegated to the Rules. This could lead to lack of

consistency in the assessment of projects by different expert groups.

Requirement of consent from the project affected people

Consent required from project affected people and not just land owners

The Bill requires consent to be obtained from 80 per cent of the project affected people. This means groups other than

owners such as agricultural labourers and sharecroppers may also be required to give their consent. This provision differs

from other existing laws such as the Industrial Disputes Act, 1947, and the Companies Act, 1956. In all these Acts, in the

case of closure or change of ownership of the company, consent is required to be obtained only from the owners although

the livelihood interest of all the employees is protected. The Land Acquisition (Amendment) Bill, 2007 (which lapsed in2009) required consent to be obtained from 70 per cent of the land owners and not the affected people.

Differential treatment of public and private enterprises

In the case of acquisition of land for the purpose of railways, highways, ports, power, irrigation projects, etc., requirement

of consent from project affected people is applicable only to private companies and not to PSUs. This may lead to a

situation where two companies wanting to make an acquisition for the same project will have to fulfil different conditions

on the basis of the nature of their ownership.

Computation of compensation paid to land owners

Basis of calculation of the market value of land in rural areas unclear

Compensation shall be calculated on the basis of the market value of land and the value of assets attached to the land.

The market value of land is determined by taking into account the higher of: (i) the minimum land value in the Indian

Stamp Act, 1899 or (ii) the average of the top 50 per cent of the reported sale price during the preceding three years for

similar type of land in vicinity. In the case of land in rural areas, the value of land determined by this method is further

doubled. A possible reason for this doubling could be to compensate for under reporting of the transacted price in

registration deeds. However, this may not provide an accurate estimation of the value of the land.

Land transactions after SIA could affect the compensation amountTransactions on the proposed land to be acquired shall be frozen from the date of issue of the preliminary notification till

the time the process of land acquisition is completed. This is done to prevent sale of land just before the acquisition

which could drive up prices. However, the possibility of land acquisition would be known from the time of the SIA

process. This implies that there could be sale of different parcels of land in the vicinity from the time of the SIA till the

issue of the preliminary notification. As the compensation for land is linked to the actual transactions in the three years

prior to the preliminary notification these sales during the SIA process may increase prices

Clauses 3 (za)

(vi) and (vii)

Clause 26

Clause 11 (4)

Clause 4 (1)

Clause 7

Clauses 3 (za)

(vi) and (vii)


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No R&R provisions for temporary occupation of land

Under the Bill, the government may temporarily acquire waste and arable land for a maximum period of three years. This

raises three issues. First, the Bill does not provide any guidelines for computing the compensation in such cases. Second,the R&R provisions mentioned in the Bill would not be applicable to such acquisitions. Third, the Bill specifies that in

case of a dispute between the owners of the land and temporary occupants, the matters may be referred to the Land

Acquisition and R&R Authority. However, it does not provide for a process to appeal against the decision of the

Authority in such cases. [The Bill provides for appeal to the High Court only against the compensation award for

acquisition and not for temporary acquisitions.]

Standing Committee Recommendations on the 2007 Bills

The Land Acquisition (Amendment) Bill, 2007 and the R&R Bill, 2007 were referred to the Standing Committee on

Rural Development. The Committee made recommendations, some of which have not been included or have beenincorporated with certain modifications in the 2011 Bill.

Table 2: Some recommendations of the Standing Committee not fully incorporated in the Bill, 2011

Issue Standing Committee Recommendations 2011 Bill Comments

Benefits for the displacedpeople

Benefits should be doubled at every subsequentdisplacement.

No such provision. Not incorporated.

SIA There should be discretion in deciding whether anSIA is necessary below a specified threshold.

SIA has to be undertaken in case o f everyacquisition.

Incorporated with somemodifications.

Compensation by way of

issuing shares anddebentures

The issue of shares and debentures is not practical

and should be over and above the admissiblecompensation.

Shares can be issued as part compensation. It

cannot exceed 25% of the market value o f theland.

Not incorporated.

Dispute Settlement Authority The Authority should consist of at least threepersons, including the chairperson.

The Authority consists of only one person. Not incorporated.

Rate of interest (ifcompensation not paidbefore taking possession)

Rate of interest should be increased from ninepercent to 15 percent.

If compensation is not paid before takingpossession, a nine percent interest shall be levied.In case of any default, the interest is15 percent.

Incorporated with somemodifications.

Sources: Standing Committee Report on Land Acquisition (Amendment) Bill, 2007 and Standing Committee Report on Rehabilitation and Resett lementBill, 2007; Land Acquisition, Rehabilitation and resettlement Bill, 2011; PRS.

Notes

1. The brief has been written on the basis of the Land Acquisition, Rehabilitation and Resettlement Bill, 2011 introduced in the LokSabha on September 7, 2011.

2. Press release dated May 25, 2011 of the National Advisory Council available at http://nac.nic.in/press_releases/25_may_2011.pdf

3. The Draft Land Acquisition and Rehabilitation and Resettlement Bill, 2011,which was published by the Ministry of Rural

Development for public comments, available at http://rural.nic.in/sites/downloads/policies/Final.pdf

DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (PRS) The opinions expressed

Clause 75 &

Clause 68
http://nac.nic.in/press_releases/25_may_2011.pdfhttp://rural.nic.in/sites/downloads/policies/Final.pdfhttp://rural.nic.in/sites/downloads/policies/Final.pdfhttp://nac.nic.in/press_releases/25_may_2011.pdf


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Standing Committee Report SummaryThe Land Acquisition, Rehabilitation and Resettlement Bill,2011 The Standing Committee on Rural Development (Chair:

Ms. Sumitra Mahajan) submitted its Report on The Land

Acquisition, Rehabilitation and Resettlement Bill, 2011

on May 17, 2012.

The term public purpose in the Bill includes specificgovernment projects which benefit the public as well as

provision of public goods and services by private

companies or public-private partnerships (PPPs). The

Committee recommended that land may not be acquired

for use by private companies and PPPs. The Committee

recommended including infrastructure projects within

the definition of public purpose.

The Bill defines infrastructure projects to includeprojects related to generation of electricity,telecommunication services, roads and highways, water

supply, and other projects that may be notified by the

government. The Committee felt that the Bill gives wide

discretion to the government in notifying any project as

infrastructure project and this Clause should be deleted.

The Bill requires that rehabilitation and resettlement(R&R) should be provided by private companies if they

purchase land equal to or more than 100 acres in rural

areas and 50 acres in urban areas through privatenegotiations. The Committee recommended that since

sale and purchase of land is a state subject, the threshold

for R&R provisions shall be fixed by the states and not

the central government.

The Committee recommends that the Bill should notallow for acquisition or alienation of land of Scheduled

Areas (Schedule V and VI). If unavoidable, there should

be increased compensation and R&R benefits provided

for acquisitions in such areas.

A maximum of five per cent of irrigated multi-croppedland may be acquired in a district, with certain conditions.

The Committee recommended that this restriction should

also apply to any land under agricultural cultivation.

Also, the percentage restrictions should be fixed by the

The Bill exempted 16 existing legislations that provide forland acquisition. The Committee recommended that no

central act should be exempted from the provisions of this

Bill and necessary amendments should be brought in

those Acts to bring them at par with this Bill.

The Bill provides a consultation process with GramSabhas at certain stages (SIA, preliminary notification,

R&R). The Committee expands the scope to include

other decision points (compensation awards, disputes,

etc.) and requires consent instead of consultation.

The Bill requires the Collector to determine the marketvalue based on certain specified parameters. The

Committee recommended that the appropriate

government should constitute a multi-member landpricing commission or authority to finalise the cost of

land acquisition state wise/area wise. Also, 12 per cent

interest per annum should be paid in addition to the

compensation from the date of the notification till the date

of the award.

The Committee also recommended that in cases ofurgency it should be clarified that the extra compensation

would be 75 per cent of the total compensation package /

solatium calculated.

The Bill stated that if an acquired land is left unutilisedfor a period of 10 years from the date it was acquired, it

shall be returned to the Land Bank or the appropriate

government. The Committee recommended that this

period should be reduced to five years and if left

unutilised, the land should be returned to the land owners.

The Bill proposed that the Schedules in the Bill could bechanged by a notification given by the government. TheCommittee suggested that this should be done only by

amendment Bills brought in the Parliament.

The Committee recommended that the monetarycomponents in the R&R entitlements given in Schedule II

in the Bill should be inflation indexed. It also

recommended that the minimum infrastructure at R&R


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Pallavi Bedi

[email protected]

Sana [email protected] May 17, 2012

The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 was introduced on September 7, 2011 in the Lok Sabha. It was referred to the Standing

Committee on Rural Development. The Committee has made a number of recommendations in its report submitted in the Lok Sabha on May 17, 2012. This

Table maps the Clauses of the Bill and the recommendations made by the Standing Committee.

Table 1: Comparison of the Bill with the recommendations of the Standing Committee

LARR Bill, 2011 Standing Committee Recommendations

Public purpose and acquisition for private companies and PPPs - (Clause 3 (za)(i) to (vi)(A) and Clause 2(1)(a) & (b))

The Bill provides that land may be acquired for use by the government for its ownuse, control; or for the purpose of use by private companies; or for public privatepartnerships (PPPs) and also private companies for the use of public purpose. Itprovides that the provisions relating to rehabilitation and resettlement (R&R) shall beapplicable in case of acquisition for private companies and for PPPs.

The term public purpose in the Bill includes provision of land for, (a) strategicdefence purposes and national security, (b) roads, railways, highways, and ports,built by government and public sector enterprises (c) project affected people, (d)

planned development or improvement of villages, and (e) residential purposes forthe poor and landless. Public purpose includes other government projects whichbenefit the public as well as provision of publ ic goods and services by privatecompanies or PPPs; these require the consent of 80 per cent of project affectedpeople.

The Committee recommended that land should not be acquired for use by PPPs andprivate companies. Public purpose should be limited to state sponsored projects asdefined in Clause 3(za)(i) to (vi)(A). The provisions relating to acquisition of land forprivate companies and PPPs should be deleted (Clause 3(za)(vi)(B) and (vii)].

Infrastructure projects Clause 3 (o) (i v)

The Bill defines infrastructure projects to include projects related to the generationof electricity, telecommunication services, roads and highways, water supply, andany other project that may be notified by the government.

The Committee recommended that Clause 3 (o) (v) gives wide discretion to thegovernment to define infrastructure projects should be deleted. The Committeerecommended that infrastructure projects should be included in the definition of publicpurpose.

R&R for private purchase of land - Clause 2 (2) (a)

The Bill provides that R&R provisions are mandatory for all private purchases if theland purchased is over 100 acres in rural areas and 50 acres in urban areas.

The Committee recommended that since sale and purchase of land is a State subject,State legislatures should have the discretion on whether there should be R&R and if soprescribe a threshold for R&R provisions.

Role of local self-government institutions

The Bill provides that the Gram Sabha shall be consultedat time of preparing theSIA and at the time of issuing the preliminary notification for acquisition.

The Committee recommended that the Bill should be amended to provide for moreparticipation by local self-government institutions. There is a need to provide in greater


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Compensation for acquisition Clause 26 29 and Schedule I

The compensation for the land acquired shall based on the higher of (a) theminimum land value, specified in the Indian Stamp Act, 1899 for the registration of

sale deeds; and (b) the average sale price of the higher priced 50% of all sale deedsregistered in the previous 3 years for similar type of land situated in the vicinity. Thisamount is further doubled in case of rural areas. The value of the assets (trees,plants, buildings etc) attached to the land being acquired will be added to thisamount. This total amount will then be multiplied by two to get the finalcompensation amount. In case of the urgency Clause, there is an additional 75 percent compensation.

The Committee recommended that the term minimum value should be replaced withmarket value. In addition, the appropriate government should constitute a multi-

member land pricing commission or authority to finalise the cost of land acquisition statewise/area wise.

The Committee also clarified that the award given for the land acquired should be treatedonly as compensation and not as a base for circle rate for subsequent acquisitions.

Also, 12 per cent interest per annum should be paid in addition to the compensation fromthe date of the notification till the date of the award.

Urgency Clause 38 and Clause 9

In case of land acquisition in urgency, an additional 75 per cent compensation shallbe provided.

The Bill provides that if a land is proposed to be acquired under the urgencyprovisions, an SIA may not be conducted.

The Committee clarified that in cases of urgency it should be clarified that the extracompensation would be 75 per cent of the total compensation package / solatium

calculated.The Committee also recommended that a notice should be issued in case an SIA is notconducted in an acquisition under the urgency provisions.

Publication of Declaration for acquisition Clause 15 and 19

The Bill states that the declaration to acquire land has to be made within 12 monthsfrom the date of the preliminary notification.

The Committee recommended that any delay due to court proceedings shall be excludedfrom this period of 12 months.

Temporary occupation of land Clause 75

The Bill provides that the government may acquire land for temporary occupation for

any public purpose or for a company for a maximum period of three years.

The Committee recommended that the term a company shall be deleted from this

Clause.

Unutilised land - Clause 95

If an acquired land is left unutili sed for a period of 10 years from the date i t wasacquired, it shall be returned to the Land Bank or the appropriate government.

The Committee recommended that this period should be reduced to five years and if leftunutilised, the land should be returned to the land owners.

Change in the Schedules of the Bill Clause 99

The Bill proposed that the Schedules in the Bill could be changed by a notification The Committee stated that since the Schedules deal with the core issues of


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given by the central government. compensation and R&R entitlements, changes to such provisions should be made onlythrough amendment Bills brought in the Parliament. The Committee recommended thattherefore this Clause should be deleted.

R&R entitlements Schedule II & III

The Bill also provides the displaced families with certain R&R entitlements. Theseinclude, among other things, (i) land for a house as per the Indira Awas Yojana inrural areas or a constructed house of at least 50 square metres plinth area in urbanareas; (ii) a one-time allowance of Rs 50,000 for affected families; and (iii) the optionof choosing either mandatory employment in projects where jobs are being createdor a one-time payment of Rs 5 lakh or an inflation adjusted annuity of Rs 2,000 permonth per family for 20 years.

Every resettled area is to be provided with certain infrastructural facilities. Thesefacilities include roads, drainage, provision for drinking water, grazing land, banks,

post offices, public distribution outlets, etc.

The Committee recommended that the monetary components in the R&R entitlementsgiven in Schedule II in the Bill should be inflation indexed.

The Committee also recommended that the infrastructure facilities should be decided ona case by case basis.

Definitions

Affected area and affected family Clause 3 (b) & (c)

The Bill defines affected family to include (i) landowners; (ii) agricultural labourers,tenants who have been working in the affected area for three years prior to theacquisition; (iii) tribals and forest dwellers; (iv) families whose livelihood for theprevious three years is dependent on the forests or water bodies; and (v) familieswho have been given land by the state or central government.

Appropriate government Clause 3 (e) (iv)In relation to acquisition of land for public purposes in more than one State, thecentral government shall be the appropriate government.

Family Clause 3 (m)

Family includes a person, his or her spouse, minor children, minor brothers andsisters dependent on him.

Land Bank no definition

The Committee recommended that within the definition of affected family:

- Tribals should be substituted by Scheduled tribes- Traditional rights should be substituted by forest rights- Affected people should be substituted with affected family- Three years in the definition should become three years or more

The Committee recommended that the central government shall act in consultation withthe one or more state governments involved in an acquisition.

The Committee recommended that widows and divorcees and abandoned women shouldbe considered a separate family.


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The Committee recommended that the Bill should clearly define the term Land Bank.

Acquisitions under Land Acquisition Act, 1894 Clause 24

The Bill provides that acquisition process commenced under the LA Act 1894, shall

be invalid in case the award has not been given or possession of the land has notbeen taken before the commencement of the LARR, 2011

The Committee recommended that the Rules to this Bill should be framed to ensure that

the compensation and R&R benefits for such acquisitions should be as per the provisionsof this Bill, and at the same time the pace of implementing infrastructure projects is notadversely impacted.

Sources: The Land Acquisition and Rehabilitation and Resettlement Bill, 2011; 31st Report of the Standing Committee on Rural Development; PRS.

DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other personwith due acknowledgement of PRS Legislative Research (PRS). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensiveinformation, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the

objectives or opinions of those who may receive it.


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originally acquired shall be permitted. may use it for any other public purpose.

Clause 95: Return of unut ilised landThe Bill provides that any acquired land which has been unused for 10 yearsfrom the date of possession shall be returned to the Land Bank of the

government. If any unused acquired land is transferred to another individual,

20% of the appreciated land value shall have to be shared amongst the originalland owners.

If the acquired land has been unused for 5 years from the date of thepossession, then it shall be returnedto the original owner or owners or their

legal heirs or to the Land Bank.

Land Bank has been defined as a governmental entity that converts vacant,

unused, abandoned acquired lands and tax-delinquent properties into land forproductive use.

Clause 96: Change in ownership

The Bill provides that if any unused acquired land is transferred to anotherindividual, 20% of the appreciated land value shall have to be shared amongst

the original land owners.

If any unused acquired land is transferred to another individual within fiveyears of it being acquired, 40% of the appreciated land value shall have to be

shared amongst the original land owners or their legal heirs.

The profits shall have to be transferred only in the case of the first sale after

the acquisition.

Clause 98: Provisions of do not apply in certain cases/ apply with modification

The Bill the central government may by notification add or omit to the list of

legislations which are exempt from the provisions of the Bill.

The notification has to be issued within one year of the commencement of the

Act.

DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or infull to any other person with due acknowledgement of PRS Legislative Research (PRS). The opinions expressed herein are entirely those of the author(s). PRS makes everyeffort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit

group. This document has been prepared without regard to the objectives or opinions of those who may receive it.

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Land acquisition bill PRS

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