LAND LAWS ASSIGNMENT

THE RIGHT TO FAIR COMPENSATION

AND
TRANSPARENCY IN LAND ACQUISITION,
REHABILITATION AND RESETTLEMENT
ACT, 2013

Submitted by:
Anirudh Arora
IXth Semester
Roll No. 5

ACKNOWLEDGEMENT
At the outset, I would like to thank my Land Laws teacher, Dr. Kahkashan Y.
Danyal, for being a guiding force throughout the course of this submission and
being instrumental in the successful completion of this project report without
which my efforts would have been in vain.
I am thankful to the Librarians, Faculty of Law, Jamia Millia Islamia for
helping me in collecting the relevant material for my project report.
I would like to extend my sincere thanks to my batch mates for their constant
review and honest remarks.

Hypothesis
The earlier legislation dealing with acquisition of land in India was the colonial Land
Acquisition Act, 1894. The jurisprudence that has developed over the years on this subject
has made the citizen, a subject. The colonial mindset that was all pervasive under the Act is
still reflected in practice and even the judiciary in some cases has inadvertently furthered
this notion. Thus, it becomes imperative to scrutinize the law and test it, against the
contemporary democratic values.
The underlying assumption behind land acquisition in India is the public purpose
justification. To acquire land by virtue of the power of eminent domain, the government
must satisfy that, the acquisition is for public purpose and there shall be compensation. The
statutory design is that, if the acquisition is for public purpose the government can acquire
the lands. Therefore the question of public purpose question is an important aspect of it. If
land is to be acquired for industrial development resorting to eminent domain and consider
it as public purpose, then a broader interpretation of the term public purpose is necessary.
If a broader interpretation is given to public purpose one has to be sure about drawing the
line between the public purposes and the non-public purposes. It is of utmost importance
that the executive and the judiciary tread a clear line, otherwise the difference between
public purpose and non-public purpose stands dissolved. In the quest of economic
development a too liberal interpretation of the expression public purpose can devoid the
people of their inherent right to hold their property, therefore it is incumbent on the
government to balance the conflicting claim of the citizens and the society.
Another, concerns related with the compulsory acquisition regime is the issues relating to
adequate compensation, compulsory social impact assessment and resettlement and
3

rehabilitation of the displaced persons. The Act of 1894 only provides for monetary
compensation, which can never be an adequate substitute. Further, relief under the Act is
provided only to the owners of the acquired land and it completely ignores peasants and
workers whose lives are also dependent on the land acquired.
The work in the course also investigates the dimension of corporate governance and role of
corporations in land acquisition process. The work also investigates in cursory way the role
of ladies in the land acquisition process. Keeping in view the Land Acquisition Act, 1894
could not meet the expectations of Indian People for fair land acquisition process and
assuming that The Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013 shall prove a good replacement the researcher
aims to investigates the dimensions of compensation, corporate governance, rights of
internally displaced people or project affected persons, role of ladies in land acquisition,
rehabilitation and settlement of affected persons due to land acquisition process.

Literature Review
Nothing is created in vacuum. The researcher is humbly grateful to all the authors of past on
the subject. The primary source for the work is Land Acquisition Act, 1894 which played long
innings in the history of India for the land acquisition. The Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has replaced
the Act of 1894 and made it more meaningful has also been a primary document on the
subject for research.

Research Methodology
The research adopted basically is doctrinal in nature, and the emphasis is to analyze the
statutory provisions, with the help of the opinions of jurists and policy framers available in
current Law and journals in India and abroad and on internet websites. The judicial
interpretation which is helping in the emergence of a new corporate jurisprudence is a
major area of analysis. For the purpose of primary data scholar would endeavoured to
collect views of legal, social, political luminaries in various professions as academics, and
practitioners of law.
Keeping in view the nature of the problem analytical method has been adopted. In
accordance with this method apart from the material from decided cases attempts have
been made to use facts and information already available and analyze them to make a
critical evaluation of the problem. While analyzing specific controversial issues, which often
arise, conceptual methodology has been adopted which is generally used to develop new
norms or to re-interpret existing ones.

References:
Books:

V.D.MAHAJAN, JURISPRUDENCE & LEGAL THEORY,(5TH ED.,2012)

Acts and Bills:

The Right of Fair Compensation and Transparency in Land Acquisition, Rehabilitation

and Resettlement Act, 2013

Land Acquisition Act,1894

The Draft National Land Acquisition and Rehabilitation & Resettlement Bill, 2011
available at http://rural.nic.in/sites/downloads/policies/Final.pdf

Articles:

Mihir Desai (2011) 46, Land Acquisition Law and Proposed Changes, Eco. & Pol.
Weekly, 26-27, p.95-100

Alphonsa Joja, Anviti Chaturvedi, Ayesha Talpade, Modhulika Bose, Stella James and
Saurabh (2011) 3, Of Platitude and Million-Dollar Promises- A Critique of The Land
Acquisition, Rehabilitation and Resettlement Bill, 2011, Journal of Indian Society,
p.26-66, http://jils.ac.in/wp-content/uploads/2012/09/3_alphonso-jojan-c.pdf

Ram Singh (2012) 47, Inefficiency and Abuse of Compulsory Land Acquisition- An
Enquiry into Forward, Economic & Political Weekly, 19, p.10-14

Michael M. Cernea (2003) nr 175, For a New Economics of Resettlement: A

Sociological Critique of the Compensation Principle, International Social Science
Journal,p.16,http://web.mit.edu/cis/www/migration/dec05workshop/presentations
/Cernea_New_Economics-of_Resettlement_ISSJ_2003.pdf

Press Release and Newspaper:

Press Release by National Advisory Council (2009), available at

http://nac.nic.in/press_releases/25_may_2011.pdf

http://www.livemint.com/Politics/I1CAfbH2Und58UkVckctVP/The-Nandigram-storytill-now.html

Table of Content
1. Introduction........................................................................................................10
2. Background................................17
3. Why new Land acquisition act......................19
4. Objective of the new land acquisition act................20
5. Some important highlights of New Land Acquisition Act............21
6. Jurisprudence behind the new land acquisition act...............22
7. Determination of Compensation.........................................................................38
8. Contravening Provisions and Problematic Issues of the act...........39
9. Case Study of Land Acquisition at Singur West Bengal........................................42
10. Comparative Analysis between 1894 and 2013 Act.............................................46
11. Nandigram Land Grab Case..................................................................................47
12. Conclusion...............................50

Introduction
On September 6, 2013, the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 (Land Acquisition Act, 2013),
received Presidential assent, thereby overhauling the existing framework for land
acquisition. This new law has been introduced in response to the historic injustice meted
out to land owners due to forced acquisition; and the opacity and distortion in acquisition
processes under the Land Acquisition Act, 1984. Given its importance to the countrys
industrialization and urbanisation initiatives, as well as the need to address the
requirements of those whose livelihoods are dependent on such land, this note aims to
analyse whether the recently passed law strikes the right balance.
It must be noted that the Land Acquisition Act, 2013 is a work of many years, as the first
draft of this legislation was made way back in 2007, and since then there have been several
debates and revisions to shape the Act in its present form. The Preamble to this law explains
its objective to establish a framework for a participative, informed and transparent
mechanism for land acquisition. The new law is comprehensive in nature as it lays down an
elabo-rate acquisition architecture in place, introducing numerous new procedures such as
the consent requirement; Social Impact Assessment (SIA); exceptions for Scheduled Areas
etc. as well as considerably reconstructing existing provisions such as the urgency clause;
the definition of public purpose etc. In this note, we restrict our analysis to four very
crucial aspects of the new law: 1) The land acquisition process, focussing on the consent
mechanism; 2) The framework for compensation; 3) The Rehabilitation and Resettlement
(R&R) entitlements; and 4) Impact of the new law on the industry.

10

In its 120 years of existence, the Land Acquisition Act, 1894 helped institutionalize
involuntary acquisition, with little regard to the rights of those who were dispossessed of
their lands, bereft of their livelihood, security and community. The lack of an effective
consultative process under this colonial legislation was reflective of the broader premise
backing the entire law on land acquisition then, which was based on the doctrine of eminent
domain. The tone of the legislation assumed a priority to the requirements of the State for
the public good, which would always override the interests of the landowners, and treated
them as unfortunate victims of development.1 This could seemingly be deciphered from
the Statement of Objects and Reasons of the Land Acquisition (Amendment) Act, 1984
which referred to the sacrifices of the affected population who were unavoidably to be
deprived of their property rights for the larger interests of the community.
The Land Acquisition Act, 2013 attempts to redeem this skewed model of development by
attempting to make the land acquisition procedure more facilitative and consultative. It
introduces a mandatory requirement of consent whereby all projects require the prior
consent of 80 per cent of land owners in the case of private companies and 70 per cent in
the case of public private partnerships.2 While this could be seen as a radical and welcome
inclusion, one must note that differential treatment is accorded to acquisitions by public
companies. For such acquisitions, there is no requirement of consent of landowners, which
is indicative of the half-hearted attempt of the government to account for the rights of
those who are involuntarily deprived of their land.3

Usha Ramanthan, Land Acquisition, Eminent Domain and the 2011 Bill, 47 (44-45) EPW 10 (2011).
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,
2(2)(b)(i) and (ii).
3
K. Sukumaran, The Saga of Land Acquisition, the hiNDU September 6, 2013, available at
http://www.thehindu.com/features/homes-and-gardens/the-saga-of-land-acquisition/arti-cle5100915.ece
(Last visited on January 5, 2014).
2

11

Further, the provision requires consent to be obtained from only land owners, and
excludes project affected people such as agricultural labourers and sharecroppers from the
purview of the consent mandate. It must be noted that the earlier versions of the Act
adopted a more inclusive approach by extending the requirement of consent to project
affected people, including landless labourers and artisans.4 The neglect of the law in this
regard to other stakeholders is regressive and fails to extend protection to other groups
whose livelihood is dependent on land that is proposed to be acquired.
At the level of implementation as well, the provision for mandatory prior consent faces
uncertainties and lapses. Firstly, while the Land Acquisition Act, 2013 lays down the
requirement and threshold for consent, it fails to de-lineate the process by which such
consent can be obtained and is silent on the manner of negotiations. This is particularly
problematic for large infrastructure projects, which require multiple parcels of land, and
hence consent from a large population. Since the law leaves scope for flexibility for states to
formulate their own rules in this regard, the policy at the state level towards land
acquisition is likely to become a key variable in capital investment decisions.5 Secondly, the
percentage set for consent ignores the fact that land titles in our country are not clearly
documented. Owing to inaccuracies of land records, most times a certain percentage of the
population is not traceable; but the high threshold prescribed does not leave enough margin
to accommodate such inaccuracies. This can serve as a major obstacle for large-scale
acquisitions and is posed to considerably deter the industry from such investments.

Land Acquisition, Rehabilitation and Resettlement Bill, 2011, 3 (za).

ICRA Credit Rating Feature, Impact Analysis: New Land Acquisition Bill, September, 2013, available at
http://icra.in/Files/ticker/new%20land%20acquisition%20bill.pdf
5

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One of the major pitfalls under the Land Acquisition Act, 1894 was its antiquated approach
to compensation which was extremely meagre, and more importantly very poorly
administered. The lack of adequate compensation was the trigger for most vehement
oppositions to land acquisitions by land owners and users. In this regard, the Land
Acquisition Act, 2013 not only increases the quantum of compensation, but also widens its
ambit by accounting for those whose livelihood is dependent on the land, and also
elaborates upon a sophisticated manner of awarding compensation. Compensation for the
land acquired is based on the market value, which is computed on the basis of reported
transactions during three years preceding the date of proposed acquisition. This value is
determined as the higher among: (a) value specified for stamp duty, and (b) the average sale
price for similar type of land situated in the nearest village or nearest vicinity area; or (c)
consented amount of compensation as agreed upon in case of acquisition of lands for
private companies or for public private partnership projects.6 This amount is further
doubled in case of rural areas. Further, a solatium equivalent to one hundred percent of the
market value is added, to ameliorate the pain of forcible acquisition.7 This is substantial
compared to the Land Acquisition Act, 1894, where the solatium to be awarded was tagged
at thirty percent.8
While the mandate for compensation under the new law seems like a drastic improvement
over its earlier counterpart, many have critiqued this mandate on the grounds that it lacks
sound economic reasoning, however well-intentioned. This criticism stems from the very
rejection of the use of market value of the land as the basis for determining compensation.
6

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,
26(1).
7
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,
30.
8
Land Acquisition Act, 1894, 23(2).

13

It is argued that given the operation of land markets in India, market price is not an
adequate anchor for compensation,9 and the mark-up of doubling the price in rural areas
has been termed as arbitrary and without any justified backing. Most importantly, the
adoption of the market price that would form the basis of a voluntary negotiations and sale
of land to forced acquisition has been critiqued as fundamentally flawed. Land is deemed
not to be a tangible attribute that can be objectively measured; rather it is a subjective
quantity that must be valued according to its owner.10
Hence, the major criticism against valuing land as a commodity is that it does not
encapsulate its value as a source of livelihood.
From the perspective of the industry, the high compensation rate that could go up to four
times the market value of the land in rural areas, and twice in urban areas, has been seen as
a major setback to the extent that investors are re-thinking the viability of their projects.
The only positive attribute for the industry, as noted by India Inc., is that the seemingly
highly and assured compensation package is likely to incentivize consent of the land owners
which is mandatorily required (as elucidated above).
An important consideration with respect to compensation is that transactions on the
proposed land to be acquired are to be frozen from the date of issue of the preliminary
notification under the provisions of the Land Acquisition Act, 2013.11 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, implying that there

Maitreesh Ghatak & Parikshit Ghosh, The Land Acquisition Bill: A Critique and a Proposal, 47(41) EPW 65-66
(2011).
10
Ibid.
11
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
, 11(4).

14

could be sale of different parcels of land in the vicinity from the time of the SIA till the issue
of the preliminary notification. Transactions on the land during this intervening period could
seriously affect its value, leaving scope for strategic manipulation.12
As the very name of the legislation indicates, one of the most land-mark features of the
Land Acquisition Act, 2013 is that it proposes a unified framework for acquisition of land and
consequent rehabilitation mechanisms, in contrast with the earlier regime where R&R was
governed under the policy framework.13 It emphasizes on monetary benefits in the form of
subsistence grants, a one-time resettlement allowance and transportation grants.14 It also
introduces non-monetary benefits in the form of provision of housing units in case of
displacement and mandatory employment opportunities. The law also puts in place a very
important safeguard by stating that no one shall be dispossessed until all payments are
made and alternative sites for R&R have been prepared.15 This goes a long way in adding
credibility and legitimacy to the framework of R&R under the new law.
Further, the Act establishes a robust legal framework for facilitating the disbursement of
R&R benefits. It creates a Land Acquisition and Rehabilitation and Resettlement Authority at
the centre and the state levels to settle disputes and grievances of the parties. This
Authority is supplemented by Rehabilitation and Resettlement Commissioner, the Collector
and the Administrator, each of whom have clearly defined roles. The distribution of power
among these authorities can make the acquisition process more structured and refined, as
12

Ram Singh, New Land Bill: A Threat to Growth Prospects of the States, the eCoNoMiC tiMeS September 25,
2013, available at http://articles.economictimes.indiatimes.com/2013-09-25/
news/42394603_1_resettlement-bill-acquisition-process-rehabilitation-and-resettlement (Last visited on
January 6, 2014).
13
Prior to the enactment of the Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013, rehabilitation for forced acquisitions was governed under the
National Rehabilitation and Resettlement Policy, 2007.
14
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act,
2013, 31 read with Schedule II.
15
Id., 38.

15

opposed to the Land Acquisition Act, 1894 which displayed concentration of power in the
hands of Collector. However, it is also argued that creation of so many levels poses the
threat of bureaucracy creeping in.16 Thus, only the implementation of these provisions will
determine the efficacy of the R&R framework under the new law.
What is also very unique to this law is that the legislation extends the applicability of R&R in
cases where large tracts of land are acquired even through private negotiations.17 While the
industry strongly opposed this provision as an unwanted burden on voluntary sale-purchase
of land, the intention behind such extension is appreciable. For mass development projects
where the purchase of land is voluntary, but the area of land purchased is beyond the prescribed limit, the persons affected are entitled to the protection of R&R entitlements to
ensure a sustained livelihood.
It is anticipated that the Land Acquisition Act, 2013 with its extensive provisions on
compensation and R&R as explained above, is likely to push up the cost of acquiring land by
3.5 times its cost under the earlier regime, making large industrial and infrastructure
projects unviable and raising overall costs in the economy.18 From the perspective of the
industry, India Inc. has termed the new law as a retrograde step19 that would prove as a
major setback to the countrys development projects. At a time where major projects are
stalled and Indias global competitiveness is eroding, the industry was anticipating a more

16

Niranjan Sahoo, Decoding the Land Acquisition Bill, August 31, 2013, avail-able at
http://orfonline.org/cms/sites/orfonline/modules/analysis/AnalysisDetail.html?cmaid=56375&mmacmaid=56
376 (Last visited on January 5, 2014).
17
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act,
2013, 2(3).
18
PTI, Land Acquisition Cost May Go up to 3.5 Times: India Inc, the eCoNoMiC tiMeS August 29, 2013, available
at http://articles.economictimes.indiatimes.com/2013-08-29/ news/41582557_1_resettlement-rehabilitationland-acquisition-bill-unutilised-land (Last vis-ited on January 5, 2014).
19
PTI, Land Bill, A Retrograde Step: Industry, the eCoNoMiC tiMeS August 30, 2013, available at
http://articles.economictimes.indiatimes.com/2013-08-30/news/41619002_1_land-acquisi-tion-bill-acquiringland-land-owners (Last visited on January 6, 2014).

16

facilitative land acquisition process to restore investor sentiments.20 However, with the
multi-fold increase in project cost, severe lengthening of the project cycle, pro-visions on
retrospective effect etc., the Land Acquisition Act, 2013 has elicited severe angst from India
Inc.
Background:
The Right of Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 is an act passed by Indian Government in 2013. It was passed for the
purpose of fair compensation in case of land acquisition, as well as transparency in
rehabilitation and resettlement. This act has replaced the previous land acquisition act of
1894. This act was passed due to certain lacunas and loopholes in old land acquisition act of
1894.
Its footing goes back in 2007 when UPA government introduced Amendment bill, 2007 in
parliament. After that land acquisition act, 2009 and the rehabilitation and resettlement bill,
2009 was introduced in parliament. Both bill lapsed in parliament. National Advisory Council
after digging into depth of circumstances and issues related to land acquisition decided to
recommend a single comprehensive legislation, i.e.

National Development, Land

Acquisition, Resettlement and Rehabilitation Act., rather than the two separate ones, viz.
Land Acquisition (Amendment) Bill 2009 (LAA 2009) and Resettlement and Rehabilitation
Bill, 2009 (R&R 2009).21 Thus in furtherance of it the LARR bill, 2011was introduced in the
parliament, which was passed in 2013 and became an act.

20

TNN, Land Bill is a Retrograde Measure, Says India Inc., the tiMeS of iNDia August 31, 2013, available at
http://timesofindia.indiatimes.com/business/india-business/Land-bill-is-a-retrograde-measure-says-IndiaInc/articleshow/22177234.cms (Last visited on January 5, 2014).
21
Press Release of National Advisory Council (2009), http://nac.nic.in/press_releases/25_may_2011.pdf

17

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 is a legislation that regulates land acquisition and provides laid
down rules for granting compensation, rehabilitation and resettlement to the affected
persons in India. The Act has provisions to provide fair compensation to those whose land is
taken away, brings transparency to the process of acquisition of land to set up factories or
buildings, infrastructural projects and assures rehabilitation of those affected. The Act will
replace the Land Acquisition Act, 1894, a nearly 120yearold law enacted during British rule.
Aims and objectives:

To ensure, in consultation with institutions of local selfgovernment and Gram Sabhas

a humane, participative, informed and transparent process for land acquisition for
industrialization, development of essential infrastructural facilities and urbanization
with the least disturbance to the owners of the land and other affected families

Provide just and fair compensation to the affected families whose land has been
acquired or are affected by such acquisition

Make adequate provisions for such affected persons for their rehabilitation and
resettlement

Purpose and scope:

The Act aims to establish the law on land acquisition, as well as the rehabilitation and
resettlement of those directly affected by the land acquisition in India. The scope of the Act
includes all land acquisition whether it is done by the Central Government of India, or any
State Government of India, except the state of Jammu & Kashmir.

18

Why new Land acquisition act:

When we look to the need of new land acquisition act, we can find many important reasons
and issues. Some of the main chosen issues and reasons are as followed:

Due to development of industries and globalisation, Special Economic Zone etc. the

need for urbanisation and land has increased. On the other hand the land owners whose
land has to be acquisitioned by state must be provided with fair compensation and,
resettlement and rehabilitation arrangements. Thus requirement of land is essential for the
economic growth and industrialisation, and on the other hand the affected people must also
not suffer due to such acquisition.

The word public purpose has caused major problem. Supreme Court in cases like

Yamuna Express way, Smt. Somavati & ors. case etc. has given wide meaning to the word
public purpose. In such cases, court has held that acquiring land and giving it to private
company for some projects which does not use it for public purpose in true manner is valid.
Thus such loose interpretation and lack of clear guidelines is also one of the main reasons
for new land acquisition.

The old act had nothing for resettlement and rehabilitation in case of eminent

domain acquisition by state or acquisition for private company for the operation related to
public purpose. The affected people faces great problem regarding it although
compensation is provided to them.

Previously the compensation deciding authority was collector. The compensation

paid was to be calculated on the basis of local market value. But detail procedure for the

19

calculation of the compensation and any other guidelines were not there. In certain cases
the land owner were fooled.

Old act didnt contain provision for consent from land owner whose land

government plans to seize. Due to lack of such provisions incidents like Nandigram took
place, where for the setup of SEZ (Special Economic Zone) government decided to seize the
land of the farmers and sudden notice was given to them.

One major problem in old act was section 17, which talks about urgency clause. This

urgency clause has highly been misused by the private companies and the state. There is no
better example than Nandigram incident.
Objective of the new land acquisition act:
The objective of the The Right of Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013, can be obtained from the act and the national
draft LARR bill 2011. The following objective can be construed from the act and national
draft LARR bill 2011:

First objective of the act is to define and guide such process with the consultation

with local self-government and Gram Sabha for the land acquisition, which is transparent,
informative and participative & the objective of such land acquisition is for development of
essential infrastructure and urbanisation, which is necessary for public purpose.

Second objective is to ensure and make such arrangements that the land owners

whose land is to be acquired are getting just and fair compensation taking into
consideration all the economic and social circumstances. And to ensure proper process and
guideline for the same.
20

When a land is acquired apart from land owners some other families which are

directly or indirectly dependent on that land also suffer. Third major objective which was
not in old land acquisition act is rehabilitation and resettlement of the affected land owners
and families.
The first objective somehow incorporates economic approach of jurisprudence. And other
two objectives tend to incorporate sociological school of jurisprudence. The jurisprudence
of the act will be discussed in further part of this write up.
Some important highlights of New Land Acquisition Act:

New Land Acquisition Act gives a wider and clearer explanation of the purpose for

which land can be acquired as compared to previous act. It also elaborates which industrial
projects this act covers. (Section 1 and Section 2(l))

Unlike old act, the new act makes it compulsory to acquire the consent of the

affected people and land owners (Section 2(b)). For the purpose of accessing consent the
Social Impact Assessment Study has been incorporated in section 4.

It increases the time period of notice to be given in urgency clause from 15 to 30

days. Apart from it, it provides provisions for sharing of profit in case acquired land is
transferred and in case of resale of land prior permission of government is must.

One of the important and must require provision incorporated is rehabilitation and

resettlement arrangements for the affected people.

21

Jurisprudence behind the new land acquisition act:

First objective of the act focuses on the development of industries and infrastructure of the
country by acquiring the lands of general public. This objective of industrialisation and
infrastructure leads to economic development of the country, and other objectives are flow
from it and are there to reduce the effect of it.
Further the objective talks about acquisition of land for the public purpose. Public purpose
in wide sense includes public welfare and has a wide ambit. As said by the Apex Court in Dev
Sharan v. State of Uttar Pradesh22, the public purpose in case of land acquisition should be
viewed in an angle consistent with the concept of welfare state. Welfare state talks about
interest of society and general public. Social Engineering concept given by Rosco Pound
which focuses on construction of efficient society which satisfies the wants of all present in
society fits this act. He talked about three interests, viz. private, public and social interest.
The given act provides compensation to all the affected families, thus protecting their
private interests.
Rehabilitation and resettlement tends to make change in the social and economic condition
of the affected families. As their source of earning and shelter are acquired by the
government. Because of this change in social and economic conditions of affected families,
the act provides the rehabilitation and resettlement arrangement to them.
While defining the objective of the acts in the given write up, it was mentioned that
jurisprudence behind this act is related to economic approach and sociological approach.
Now after detail and elucidate discussion of the objective, it can be concluded that the act
adopts economic and sociological approach.
22

(2011) 4 SCC 769

22

The Act is applicable when:

Government acquires land for its own use, hold and control, including land for Public sector
undertakings.
Government acquires land with the ultimate purpose to transfer it for the use of private
companies for stated public purpose. The purpose of LARR 2013 includes public private
partnership projects, but excludes land acquired for state or national highway projects.
Government acquires land for immediate and declared use by private companies for public
purpose. The provisions of the Act does not apply to acquisitions under 16 existing
legislations including the Special Economic Zones Act, 2005, the Atomic Energy Act, 1962,
the Railways Act, 1989, etc.
Preliminary Notification
The process of acquisition begins with the issuance of preliminary notification, as envisaged
under Section 11 of Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013. Whenever, it appears to the appropriate
Government that land in any area is required or likely to be required for any public purpose,
a preliminary notification under Section 11 in rural or urban areas shall be published.
Publication of Notification:
The Preliminary Notification shall be published in the following manner:
(a) in the Official Gazette
(b) in two daily newspapers circulating in the locality of required area of which one shall be
in the regional language
23

(c) in the local language in the Panchayat, Municipality or Municipal Corporation, and in the
offices of the District Collector, the Subdivisional Magistrate and the Tehsil
(d) uploaded on the website of the appropriate Government
Immediately after issuance of the notification, the concerned Gram Sabha or municipalities
shall be informed of the contents of the notification issued in all cases of land acquisition at
a meeting called especially for this purpose.
The notification to be issued shall contain details of the land to be acquired, a statement on
the nature of the public purpose involved, reasons necessitating the displacement of
affected persons, summary of the Social Impact Assessment Report and particulars of the
Administrator appointed for the purposes of rehabilitation and resettlement.
In Khub Chand vs. State of Rajasthan23, the Court has held that, the words of Section 4(1) of
the Land Acquisition Act, 1984 clearly suggest that the requirement is a mandatory one.
Publication of the notification in the manner prescribed in Section 4(1) of the Act, it appears
from the subsequent scheme of the Act, is an indispensable condition for a valid acquisition.
In Habib Ahmed v. State of Uttar Pradesh24, the Court has held that neither the notification
nor the declaration can be quashed on the ground that there was no necessity for acquiring
the land for a public purpose. Whether the land is required for a public purpose or not has
to be decided solely by the State Government.
In K.Madhava Rao v. State of A.P.25, that Court observed that it is duty of Court to determine
whenever question is raised whether acquisition is or not for public purpose. However,
23

(1967)1 SCR 120

AIR 1965 All. 344 at p. 345
25
2006 NOC 589 (A.P.)195
24

24

prima facie Government is the best judge as to whether acquisition is for public purpose.
But it is not sole judge.
Although the above cases were dealt under the old law of Land Acquisition Act, 1984, but
the provisions of the new Act and the old law are somewhat similar. Therefore, the rules
laid down in the landmark judgments under the old law will hold well under the new Act
also.
Restriction on Transaction:
No person shall make any transaction or cause any transaction of land specified in the
preliminary notification from the date of publication of such notification till such time as the
proceedings of acquisition are completed.
Provided that the Collector may, on the application made by the owner of the land so
notified, exempt in special circumstances to be recorded in writing, such owner from the
operation of this restriction. But any loss or injury suffered by any person due to his wilful
violation of this provision shall not be made up by the Collector.
Lapse of SIA Report:
Section 14 provides that where a preliminary notification under section 11 is not issued
within 12 months from the date of appraisal of the Social Impact Assessment (SIA) report
submitted by the Expert Group under section 7, then, such report shall be deemed to have
lapsed and a fresh Social Impact Assessment shall be required to be undertaken prior to
acquisition proceedings.

25

The appropriate Government shall have the power to extend the period of twelve months, if
in its opinion circumstances exist justifying the same but such decision shall be recorded in
writing and the same shall be notified and be uploaded on the website of the authority
concerned.
Survey Of Land
Section 12 provides for the preliminary survey of land and power of officers to carry out
such survey. For the purposes of enabling the appropriate Government to determine the
extent of land to be acquired, it shall be lawful for any officer, either generally or specially
authorised by such Government in this behalf, and for his servants and workmen,
(a) to enter upon and survey and take levels of any land in such locality
(b) to dig or bore into the subsoil
(c) to do all other acts necessary to ascertain whether the land is adapted for such purpose
(d) to set out the boundaries of the land proposed to be taken and the intended line of the
work (if any) proposed to be made thereon and
(e) to mark such levels, boundaries and line by placing marks and cutting trenches and
where otherwise the survey cannot be completed and the levels taken and the boundaries
and line marked, to cut down and clear away any part of any standing crop, fence or jungle.
Restriction:
No act under clauses (a) to (e) in respect of land shall be conducted in the absence of the
owner of the land or in the absence of any person authorised in writing by the owner. Such
survey may be undertaken in the absence of the owner, if the owner has been afforded a
reasonable opportunity to be present during the survey, by giving a notice of at least sixty
days prior to the survey.
26

In Satnam Singh v. State of Punjab26, the Court held that a notice is necessary condition
precedent for the exercise of the power of the entry, and noncompliance with these
conditions make the entry of the officer or his servants unlawful.
Payment for Damages:
Section 13 provides that the officer shall at the time of entry under section 12 pay for any
damage caused. It is payment for the intended damage. Damage means any harm done to
land during the course of surveying it and other acts necessary to ascertain whether it is
capable of being adapted for public purpose.
In case of dispute as to the sufficiency of the amount so paid the officer shall at once refer
the dispute to the decision of the Collector or other chief revenue officer of the district, and
such decision shall be final.
Section 15 is consistent with the basic principle that no mans property shall be acquired
unless he has been given an opportunity of being heard. The main objective of issuing
preliminary notification is to call for objections, if any, against such acquisitions from the
owners or others who are having certain interest over the property giving them an
opportunity to raise their claims against the move of the government for acquiring their
lands. Section 15(1) provides that any person interested in any land which has been notified
as being required or likely to be required for a public purpose, may within 60 days from the
date of the publication of the preliminary notification, object to
(a) the area and suitability of land proposed to be acquired
(b) justification offered for public purpose

26

(1969)9 Cur. L. J. 75 at p. 79 (P&H)

27

(c) the findings of the Social Impact Assessment report.

Report on the Objections:

Every objection shall be made to the Collector in writing. The Collector shall give the
objector an opportunity of being heard in person or by any person authorised by him or by
an Advocate and shall, make a report to the appropriate Government, containing his
recommendations on the objections, together with the record of the proceedings held by
him along with a separate report giving therein the approximate cost of land acquisition,
particulars as to the number of affected families likely to be resettled, for the decision of
that Government.
If objections are made, the Collector will consider those objections and make his
recommendation thereon in his report to government. If no objections are made, the
Collector has got to make a report. It is thereafter that the Government is empowered to
proceed further. Section 15(3) provides that the decision of the appropriate Government on
the objections shall be final.
Rehabilitation & Resettlement Scheme
Section 16 provides for the preparation of Rehabilitation and Resettlement Scheme by the
Administrator.
Upon the publication of the preliminary notification by the Collector, the Administrator for
Rehabilitation and Resettlement shall conduct a survey and undertake a census of the
affected families, in such manner, which shall include
(a) particulars of lands and immovable properties being acquired of each affected family
28

(b) livelihoods lost in respect of landless who are primarily dependent on the lands being
acquired
(c) a list of public utilities Government buildings, amenities and infrastructural facilities
which are affected or likely to be affected, where resettlement of affected families is
involved
(d) details of any common property resources being acquired.
Drafting the Scheme:
The Administrator shall, based on the survey and census before, prepare a draft
Rehabilitation and Resettlement Scheme, which shall include
i) particulars of the rehabilitation and resettlement entitlements of each land owner and
landless whose livelihoods are primarily dependent on the lands being acquired and where
resettlement of affected families is involved
(ii) details of Government buildings, public amenities and infrastructural facilities which are
to be provided in the Resettlement Area
The draft shall include time limit for implementing Rehabilitation and Resettlement Scheme.
It shall be made known locally by public hearing in the affected area and discussed in the
concerned Gram Sabhas or Municipalities.
The Administrator shall, on completion of public hearing submit the draft Scheme for
Rehabilitation and Resettlement along with a specific report on the claims and objections
raised in the public hearing to the Collector.

29

Under Section17 the Collector shall review the draft Scheme submitted by the Administrator
with the Rehabilitation and Resettlement Committee at the project level constituted under
section 45.
The Collector shall submit the draft Rehabilitation and Resettlement Scheme with his
suggestions to the Commissioner Rehabilitation and Resettlement for approval of the
Scheme.
If the scheme is approved then the Commissioner shall under Section 18 cause the approved
Rehabilitation and Resettlement Scheme to be made public in the following way:
(i) in the local language to the Panchayat, Municipality or Municipal Corporation, as the case
may be, and the offices of the District Collector, the SubDivisional Magistrate and the Tehsil
(ii) in the affected areas
(iii) uploaded on the website of the appropriate Government.
Declaration
After receipt of objections, the concerned authority shall consider those objections, and if
found unsatisfactory, then a final declaration rejecting the claims will be issued. Section 19
of the new Act provides that the final declaration shall be published by the authority within
a period of 12 months from the date of issuance of preliminary notification under section 11
of the Act.
When the appropriate Government is satisfied, that any particular land is needed for a
public purpose, a declaration shall be made to that effect, along with a declaration of an
area identified as the resettlement area for the purposes of rehabilitation and
30

resettlement of the affected families, under the hand and seal of a Secretary to such
Government or of any other officer duly authorised to certify its orders and different
declarations may be made from time to time in respect of different parcels of any land
covered by the same preliminary notification.
Publication of Declaration:
Every declaration shall be published in the following manner:
(a) in the Official Gazette
(b) in two daily newspapers being circulated in the locality, of which one shall be in the
regional language
(c) in the local language in the Panchayat, Municipality or Municipal Corporation, as the case
may be, and in the offices of the District Collector, the SubDivisional Magistrate and the
Tehsil
(d) uploaded on the website of the appropriate Government.
Summary of Scheme:
The Collector shall publish a summary of the Rehabilitation and Resettlement Scheme along
with declaration. But no declaration under this shall be made unless the summary of the
Rehabilitation and Resettlement Scheme is published along with it.
Also, the Requiring Body must deposit an amount, in full or part, as may be prescribed by
the appropriate Government towards the cost of acquisition of the land.

31

Requiring Body as defined under Section 3(zb) means a company, a body corporate, an
institution, or any other organisation or person for whom land is to be acquired by the
appropriate Government, and includes the appropriate Government, if the acquisition of
land is for such Government either for its own use or for subsequent transfer of such land is
for public purpose to a company, body corporate, an institution, or any other organisation.
In Habib Ahmed v. State of Uttar Pradesh27, the Court has held that neither the notification
nor the declaration can be quashed on the ground that there was no necessity for acquiring
the land for a public purpose. Whether the land is required for a public purpose or not has
to be decided solely by the State Government.
Lapse of Notification:
Where no declaration is made within 12 months from the date of preliminary notification,
then such notification shall be deemed to have been rescinded. Provided that in computing
the time of 12 months any period during which the proceedings for the acquisition of the
land were held up on account of any stay or injunction by the order of any Court shall be
excluded. The appropriate Government may decide to extend the period of 12 months, if in
its opinion circumstances exist justifying the same, which shall be recorded in writing and
notified and be uploaded on the website of the authority concerned.
The declaration shall be conclusive evidence that the land is required for a public purpose
and after making such declaration, the appropriate Government may acquire the land in
such manner as specified under this Act.

27

AIR 1965 All. 344 at p. 345

32

Notice To Persons Interested

Section 3(x) defines person interested as(
i) all persons claiming an interest in compensation to be made on account of the acquisition
of land
(ii) the Scheduled Tribes and other traditional forest dwellers, who have lost any forest
rights recognised under the Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006
(iii) a person interested in an easement affecting the land
(iv) persons having tenancy rights under the relevant State laws including sharecroppers
and
(v) any person whose primary source of livelihood is likely to be adversely affected
Public Notice:
Under Section 21 the Collector shall publish the public notice on his website and cause
public notice to be given at convenient places on or near the land to be taken, stating that
the Government intends to take possession of the land, and that claims to compensations
and rehabilitation and resettlement for all interests in such land may be made to him.
The public notice shall state the particulars of the land so needed, and require all persons
interested in the land to appear personally or by agent or advocate before the Collector at a
time and place mentioned in the public notice to state their claims to compensation
rehabilitation and resettlement along with their objections which may be in writing.

33

The time period should not be less than 30 days and not more than 6 months after the date
of publication of the notice.
In case any person interested resides elsewhere, and has no agent, the Collector shall
ensure that the notice shall be sent to him by post in letter addressed to him at his last
known residence, address of business and also publish the same in at least two national
daily newspapers and also on his website.
In State of Madras v. B.V. Subramania Iyer28, the Court held that the word Dispute
includes any controversy with regard to the title of a single claimant. It is obvious that when
the government exercises its power of eminent domain and acquires property, public funds
have to be utilized for the payment of compensation to the true owner, and not merely to
any claimant who cares to appear on the scene. The government has a special responsibility
in this regard, and cannot later take refuge behind the pretext that the compensation was
paid to the claimant who actually appeared while others did not appear.
Statement to Collector:
Under Section 22 the Collector may also require any interested person to make or deliver to
him a statement within 30 days containing the name of every other person possessing any
interest in the land or any part thereof as coproprietor, subproprietor, mortgagee, tenant or
otherwise, and of the nature of such interest, and of the rents and profits, if any, received or
receivable on account thereof for three years next preceding the date of the statement.
Every person required to make or deliver a statement to the Collector shall be deemed to be
legally bound to do so within the meaning of Section 175 (Omission to produce document to

28

AIR 1962 Mad. 313

34

public servant by person legally bound to produce it) and Section 176 (Omission to give
notice or information to public servant by person legally bound to give it) of the Indian Penal
Code 1860.
Acquisition Award
The new Act stipulates that the minimum compensation is to be a multiple of the total of
the ascertained market value, plus value of the assets attached to the property, plus a
solatium equal to 100% of the market value of the property including value of assets.
Under Section 23 the Collector shall proceed to enquire into the objections which any
person interested has stated pursuant to a notice given under Section 21 and into the
respective interests of the persons claiming the compensation and rehabilitation and
resettlement, shall make an award under his hand of
(a) the true area of the land
(b) the compensation as determined under Section 27 along with Rehabilitation and
Resettlement Award as determined under Section 31 and which in his opinion should be
allowed for the land and
(c) the apportionment of the compensation among all the persons known or believed to be
interested in the land, or of whose claims, he has information, whether or not they have
respectively appeared before him.

35

Period for Award:

Under Section 25 the Collector shall make an award within a period of 12 months from the
date of publication of the declaration and if no award is made within that period, the entire
proceedings for the acquisition of the land shall lapse.
Provided that the appropriate Government may take the decision to extend the period of 12
months if in its opinion, circumstances exist justifying the same but such decision shall be
recorded in writing and the same shall be notified and be uploaded on the website of the
authority concerned.
Determining Market Value:
The claimant will be entitled to the compensation which is determined on the basis of the
market value of the land determined as on the date of preliminary notification. The market
value of the proposed land under Section 26 to be acquired shall be set as the higher of:
the minimum land value, if any, specified in the Indian Stamp Act, 1899 for the registration
of sale deeds in the area, where the land is situated or
the average of the sale price for similar type of land being acquired, ascertained from the
highest fifty per cent of the sale deeds registered during the preceding three years in the
nearest village or nearest vicinity of the land being acquired. or
the consented amount in case the land is acquired for private companies or public-private
partnership projects.

36

The market value would be multiplied by a factor of, at least one to two times the market
value for land acquired in rural areas and at least one times the market value for land
acquired in urban areas.
Example:
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 mandates compensation and entitlements without limit to number
of claimants. Thus, for clarity and as an example, if 1000 acres of rural land is to be acquired
for a project, with market price of Rs.2,25,000 per acre, 100 families claim to be land
owners, and 5 families per acre claim their rights as livelihood losers under the new Act, the
total cost to acquire the 1000 acre would be
Land compensation = Rs.90,00,00,000
Land owner entitlements = Rs.6,30,00,000 + 100 replacement homes
Livelihood loser entitlements = Rs.365,00,00,000 + 5000 replacement homes
The average effective cost of land, in the above example will be at least Rs.41,00,000 per
acre plus replacement homes and additional services.
The new Act of 2013 proposes the above benchmarks as minimum. The state governments
of India, or private companies, may choose to set and implement a policy that pays more
than the minimum proposed.
Value of Things Attached:
The Collector in determining the market value of the building and other immovable property
or assets attached to the land or building which are to be acquired, under Section 29 will use
37

the services of a competent engineer or any other specialist in the relevant field, as may be
considered necessary by him.
The Collector for the purpose of determining the value of trees and plants attached to the
land acquired, use the services of experienced persons in the field of agriculture, forestry,
horticulture, sericulture, or any other field, as may be considered necessary by him.
The Collector for the purpose of assessing the value of the standing crops damaged during
the process of land acquisition may use the services of experienced persons in the field of
agriculture as may be considered necessary by him.
Determination of Compensation:
The Collector having determined the market value of the land to be acquired shall under
Section 27 calculate the total amount of compensation to be paid to the land owner whose
land has been acquired by including all assets attached to the land.
In determining the amount of compensation to be awarded for land acquired under this Act,
the Collector shall under Section 28 take into consideration
the market value as determined under section 26 and the award amount in accordance with
the First and Second Schedules the damage sustained by the person interested, by reason
of the taking of any standing crops and trees which may be on the land at the time of the
Collectors taking possession thereof the damage sustained by the person interested, at the
time of the Collectors taking possession of the land, by reason of severing such land from
his other land the damage sustained by the person interested, at the time of the Collectors
taking possession of the land, by reason of the acquisition injuriously affecting his other
property, movable or immovable, in any other manner, or his earnings in consequence of
38

the acquisition of the land by the Collector, the person interested is compelled to change his
residence or place of business, the reasonable expenses incidental to such change the
damage bona fide resulting from diminution of the profits of the land between the time of
the publication of the declaration under section 19 and the time of the Collectors taking
possession of the land: and any other ground which may be in the interest of equity, justice
and beneficial to the affected families.
Award of Solatium:
The Collector after having determined the total compensation to be paid shall, to arrive at
the final award, under Section 30 impose a Solatium which is the amount equivalent to
100% of the compensation amount.
This solatium amount shall be in addition to the compensation payable to any person whose
land has been acquired. The Collector shall issue individual awards detailing the particulars
of compensation payable and the details of payment of the compensation as specified in the
First Schedule.
In addition to the market value of the land provided under section 26, the Collector shall,
award an amount calculated at the rate of 12% per annum on such market value for the
period commencing from the date of the publication of the notification of the Social Impact
Assessment study under section 4(2), till the date of the award of the Collector or the date
of taking possession of the land, whichever is earlier.
Contravening Provisions and Problematic Issues of the act:
The given act primarily is objected at land acquisition for the public purpose. The new has
widened the scope of the term public purpose. (Section 2(l)) This widened scope covers a
39

large array of projects. Thus the probability of misusing has increased due to widening in
scope of public purpose.29 This probability of misusing will defeat the very purpose of
economic development through industrialisation.
The major change is related to acquisition by private companies. In the new act certain
requirements which are needed in case of acquisition by private company. The new act
requires consent of 80% in case of private company and 70% in case of public company of
affected families. For this it has given SIA assessment technique. But the given act fails to
define at certain pints of SIA assessment for example how SIA would be conducted and by
which authority or body. Because of it the private companies can use different
inappropriate means for acquiring consent. But the given act does not require consent of
affected families, in case the land is acquired by the government in certain cases as given in
section 2(l) public purpose clause. Now the given clause is in contravention of the objective
which talks about participative, informative and transparency in land acquisition.30
One of the major provisions incorporated in new land acquisition act is Rehabilitation and
Resettlement provision. On the one hand the act is providing the rehabilitation and
resettlement arrangements to the affected people which not only include land owners but
other affected families also. Section 69 says that calculation of the rehabilitation and
resettlement cost should be done in accordance with section 26 and 30. Section 26 talks
about calculation of market value of land and section 30 talks about Solatium based on
that calculate market value under section 26. How can rehabilitation and resettlement cost

29

Supra note 3 at Page 99

Alphonsa Joja, Anviti Chaturvedi, Ayesha Talpade, Modhulika Bose, Stella James ans Saurabh (2011) 3, Of
Platitude and Million-Dollar Promises- A Critique of The Land Acquisition, Rehabilitation and Resettlement
Bill, 2011, Journal of India Law and Society, p.29 to 66
30

40

can be calucalated on the basis of market value and how reasonably it depends on the
market value? The answer this question is not there. Also section 40 gives power to
Government to seize land in urgency on expiration of 30 days of notice given in section 30,
even if such awards are not given by collector. This section contradicts the third objective.
Other problematic issue is regarding the compensation provisions from Section 26 to
Section 30. The calculation of compensation is on the basis of the market value if any
specified in Indian Stamp Act, 1899 regarding the sale of land or average sale price of land in
that locality and nearby. Although the method for calculation of the compensation is given,
but still it is arbitrary as market value does not take into account future value of the land
and price stated in the act may be understated. So the objective of giving just and fair
compensation is somehow goes sceptical, although the compensation in rural area is double
of market value.31
Further it provides the provisions for compensation and process for calculating it, further it
provides incentives for the affective parties to litigate for the compensation given to them.
The tendency to litigate for compensation will remain same as the basis for deciding
compensation has not undergone significant change, although the amount of award is
double in rural areas. The new act although replace the ADJ court with LARR Authority in
case of compensation related disputes, but it meres transfer burden from ADJ court to LARR
authority which is not an appropriation solution to problem of litigation and the resulting
wastage of resources. 32

31

Supra note 10 at Page 57.

Ram Singh (2012) 47, Inefficiency and Abuse of Compulsory Land Acquisition- An Enquiry into Forward,
Economic & Political Weekly, 19, p.10-14
32

41

The act does take account the economic loss but it does not take into account the other.
When families are located, apart from economic loss they also suffer from social,
psychological and status loss. Because it is not necessary that the compensation and
arrangements made for them will give same status and wealth which a land could give. 33
Further Section 105 exempts land acquired in certain acts from ambit of this act.
The new act although has incorporated certain changes has failed to take care of certain
aspects and has loopholes.
Case Study of Land Acquisition at Singur, West Bengal
The resistance of land Acquisition in West Bengal initiated in May 2006 as soon as the Left
Front Govt. came to power. The LF Govt. main motive was to industrialise West Bengal. The
govt. started the process with an idea of acquiring 1000 acres of agricultural land in Singur
of Hooghly district for setting up of motor cars plant by Tata Motors. Apprehending the loss
of their agricultural land, the peasants immediately gathered to block the teams passage
and started their protest. Moreover the lands elected for the Tata Motors' project is fully
irrigated by both canal water (a Damodar Valley Corporation canal passes through the
villages) and groundwater having two deep tube wells and 27 mini deep tube wells. The land
here is fertile enough with a yield rate of 2,436 kg per hectare for rice and 26,604 kg per
hectare for potato, which is the main cash crop of the area. While the yield rate for rice is
little less than the state average of 2,504 kg per hectare, the same for potato is higher in this
area than the state average of 24,711 kg per hectare. Moreover they would be paid very less

33

Michael M. Cernea, For a New Economics of Resettlement: A Sociological Critique of the Compensation
Principle, 173 International Social Science Journal 16, (2003),
http://web.mit.edu/cis/www/migration/dec05workshop/presentations/Cernea_New_Economicsof_Resettlement_ISSJ_2003.pdf

42

or no compensation in the process of land acquisition and hence would be the worst victim
in the course. The farmers at Singur organized themselves as a Save agricultural land
committee. There were women protestors mainly fighting the Govt. and resisting the
acquisition of their lands.34
The resettlement and rehabilitation became the core issue in India during 20th century
when lot of people were deprived of their own lands and were falsely promised
compensation. As a consequence of this injustice the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 made its way
to the parliament with the aim to minimize and address the plight of the victims of land
acquisition and to provide proper resettlement and rehabilitation. The Land Acquisition bill
2013 has been renamed as the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013. Land Acquisition means the
acquisition of land owned by the individual landowners for some public purpose by a
government agency, after paying a government-fixed compensation to the land losers to
cover losses incurred while surrendering their land to the concerned government agency.
This act also connects to the doctrine of eminent domain which is based on the State power
of compulsory acquisition of land. The first recorded description of this doctrine is in the
writings of jurist, Hugo Grotius:
The property of subjects is under the eminent domain of the State, so that the State may
use and even alienate and destroy such property, not only in the case of extreme necessity
but for ends of public utility, to which ends that who founded civil society must be supposed
to have intended that private ends should give way. But it is to be added that when this is
34

Parthasarathi Banerjee, Land Acquisition and Peasant Resistance at Singur, Economic and Political Weekly,
Vol. 41, No. 46 (Nov. 18-24, 2006), pp. 4718-4720, retrieved from: http://www.jstor.org/stable/4418907

43

done the State is bound to make good the loss to those who lose their property. Grotius
doctrine places two constraints on the exercise of the power of eminent domain: first, that
the acquisition be for the purpose of public utility and second, that the owner be
compensated for the loss of his property and also put emphasis on the responsibility of the
State to protect private property, and at the same time, to move society toward higher
social good.35
The new Land Acquisition Act 2013 concerns only such cases where the land will be acquired
by Central or State Authorities for any public purpose and is not against industrialization and
urbanisation, there is no restriction on purchase of private land. The Rehabilitation and
resettlement Act tends to address two critical aspects of land acquisition i.e.
1. Acquisition and
2. Rehabilitation and Resettlement.36
The new Land Acquisition Act, enacted by Parliament in September provides just and fair
compensation to those whose land is taken away for constructing roads, buildings or
factories, replacing 120-year-old legislation. The Act, meant for bringing transparency to the
process of acquisition of land, provides for liberal compensation and rehabilitation of those
affected by the takeover. The new law, Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettlement Act laid down:
1. Mandatory approval of at least 70% of affected people for acquiring land for Public
Private Partnership (PPP) projects and 80% for acquiring land for private companies.
35

Richard Epstein, Takings: Private Property and the Power of Eminent Domain, Harvard University Press,
January (1985)
36
ICRA, Impact Analysis, 2013: New Land Acquisition Bill, retrieved from:
http://www.icra.in/Files/ticker/new%20land%20acquisition%20bill.pdf

44

2. State governments will have to set up at least six bodies, including the state-level Land
Acquisition Rehabilitation and Resettlement Authority, to take notice of disputes arising out
of projects where land acquisition has been initiated by the state or its agencies. The state
governments also should take immediate steps to create and establish the State Social
Impact Assessment Unit, the office of the Commissioner Rehabilitation and Resettlement
and the State Level Monitoring Committee.
3. Compensation for the owners of the acquired land will be four times the market value in
rural areas and twice in urban areas. It also stipulates that the land cannot be vacated until
the entire compensation is awarded to the affected parties.
4.

Companies can lease the land instead of purchasing it. Besides, the private

companies will have to provide for rehabilitation and resettlement if land acquired through
private negotiations is more than 50 acres and 100 acres in urban and rural areas,
respectively.
5.

It prescribes the need for a Social Impact Assessment by the Gram Sabha or an

equivalent body in urban areas as part of the preliminary investigations for the land
acquisition which will assess the legitimacy of public interest involved, apart from the
impact on affected families and the availability of better alternatives.37 The new law
provides with the provisions which are much more humane taking into considerations like
proper compensation to the private individuals for acquiring their land, setting up of statelevel Land Acquisition Rehabilitation and Resettlement Authority, and focusing upon the
Social Impact Assessment program which is a systematic scrutiny in advance of
development or policy changes that will bring social change to a community. Section 4 of
37

ICRA, Impact Analysis 2013: New Land Acquisition Bill, retrieved from:
http://www.icra.in/Files/ticker/new%20land%20acquisition%20bill.pdf

45

LARR Act 2013 is introduced for preliminary investigation for determination of social impact
and public purpose. Following are the provisions of the new Act of 2013 replacing many
provisions of the colonial Act of 1894:
Land Acquisition Act of 1894

Land acquisition Act 2013

The term public purpose was ambiguous and Clearly defines various types of public
purpose projects for which, Government can

open to Governments discretion

acquire private land.

Land could be acquired forcibly.

For private project, 80% affected families

must agree.

For PPP project, 70% affected families

must agree.

They were given no voice in decision making.

Only then land can be acquired.

Under Social impact assessment (SIA) even

need to obtain consent of the affected artisans,
laborers,

share-croppers,

tenant

farmers,

traders, etc.

whose

fishermen,

small

(sustainable)

livelihood

will

be

affected

because of the given project.

Government was free to decide how much Compensation proportion to market rates.
money to pay while acquiring private land.

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
dont own any land.

46

No such restrictions on fertile land

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.

No

provisions

for

rehabilitation

and If Government acquires the lands for private

resettlement

company- the said private company will be

responsible for relief and rehabilitation of the
affected people.
Additional rehabilitation package for SC/ST
owners. Example- fishing rights over dam,
25% extra money if settled outside their native
district and so on.

No such safeguards

State Governments have to setup dispute

settlement authorities. Chairman must be a

No such accountability
If project did not start, then acquired land was
secretly sold/leased to private players at sky-

Head of the department will be made

district judge or lawyer for 7 years.
If project doesnt start in 5 years, land has to be
responsible, for any offense or mischief played
returned to the original owner.
from Governments side.

high prices.Land Grab Case

Nandigram
The incident took place on 14th March 2007 in Nandigram West Bengal due to the forceful
attempt of acquisition of land of 10,000 acres by the Communist Party of India for setting up
of Special Economic zone (SEZ). The farmers under the Bhoomi Raksha Committee refused
to surrender their land for the proposed SEZ and the violence erupted as a result of which

47

14 villagers died and 70 more got wounded. The CPI (M) took the local people for granted
on an issue that affected their very livelihoods.38
The experience of land acquisition has been tremendously miserable for farmers. To mete
out the intricacies of land acquisition the LARR Act 2013 inserts the Social Impact
Assessment (SIA) to determine whether the projects are serving the stated public purpose.
A social impact assessment is the identification, analysis and evaluation of a social impact
resulting from a particular event" where a social impact is defined as a "significant
improvement or deterioration in people's well-being or a significant change in an aspect of
community concern.39 The land acquisitions must result in a societal position that brings in
equilibrium, the interests of the displaced and the benefits of the land acquired, to the
public at large. The Social Impact Assessment study and its review by an independent group
of expert is the main social safeguard provided by the bill.40 This expert group will evaluate
the SIA and examine whether the project serves the stated public purpose, whether it is in
the larger public interest and whether the costs and adverse impacts of the project
outweigh the potential benefits. On these grounds, individually, the expert group is required
to express its opinion as to whether the project should be allowed to continue or not.41 The
study draws on consultations with Gram Sabha members to review the nature of public
interest concerned in the project and its potential benefits compared to social and
environmental costs; the number of affected families and the socio-economic impact on

38

Taking People for Granted, Economic and Political Weekly, Vol. 42, No. 2 (Jan. 13-19, 2007), p. 80,
retrieved from: http://www.jstor.org/stable/4419118
39
James C. Cramer, Thomas Dietz and Robert A. Johnston, Social Impact Assessment of Regional Plans: A
Review of Methods and Issues and a Recommended Process, Policy Sciences, Vol. 12, No. 1 (Jun., 1980), pp.
61-82, Springer, Retrieved from: http://www.jstor.org/stable/4531800
40
Lucy Duboche, Land Acquisition in India: Will the Proposed Bill Protect Displaced People?, Oxfam India,
New Delhi, October 2012
41
Nihal Joseph, Shrinidhi Rao , Land Acquisition Bill,2011: One step forward, two steps back , retrieved from:
http://nujslawreview.org/wp-content/uploads/2015/02/nihal-joseph-and-shrinidhi-rao.pdf

48

adjoining areas; whether the extent of land proposed for acquisition is the bare-minimum
required, and whether acquisition at an alternate place is not feasible.42 The assessment is
then reviewed by a group of five external experts, who may make a recommendation that
the project shall be abandoned if its impacts are deemed unacceptable. Ambiguities in this
sentence undermine the reliability of the social safeguard. The binding nature of the
recommendation needs to be spelt out in a way that leaves no room for future
interpretations.43 The proposed bill takes one major step forward by providing Resettlement
and Rehabilitation (R&R) entitlements to all affected people, in addition to the generous
monetary compensation for landholders.44 However, this will prove carrying great weight
only if R&R measures are strengthened. Land should be compensated by land of comparable
value wherever possible. Public interest would only be served if an acquisition results in
community benefit, after accounting for the social cost from acquiring that specific land.
Therefore, in each case, the costs and benefits of the acquisition to society must be
considered. It would only be equitable if the principle of societal benefit was reaffirmed by
focusing on the specific land obtained in each case.

42

Lucy Duboche, The proposed Land Acquisition Bill Putting Livelihoods First , Oxfam India, New Delhi,
October 2012
43
Lucy Dubochet, Land Acquisition in India: Will the Proposed Bill Protect Displaced People?", Oxfam India,
October 2012, retrieved from: http://www.indiaenvironmentportal.org.in/files/file/india-land-acquisition.pdf
44
Niranjan Sahoo, Samya Chatterjee, The Land Acquisition Stalemate: Contentions & Solutions, ORF
Seminars, Vol. 1, Issue 11, April 2013

49

Conclusion
The new Land Acquisition Act primarily was enacted for the purpose of filling the gaps of old
act and to cop up with the problems old land acquisition faced. It tends to maintain
economic as well as social balance in the country, acquiring land for public purpose and at
the same time, by giving proper compensation, rehabilitation and resettlement
arrangements. But at certain points this act has failed in maintain consistency with its
objective as discussed in above part. Overall analysis of the act show certain loopholes and
gaps which can be reason of future problems regarding the new act. It is duty of the
Legislature and the Judiciary to cover up these holes, and it must be done in best interest of
public.
The Land Acquisition Act 2013, meant to bring out the transparency in the process of
acquisition of land provided with liberal compensation and rehabilitation to those affected
by the acquisition. The LARR Act brings changes to the legislative approach. The Land
Acquisition Act, 2013 has provisions for social impact assessment wherein the mode of
acquisition is carried out by the approval of displaced persons and legal entitlement for
resettlement, the recent proposed amendments of 2015 on the issue of land acquisition is a
ray of hope to put an end on the plight of the land losers who are deprived of their
prerogative to rehabilitation and resettlement. Undeniably, the act has been able to
recognize some of the problems arising out of land acquisition but in spite of its good
purpose the act in its current form misses out on a opportunity to promote growth and
prosperity while protecting the vulnerable. The policy makers and the legislators need to
look at a broader picture of the implementation of the Act to address the short comings so
that the economy runs safely without facing any harm in the long run.

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