An Act that Safeguard Landowners from Unreasonable Acquisition by the Government/Industrialist's

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

PC: vajiramias

Important Highlights

· The land which was fundamental right u/a 19 (F) before was changed to constitutional right u/a 300 (A) of the constitution. Which states that now the property can be taken by the Authority of Law. And compensation will be provided for the same under article 31. This was happened in 1976, under the 42^nd amendment during the time of emergency, by Indira Gandhi government.

 

· This made the government and the builder/industries to acquire land for the developmental projects and there were many instances recorded where the proper compensations were not provided to the people for their land.

 

· The congress government before the Lok Sabha election bought an act for the Landowners. This act is also known as LARR came into effect on 1 January 2014. It was brought in by Jairam Ramesh and Muhammed Ali Khan. In the following act, there are various provisions which now make it tough for any enterprise or government to acquire the land from the people in the name of development. Here are the following main changes brought in through this new Act:

 

· The valuation of the land will now be on the market rate and not the circle/collector rate. For knowledge, the market rate is always higher to that of the circle rate. The market rate depends upon the demand and supply system in a market, whereas the circle are the rates which are fixed by the government. Before this Act, the rate at which the land was taken used to be the circle rate.  

 

· Landowners also get an additional 100% solatium, calculated on the compensation paid for the land, unlike 30% in the old law. This means landowners get up to four times the market value in villages and twice the market value in cities. The new rates are increased by 1.3-2% for urban and 2-4% in rural areas.

 

· If the assets are attached to the property, eg: a house is built on the land, then that too will be taken into consideration. Which was earlier not the case. Before this Act, only the value of the land uses to be compensated.   

 

· If any corporation if acquiring the land, then at least 80% of the total landowners shall (whose land is being acquired) shall agree to this acquisition. And consent of a minimum of 70% for the PPP (public-private partnership) projects required. If not, then the company cannot acquire the land.

 

· Without the permission of the Gram Sabha, no land will be acquired. Which means the Panchayat of the village has the power to approve any acquisition.  

 

· If people lose their job then because of the acquisition then for the next 12 months, the acquirer will have to pay Rs. 3,000 per month to each member of the family.  

 

· The provision to give land on lease is also added, in order to benefit the landowner and they keep receiving rent annually if wanted. This option to give land on lease will surely benefit the landowners. 

 

· If within the period of 5 years from the date of acquisition of land, the project is not started. Then the land will again be converted and goes back to the previous (original) owners.

 

· No irrigated multi-cropped land shall be acquired under this Act.

 

· Rehabilitation package has to form in order to rehabilitate people from one place to another. There is 3 option under Rehab. 1^st that the family can take onetime payment of 5 lakh rupees per family. 2^nd that they should be provided with monthly 2,000 rupees for the next 20 years. Or 3^rd that the family can employ one member in the project concerned.  

 

· SIA (Social Impact Assessment) will be done on every project before acquiring the land. This would be beneficial for the local people as the impact of the project will not only be concerned about the environment (under Environment Impact Assessment) but it will also take into account the impact project will make at the people’s lives and society at large. Have a look at implications of EIA from the link given below. 

New EIA Draft and its Harsh Implications: A Must Read for All

 

· Even the people who were working on that land and were dependent on that land for a living will be considered under the affected families and adequate compensation be provided.

 

· If the land is resold by the acquirer at a higher price. Then 40% of the profit will be shared with the previous landowners.  

 

This Act is proven to be very beneficial for the people as now they will get their right on the sale of the property. This made it difficult for the ambitious industrialist or the government to acquire property by means of exploiting the public