SEEDLING SCHOOL OF LAW AND GOVERNANCE

JAIPUR NATIONAL UNIVERSITY

TOPIC:

CRITIQUAL ANALYSIS OF THE LAND ACQUISITION, REHABILITATION AND

RESETTLEMENT BILL, 2011

SUBMITTED
SUBMITTED BY

TO

ASSISTANT

PROF.

M R.

MANISH

YADAV

ABHA

(FACULTY OF

LAW)

IX

SEMESTER
(BA.LLB HONS.)

DECLARATION

I declare that the dissertation entitled The Land Acquisition, Rehabilitation and
Resettlement Bill, 2011:A Critical Analysis is the outcome of my own work conducted
under the supervision of Mr. Manish Yadav at Seedling School of Law And Governance,
Jaipur National University (Jaipur)
I further declare that to the best of my Knowledge the dissertation does not contain any part
of any work, which has been submitted for the award of any degree either in this University
or in any other University / Deemed University without proper citation.

Abha
Dated:- 22th September 2013

CERTIFICATE OF THE SUPERVISOR

This is to certify that the research work entitled The Land Acquisition, Rehabilitation and
Resettlement Bill, 2011: A Critical Analysis is the work done by Abha under my guidance
and supervision for the Partial fulfillment of the requirement of marks
To the best of my Knowledge and belief the dissertation: (i) embodies the work of the
candidate himself; (ii) has been duly completed; and (iii) is up to the standard both in respect
of contents and language for being referred to the examiner.

Mr. Manish Yadav

Assistant Professor of Law
Supervisor

ACKNOWLEDGEMENT

I would like to express profound gratitude to Mr. Manish Yadav, for his invaluable support,
encouragement, supervision and useful suggestions throughout this research work. His moral
support and continuous guidance enabled me to complete my work successfully. His
intellectual thrust and blessings motivated me to work rigorously on this study. In fact this
study could not have seen the light of the day if his contribution had not been available. It
would be no exaggeration to say that it is his unflinching faith and unquestioning support
that has provided the sustenance necessary to see it through to its present shape.
For any work to be successfully completed, a prime requirement is that of leadership and
guidance. I must mention Manish sir was Eveready to give us a helping hand. It was under
his guidance that I have been able to focus on the research questions which otherwise would
have been vague and unsatisfactory. He helped us at every possible stage over this project
and also encouraged us to go into deeper research. I was also helped by my friends who
cooperated with and guided us with the process to proceed and as to how to limit my
research into a short yet precise and comprehensive work Therefore this project, without any
mention of their would have remained, an idea incomplete.

ABHA
IX
SEMESTER

B.A.LLB (HONS.)

CONTEN

DECLARATION........................................................................................................................ii
CERTIFICATE OF THE SUPERVISOR..................................................................................iii
ACKNOWLEDGEMENT........................................................................................................iv
chapter I Introduction.................................................................................................................1
Backdrop................................................................................................................................1
Scheme of Study....................................................................................................................2
A.

Statement of Problem...............................................................................................2

B.

Methodology............................................................................................................2
a. Objectives...................................................................................................................2
b. Hypotheses.................................................................................................................2
c. Data Collection...........................................................................................................3

C. Chapterisation...................................................................................................................3
Chapter II Evolution of new law................................................................................................5
The Land Acquisition Act of 1894.........................................................................................5
The Land Acquisition (Amendment) Bill, 2007....................................................................6
The Rehabilitation and Resettlement Bill, 2007....................................................................7
Land Acquisition and Rehabilitation and Resettlement Bill 2011.........................................7
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Bill, 2013..........................................................................................................8
chapter III Agenda......................................................................................................................9
Aim of the Bill.......................................................................................................................9
Scope of LARR, 2011............................................................................................................9
Both LA and R&R Provisions will apply when:................................................................9
3. Government acquires land for immediate and declared use by private companies for
public purpose....................................................................................................................9
Only R&R provisions will apply when:.............................................................................9
Purpose of the Bill................................................................................................................10
Salient Features of the LARR Bill, 2011 are as under: -......................................................10
chapter IV Key Provision Of LARR Bill 2011........................................................................12
Definition of public purpose................................................................................................12
Procedure of land acquisition...............................................................................................13
i.

Social Impact Assessment.........................................................................................13

ii.

Preliminary notification and Acquisition...............................................................15

iii.

Effect of the urgency clause under the LAA,.........................................................16

Calculation of Compensation...............................................................................................17
Rehabilitation And Resettlement..........................................................................................17
Special Provisions for SCs/STs............................................................................................18
Requirement of consent from the project affected people...................................................19
Other provisions...................................................................................................................19
chapter v doctrine of eminent of domain.................................................................................21
CHAPTER VI COMPARISON OF SOME KEY FEATURES BETWEEN THE 1894
ACT AND THE 2011 BILL.................................................................................................23
CHAPTER VII CHANGES BETWEEN THE RIGHT TO FAIR COMPENSATION AND
TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT ACT 2013 FROM LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT BILL, 2011...............................................................................................25
CHAPTER VIII CONCLUSION.............................................................................................33
BIBILIOGRAPHY.....................................................................................................................34

CHAPTER

I INTRODUCTION

Backdrop

In India, there are a rising number of protests against compulsory acquisition of land for
construction of manufacturing units or construction of large dams or SEZ, due to protests
under the argument that the tribal population/farmers/ or others was getting displaced under
unfair conditions among other reasons such as environmental impact of the project. The
compulsory acquisition of land by state results in myriad social, cultural, economic and
psychological trauma for the affected communities.1 Such acquisition and the consequent
displacement not only leads to loss of economic assets, habitat and livelihood but also
disrupts communities, social relationships, cultural identities, local markets for goods as well
as labour, consequently placing the oustees in a spiral of impoverishment. 2 The effects of
displacement spill over to generations in many ways, such as loss of traditional means of
employment, change of environment, disrupted community life and relationships,
marginalization, a profound psychological trauma and more. However, to deny these
perspectives is no more an escape-route for the government, particularly given the increasing
international pressure and accountability and rising internal protests in India. It cannot be
denied that present land acquisition process is starting to hurt the private sector also in many
ways there is now huge imbalance in private investment and rights of local community.
When communities are displaced to make way for housing for high income groups or for the
tourism industry, protest is directed against the nexus between the State and powerful private
interests, coupled with the complicity of the judiciary.3

1 Smitu Kothari, Whose Nation? The Displaced as Victims of Development, 31 ECO. &
POL. WKLY 1476, 1477-79 (1996); see generally VASUDHA DHAGAMWAR ET
AL.INDUSTRIAL DEVELOPMENTAND DISPLACEMENT: THE PEOPLEOF
KORBA213-232 (2003).
2 Usha Ramanathan, Displacement and the Law, 31 ECO. & POL. WKLY 1486, 1488-90
(1996)
3 See generally Kenneth Bo nielsen, Land, Law and Resistance, 46(41) EPW38 (2011).

Ever since its enactment, the Land Acquisition Act, 1894 ("LA") has been subject to
controversies and fierce debate. Notwithstanding rounds of amendments, including the 1984
changes, it has failed to address some important issues associated with land acquisition
particularly forcible acquisitions, definition of "public purpose" , widespread misuse the
of "urgency clause", compensation, lack of transparency in the acquisition process,
participation of communities whose land is being acquired and virtually no rehabilitation and
resettlement package. Further weak implementation and ineffective administration at the
ground level has increased the suffering and anguish of the people. Due to a lack of clear
definition of "public purpose", there has been considerable difference of opinion among
various judgments of the Supreme Court, finally resulting into granting very broad
discretionary powers to the state in terms of deciding the contours of "public purpose" under
particular circumstances.4
Scheme of Study

A.Statement of Problem
To study and analyze dispute settlement process in the telecom industry, how the process of
award of compensation and process

of differs from same provided under the Land

Acquisition Act, 1894.

B.

Methodology

a. Objectives
The objectives of the study are as follows:
(i) To make a comparative study between the provisions of the new and old Act.
(ii) To trace the variation in the present New Land Acquisition Act.
(iii)

To analyze the modified compensation award procedure in context of the

Present Act.

(iv)To study various adaptation in the context of Present Act.

4 Pandit Jhandu Lal and Others vs The State of Punjab and Another AIR 1961 SC 343; R
L Arora vs The State of Uttar Pradesh AIR 1962 SC 764; Smt Somawati & Others vs State of
Gujarat AIR 1963 SC 151

b. Hypotheses
Due to the rising number of protests against compulsory acquisition of land for construction of
manufacturing units or construction of large dams has brought changes in the perception of
approach towards new law
c. Data Collection
In order to approach the prescribed objectives of study, doctrinal model of research methodology
is proposed, intensive literature review on the subject would be applied and the issues under
study would be examined in a systematic manner. E-resources have majorly contributed in
writing of this dissertation for getting the most relevant and latest information on the relevant
websites which has helped the researcher to explore the subject through various dimensions.
The broad facets of the study are indicated in terms of proposed chapters.

C. Chapterisation
The present study is divided into seven sections.
The CHAPTER I deals with the necessity and areas of problem in introduced The Land
Acquisition, Rehabilitation and Resettlement Bill, 2011
In

II, I brefiely introduced about the idea of introducing the Land Acquisition,

CHAPTER

Rehabilitation and Resettlement Bill, 2011 (LARR Bill), presently known as The Right to
Fair Compensation And Transparency in Land Acquisition, Rehabilitation and Resettlement
Act 2013' from The Land Acquisition Act, 1894.
The

CHAPTER

III provides an idea about the necessity of this new and combined law. As

well as it also talks about the scope, purpose and silent feature of LARR bill.
The CHAPTER IV deals with main provisions of LARR Bill 2011.
The CHAPTER V deals with the doctrine of eminent of domain
The CHAPTER VI, deals with the comparison between Land Acquisition Act, 1894 and Land
Acquisition, rehabilitation and resettlement Bill, 2011
In

CHAPTER

VII, deals with the changes between The Right to Fair Compensation And

Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 from Land
Acquisition, rehabilitation and resettlement Bill, 2011.
The CHAPTER VIII deals with conclusion and bibliography.

CHAPTER II EVOLUTION OF NEW LAW

The Land Acquisition Act of 1894

Land acquisition remains at the centre of many controversies and public policy paralysis in
India. There are very few public policy issues in India that rival land acquisition in terms of
its complexity, challenges and significance to countrys growth and transition to more
urbanised and industrialised status. Currently, the Union Government is mounting series of
efforts to clear several hurdles with regard to the existing land law which dates back to 1894.
The Land Acquisition Act of 1894 is a law in India that allows the government to acquire
private land in our country. Land Acquisition literally means acquiring land for some
public purpose by government/government agency, as authorised by the law, from the
individual landowner(s) after paying the government fixed compensation in lieu of losses
incurred by land owner(s) due to surrendering of his/their land to the concerned government
agency.
The 1894 Act was long used for acquisition of land for public purposes and also for
companies. However, it was widely felt that the Act required changes in order to strike a
balance between the need for land for development and other public purposes and the need to
protect the interests of persons whose lands are acquired5.
the land acquisition process carried out under the provisions of the Land Acquisition Act,
1894 which came into force 2 February, 1899. This Act has been amended from time to time
(in pre-independence and post-independence). So far, the Act has been amended 17 times.
Since 1960's large scale acquisition is also being done for companies and private sector.
Various sections of the Act have also been amended from time to time by the State
Governments to meet their specific requirements. The land acquisition act of 1894 was
created with the expressed purpose of facilitating the governments acquisition of privately
5 www.hinduonnet.com/fline/stories/20110617281201900.htm

held land for public purposes. The word "public purpose", as defined in the act, refers to the
acquisition of land for putting up educational institutions or schemes such as housing, health
or slum clearance, apart from the projects for rural planning or formation of sites. The word
"government" refers to the central government if the purpose for acquisition is for the union
and for all other purposes it refers to the state government. It is not necessary that all the
acquisition has to be initiated by the government alone. Local authorities, societies registered
under the societies registration act, 1860 and co-operative societies established under the cooperative societies act can also acquire the land for developmental activities through the
government. Regulation I of the land acquisition act was first enacted by the British
government in the year 1824. Its application was throughout the whole of the Bengal
provinces immediately subject to the Presidency of Fort William. The rules empowered the
government to acquire immovable property at, what was deemed to be, a fair and reasonable
price for construction of roads, canals or other public purposes. In 1850 some of the
provisions of regulation I of 1824 were extended to Calcutta through Act I of 1850, with a
view to confirm the land titles in Calcutta that were acquired for public purposes. At that time
a railway network was being developed and it was felt that legislation was needed for
acquiring land for the purposes of the railways. Building act XXVII of 1839 and act XX of
1852 were introduced to obviate the difficulties pertaining to the construction of public
buildings in the cities of Bombay and Madras. Act VI of 1857 was the first full enactment,
which had application to the whole of British India. It repealed all previous enactments
relating to acquisition and its object. Subsequently act X of 1870 came in to effect which was
further replaced by land acquisition act 1894, a completely self contained act, in order to
purge some of the flaws of act X of 1870.
The Land Acquisition (Amendment) Bill, 2007
The acquisition of land by governments for development and industrialisation has become a
contentious political issue in recent years. Many have criticized the Land Acquisition Act,
1894, as a draconian piece of legislation which has been used to forcibly acquire land
without paying adequate compensation. Given the increasing chorus of protests over such
issues as displacement and rights over land, the government is planning to introduce an
amendment to the 1894 Act.
The Land Acquisition (Amendment) Bill,2007 was passed by the LokSabha on 25th February
2009 (the last day of the session) but the bill lapsed with the dissolution of the 14th

LokSabha. The Amendment attempts to expand the rights of those whose land is being
acquired while restricting the types of projects for which governments can acquire land. It
also provides for a separate authority to settle disputes over land acquisition. A companion
piece of legislation (the Rehabilitation and Resettlement Bill, 2007) attempts to specify the
benefits that displaced people will receive.

The Rehabilitation and Resettlement Bill, 2007

In India, land is acquired by the government for public purpose under the Land Acquisition
Act, 1894. However, until 2003, the country did not have a national level policy to address
rehabilitation and resettlement of people displaced by land acquisition projects. The National
Rehabilitation and Resettlement Policy was framed in 2003 and revised in 2007. The
Rehabilitation and Resettlement Bill, 2007 provides benefits and compensation for people
displaced by land acquisition purchases or any other involuntary displacement. It outlines the
guidelines for creating a rehabilitation and resettlement plan and criteria for eligibility of
compensation and benefits to affected persons. The Bill establishes several committees at the
state and central level to oversee and monitor the rehabilitation and resettlement process.
This Bill was introduced in conjunction with the Land Acquisition (Amendment) Bill, 2007
and even lapsed along with it.
Land Acquisition and Rehabilitation and Resettlement Bill 2011
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 LokSabha: 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&R within a single Bill. In July 2011, the Draft Land Acquisition and Rehabilitation and
Resettlement Bill was published by the Ministry of Rural Development for public comments.

In September 2011, the government introduced the Land Acquisition and Rehabilitation and
Resettlement Bill in the Lok Sabha.

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and

Resettlement Bill, 2013
The title of the Land Acquisition Bill was changed on a suggestion by Congress Vice
President Rahul Gandhi to convey the message that the UPA government was working for the
interest of farmers.
"Rahul Gandhi is responsible for changing the title of the Bill...He (Gandhi) said the essential
thing is right to fair compensation and rehabilitation and resettlement package which need to
be highlighted. That is how the new title came," the Minister told reporters here when asked
about

contribution

of

the

Congress

Vice

President

in

enacting

the

law.

'The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act 2013' is the new title of the legislation. When introduced in Lok Sabha two
years ago, the title of the Bill was 'The Land Acquisition and Rehabilitation and Resettlement
Bill, 2011'
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Bill, 20136is a Bill that was passed on 29 August 2013 in the Lok Sabha (lower
house of the Indian parliament) and on 4 September 2013 in Rajya Sabha (upper house of the
Indian parliament). The Bill 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. This legislation
has been eagerly sought by both industry and those whose livelihood is dependent on land.
Out of the 235 members who voted on the bill, 216 backed it while 19 voted against it. The
Bill will replace the Land Acquisition Act, 1894, a nearly 120-year-old law enacted during
British rule.

6 www.thehindubusinessline.com/industry-and-economy/article2432609.ece

CHAPTER

III AGENDA

Aim of the Bill

The aim of the bill is providing fair compensation to people whose land has been taken away
for setting up the buildings or factories. The aim of the bill is to bring in more transparency
to the process of land acquisition, thereby bringing assurance of rehabilitation to the affected
people. 7
Scope of LARR, 2011
Both LA and R&R Provisions will apply when:8
1. Government acquires land for its own use, hold and control
2. Government acquires land with the ultimate purpose to transfer it for the use of private
companies for stated public purpose (including PPP projects but other than national highway
projects)
3. Government acquires land for immediate and declared use by private companies for public
purpose
Note I: Public purpose for 2. & 3. above, once stated, cannot be changed
Note II: Land Acquisition under 2. & 3. Above can take place provided 80% of the project
affected families give consent to the proposed acquisition.
Only R&R provisions will apply when:
1. Private companies buy land, equal to or more than 100 acres, on their own;
2. Private company approaches Government for partial acquisition for public purpose.
7 www.jagranjosh.com/current-affairs/land-acquisition-rehabilitation-and-resettlement-bill2011-passed-by-the-lok-sabha-1377846043-1
8 rural.nic.in

Note: Government does not predict acquiring:

1. Land for private companies for private purposes. or
2. Any multi-crop irrigated land for public purposes

Purpose of the Bill

LARR 2011 seeks to repeal and replace India's Land Acquisition Act, 1894. The Bill seeks to
enact a law that will apply when:
Government acquires land for its own use, hold and control.
Government acquires land with the ultimate purpose to transfer it for the use of private
companies for stated public purpose. The purpose of LARR 2011 includes public-privatepartnership 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.
LARR Bill 2011 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
LARR 2011 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.
Salient Features of the LARR Bill, 2011 are as under: 1. New integrated legislation dealing with land acquisition and rehabilitation & resettlement
while repealing the Land Acquisition Act, 1894.
2. Exemption to 16 Central Acts specified in Fourth Schedule from the ambit of the Bill.
3. Defining the term affected family, which includes both the land losers and livelihood
losers.
4. Provision of R & R benefits in case of specified private purchase of land equal to or more
than 100 acres in rural areas and equal to or more than 50 acre in urban areas.

5. Provides Social Impact Assessment (SIA) study in all cases where the Government
intends to acquire land for a public purpose.
6. Provides for formation of a Committee under the Chief Secretary for examining proposals
of land acquisition where land sought to be acquired is equal to or more than 100 acres
7. Putting limitations on acquisition of multi-crop land for safeguarding the food security.
8.

Institutional mechanism for R&R in the form of institutions of Administrator for

Rehabilitation and Resettlement, Commissioner for Rehabilitation and Resettlement,

Rehabilitation and Resettlement Committee at project level, the Land Acquisition,
Rehabilitation & Resettlement Authority at State level and National Monitoring Committee
at Central level.
9. Provisions of consent of the 80 per-cent affected families for land acquisition for certain
projects.
10. Provision for enhanced compensation to the land owners and rehabilitation and
resettlement entitlements.
11. Provision of 25 per-cent on shares as part of compensation in cases where the Requiring
Body offers its shares to the owners of land whose land has been acquired.
12. Restricting the urgency clause for land acquisition for Defence of India or National
Security or for any other emergency out of natural calamities.
13. Specified timelines for payment of compensation and provision of rehabilitation and
resettlement entitlements

CHAPTER

IV KEY PROVISION OF LARR BILL 2011

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.
Definition of public purpose
Clauses (za) of section 3 of LARR Bill 2011 define the following as public purpose for land
acquisition within India:9

Acquisition of land for purposes relating to the armed forces of India, national
security or defence, police, safety of the people;

Acquisition of land for railways, highways, ports, power and irrigation purposes for
use by government or by government controlled corporations (also known as public
sector companies);

Acquisition of land for planned development or improvement of village or urban sites

or for residential purpose to weaker sections of society in rural or urban areas;

Acquisition of land for government administered educational, agricultural, health and

research schemes or institutions;

Acquisition of land for persons residing in areas affected by natural calamities;

9"THE LAND ACQUISITION, REHABILITATION AND RESETTLEMENT BILL, 2011 FULL TEXT OF
BILL". Ministry of Rural Development, Government of India.

Acquisition of land for resettlement of affected people for any of the above
government projects;

Acquisition of land by the government for public-private-partnership projects for the

production of public goods or the provision of public services;

Acquisition of land for private companies for the production of public goods or
provision of public services

When government declares public purpose and shall control the land directly, consent of the
land owner shall not be required. However, when the government acquires the land for
private companies, the consent of at least 80% of the project affected families shall be
obtained through a prior informed process before government uses its power under the Act to
acquire the remaining land for public good, and in case of a public-private project atleast
75% of the affected families should consent to the acquisition process.
Procedure of land acquisition
i.

Social Impact Assessment

The preliminary procedure, only in the LARR Bill, which deter-mines whether or not a
particular area of land should be acquired, consists of three phases.
First, the Appropriate Government must conduct a Social Impact Assessment (SIA) in
consultation with the Gram Sabha or equivalent body in urban areas.10
The Social Impact Assessment study shall, amongst other matters, include all the following,
namely11:
(a) Assessment of nature of public interest involved;
(b) Estimation of affected families and the number of families among them likely to be
displaced;
(c) Study of socio-economic impact upon the families residing in the adjoining area of the
land acquired;
10 , LArr,4 (1).
11 Id., 4 (2), (3).

(d) Extent of lands, public and private, houses, settlements and other common properties
likely to be affected by the proposed acquisition;
(e) Whether the extent of land proposed for acquisition is the absolute bare-minimum extent
needed for the project;
(f) Whether land acquisition at an alternate place has been considered and found not feasible;
(g) Study of social impact from the project, and the nature and cost of addressing them and
their impact on the overall costs of the project and benefits vis--vis the social and
environmental costs.
The SIA report is required to record the views of the affected families and to this end, the
Appropriate Government must hold a public hearing with the affected families.12
Whenever a Social Impact Assessment is required to be prepared under section 4, the
appropriate Government shall ensure that a public hearing is held at the affected area, after
giving adequate publicity about the date, time and venue for the public hearing, to ascertain
the views of the affected families to be recorded and included in the Social Impact
Assessment Report.13
The appropriate Government shall ensure that the Social Impact Assessment study report is
prepared and published in the affected area, in such manner as may be prescribed, and
uploaded on a website created especially for this purpose. 14
Wherever Environment Impact Assessment is carried out, a copy of the Social Impact
Assessment report shall be made available to the Impact Assessment Agency authorised by
the Central Government to carry out environmental impact assessment.15
The second stage of this process is the evaluation of the SIA report by an Expert Group
under 7. This expert group will evaluate the SIA and examine whether the project serves the
12 Id., 4 (4).
13 Id., 5
14 Id., 6(1)
15 Id., 6(2)

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.16
The third and final stage is the examination of the initial proposal to acquire the land by a
committee appointed by the Appropriate Government. this committee consists of at least
seven members of the executive and not more than three non-official experts nominated by
the Government.17the task of the committee is to consider whether there is a legitimate and
bona fide public purpose which justifies acquisition of land, whether the long-term benefits
to the general public would justify the costs (in terms of social impact) identified by the SIA,
whether the minimum required area is to be acquired and whether the collector has
considered possibility of acquisition of non agricultural lands as opposed to agricultural and
irrigated land.18 The committee, under 8, considers the recommendations of the SIA report
and the report of the Expert Group, and is the final authority to determine the viability of the
project. This committee also verifies that the consent of the affected families is taken in
accordance with the second mode of transfer (i.e. partially compulsory sale)
ii.

Preliminary notification and Acquisition

According to the procedure in the LArrBill, the preliminary notification must contain a
statement of the nature of public interest involved and a summary of the SIA report.19
The notification must be issued within a year of the Expert committee report, or the SIA will
lapse and the procedure must be renewed.20Further, the preliminary notification stands
rescinded one year after it is issued, if no action is taken pursuant to it.

16 Id., 7 (1), (5).

17 Id., 7(1).
18 Id., 7(2).
19Id, 9
20 Id, 9 (2)

At this stage, 11 provides that any persons affected by the acquisition, may challenge the
notification, objecting to the area and suitability of the land for acquisition, the justification
for public purpose or the findings of the SIA report.
These objections are heard and recorded by the collector, who further makes
recommendations as to the objections. The Government finally decides the claims. Finally,
after deciding these objections, under 19(1), the Appropriate Government may issue a
declaration that the land in question is required for a public purpose. Subsequently, the
collector must issue another notification that identifies the resettlement area and provides a
summary of the resettlement and rehabilitation Scheme for the affected persons.21
19(4) states that such a declaration amounts to conclusive proof that the land is required for
public purpose and the Government may commence acquisition of land.
After this final declaration, the collector settles the compensation, rehabilitation and any
disputes arising out of the two.
under 21, the collector must issue a public notice to all persons interested in the land to be
acquired and require their presence (and allow objections to be raised) to issue an award of
compensation.22
thereafter, the collector makes an award with regard to the compensation payable and the
entitlements under the resettlement and rehabilitation provisions.23
37 provides that the collector must ensure that full compensation and monetary component
of resettlement and rehabilitation entitlements are tendered to the affected families within
three months and six months respectively from such award. Only once the conditions in 37
are fulfilled will the land vest in the Government.

21 Id.,14(1).
22 Id.,21.
23 Id.,22

iii.

Effect of the urgency clause under the LAA,

Land may be acquired by the government in cases of urgency any time after fifteen days
from the publication of the preliminary notice even if the collector has not passed any
award.24 There is, however, no explanation as to in what circumstances this clause may be
invoked.
In contrast, per 38(2) of the LARR Bill, the government may invoke the urgency clause
only for acquiring the minimum area necessary for the defence of India or national
security or for any emergencies arising out of natural calamities.
When the urgency clause is invoked, the government may exclude any or all of the
provisions of chapter II (relating to SIA) and chapter VI (relating to resettlement and
rehabilitation provisions).25 Before taking possession of such land, as with the LAA, the
collector must allow 48 hours notice to the affected persons and pay 80% of the estimated
compensation.26 The LARR, additionally, provides for another 75% of the market value of
the property to be paid to a person so displaced.27

Calculation of Compensation
The compensation for land acquisition is determined by the Collector and awarded by him to
the land owner within two years from the date of publication of the declaration of
acquisition.28
The process of determination of compensation is given below.
24 LAA, 17.

25 LArr, 38(4); LAA, 9.

26 LAA, 17(3A); LArr, 38(2).
27 LArr, 38(5).
28 Id, 25

1 First, the market value of the acquired land is computed as the higher of 29
a) the land value specified in the Indian Stamp Act, 1899 for the registration of sale
deeds; or
b) 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.
2

Once the market value is calculated, it is doubled for land in rural areas. There is no
doubling of value in urban areas. Then, the value of all assets attached to the land
(trees, buildings, etc) is added to this amount. 30 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.31

Land owners whose property is acquired using the urgency provisions shall be given an
additional 75 per cent of the market value of the land.32
Rehabilitation And Resettlement
The Bill requires R&R to be undertaken in case of every acquisition. Once the preliminary
notification for acquisition is published, an Administrator shall be appointed.33 The
Administrator shall conduct a survey and prepare the R&R scheme.34 This scheme shall then
be discussed in the Gram Sabha in rural areas (equivalent bodies in case of urban areas). 35
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.36 The Collector shall
29 Id, 26(1)(a)(b)
30 Id, 28
31 Id, 29
32 Id, 38(5)
33 Id, 39
34 Id, 17(2)
35 Id, 17(4)
36 Id, 17(6)

review the scheme and submit it to the Commissioner appointed for R&R. 37 Once the
Commissioner approves the R&R scheme, the government shall issue a declaration
identifying the areas required for the purpose of R&R. 38 The Administrator shall then be
responsible for the execution of the scheme. The Commissioner shall supervise the
implementation of the scheme. 39

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

implementation of the R&R scheme for all projects. 40

In case the land is being privately purchased (100 acres in rural areas and 50 acres in
urban areas), an application must 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. 41

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 AwasYojana in rural
areas or a constructed house of at least 50 square metres plinth area in urban areas;
(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.42

37 Id, 18(2)&40(1)
38 Id, 19
39 Id, 40(2)
40 Id, 41(1)
41 Id, 42(1)
42 LARR, bill second schedule

Special Provisions for SCs/STs

In addition to the R&R package, SC/ST families will be entitled to the following additional
benefits:
1. Land to be given to each family in every project even in the case of irrigation projects;
2. One time financial assistance of Rs. 50,000 per family;
3. Families settled outside the district shall be entitled to an additional 25% R&R benefits;
4. Payment of one third of the compensation amount at very outset;
5. Preference in relocation and resettlement in area in same compact block;
6. Free land for community and social gatherings;
7. In case of displacement, a Development Plan is to be prepared.
8. Continuation of reservation and other Schedule V and Schedule VI area benefits from
displaced area to resettlement area.
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 in 2009) required consent to be obtained
from 70 per cent of the land owners and not the affected people.
Other provisions

A Land Acquisition and Rehabilitation and Resettlement Authority shall be

established for settling any disputes relating 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 may not 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 of the 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.

The government may temporarily occupy and use any piece of waste or arable land
for a public purpose. This occupation may be for a period of not more than three
years. The compensation of such land may be decided mutually by the owner of the
land and the Collector. Any disagreement on matters relating to compensation or the
condition of the land on being returned shall be referred to the Land Acquisition and

R&R Authority.
In any district, land acquisition will be restricted to a maximum of five per cent of

irrigated multi-crop land.

The provisions of this Bill shall not apply to land acquisition under 16 existing laws.
These include: the SEZ Act, 2005, Atomic Energy Act, 1962 and the National
Highways Act, 1956.

CHAPTER V DOCTRINE OF EMINENT OF DOMAIN

The Power of the sovereign to take private property for public use, also known as Eminent
Domain or Compulsory Purchase, and the consequent rights to the owner for compensation,
are well established. The origins of the term Eminent Domain can be traced to the legal
treatise written by the Dutch jurist, Hugo Grotius in 1625, using the term dominium
eminens (Latin for supreme lordship) and described as follows:
the property of subjects is under the eminent domain of the state, so that the state or he who
acts for it may use and even alienate and destroy such property, not only in the case of
extreme necessity, in which even private persons have a right over the property of others, but
for ends of public utility, to which ends those 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 done
the state is bound to make good the loss to those who lose their property.
The term eminent domain refers to the power of the sovereign to take propertyfor public
use without the owners consent. The concept of the public use has been inextricably related
to an appropriate exercise of the power and is considered essential in any statement of its
meaning.43 The property of subjects is under the eminent domain of the State, so that the
State or he who acts for it may use and even alienate and destroy such property, not only in
the case of extreme necessity, in which even private persons have a right over the property of
others, but for ends of public utility, to which ends those who founded civil society must be
supposed to have intended that private.44

43 State of Bihar v. Kameshwar Singh, (1952) 1 S.C.R. 889

44 Ibid at pg 923

Eventually, the 44th Amendment deleted the fundamental right to property al-together.45
Today, the constitutional power of acquisition is linked only to Art. 300A of the constitution,
which provides that the no person shall be deprived of his property, without the authority of
law.46
In KT Plantations v.State of Karnataka, a constitutional bench of the Supreme court was
faced with the question of whether the two preconditions of public purpose and
compensation derived from the eminent domain doctrine were to be read in Art. 300-A.47 the
court found that while public purpose was a condition precedent for invoking Art. 300A,
compensation was not necessarily one. The right to claim compensation, however, is inbuilt
in Art. 300-A and the lack of compensation or its illusiveness must be justified with regard
to fairness, reasonableness and after having regard to the object and purpose of the
legislation.48
The states have been repeatedly misusing the power of eminent domain to acquire land for
companies. Moreover, they have been using emergency powers for the purpose, in strict
violation of not only the spirit but also the letter of the law. Some of the other notable abuses
of the extant law are: acquisition of land citing some public-purpose but covertly diverting it
to private ends; adoption of pick-and-choose method for selecting project site; and the use of
the de-notification clause to exempt land belonging to the powerful but simultaneously
acquiring all neighboring properties.
However, the Land Acquisition Act, 1894 (hereinafter LAA), the primary legal instrument in
India for state acquisition of private land, 49 fails to give effect to any of these principles.

45The constitution (Forty-Fourth Amendment) Act, 1978,

46 Constitution of India, 1950, Art. 300A
47 K.t. Plantation Pvt. Ltd. v. State of Karnataka, AIr2002 Kant. 365
48 Ibid
49 E.A.S. Sarma, Sops for the Poor and Bonus for the Industry, 46 ECO. & POL. WKLY32,
33 (2011) (noting that apart from this statute, there are at least eighteen otherlegislation that
empower organs of the state to acquire private land for a variety ofpublic purpose).

LAAs permissive attitude to terms like public purpose50 does not limit the exercise of
eminent domain to only matters of compelling public necessity
The Land Acquisition, Rehabilitation and Resettlement Bill 2011 (hereinafter Bill) is the
latest in this series of attempts at resolving the tensions inherent in the exercise of power of
eminent domain by the State. The Bill, according to its Preamble, seeks to ensure a humane,
participatory, informed consultative and transparent process for land acquisition and lay
down the basic parameters that shall guarantee that the cumulative outcome of compulsory
acquisition should be that affected persons become partners in development leading to an
improvement in their post acquisition social and economic status and for matters connected
therewith or incidental thereto.

CHAPTER VI COMPARISON OF SOME KEY FEATURES BETWEEN THE

1894 ACT AND THE 2011 BILL

The LARR bill 2011 has introduced a number of changes over and above the existing 1894
law on land acquisition51
I.

PUBLIC PURPOSE

In LAA provide public purpose means it includes several uses such as infrastructure,
development and housing projects. Also includes use by companies under certain conditions.
In LARR there is no significant change in definition of public purpose
II.

CONSENT FROM AFFECTED PEOPLE

50 SANJAY UPADHYAY & BHAVANI RAMAN, LAND ACQUISITION AND PUBLIC PURPOSE1223(1998); see also Mihir Desai, Land Acquisition Law and the Proposed Changes, 46 ECO.
& POL. WKLY 95, 96-98 (2011);

51 letstalkaboutthelaw.wordpress.com

Under LAA does not provide for consent of displaced people

In LARR there is provision of Consent of 80 % of displaced people required in case of
acquisition for private companies and public-private partnerships.
III.

SOCIAL IMPACT ASSESSMENT

No provision in LAA
Chapter II of LARR mandates an SIA by an independent body for all acquisitions, followed
by a review by an Expert Group or a special Committee in certain circumstances. An SIA
evaluates the necessity of the acquisition in the context of overall public interest, and will
employ a consultative approach.
IV.

COMPENSATION

The LAA provides that compensation shall be made to persons whose land is acquired by
award of the collector, which is to be based on the market value of the property and other
quantifiable losses suffered in the course of the acquisition process.
Market Value Based on the current use of land. Explicitly prohibits using the intended use
of land while computing market value.
Similarly, market value is the basis for calculating compensation in the LARR.
The market value of the acquired land is computed as the Higher of: (a) value specified for
stamp duty, and (b) average of the top 50% by recorded price of sale of land in the vicinity.
V.

SOLATIUM

The LAA provides that a sum of 30% of the mar-ket value shall be paid as solatium
The LARR provide 100 per cent solatium
vi.

Resale of land

There is no provision for resale of land in LAA.

The LARR provide provision for resale of land, required prior permission of the government.
VII.

SHARING OF PROFIT

No provision in LAA.
LARR provide if the acquired land is unused and is transferred, 20% of the profits shall be
shared with the original land owners.
VIII.

RESETTLEMENT & REHABILITATION (R & R)

The LAA does not govern the resettlement and rehabilitation (r&r) of the displaced
The LARR provide R&R necessary for all affected families. Minimum R&R entitlements to
be provided to each affected family specified.
IX.

URGENCY CLAUSE

Under the LAA, land may be acquired by the government in cases of urgency any time after
fifteen days from the publication of the preliminary notice even if the collector has not
passed any award.
In contrast, per 38(2) of the LARR Bill, the government may invoke the urgency clause
only for acquiring the minimum area necessary for the defence of India or national
security or for any emergencies arising out of natural calamities.

CHAPTER VII CHANGES BETWEEN THE RIGHT TO FAIR COMPENSATION

AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT ACT 2013 FROM LAND ACQUISITION, REHABILITATION
AND RESETTLEMENT BILL, 2011
The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 was introduced in Lok
Sabha on September 7, 2011. On March 5, 2013, the government circulated a list of
amendments to the Bill. compares the Land Acquisition, Rehabilitation and Resettlement
Bill, 2011 as introduced, with the New land law act , 2013
I.

CLAUSE 1(1)-SHORT

TITLE

LARR Bill, 2011

The Bill is called the Land Acquisition, Rehabilitation and Resettlement Act, 2011

New land law act , 2013

The amendment proposes to change the name of the Bill to The Right to Fair Compensation
and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2013
II.

CLAUSE 3(ZA)(I)
COMPANIES AND

TO

(VII)-PUBLIC PURPOSE

AND ACQUISITION FOR PRIVATE

PPPS

LARR Bill, 2011

Public purpose has been defined 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. Public purpose includes provision of land in
the public interest for use by:
a) the government for purposes other than those mentioned above; and
b) public-private partnerships and private companies for production of public goods and
services
New land law act , 2013
The definition of public purpose has been expanded to include infrastructure projects which
include:
(i) all activities listed by the government as infrastructure projects in its notification dated
March 27, 2012, excluding private hospitals, private educational institutions and private
hotels;
(ii) Projects related to agriculture, agro-processing, cold storage facilities;
(iii) Industrial corridors or mining activities, national investment and manufacturing zones as
designated in the National Manufacturing Policy;
(iv)Government administered or government aided educational and research institutions;
(v) Sports, health care, transport or space programme projects; and
(vi) Any other infrastructural facilities notified by the central government after tabling the
notification in Parliament. Public purpose includes acquisition of land for use by:

(a) public-private partnership projects (PPPs), where ownership of land continues to vest
with the government for the purposes mentioned above; and
(b) Private companies for the purposes mentioned above.
III.

PROVISO

TO

CLAUSE 3(ZA)(VI)

AND (VII)-

REQUIREMENT

OF

CONSENT

LARR Bill, 2011

The Bill requires the consent of 80% of the project affected people in case of acquisition of
land for use by: (a) the government for purposes other than those mentioned in Clause 3(za)
(i) to (v), and (b) use by public-private partnerships, and (c) use by private companies.
New land law act , 2013
The amendment requires the consent of 80% of the land owners in case of use of land by
private companies. Consent of 70% of the land owners is required in case of use of land by
PPPs. The process of obtaining consent shall be carried out along with the Social Impact
Assessment study.
IV.

CLAUSE 2(2)(A)- R&R

FOR PRIVATE PURCHASE OF LAND

LARR Bill, 2011

The Bill provides that R&R provisions are mandatory for all private purchases if the land
purchased is equal to or more than 100 acres in rural areas and 50 acres in urban areas.
New land law act, 2013
The threshold for applying R&R provisions for all private purchases may be notified by each
state government.
V.

CLAUSE 4(1)- SOCIAL IMPACT ASSESSMENT

LARR Bill, 2011

The Bill requires an SIA to be conducted for every acquisition. The SIA has to be conducted
in consultation with the Gram Sabha at the village level or the equivalent body in the urban
areas. The SIA shall include the following:
(a) Assessment of the nature of public interest involved;

(b) Estimation of the number of affected families;

(c) Study of socio-economic and social impact of the project upon the families;
(d) The overall costs and benefits of the project vis a vis the social and environmental costs.
The SIA study shall consider, among others, the impact of the project on:
(a) Public and community projects; (b) drainage and sanitation; and (c) sources of drinking
water.
New land law Act , 2013
The SIA has to be conducted in consultation with the Panchayat at the village level and at the
Municipality or Municipal Corporation at the urban level. The SIA has to
be completed within six months from the date of its commencement.
The amendments propose to delete the clauses regarding inclusion of the socio-economic
impact of the project upon the families. The SIA study should include the study of the social
impact of the project on the overall costs of the project vis a vis the benefits of the project.
The SIA study should also consider the impact of the project on the livelihood of affected
families, among other factors. The Environmental Impact Assessment should be carried out
simultaneously along with the SIA
VI.

CLAUSE 6: PUBLICATION

OF THE

SIA

LARR Bill, 2011

The SIA has to be published in the affected area. It should also be uploaded on the website.
New land law Act , 2013
The SIA report should be made available in the local language at the offices of the
Panchayat, Municipality as the case may be. It should also be published in the office of the
District Collector, Sub-Divisional Magistrate and Tehsil and also be uploaded
VII.

CLAUSE 7: APPRAISAL

LARR Bill, 2011

OF THE

SIA

BY AN

EXPERT GROUP

The SIA has to be evaluated by an Expert Group. The Expert Group should consist of (a) two
non-official social scientists; (b) two experts on rehabilitation; and (c) a technical expert. The
Expert Group has to look at whether: (a) the project serves the stated public purpose; and (b)
the project is in the larger public interest; and (c) the costs and adverse impacts of the project
outweigh the potential benefits. No time period is prescribed for the Expert Group to make
its recommendation. If the Expert Group recommends not going ahead with the project, then
the project shall be abandoned immediately.
New land law Act , 2013
The Expert Group should also consist of two representatives of the Panchayat, Gram Sabha
or the Municipality as the case may be. The Expert Group should look at whether: (a) the
project serves any public purpose; or (b) the social costs and adverse social impacts outweigh
the potential benefits. The amendment removes the requirement to evaluate if the project is in
the larger public interest. The Expert Group has to make its recommendation within two
months of its constitution. The government may go ahead with the project despite the
recommendations of the Expert Group. However, the government has to record its reasons in
writing.
VIII.

CLAUSE 10: PROVISIONS

REGARDING FOOD SECURITY

LARR Bill, 2011

The Bill provides that in any district a maximum of 5% of the total irrigated multi crop land
may be acquired as a last resort. The Bill also provides that when such land is acquired, an
equivalent area of cultivable wasteland shall be developed for agricultural purposes. The
limit of multi crop irrigated land that may be acquired in a district should be notified by the
government.
New Law Act 2013
The amendment provides an option to deposit an amount equivalent to the value of the
acquired cultivable land to the government for investing in agriculture in order to enhance
the food security.
CLAUSE 14: LAPSE
LARR Bill, 2011

OF

SIA

WITHIN

12

MONTHS

The Bill provides that if the preliminary notification is not issued within 12 months from the
date of the appraisal of the SIA by the Expert Group then the SIA report shall be deemed to
have lapsed.
New Law Act 2013
The government has been given the power to extend the period beyond 12 months, if there
are circumstances justifying the extension. The reasons have to be recorded in writing,
notified and uploaded on the website of the concerned authority.
IX.

CLAUSE 17: PREPARATION

OF THE

R&R SCHEME

LARR Bill, 2011

The Bill provides if the affected areas involves more than one Gram Sabha or Municipality
then a public hearing of the draft R&R scheme shall be conducted in every Gram Sabha and
Municipality.
New land law act , 2013
The public hearing has to be conducted in only those Gram Sabhas and Municipalitiesin
which more than 25% of the land is being acquired.
X.

CLAUSE 18: REVIEW

OF THE

R&R SCHEME

LARR Bill, 2011

The Bill provides that the R&R Scheme has to be submitted to the Commissioner of R&R for
his approval.
New land law Act, 2013
The Commissioner has to make the approved R&R scheme publicly available in the local
language.
XI.

CLAUSE 19: PUBLICATION

OF DECLARATION OF

R&R

LARR Bill, 2011

The Bill provides that the government shall make a public declaration of the area to be
acquired and the area identified as the area for R&R after considering the R&R scheme.

New land law Act, 2013

If the declaration is not made within 12 months from the date of the preliminary notification,
then the notification shall be deemed to be revoked. This period may be extended by the
government for reasons given in writing, if it believes that there are reasonable circumstances
to do so.
XII.

CLAUSE 24: RETROSPECTIVE

APPLICATION OF THE

ACT

LARR Bill, 2011

The Bill provides that in case a notification has been issued under the Land Acquisition Act,
1894, but no award has been made, then the process shall be deemed to have lapsed and the
acquisition shall be made in accordance with the provisions of the new Act.
New land law Act, 2013
The amendments provide that: (a) where no award has made under the 1894 Act, then all the
provisions of the Bill relating to compensation and R&R shall be made applicable to the
acquisition; (b) where an award has been made, then all the provisions of the 1894 Act shall
be applicable. However, if the possession of the land has not been taken or compensation not
been paid for 5 years or more, then the acquisition proceedings under the1894 Act shall deem
to have lapsed. Compensation shall also be deemed to be unpaid, if it is accepted under
protest. Compensation shall be deemed to have been paid only where it is credited in the
bank account of the individual whose land is sought to be acquired.
XIII.

CLAUSE 25: PERIOD

FOR MAKING THE AWARD

LARR Bill, 2011

The Bill provides that the Collector has to make the award within a period of two years from
the date of the publication of the declaration for land identified for acquisition. If no award
has been made, the entire acquisition proceedings shall be deemed to have lapsed.
New land law Act , 2013
The Collector has to make an award within 12 months from the date of the publication of the
declaration of land identified for acquisition.
XIV.

CLAUSE 26: DETERMINATION

OF

MARKET VALUE

OF

LAND

LARR Bill, 2011

The market value of the acquired land shall be based on the higher of:(i) minimum land value
specified in the Indian Stamp Act, 1899 for the registration of sale deeds in the area where
the land is situated; or (ii) the average of the top 50 % of all sale deeds in the previous three
years for similar type of land situated in the vicinity or village.
New land law Act, 2013
The market value of the acquired land shall be based on the higher of (i) market value
specified in the Indian Stamp Act for the registration of sale deeds; or (ii) average of the top
50% of all the sale deeds in the similar type of land situated in the vicinity; or (iii) the
amount agreed upon as compensation for acquisition of land for privat e companies or PPPs.
While determining the market value of land, the compensation paid for acquisition of land
under the provisions of this Bill shall not be taken into consideration. While determining
market value and the average sale price, the Collector shall have the discretion not to take
into account any sale price which in his opinion is not indicative of the actual prevailing
market value of the land Prior to initiating the acquisition process, the Collector shall take
necessary steps to revise and update the market value of the land based on the prevailing
market value.
XV.

CLAUSE 27: PARAMETERS

TO BE CONSIDERED WHILE DETERMINING THE AMOUNT

OF COMPENSATION

LARR Bill, 2011

The amount of compensation shall be determined by adding the costs of all the assets
attached to the land to its market value.
New land law Act, 2013
The amendments insert a new Clause 27(A) which provides the parameters to be considered
by the Collector to determine the compensation amount. These parameters include: (a) the
market value as determined under clause 26; (b) damage sustained on the land due to the
acquisition of the crops and trees on the land; (c) damage if any caused due to severing
acquired land from other land; (d) damage sustained to movable, immovable or other
property, or owners earnin gs at the time of taking possession of the land; (e) any
expenditure incurred due to a change in the residence or place of business of the interested

person as a consequence of the acquisition; (e) any loss due to the diminution of the profits of
the land between the time of publication of declaration under clause 19 and the time of taking
possession of the land; and (f) any other ground which may be in the interest of equity,
justice and beneficial to the affected families.

CHAPTER VIII CONCLUSION

While the present LAAR bill, 2011 is a much improved version of the erstwhile 1894 Land
Acquisition Act, some of the key features of the bill amended and new land Acquisition law
is The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement Bill 2013 . As outlined in its preamble, it seeks out to limit the coercive
power of the state in compulsorily appropriating land. With its emphasis on acquisition and
rehabilitation, incorporation of SIA, enhanced compensation, partial recognition of the
importance of consent of the affected, among many other changes, the Bill does concretely
draw upon the subaltern experience of affected communities with the working of the existing
LAA regime. Most importantly, its attempted linkage between acquisition and rehabilitation
and resettlement promises to usher a new paradigm of land acquisition in India. The bill is
replete with instances of half hearted efforts of the government. The controversial question of
"public policy" has not seen much attention coupled with greater facilitation for private

acquisition and an unreliable method of computing compensation will make the land
acquisition process prone to much hindrance. The issue regarding state intervention for
private acquisition has not been correctly appreciated by the Standing Committee. Its
recommendation that the state should not have any role to play in private acquisition of land
overlooks the fact that there is a huge gap between the private parties and the poor land
losers. Lack of state role in acquisition may result in the exploitation of the land losers,
especially in the rural sector. Further a complete ban on acquisition on any land under
agricultural cultivation may prove to be counterproductive as there may be a shortage of land
for industrial development. This needs to be reflected in the new legal and institutional
architecture to ensure land acquisition to become fair, equitable and transparent.

BIBILIOGRAPHY
Act
The Land Acquisition Act, 1894
The Land Acquisition, Rehabilitation And resettlement Bill, 2011
The Right To Fair Compensation And Transparency In Land Acquisition, Rehabilitation And
Resettlement Bill, 2013
Weekly Report
Usha Ramanathan, Land Acquisition, Eminent Domain And The 2011 Bill, 46 Eco. & Pol.
Wkly 10, 10-12 (2011).

Sanjay Upadhyay & Bhavani Raman, Land Acquisition And Public Purpose12-23(1998)
Mihir Desai, Land Acquisition Law And The Proposed Changes, 46 Eco.& Pol. Wkly 95, 9698 (2011)
Website
broadmind.nationalinterest.in
www.hdfcsec.com
www.sustainuance.com
timesofindia.indiatimes.com
www.prsindia.org
www.gktoday.in
letstalkaboutthelaw.wordpress.com
www.indiatogether.org