[Economy] Land Acquisition bill 2011 : Salient

Features, Pro Con analysis

Z-Miscellaneous4 years Ago20 Comments

Land acquisition topic is very important for almost all competitive exams of India starting
from UPSC, State PSC, CPF, APFC, Bank and MBA Group Discussion / Interviews.

1. What is Land Acquisition?

2. How is this process governed?

3. Land is a state subject then how can the parliament pass a law?

4. What is the problem with land acquisition act of 1894?

5. Why was new law required?

6. What are the major changes being proposed?

7. Land acquisition Bill, 2011: Salient Features

Introduction

Excluded

Then where is it applicable?

Applicable even to private companies

 Government can acquire land for Public Purposes

Consent

Limits on land acquisition

Compensation

Dispute resolution

What if the acquired land is not used?

8. Download Pro Con analysis and summery

What is Land Acquisition?

Land acquisition is the process by which the government forcibly acquires private
property for public purpose without the consent of the land-owner.

It is thus different from a land purchase, in which the sale is made by a willing
seller.

How is this process governed?

Land Acquisition is governed by the Land Acquisition Act, 1894. The government
has to follow a process of declaring the land to be acquired, notify the interested
persons, and acquire the land after paying due compensation.

Various state legislatures have also passed Acts that detail various aspects of the
acquisition process.

Land is a state subject then how can the parliament pass a law?
Though land is a state subject, acquisition and requisitioning of property is in the
concurrent list. Both Parliament and state legislatures can make laws on this subject.
What is the problem with land acquisition act of 1894?

very old, ineffective, weak

draconian

delayed and no compensation

no livelihood provisions afterwards

Why was new law required?

Heightened public concern: Singur, Yamuna Express etc.

absence of proper rehabilitation law

anticorruption movement

public unrest at many places

Law and order problems: police and farmer clashes in UP

The government had introduced a Bill to amend this Act in 2007. That Bill lapsed in
2009 at the time of the general elections. The government enacted a new bill in 2011.

What are the major changes being proposed?

In 2011, the (bogus UPA) Government made changes in 2007 Bill with regard to

the purpose for which land may be acquired;

the amount of compensation to be paid;

the process of acquisition;

use of the land acquired; and

dispute settlement mechanisms.

Land acquisition Bill, 2011

Introduction

Land Acquisition, Rehabilitation and Resettlement Bill, 2011 was introduced by

the Minister of Rural Development.

The Bill proposes a unified legislation for acquisition of land and adequate
rehabilitation mechanisms for all affected persons

replaces the Land Acquisition Act, 1894

Excluded
 provisions of this Bill shall not apply to 16 existing legislations that provide for
land acquisition. These include

1. The Atomic Energy Act, 1962,

2. The National Highways Act, 1956,

3. SEZ Act, 2005,

4. Land Acquisition (Mines) Act, 1885,

5. The Railways Act, 1989.

Then where is it applicable?

provisions of the Bill shall be applicable in cases when the appropriate

government acquires land,

a. for its own use and control,

b. to transfer it for the use of private companies for public purpose, and

c. on the request of private companies for immediate use for public purpose

Applicable even to private companies

private companies shall provide for rehabilitation and resettlement if they

purchase or acquire land, through private negotiations, equal to or more than 100
acres in rural areas and 50 acres in urban areas.

Anti-argument

It is not clear whether Parliament has jurisdiction to impose rehabilitation and

resettlement requirements on private purchase of agricultural land.

While private companies are included, but PSUs are excluded from the
responsibility of rehabilitation.

Government can acquire land for these Public Purposes

1. strategic defense purposes and national security,

2. roads, railways, highways, and ports, built by government and public sector
enterprises

3. project affected people,

4. planned development or improvement of villages.

5. residential purposes for the poor and landless.

Public purpose includes other government projects which benefit the public as well as
provision of public goods and services by private companies or public-private
partnerships.

Consent

Land acquisition will require the consent of 80 per cent of project affected people

Affected families include those whose livelihood may be affected due to the
acquisition, and includes landless labourers and artisans.

Anti-argument

Projects involving land acquisition and undertaken by private companies or public

private partnerships require the consent of 80 per cent of the people affected.
However, no such consent is required in case of PSUs.

Limits on land acquisition

maximum of five per cent of irrigated multi-cropped land may be acquired in a

district, with certain conditions.

Every acquisition requires a Social Impact Assessment (SIA) by an independent

body followed by a preliminary notification and a final award by the District Collector.

In the case of urgency, the Bill proposes that the appropriate government shall
acquire the land after 30 days from the date of the issue of the notification (without
SIA).

This clause may be used only for defence, national security, and conditions
arising out of a national calamity.

Compensation
 The value of the assets (trees, plants, buildings etc) attached to the land being
acquired will be added to this amount.

mandated the job for one person in each affected family or Rs. Two lakhs

separate allowance for SC,ST

provision for housing, if the land is acquired for housing projects

Anti-Argument

1. The market value is based on recent reported transactions. This value is

doubled in rural areas to arrive at the compensation amount. This method may not
lead to an accurate adjustment because people sell land to each other at
underreported price to save stamp duty.

2. The government can temporarily acquire land for a maximum period of three
years. There is no provision for rehabilitation and resettlement in such cases.

Dispute resolution

Bill proposes the following authorities;

1. Administrator;

2. Commissioner for Rehabilitation and Resettlement;

3. Rehabilitation and Resettlement Committee (for acquisition of 100 acres or more

of land);

4. National Monitoring Committee for Rehabilitation and Resettlement; and Land

Acquisition, Rehabilitation and Resettlement Authority (which shall adjudicate all
disputes, with appeal to the High Court).

What if the acquired land is not used?

If an acquired land which is transferred to a person for a consideration, is left

unutilised for a period of 10 years from the date it was acquired, it shall be returned
to the Land Bank or the appropriate government.

in cases where the ownership of an acquired land is sold to any person, without
any development made, 20 per cent of the profit made shall be shared among all
the persons from whom the land was acquired.