Govt may dilute Land Acquisition Act

Nitin Gadkari

The recent announcement by Rural Development Minister Nitin Gadkari in the lower house of Parliament has indicated that the new government is inclined to do certain modifications in the Land Acquisition Act, which got the assent from President of India last year to become a law.

The government’s move is necessitated due to wholesome opposition from states over certain clauses in the Act, which has become the reason for the inordinate delay in several infrastructure projects worth billions of rupees.

However, experts believe that while making amendments in the Act, the government may dilute certain 'landowners-friendly' clauses to expedite the acquisition process for major PPPs and government-funded projects across various states.

While addressing the Lok Sabha, the minister indicated government’s willingness to review certain provisions of the Land Acquisition Act, which was projected as one of the landmark laws brought out by the previous UPA regime. The Act has faced criticism from various quarters including states and stakeholders.

"We can review the Land Acquisition Act... if there is co-operation from your side,"

Gadkari said, adding that certain provisions could be re-considered.

While replying to the discussion on Demands for Grants for Ministry of Road Transport and Highways, Gadkari, who also holds that portfolio, however, emphasised that the whole effort (making changes) should not result in delaying the road projects.

To ally fear about the compromise in offering compensation to landowners or farmers, the Minister said, there would be no compromise on the compensation amount to be given to people displaced by land acquisition.

Recently, the Rural Development Ministry suggested a number of amendments to the Land Acquisition Act, which would water down pro-farmer provisions like mandatory consent of at least 70 per cent land owners for acquiring land for PPP projects and 80 per cent for acquiring land for private projects.

The Act enacted during the UPA government is likely to go undergo drastic changes if Prime Minister Narendra Modi gives nod for the Ministry's proposals, which also include dilution of a key clause of Social Impact Assessment study criticized by states as time consuming for industrialisation process.

"The Consent Clause should be re-examined as ownership of land vests with the Government in PPP projects. The consent clause should be removed from PPP

projects. Alternatively, consent requirement may be brought down to 50 per cent," the Ministry had said in its note sent to the PMO.

The Ministry's suggestions for drastic changes in the Act came after most of the states recently came out openly against the new Act, complaining that it had hurt the process of

acquiring land for infrastructure projects.

At a recent meeting of State Revenue Ministers chaired by Gadkari, the states including Congress-ruled Haryana objected to provisions for mandatory consent and Social Impact

Assessment study.

The Right to Fair Compensation and Transparency in LandAcquisition, Rehabilitation and Resettlement Bill, 2013, which was earlier passed by both the houses of Parliament, was letter received the assent of the President to become a law.

The legislation was made to provide ‘just and fair’ compensation to farmers while ensuring that no land could be acquired forcibly.

The new Act replaced the archaic Act of 1894, which had various shortcomings including silence on the issue of resettlement and rehabilitation of those displaced by acquisition of land.

'SC order on Land Act has drawn clear lines on implementation'

New Delhi: Rural Development Minister Jairam Ramesh today said the Supreme Court judgement upholding the retrospective clause of the new Land Acquisition Act has drawn "clear and humane lines" for the implementation of a significant clause in the law.
 

He said that the March 14 judgement by a two-judge Supreme Court bench deals with land acquisition which had been pending for over the prescribed five year period (in the retrospective clause-section 24).
 

"In this case, the award had been passed in 1995 and the parties had still not accepted compensation or  parted with possession. In light of this, the Supreme Court, relying on the retrospective clause, ordered the return of the land to the original owners," the Minister said in a release.
 

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013, enacted by Parliament in September last year to provide just and fair compensation to those whose land is taken away for constructing roads, buildings or factories, had come into force from January 1, replacing the 120-year-old legislation.
 

Ramesh also said that the Supreme Court had passed a similar judgement on the new law on February 2.
"This judgement also relates to the operation and interpretation of Section-24 --the retrospective clause. The learned bench overturned a 2004 judgement of the Punjab and Haryana High Court (which had upheld a long pending acquisition) and quashed the quashed the acquisition, returning the land to the original owners," he said.
 

Welcoming the judgements, the Minister said, "This demonstrates the Hon'ble Supreme Court has drawn clear and humane lines for the implementation of a very significant clause in the law."
 

"These add to the growing list of important precedents which will have a far-reaching impact on those who have suffered historically from arbitrary acquisitions and give life to the intention behind the new law," he said.

Govt assures help to investors facing problems due to Land Acquisition Act

Dr E.M.S. Natchiappan

Stating that the land acquisition act is not a hurdle in industrial development, minister of state for commerce and industry, Dr E.M.S. Natchiappan has assured the investors that the government is ready to help and solve the problems faced by them.  

While inaugurating the 4th India-Japan Business Conclave organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) held in New Delhi recently, the minister said, “If you look at the Land Acquisition, Rehabilitation and Resettlement Act, the first appearance may be very troublesome but is in no way a barrier in industrial development and if you feel there is some problem in any area, we are ready to solve it and even the rural development ministry is very much there to help you and solve the problem as quickly as possible.”

“We want to have a process of democracy and peaceful settlement of industry as the previous colonial land act may be giving a chance to grab the property from the individuals,” said Dr Natchiappan, adding, “If you want to establish an industry you don’t have to feel shy in discussing with people who’ve been possessing land for generations and centuries and these people living around the area (where the industry is to be set up) should be made party to the development of the industry as it will go a long way and save time from litigation.”

Dr Natchiappan also informed that the Commerce Ministry is coming out with an electronic method of clearance. “We at Ministry of Commerce and Industry are now working on a model where clearances will be given online through computers and you can go through the process of getting the clearances of the Government of India numbering about 20.”

Talking about the various efforts of the Commerce Ministry’s stress upon creating National Investment and Manufacturing Zones (NIMZ), the minister said, “We are now creating a Kanchi-Nippon chamber of commerce in Kanchipuram and the Japanese companies have purchased 3,000 acres already in this regard, besides in Kanchipuram we want a Japanese exclusive cluster zone that will be graduated into NIMZ and further post-graduated into an industrial corridor.”

He further informed that German companies have been granted 4,000 acres near Bengaluru, which will be established purely for German companies in tools and machineries. “In the Hossur area we are working together with the state government and they are contributing more than 3,000 acres and German companies are ready to invest their money there and we want to create a NIMZ.”

On the issue of India-Japan trade, the minister said, “Inflow of Japanese MSME sector is very much needed to boost Indo-Japan relationship and the Japanese co-operation in the MSME sector in the technology transfer, investment, partnership and fully established areas can be come up.”

New Land Acquisition Act is pro people: Jairam Ramesh

Jairam Ramesh

MUMBAI: The Union Minister for Rural Development Jairam Ramesh today allayed the fears expressed by the Indian industry that the new Land Acquisition Act would make projects 'economically unviable'.

Addressing a press conference here the minister said that, "The new act applies only to the land acquired by 'Central and State authorities' for any public purpose, while there is no bar whatsoever, on purchase of private land. He said “industry must look beyond land acquisition by Government and explore land purchase opportunities. In fact, in 20 years from now, there should only be land purchases and no land acquisition”.

Reiterating his stand that land acquisition should become an act of last resort, Ramesh said that his Ministry has been working towards improving land records management in the country and promoting transparency in land sales. He informed that Rs 1000 crore National Land Record Modernization Programme is being implemented with focus on computerization of land records, digitization of maps and resurvey. He also said that Maharashtra has progressed well but is yet to catch up with Haryana, Gujarat, Karnataka and Tripura.

On sale and registration of land, the minister said that a bill seeking amendment to the Registration Act of 1908 has been introduced in Parliament, which when passed, wold put all land sales and registration records in public domain. “When transparency increases, it will become easier for corporate to purchase land” he observed.

Speaking about the SEZs, the Rural Development Minister said all land acquisition for future SEZs would be in accordance with the new Act. He however admitted that the Act presently has no provision to deal with denotified SEZs. Ramesh termed that the new act, which replaces 119 year old act as ‘historic’. 

Turmed the 1894 Act on land acquisition as 'undemocratic' which provided discretionary powers to District Collectors, the minister said, the new Act is humane as it provides rehabilitation and resettlement.” He said to represent this spirit, the new act has been re-christened as the “Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act.”

"I believe that the old law was 'anti-democratic' as governments used to buy land from people at lower price and sell it to business houses at a premium rate. The collector decided the urgency, the amount of compensation and resettlement provisions if any. Hence the old act created public anger nationwide and was the reason behind mass movements on land issues in Uttar Pradesh, Madhya Pradesh, and Gujarat along with Odisha,” said the Minister.

He elaborated that under the new act the powers of the Collectors, who often acted under the instructions of state governments have been 'considerably curtailed'. The purpose of land acquisition has been clearly spelt out and major emphasis has been laid on rehabilitation and resettlement. He said that consent of Gram Sabha in Schedule V areas – mostly tribal dominated areas, and consultation with Gram Sabha in other areas, has been made mandatory.

The Minister further added, that if the Government failed to utilize the land so acquired for public purpose within five years, it will be required to return the land to its owners.

The Minister also said that the new Act promises fair compensation for the farmers and those who lose their lands. “Land is still considered the biggest social security in India. Since they will be dispossessed of their assets, they are entitled for a fair and just compensation” he said. 

The new act stipulates that compensation will be paid at twice the rate of three year average of highest selling price in urban areas and up to four times the average highest sale price in rural areas. In addition, there is also a provision of leasing the land instead of selling it, thereby opting to receive a regular income over a longer period of time.

The Minister said the new law has been made under the concurrent list of the Constitution and States could only improve upon the quantum of compensation as well as other provisions in favour of the land owners and farmers. 

He said it would be notified either on January 1, 2014 or April 1, 2014 and appealed to all state governments to implement it in right spirit.