Land Acquisition

Need and background

Infrastructure projects — highways, railways, dams, canals, airports, industrial corridors, urban development — require land. Where land cannot be purchased voluntarily, the government may compulsorily acquire private land for a public purpose under the principle of eminent domain, subject to fair compensation and rehabilitation.

• The Land Acquisition Act, 1894 governed acquisition for over a century; it was criticised for low compensation, lack of consultation and inadequate rehabilitation.
• It was replaced by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act), which came into force on 1 January 2014.
• The right to property is a constitutional (legal) right under Article 300A (it ceased to be a fundamental right after the 44th Amendment, 1978): no person shall be deprived of property save by authority of law.

Key features of the RFCTLARR Act, 2013

Public purpose

Includes strategic purposes (defence, national security), infrastructure projects, projects for project-affected families, housing for income groups, planned development, and certain projects of government, PPP and private companies for public purpose.

Consent

• For acquisition for private companies: consent of at least 80% of affected families.
• For public–private partnership (PPP) projects: consent of at least 70% of affected families.
• (Acquisition for the government's own projects does not require this consent.)

Social impact assessment (SIA)

• An SIA study is conducted (in consultation with the local bodies/Gram Sabha) to assess whether the project serves a public purpose, the number of affected families, extent of land, alternatives, and social costs versus benefits.
• An expert group appraises the SIA report.
• Some state amendments/rules modify SIA requirements for certain project categories.

Special safeguards

• Irrigated multi-cropped land may be acquired only as a last resort, subject to limits, with equivalent culturable wasteland to be developed (food security safeguard).
• Special provisions for Scheduled Castes and Scheduled Tribes and Scheduled Areas — consent of Gram Sabhas/autonomous councils where applicable.
• Land acquired but unutilised for five years may be returned to the original owners/their heirs or to the land bank (as provided in the Act).

Procedure (outline)

1. Social impact assessment and its appraisal.
2. Preliminary notification (Section 11) — land proposed to be acquired; restrictions on transactions.
3. Survey, hearing of objections, preparation of the R&R scheme by the Administrator.
4. Declaration (Section 19) of the land to be acquired and the R&R scheme summary.
5. Notice to persons interested; enquiry into claims.
6. Award by the Collector — generally within 12 months of the declaration (otherwise proceedings lapse, subject to extension).
7. Payment of compensation and provision of R&R entitlements before taking possession (as provided in the Act).
8. Possession of land.

Determination of compensation

Urgency provisions (Section 40) — for defence, national security or emergencies arising from natural calamities; possession can be taken earlier, and an additional compensation of 75% of the total compensation is payable (as provided in the Act).