Decoding the Land Acquisition Act 2013 and 1894 in India

India is a developing nation, hence there is a constant need for Infrastructure development. We are aware that the area of the land remains constant, but the population keeps growing, and hence for the government to manage both infrastructure needs and provide rehabilitation to landowners who lose their land because of it. This is where the Land Acquisition Act comes into the picture. Over the years, a lot of amendments have been made for this activity, such as Land Acquisition Act 1894 and 2013, Land Acquisition Act 2015, Land Acquisition Act 2020, Railway Land Acquisition Act 2016 to protect and give fair compensation and rehabilitation to the landowners who sacrifice their lands for infrastructure projects.

Definition of Land Acquisition Act

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, in short, known as Land Acquisition Act. It was passed by the Indian Parliament to regulate the land acquisition and lay down rules and procedures for rehabilitation, compensation, and resettlement of citizens of India who lose their lands due to land acquisition. Some of the provisions like Section 30 of Land Acquisition Act stating ‘Disputes as to apportionment’ and Section 6 of Land Acquisition Act ‘Declaration that land is required for a public purpose” that will provide fair compensation to people who lose their lands due to land acquisition and also bring transparency in the process of land acquisition.

Until 2013, Land Acquisition Act 1894 administered land acquisition in India, but on Dec 31, 2013, the President of India passed an ordinance with an official mandate to meet two objectives of farmer welfare and meeting the strategic and developmental needs of the country at double the current speed. Hence, Land Acquisition Act 1894 was replaced by Land Acquisition Act 2013.

A brief note on Land Acquisition Act, 2013

Land Acquisition Act 1894, a 120-year-old act that was implemented during the British was replaced by the Land Acquisition Act 2013 by the ordinance passed by the President of India. The difference between Land Acquisition Act 1894 And Land Acquisition Act 2013 are:

In the Land Acquisition Act of 1894, there was an absence of a united national law that addresses fair compensation when private land is acquired for government purposes.

There was no clear rule for fair rehabilitation of landowners and those directly affected by the loss of livelihoods for that particular land.
The rates paid for the lands acquired were as per government rates and not market rates which are unfair compensation to landowners who lose their lands.

To fix all the above issues related to the Land Acquisition Act 1894, the president of India passed the Land Acquisition Act 2013 on Dec 31, 2013, with fresh amendments applicable to all provinces throughout India.

Land Acquisition Act 2013: Aims and Objectives

The main aims and objectivesof theLand Acquisition Act 2013are:

To ensure a simple process for land acquisition, applied for industrialization, development of infrastructural facilities, and urbanization without causing any problems to the owners of the land and other affected families.
Provide fair and appreciable compensation based on the existing market rates. As per the Act, the compensation should be four times the market rate in rural areas and twice the market rate in urban areas.
To provide adequate rehabilitation and resettlement for the landowners and families who are directly affected by the loss of their land due to acquisition.

Land Acquisition Act 2013 is applicable when

The state and the central government acquire private land for its use
The state and the central government acquire private land for public purposes like road construction, metro stations, bridges, and other infrastructure projects.
The State Government and Central government acquires private land but declares that land will be used by private firms for a public purpose. Here the term ‘public purpose’ is clearly defined. Private companies can only use this acquired land for purposes like amusement parks, agriculture-related projects, industrial corridors, sports, healthcare, tourism, etc.

The scope of this act includes all land acquisition by the Central Government of India or any State Government of India, with the exception of the state of Jammu & Kashmir.

The different provisions and purposes of the Land Acquisition Act 2013

There are some provisions and purposes applicable to the Land Acquisition Act 2013concerning the land acquisition by the Central Government and State Government of India. The acquired lands can be used only for the following purposes:

For strategic purposes in relation to armed forces of the union, navy, or any work important to India’s defence and safety of the people under the strict watch of the State and the Central government of India.
For infrastructure projects for public use listed in the notification of the Department of Economic Affairs (Infrastructure section), excluding private educational institutions, private hospitals, and private hotels.
For agriculture-related projects like the supply of inputs to agriculture, cold storage facilities, agro-processing, marketing infrastructure for agriculture, and other related activities such as meat processing and dairy fisheries owned by government institutions.
For mining activities or industrial corridors, manufacturing zones, and national investment designated under the National Manufacturing Policy.
Projects for water harvesting, sanitation, and water conservation structures like dams.
Projects for Government aided education and research schemes
Projects for sport, tourism, health care, transportation, or space program under government administration
Projects for affected families who lose their land and livelihood due to land acquisition.
Project for providing housing for homeless, landless, and weaker sections of the society in rural and urban areas.
Project for residential development for people affected by natural calamities like floods and earthquakes.

Before the land acquisition process, there are certain conditions undertheLand Acquisition Act 2013that have to be catered by the government, and one of them is obtaining the consent of landowners whose lands will be acquired for different purposes. The different rules of consent are:

It is compulsory to get the consent of at least 70% of the landowners and the other affected families when the land is acquired for a project undertaken through a public and private partnership.
It is a must to obtain the consent of at least 80% of the landowners and the other affected families when the land is acquired for setting up private companies.
No consent is necessary for land acquisition from the landowners when the government acquires land for public purposes and controls the land bank directly.

To make the process of taking consent from the landowners smoothly, the government has given the responsibility of obtaining consent through the district collector. The government has to maintain records of landowners, land rights, and the name of the occupants at all times. The district collector has to notify the Gram Sabha members three weeks before acquiring the consent.

Compensation for the landowner under Land Acquisition Act 2013

Under section 26, the District Collector has the responsibility to determine the market value of the land acquired. The main criteria for determining the market value of the land are,

The market value specified in the Indian Stamp Act 1899 for registration of sale deeds or agreements to sell the land
The average sale price of similar types of lands that are in the vicinity of the required land
The consented amount of compensation agreed in the case of land acquisitions for private companies or private-public partnerships projects.

The market value should be multiplied by a factor at least one or two times in the urban area and up to four times in rural areas. Under section 25 of the Act, the district collector has to make an award of compensation to landowners within 12 months from the publication of declaration and failing to which the entire land acquisition process will have lapsed. These 12 months can be extended under certain circumstances only under the approval of the state or central government. The collector will have to impose a ‘solatium’ which is the amount equivalent to 100% of the compensation under section 30 of the Land Acquisition Act.

Limitations of Land Acquisition Act

The NDA government made some amendments to the Land Acquisition Act 2013 and formed the Land Acquisition Act 2015. Some of the shortcomings due to these changes are:

The original Land Acquisition Act, 2013, came with a consent clause and the Social Impact Assessment for acquiring land for industrial corridors, Private- Public Partnership projects, affordable housing, rural infrastructure, and defence. But, after implementing the Act in 2015, all the above categories are exempted from Social Impact Assessment.
As consent and Social Impact Assessment are not mandatory for government projects, chances of forceful evictions of landowners with no proper rehabilitation and resettlement program is a high probability.
Earlier, multi-cropped land was not supposed to be acquired under Land Acquisition Act,but with the latest amendments, evenmulti-cropped land can be acquired for social infrastructure projects.
Earlier, the acquired land was returned to the farmer if it was not used for 5 years, but with the latest amendment, the acquired land will only be returned if the project doesn’t finish within the deadline.

The different timelines of the Land Acquisition Act

The different amendments made to Land Acquisition 1894 and the timelines are:

Land Acquisition Act 2011: This bill was introduced in Lok Sabha on September 7, 2011, and is known as ‘Right to Fair Compensation, Resettlement, Rehabilitation and Transparency in Land Acquisition Bill’. This was made to resolve the shortcomings of the Land Acquisition Act 1894. As per the bill, there will be a balance between facilitating land acquisition for public purposes and safeguarding farmers and landowners who lose their lands due to land acquisition.

Land Acquisition Act 2013: This act completely replaced LandAcquisition Act 1894 and is called the “Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act.” This bill was passed in Lok Sabha on August 29, 2013, and in Rajya Sabha on September 4, 2013. At that time, the president of India, Shri Pranab Mukherji, approved the bill on September 27, 2013. The act was implemented officially on 1 January 2014.

Land Acquisition Act 2015: The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement. It was presented in the Lok Sabha on Feb 24, 2015, and passed by Lok Sabha on March 10, 2015. The President of India promulgates the amendment on May 30, 2015.

Conclusion Land is an essential resource for infrastructure development, which is needed for the country’s development. Land acquisition plays a major in infrastructure development as most of the lands are private and belong to individual owners. To safeguard and prevent forceful eviction and provide fair compensation, rehabilitation, and resettlement to the landowners and affected families from Land Acquisition Act ensures a smooth land acquisition and compensation distribution.

Frequently Asked Questions (FAQ’s)

What is the significance of Section 6 of the Land Acquisition Act?

Under section 6 of the Land Acquisition Act, after the district collector takes order for acquisition, there should be a mandatory declaration that the land has been for public purpose.

Was there any Land Acquisition Act passed in 2020?

Yes. Land Acquisition Act 2020 was introduced in Karnataka in a bid to acquire land for industrial projects to attract investors and provide them suitable lands in the State for their manufacturing set up.

Under which section of the Land Acquisition Act, the government has the authority to make new rules?

Under section 55 of the Land Acquisition Act, the government has the authority to make new rules.

Can the government sanction a replacement of land to the owners after acquiring their existing land?

Yes. Under section 23 of the Land Acquisition Act, the government is authorised to sanction a replacement of land to the owners after acquiring their existing land, based on the owner’s request and availability of government lands in the vicinity of the acquired land.