COMPENSATION UNDER LAND ACQUISITION ACT

INTRODUCTION

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2013

  • The Bill provides for land acquisition as well as rehabilitation and resettlement.  It replaces the Land Acquisition Act, 1894.
  • The process for land acquisition involves a Social Impact Assessment survey, preliminary notification stating the intent for acquisition, a declaration of acquisition, and compensation to be given by a certain time.  All acquisitions require rehabilitation and resettlement to be provided to the people affected by the acquisition.
  • Compensation for the owners of the acquired land shall be four times the market value in case of rural areas and twice in case of urban areas.
  • In case of acquisition of land for use by private companies or public private partnerships, consent of 80 per cent of the displaced people will be required.  Purchase of large pieces of land by private companies will require provision of rehabilitation and resettlement.
  • The provisions of this Bill shall not apply to acquisitions under 16 existing legislations including the Special Economic Zones Act, 2005, the Atomic Energy Act, 1962, the Railways Act, 1989, etc.

Section 23 in The Land Acquisition Act, 1894

 Matters to be considered in determining compensation.

(1) In determining the amount of compensation to be awarded for land acquired under this Act, the Court shall take into consideration first, the market value of the land at the date of the publication of the[notification under section 4, sub-section (1)]; secondly, the damage sustained by the person interested, by reason of the taking of any standing crops or trees which may be on the land at the time of the Collector’s taking possession thereof; thirdly, the damage (if any), sustained by the person interested, at the time of the Collector’s taking possession of the land, by reason of severing such land from his other land; fourthly, the damage (if any), sustained by the person interested, at the time of the Collector’s taking possession of the land, by reason of the acquisition injuriously affecting his other property, movable or immovable, in any other manner, or his earnings; fifthly, if, in consequence of the acquisition of the land by the Collector, the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change; and sixthly, the damage (if any) bona fide resulting from diminution of the profits of the land between the time of the publication of the declaration under section 6 and the time of the Collector’s taking possession of the land.

 [(1A) In addition to the market value of the land, as above provided, the Court shall in every case award an amount calculated at the rate of twelve per centum per annum on such market-value for the period commencing on and from the date of the publication of the notification under section 4, sub-section (1), in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. Explanation. In computing the period referred to in this sub-section, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any Court shall be excluded.]

(2) In addition to the market-value of the land, as above provided, the Court shall in every case award a sum of[thirty per centum] on such market-value, in consideration of the compulsory nature of the acquisition. The Government may, on the request of the land-owner, agree to give in exchange any Government land the cost of which is, in their opinion, equal to the cost of the land acquired, or agree to pay the cost of a portion of the land acquired and for the remaining portion give Government land the cost of which is in their opinion equal to the amount due. The Government may, on the request of the land-owner, agree to give in exchange any Government land the cost of which is, in their opinion, equal to the amount payable for the land acquired, or agree to pay an amount for a portion of the land acquired and for the remaining portion give Government land the cost of which is in their opinion equal to the amount due.

Ajet Ali Baidya v. State of West Bengal

The Calcutta High Court has recently observed that since the right to property is a valuable right guaranteed under Section Article 300A of the Constitution of India, merely on the ground of delay the State cannot deny its obligation to provide compensation for land acquisition. A Bench comprising Justice Arijit Banerjee and Justice Kausik Chanda was adjudicating upon an appeal preferred against a decision by a Single Judge bench wherein the writ petition of the appellants had been dismissed. The appellant had prayed for a direction that the concerned land acquisition case stood lapsed and thus sought a direction to be put in possession of their respective plots of land.
Accordingly, the Court ruled,

“We are of the opinion that justice will be sub-served if the State is directed to pay compensation to the appellants as has been paid to the similarly circumstanced persons whose lands have been acquired and who have been paid compensation following the L.A. Case No. 4/34 of 1999-2000.” Thus, the Court directed the State to verify as to whether the appellants have interest in the lands in question and whether the said lands have been acquired and utilised for the purpose of the Calcutta Leather Complex project. It was further ordered that if the answers are found in the affirmative, the State shall pay compensation to the appellants along with all statutory benefits within a period of two months from the date of communication of this order treating it as a case of deemed acquisition.

REFERENCE:

https://prsindia.org/billtrack/the-right-to-fair-compensation-and-transparency-in-land-acquisition-rehabilitation-and-resettlement-bill-2013#:~:text=Compensation%20for%20the%20owners%20of,in%20case%20of%20urban%20areas.

https://indiankanoon.org/doc/31609/

https://www.livelaw.in/news-updates/right-to-property-is-a-valuable-right-state-cannot-deny-compensation-merely-on-the-ground-of-delay-calcutta-hc-200215?infinitescroll=1

https://www.scconline.com/blog/post/tag/Land_Acquisition/

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