Draft Land Acquisition And Rehabilitation & Resettlement Bill (Laar) 2011

Q. Draft of Land Acquisition & Rehabilitation & Resettlement Bill (LAAR) 2011

Answer: The LARR Bill 2011 introduced in Parliament, specifies these quite irrespective of the ratios of private and government acquisition. The objective is to make the process of land acquisition easy, transparent and fair for both sides in each instance. This Bill covers all cases (0-100 percent, 50-50 percent, 70-30 percent, 90-10 percent, 100-0 percent and all other possible combinations in between), irrespective of the ratios and leads to equal treatment of equals in R&R, irrespective of who acquires their land, government or private parties. The Bill puts in place a new institutional mechanism to ensure that the R&R provisions are implemented effectively as an integral part of land acquisition. The draft Bill is fully compliant with the provisions of (i) PESA, 1996; (ii) Forest Rights Act, 2006; and (iii) Land Transfer Regulations in Schedule V (i.e., tribal) areas. It also gives the State the right to have their own Land Acquisition Policies and Acts as long as they are not in violation of the Central Act.

Scope of LARR, 2011

Both LA and R&R Provisions will apply when:

1. Government acquires land for its own use, hold and control

2. Government acquires land with the ultimate purpose to transfer it for the use of private companies for stated public purpose (including PPP projects but other than state or national highway projects)

3. Government acquires land for immediate and declared use by private companies for public purpose

Note I: Public purpose for 2. & 3. above, once stated, cannot be changed

Note II: Land Acquisition under 2. & 3. above can take place provided 80 percent of the project affected families give prior informed consent to the proposed acquisition.

Only R&R provisions will apply when:

• Private companies buy land for a project, more than 100 acres in rural areas, or more than 50 acres in urban areas

Only LA provisions will apply to the area to be acquired but R&R provisions will apply to the entire project area even when:

•  Private company approaches Government for partial acquisition for public purpose Salient Features of the Draft Bill

Definition of Public Purpose

1. Land for strategic purposes relating to armed forces of the Union, national security or defence, police, safety of the people;

2. Land for railways, highways, ports, power and irrigation purposes for use by Government and public sector companies or corporations;

3. Land for the project affected people;

4. Land for Planned development or improvement of village or urban sites or for residential purpose to weaker sections in rural or urban areas;

5. Land for Government administered educational, agricultural, health and research schemes or institutions;

6. Land for persons residing in areas affected by natural calamities;

7. Land acquired by the Government for;
(I) use by government itself for purposes other than those covered under (1), (2), (3), (4), (5) and (6) above,
(ii) public sector companies; or
(iii) PPP projects for the production of public goods or the provision of public services;

8. Land for private companies for the production of public goods or provision of public services;

Under (7) and (8), consent of at least 80 Percent of the project affected families shall be obtained through a prior informed process.

Urgency Clause

The Urgency Clause can only be invoked in the following cases:

1. National defense and security purposes

2. R&R needs in the event of emergencies or natural calamities

Definition of `Affected Families’

Land Owners:

1. Family or company whose land/other immovable properties have been acquired;

2. Those who are assigned land by the Governments under various schemes;

3. Right holders under the Forest Rights Act, 2006.

Livelihood Losers:

1. Over the last three years, a family whose livelihood is primarily dependent on the land being acquired, including agriculture labourers, tenants or sharecroppers;

2. Over the last three years, families which are dependent on forests or water bodies for their livelihoods when these are acquired; including forest gatherers, hunters, fisher folk and boatmen;

3. Over the last three years, any family whose livelihood is dependent primarily on the land being acquired in the urban areas or any family who is residing on the land being acquired in the urban areas.

Definition of `Land’

“Land includes benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth.”

Safeguarding Food Security

1. Multi-crop irrigated land will not be acquired except as a demonstrably last resort measure, which in no case should lead to acquisition of more than 5 percent of multi-crop irrigated area in a district.

2. Wherever multi crop irrigated land is acquired an equivalent area of culturable wasteland shall be developed for agricultural purposes.

3. In districts where net sown area is less than fifty per cent of total geographical area, no more than ten per cent of the net sown area of the district may be cumulatively acquired under all land acquisition projects put together in that district.

Special Provisions for SCs/STs

In addition to the R&R package, SC/ST families will be entitled to the following additional benefits: (Schedule II)

1. 2.5 acres of land or extent of land lost to each family in every project, In case of irrigation project 1 acre in the command area;

2. One time financial assistance of Rs. 50,000 per family;

3. Families settled outside the district shall be entitled to an additional 25 percent R&R benefits;

4. Payment of one third of the compensation amount at very outset;

5. Preference in relocation and resettlement in area in same compact block;

R&R in case of Private Purchase of Land

1. Where a private company is purchasing land for a project which is more than 100 acres in rural areas or more than 50 acres in urban areas through private negotiations, the Company shall file an application with the District Collector notifying him of:

(a) Intent to Acquire;

(b) Purpose of Purchase;

(c) Particulars of lands to be purchased

2. Collector shall refer the matter to the Commissioner R&R for the satisfaction of all relevant  provisions under this Act related to R&R

3. Based upon the R&R Scheme approved by the Commissioner R&R, the Collector shall pass individual awards covering R&R entitlements

Safeguards against Indiscriminate Acquisition

• Social Impact Assessment made mandatory;

• Chief Secretary Committee/ Delegated Committee to approve `public purpose’ and approve the SIA report if area is above 100 acres (Otherwise to be reviewed by Delegated Committee so designated);

• Draft Notification to include:
  • Summary of SIA;
  • Particulars of Administrator for R&R who prepares R&R scheme;

• Draft Declaration to include:
  • Summary of R&R package;

• No Change of Purpose: No change from the purposes specified in the Land Use Plan submitted at the time of land acquisition will be allowed;

• Change ofOwnership:No change of ownership without specific permission ofAppropriate Government is allowed;

• Land not Used: Land that is not used within 10 years in accordance with the purposes for which it was acquired at the time of acquisition, shall be transferred to the State Government’s Land Bank;

• Sharing appreciated value: Upon every transfer of land without development, 20 Percent of the appreciated land value shall be mandatorily

Special Provisions for the States

1. The LARR Bill 2011 allows all States to enact any law or policy related to LA&RR, provided the same does not contradict or reduce the entitlements under LARR 2011.

2. Any State can therefore confer higher compensation or make provisions for rehabilitation and resettlement which enhance or go beyond those provided for under the Bill.

3. If any existing State policy or law provides for entitlements that are greater than those listed in the LARR Bill then the State is free to continue with those.

4. The proportion in which States can acquire land for private parties has been left entirely to the discretion of the States i.e. States can step in and acquire land for private parties after any percentage of total acquisition has taken place.

5.  The only conditions are that at the very least the land acquisition provisions of LARR 2011 will apply to that part of the land that is acquired by the State Government and the R&R provisions of LARR 2011 will apply to all of the land already purchased by the private party as well as the remaining part of the land to be acquired by the State Government.

Impact on Existing Legislations

1. There are 16 Acts of the Central Government in force that allow for land acquisition. These are listed in schedule IV of the Act (and include legislations relating to National Defence, National Highways, Railways etc)

2. The provisions of LARR 2011 can be applied to the existing 16 Acts by a notification of the Central Government.

3. The provisions of the LARR Bill 2011 are in addition to and not in derogation of any other Central or State law in force.

Go Back To Main Page