THE DRAFT LAND ACQUISITION AND REHABILITATION AND RESETTLEMENT BILL (LARR), 2011 AN OVERVIEW

Ministry of Rural Development Government of India*

Why a New Law?Why a Combined Law?Scope of LARR, 2011Salient Features of the Draft Bill Scope of the BillDefinition of Public PurposeUrgency ClauseDefinition of Affected FamilyDefinition of LandSafeguarding Food SecurityMinimum Compensation for LandMinimum R&R EntitlementsInfrastructural Amenities under R&RRetrospective EffectCompliance with Other LawsProcess FlowInstitutional Structure Safeguards against indiscriminate acquisitionTransparency ProvisionsPenaltiesAwardsTimelinesSpecial provision for States Impact on existing legislationsAgenda*

Heightened public concern on Land Acquisition issuesAbsence of a national law to provide for the rehabilitation & resettlement and compensation for loss of livelihoodsWhy a New LawPublic ConcernWhile multiple amendments have been made to the Original Act, the principal law continues to be the same i.e. the Land Acquisition Act of 1894Outdated LawAddressing concerns of farmers and those whose livelihoods are dependent on the land being acquired While facilitating land acquisition for industrialisation, infrastructure and urbanisationNeed for Balance*

Why a Combined Law

Land Acquisition and Rehabilitation & Resettlement need to be seen necessarily as two sides of the same coin

Rehabilitation and Resettlement must always, in each instance, necessarily follow upon acquisition of land

Not combining the two R&R and land acquisition within one law, risks neglect of R&R. This has, indeed, been the experience thus far

This is the first National/ Central Law on the subject of Rehabilitation & Resettlement of families affected and displaced as a result of land acquisition

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Both LA and R&R Provisions will apply when:Government acquires land for its own use, hold and controlGovernment 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)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% of the project affected families give prior informed consent to the proposed acquisition.Scope of LARR, 2011Only 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 areasOnly 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*

Land for strategic purposes relating to armed forces of the Union, national security or defence, police, safety of the people;Land for railways, highways, ports, power and irrigation purposes for use by Government and public sector companies or corporations; Land for the project affected peopleLand for Planned development or improvement of village or urban sites or for residential purpose to weaker sections in rural or urban areas; Land for Government administered educational, agricultural, health and research schemes or institutions;Land for persons residing in areas affected by natural calamities---------------------------------------------------------------------------------------

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% of the project affected families shall be obtained through a prior informed processSalient Features of the Draft Bill Definition of Public Purpose*

Salient Features of the Draft Bill Urgency Clause

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

National defense and security purposes

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

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Land Owners: Family or company whose land/other immovable properties have been acquired;Those who are assigned land by the Governments under various schemes;Right holders under the Forest Rights Act, 2006

Livelihood Losers:Over the last three years, a family whose livelihood is primarily dependent on the land being acquired, including agriculture labourers, tenants or sharecroppersOver the last three years, families which are dependent on forests or waterbodies for their livelihoods when these are acquired; including forest gatherers, hunters, fisher folk and boatmenOver 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

Salient Features of the Draft Bill Definition of Affected Families*

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

Salient Features of the Draft Bill Definition of Land*

*Salient Features of the Draft Bill Safeguarding Food Security

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.

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.

1. and 2. above shall not apply in the case of linear projects (such as Railways, highways, Major District Roads, power lines, and irrigation canals)

A Comprehensive Compensation Package (Schedule I)

Market value of the land: the minimum land value, if any, specified in the Indian Stamp Act, 1899 for the registration of sale deeds in the area, where the land is situated; orthe average of the sale price for similar type of land situated in the immediate areas adjoining the land being acquired, ascertained from fifty per cent of the sale deeds registered during the preceding three years, where higher price has been paid; orwhichever is higher: PROVIDED THAT THE MARKET VALUE SO CALCULATED FOR RURAL AREAS SHALL BE MULTIPLIED BY AT LEAST A FACTOR OF TWO. THIS WILL BE SPECIFIED IN SCHEDULE I. (AND NOT IN THE ACT PER SE).

2. Value of the assets attached to land: Building/Trees/Wells/Crop etc as valued by relevant govt. authority;Total compensation = 1+2

3. Solatium: 100% of total compensation

4. Where land is acquired for urbanisation, 20% of the developed land will be reserved and offered to land owning project affected families, in proportion to their land acquired and at a price equal to cost of acquisition and the cost of development. In case the project affected family wishes to avail of this offer, an equivalent amount will be deducted from the land acquisition compensation package payable to it

5. The Company for whom land is being acquired may offer shares limited to 25% of the Compensation amount . In case the project affected family wishes to avail of this offer, an equivalent amount will be deducted from the land acquisition compensation package payable to it.

Salient Features of the Draft Bill Minimum Compensation for Land*

Salient Features of the Draft Bill Minimum R&R EntitlementsA Comprehensive R&R Package (Schedule II)For Land Owners: Subsistence allowance at Rs. 3000 per month per family for 12 months;The affected families shall be entitled to:(a) Where jobs are created through the project, mandatory employment for one member per affected family or (b) Rupees 5 lakhs per family;or (c)Rupees 2000 per month per family as annuity for 20 years, with appropriate index for inflation;

The option of availing (a) or (b) or (c) shall be that of the affected family3. If a house is lost in rural areas, a constructed house shall beprovided as per the Indira Awas Yojana specifications. If a house islost in urban areas, a constructed house shall be provided, which willbe not less than 50 sq mts in plinth area.In either case the equivalent cost of the house may also be provided inlieu of the house as per the preference of the project affected family;

4. One acre of land to each family in the command area, if land is acquired for an irrigation project;

5. Rs 50,000 for transportation;

6. A one-time Resettlement Allowance of Rs 50,000;*

Salient Features of the Draft Bill Minimum R&R EntitlementsA Comprehensive R&R Package (Schedule II)

For Livelihood losers (including landless):

Subsistence allowance at Rs. 3000 per month per family for 12 months;

2. The affected families shall be entitled to:(a) Mandatory employment for one member per affected family where jobs are created through the project, or (b) Rupees 5 lakhs per family;or (c) Rupees 2000 per month per family as annuity for 20 years, with appropriate index for inflation shall be provided;This choice of (a) or (b) or (c) shall be that of the affected family

3. If a house is lost in rural areas, a constructed house shall beprovided as per the Indira Awas Yojana specifications. If a house islost in urban areas, a constructed house shall be provided, which willbe not less than 50 sq mts in plinth area.In either case the equivalent cost of the house may also be provided inlieu of the house as per the preference of the project affected family;This benefit will also extend to those who are homeless.

4.A one-time Resettlement Allowance of Rs 50,000;

5. Rs 50,000 for transportation;*

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

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;

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

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

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

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

Free land for community and social gatherings;

In case of displacement, a Development Plan is to be prepared.

8. Continuation of reservation and other Schedule V and Schedule VI area benefits from displaced area to resettlement area.Salient Features of the Draft Bill Special Provisions for SCs/STs

*Salient Features of the Draft Bill Infrastructural Amenities under R&R(Schedule III)

25 infrastructural amenities to be provided in the Resettlement area, including:

Schools and playgrounds;

Health Centres;

Roads and electric connections;

Assured sources of safe drinking water for each family;

Panchayat Ghars;

Anganwadis providing child and mother supplemental nutritional services;

Places of worship and burial and/or cremation ground;

Village level Post Offices, as appropriate, with facilities for opening saving accounts;

Fair price shops and seed-cum-fertilizer storage facilities

*Salient Features of the Draft Bill R&R in case of Private Purchase of Land

*Salient Features of the Draft Bill Retrospective Effect Clause

This Bill proposes that LARR 2011 will apply to all cases of Land Acquisition where before date of commencement of LARR Act 2011either:

Award has not been made under LA Act 1894; or

(b) Possession of land has not been taken

In both these cases, LA proceedings under 1894 Act will be considered lapsed upon commencement of LARR Act 2011.

The Provisions of the New Law shall be fully compliant with other laws such as:

The Panchayats (Extension to the Scheduled Areas) Act, 1996;

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006;

Land Transfer Regulations in Schedule V Areas.

Salient Features of the Draft Bill Compliance with other Laws*

Salient Features of the Draft Bill Process FlowProposal is Received by the Appropriate GovernmentLegitimacy of Public Purpose and SIA is approved by CS Committee (if above 100 acres) or by a Delegated Committee if below 100 acres)Social Impact Assessment (SIA) Conducted by Appropriate GovernmentFinalization of R&R Scheme (within 6 months of PN)Publication of Preliminary Notification to acquirePublic HearingPre-Notifica-tionNotifica-tionCollector submits report on status of alternative sitesAwardsDraft Declaration& R&R Scheme published*SIA to be examined by independent Expert GroupConsent of 80% of Affected sought

Salient Features of the Draft Bill Institutional StructureState LA&RR AuthorityState Commissioner, RRAdministrator, RRDistrict CollectorRR CommitteeCentreStateProject-levelDispute Resolution for State ProjectsOverall Admin for LA&RR in StateAdmin Project-level RROverall coordination and implementationOversight (Elected reps, civil society, line agencies) Chief Secy Committee Determine whether projects are for public purposeNational Monitoring Committee*Oversight at Central Level for all projects

Salient Features of the Draft Bill 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 of Ownership: No change of ownership without specific permission of Appropriate 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 Governments Land Bank.

Sharing appreciated value: Upon every transfer of land without development, 20% of the appreciated land value shall be mandatorily shared with the original owner whose land has been acquired*

Salient Features of the Draft Bill Transparency Provisions

Social Impact AssessmentGram Sabha to be consultedSummary of SIA notified along with Draft NotificationSIA document made available for public scrutiny

R&R Scheme Summary notified along with Draft declaration Made available for public scrutiny

Individual Awards passed

Public DisclosureAll documents mandatorily to be made available in the public domain and on the website

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Salient Features of the Draft Bill Penalties

Stringent and Comprehensive Penalties Regime for Companies and Government: Punishment for false information, mala fide action, etc. Penalty for contravention of provisions of Act. *

Salient Features of the Draft Bill Awards

Collector passes 2 types of Awards:

1. Award for Land AcquisitionAward made in respect of every affected family whose land is being acquired and containing details of LA compensation as listed in Schedule I;

2. Award for R&RAward made in respect of every affected family, regardless of whether they may be losing land or not, containing details of R&R entitlements as listed in Schedule II.

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*Salient Features of the Draft Bill Timelines

Compensation will be given within a period of three monthsfrom the date of the award;

Monetary R&R entitlements will be provided within a period of six monthsfrom the date of the award;

Infrastructure R&R entitlements will be provided within a period of eighteen months from the date of the award;

No involuntary displacement will take place without completion of R&R;

In irrigation or hydel projects, R&R shall be completedsix months prior to submergence

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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.

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

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.

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.

.Salient Features of the Draft Bill Special Provisions for the States

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).

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

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

Salient Features of the Draft Bill Impact on Existing Legislations

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