THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT BILL, 2011 –

Proposed Amendments after inputs from Standing Committee, GoI Ministries / DepartmentsDepartment of Land ResourcesMinistry of Rural DevelopmentGovernment of India

21st September 201213:30PM

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The Bill is being renamed to emphasize and better reflect the Government’s Commitment towards:

"Securing a legal guarantee for the rights of all those individuals and families affected by the process of land acquisition

"Strengthening the rights based approach that has been a key element of the UPA’s legislative agenda

"Ensuring greater transparency in the land acquisition process.

New Title

“THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT

BILL, 2012”

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Summary of Major Changes Proposed

1. Consent shall be required from two thirds of all land losers. Compensation and R&R will be given to both land losers and livelihood losers

2. Bill shall apply prospectively only, i.e., for new acquisitions only, and not retrospectively

3. Definition of Market Value to be amended to ensure that acquisition price doesn't form basis for compensation calculation in future acquisitions. Two new explanations added.

4. States given large flexibility• A sliding scale will give states flexibility to fix compensation in

rural areas, depending on their distance from urban areas• Restrictions/thresholds on amount of multi-crop irrigated land

and net sown area per district or State available for acquisition left to the discretion of States

• Land size thresholds on when R&R on private purchase of land becomes applicable left to the discretion of States

5. Payment for R&R costs by acquirer made a ‘one-off’ (Acquirer to put all monies in an escrow account, and ongoing commitments like annuities and benefits to be administered by agency established under this Act). Possession can be taken upon payment of monetary obligations.

6. PRI representative to be included in SIA Committees7. Separate chapter on Tribals Rights and Lands to ensure

acquisition in tribal areas done only as ‘last resort’, adequate compensation for community rights under FRA, and compliance with Samatha judgment

8. Removal of penalties on govt. officers to prevent abuse9. Three Acts (SEZ Act, 2005, Works of Defence Act, 903, and

Cantonments Act, 2006) to be removed from Schedule, i.e., LARR will apply to these acquisitions immediately

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, airports, power and irrigation purposes for use by Government and public sector companies or corporations;

3. Land for the project affected families4. 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

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7. Land acquired by the Government for PPP projects for the production of goods for public or the provision of public services for infrastructure including those involving the production of intermediate goods and services for these purposes

8. Land for private companies for the production of goods for public or provision of public services for infrastructure including those involving the production of intermediate goods and services for these purposes

The Draft Bill had listed 8 categories of Public

Purpose where Eminent Domain would apply

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Under (7) and (8), consent of at least two thirds of the Land Losers shall be obtained through a prior informed process

Eminent Domain and Public Purpose

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1. Land to be acquired only for clearly defined public purpose:• For PPP projects, government will acquire land

only when :(a) Consent of two thirds of all Land Losers has been taken; (b) Ownership of the acquired land rests with the government so that PPP can apply

• For private projects in public interest, government will acquire land only when:consent of two thirds of Land losers has been taken

2. Definition of Public Purpose tightened: redrafted clause will define “public purpose” to include the provision of land for private companies for the production of goods for pulbic or provision of public services. (Planning Commission recommendation)

In each case, fair Compensation and R&R provisions as laid out in the Bill will apply both to Land losers and Livelihood losers

Exemption of Central Acts from Provisions of

the Bill

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SEZ Act, 2005, Works of Defence Act, 1903, and Cantonments Act, 2006 to be removed from Schedule, i.e., LARR will apply to these acquisitions

Provisions related to Food Security

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1. As per original Bill, multi-crop irrigated land will not be acquired except as a demonstrably last resort measure. Restrictions will be placed on amount of multi-crop irrigated land that may be acquired in any district/State

2. As per original Bill, restrictions will be placed on the amount of net sown area of a district/State that may be cumulatively acquired.

3. However, restrictions/thresholds for both 1 (multi-crop irrigated land) and 2 (net sown area) are being left entirely to the discretion of respective State governments (Standing Committee recommendation)

4. Also, these restrictions/thresholds will not apply linear projects (such as Railways, highways, Major District Roads, power lines, and irrigation canals)

Determination of Market Value and

Compensation for Land (1/3)

1. Compensation: • Schedule I of LARR Bill 2011 to determine minimum

compensation (Original Bill) • But States may set up Land Pricing Commissions/

Authorities to ‘top up’ this amount and manage process (Standing Committee recommendation)

2. Market Value:• Compensation to be:

―2 times the market rate (including solatium) in urban areas

―2-4 times the market rate (including solatium) in rural areas (based on a sliding scale reflecting the distance of project from urban area)

• Sliding scale to be determined by State government or State Land Pricing Commission /Authority

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ILLUSTRATIVE SLIDING SCALE

This multiplier factor will gradually rise from 1 to 2 as we move away from urban locations into rural areas.

The precise slabs will be left to respective State Governments.

Illustrative Sliding Scale(precise scale to be determined by each State Government)

Radial Distance from urban area (km) Multiplier Factor 0-10 1.00 10-20 1.20

20-30 1.4030-40 1.8040-50 2.00

Determination of Market Value and

Compensation for Land (2/3)

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* Multiplier factor is the multiple of the market value as determined based on the average registered sale transactions in the last 3 years.

In addition, 100% solatium will be added to the Multiplier Factor

Determination of Market Value and

Compensation for Land (3/3)

1. Land compensation calculated will not be taken as base for circle rate for subsequent acquisitions, to ensure there is no speculative price spiral (Standing Committee recommendation)

2. Benefits of enhanced compensation extended to all covered in LA proceedings in case the Court enhances compensation (Standing Committee recommendation)

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R&R Entitlements

1. One-off payment of R&R costs by acquirer: Ongoing commitments like annuities and benefits to be administered by State agency (Ministry of Road Transport and Highways recommendation). Possession may be taken upon satisfaction of monetary components.

2. R&R linked to Consumer Price Index, to be revised every 3 years (Standing Committee recommendation)

3. No double displacement except exceptional cases, and if so, double compensation due (Standing Committee recommendation)

4. Procedures for SC/ST, currently in Schedule II, to come under main Bill (Standing Committee recommendation)

5. Land for Land proviso for urbanisation – 20% of developed land to be available to land losing families in lieu of equivalent compensation (already in Schedule II) needs to be shown separately (Standing Committee recommendation)

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R&R in case of Private Purchases of Land

1. 2011 draft Bill sought to provide R&R to affected families on private purchase of land and gave thresholds (where purchase >=100 acres in rural areas and >=50 acres in urban areas)

• Now it is proposed that limits/ceiling for the purpose shall not in the Bill but will be fixed by respective State governments keeping in view the availability of the land and density of the population

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Power to Amend Schedules

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1. Clause 99, allowing government to amend the schedules by notification, to remain as proposed in the original Bill.

• It provides adequate safeguard to prevent arbitrary changes to the Schedules by executive action.

• It clearly calls for the draft Notification with any proposed changes to be laid in the floor of the house for 30 days and if both houses agree in disapproving or modifying the Notification, the Notification would not be issued or issued in such modified form.

Enhanced Role for Local Institutions of Self

Governments (LSGs)

Several amendments to better reflect role of Local Self Governments (Standing Committee/Ministry of Panchayati Raj recommendations):

1. Amend preamble to reflect role of Local Self

Government Institutions

2. Participation of District Panchayat President or Chairperson of Municipal body in Project level Committees etc

3. For the word ‘Village Panchayat’, the word ‘Gram Sabha’ substituted.

4. Project level Committee (Clause 41): add sub- clause after (f) “the Chairperson of DPC”

5. Inclusion of two representatives of Panchayat, Gram Sabha, Municipality or Municipal Corporation, as the case may, to be done in the Expert Group for the evaluation of the SIA report

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Amendments to Preamble

• The Preamble should be amended to better reflect the emphasis on the participation of and consultation with local bodies;

“ A Bill to ensure, in concert with institutions of local self -government and Gram Sabhas established under the Constitution, a humane, participative, informed, consultative and transparent process” for land acquisition, resettlement and rehabilitation(Standing Committee recommendation)

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Determination of Social Impact and Public

Purpose

1. SIA proceedings to made more transparent: distribute reports and summary including local language (Standing Committee recommendation)

2. PRI representatives to be part of SIA Team (Standing Committee recommendation)

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Applicability in Schedule V and VI Areas

1. Acquisition in Scheduled areas only as a “last resort” (Standing Committee recommendation)

2. Relocation together and to similar ecological zone as far as possible (Standing Committee recommendation)

3. PESA to be strictly observed: including traditions and customs; cultural identity, community resources, customary mode of dispute resolution, approval of plans, identification of beneficiaries, and furnishing of UCs etc. (Standing Committee recommendation)

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Urgency Clause

Where urgency Clause is invoked, the 75% additional compensation should be for the total compensation package (Standing Committee recommendation)

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Status of ongoing Land Acquisitions

Proceedings under 1894 Act

Bill to apply only prospectively, and not to ongoing Land Acquisition Proceedings initiated under the 1894 Act.

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Return of Unused Land

1. Land to be returned if unused for 5 years (instead of 10 years) (Standing Committee recommendation)

2. Land to be returned to State Land Bank

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State and National Monitoring Committees

1. State level Monitoring Committees to monitor R&R of State level projects (Standing Committee recommendation)

2. National Monitoring Committee to over see R&R relating to central government projects, to sort out differences between one or more State Committees where project area is in more than one State and to coordinate with State Monitoring Committees for finding solutions to the unresolved issues (Standing Committee recommendation)

3. National Committee may associate local self government representatives (Standing Committee recommendation)

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Payment of Interest on Compensation

12 per cent interest per annum on compensation amount should be payable from the date of notification till the date of award (Standing Committee recommendation)

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Temporary Occupation of Land

1. Temporarily Occupy land only for Government purposes and not for a Company (Standing Committee recommendation)

2. In Schedule V and Schedule VI areas, the provision to convert temporary occupation into permanent acquisition should be with due consent of Gram Sabha (s) or Autonomous District Councils (ADCs), as the case, may be (Standing Committee recommendation. Already exists but will be made clearer by additional requirement to pay deference to relevant case law)

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Penalties

Penalties proposed on government servants to be amended so that the provisions are in line with the Government policy in regard to punitive provisions and not prone to abuse (Standing Committee recommendation and Ministry of Road Transport and Highways recommendation)

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Definitions

Key Definitions Amended

1. Affected family • Tribes to be substituted by ‘Scheduled Tribes’ • Traditional rights to be substituted by ‘forest rights’ • Where years occur, add ‘or more’• Project Affected people ‘’to be changed to ‘affected families’• Tenant to be changed as tenant or any form of tenancy or

usufruct right• In 3 (k) substitute has with ‘need’

2. Appropriate government • In relation to acquisition of land in more than one State, central

government in consultation with state government.

3. Family • Widows, divorcees, women abandoned as separate family

4. Tenant • Add any form of tenancy

5. Land owner 3 r (ii) and (iii)• Patta right holder under FRA only

6. Persons interested 3 (x) (ii)• For ‘tribals’ substitute ‘Scheduled tribes’; for traditional rights

substitute ‘Forest Rights’

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