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The National Land Acquisition and Rehabilitation & Resettlement Bill, 2011 – bringing joy to the poor farmer?

The National Land Acquisition and Rehabilitation & Resettlement Bill, 2011 – bringing joy to the poor farmer?

The Land Acquisition Act, 1894 was introduced by the British Government and is in force with several amendments, which is severely outdated and does not find much practicality in today’s era. The Act can be categorised as weak and ineffective and draconian. In the words of the Justice Ganguly, “The purpose of the land acquisition was being defeated. The poorest man in society should benefit in the public interest but you [State] are responding in such a way that the poor are driven out.”

Due to unreasonableness of law, many disputes like housing projects in Noida & Noida Extension, POSCO project in Orissa, Land acquisition by Vedanta in Jharkhand and Orissa etc. are subsisting in various Courts. In one of the above cases, Supreme Court observed that the Land Acquisition Act, 1894 ought to be scrapped as it is a “fraud” devised by some “sick people”. In view of these disputes, controversies and issues raised by farmers over acquisition of their land, the Centre has decided to bring in a new legislation with a focus on farmers’ welfare, and Ministry of Rural Development has introduced draft of The National Land Acquisition and Rehabilitation & Resettlement Bill, 2011 and the same is placed in the public domain for public comments; and after due discussion in appropriate forum, the Bill will be introduced in the Parliament. However, the Bill is in public domain and most certainly has the potential to be instrumental in regulating one of the most unregulated and attention needy social sector of the country. However, in the context of numerous instances of corruption, malpractices and administrative red-tapism, the big question seems to be “How effective is the regulator going to be?” which of course will only be answered once the Act comes into effect.

Nevertheless, the Bill has many positive aspects, taking utmost care of the farmers and common man, like:

  • Justification to be offered by the Government, for the choice and extent of land to be acquired and the publicpurpose for which it is being acquired. This will ensure that land is not acquired for any fictitious purpose under the garb of public purpose.
  • Provision for setting up a committee to examine proposals for land acquisition and the committee will ensure whether the proposed acquisition is bona fide and for public purpose, in larger public interest, etc.
  • Measures to solve the problem of resettlement, rehabilitation and compensation due to acquisitions, like appointment of an administrator and submission of scheme for Rehabilitation and Resettlement along with a specific report on claims and objections raised in the public meeting to the collector.
  • Appointment of Commissioner, who shall be responsible for supervising the formulation of rehabilitation and resettlement schemes or plans and proper implementation of such schemes or plans and also for the postimplementation social audit in consultation with the village panchayat and/or municipality, as the case may be.
  • Compensation for family, whose house has been acquired, shall be provided with a house and employment to at least 1 member, and if a family does not take the house offered to them or employment cannot be provided then financial assistance will be provided for the same. In case of irrigation projects, the families who have lost agricultural lands and become marginalized or landless due to the acquisition, such families will be provided land in command area of the project.
  • Provisions for subsistence allowance, one-time transportation allowance, onetime financial assistance to families having petty shops and cattle, to set-up cattle shed or petty shop etc. n Provision for raising issues relating to social impact of the acquisition and formulation of social impact assessment report and examination thereof in a public hearing by an independent body.
  • Compensation for damages sustained to standing crops, trees on the land and damages by reason of severing such land from his other land and any other consequential damages for by reason of such acquisition.
  • Specific provision for acquisition of land under urgent circumstances for defence and national security or in case of natural calamity.

Irrespective of many positive facets of the Bill, there are still certain grey areas, which need to be considered, for an appropriate land acquisition policy, for instance:

  • “Public purpose” has not been well defined and still it’s very wide and open for interpretation.
  • Absence of independent body for hearing the appeal against the compensation received by the landowner, and this will inevitably lead to arbitrary action by the government.
  • Allotment of shares in lieu of 25% of compensation value which may create practical difficulty for farmers.
  • Adjournment of an enquiry to a later date by a collector and this power to adjourn can be misused to cause harassment, as there are no checks and balances on the power to adjourn.
  • No mechanism to correct the clerical mistakes after the time frame of 6 months.

About Author

Amiya Nayak

Amiya Ranjan Nayak is a Partner with Kaden Boriss, Legal and Business Strategists. As a Corporate and Commercial Lawyer, he handles Regulatory, Advisory, Compliance & Documentation services pertaining to Real Estate laws like due-diligence, development, acquisition, disposition, leasing, financing, zoning and land use, etc. besides the services relating to Corporate, Commercial and Cross boarder investment laws.