The much-anticipated revision of India’s archaic land acquisition laws will be considered by the Cabinet next week. According to the sources efforts are underway to introduce the new National Land Acquisition and Rehabilitation and Resettlement Bill, 2011, before the end of monsoon session of Parliament.
A number of changes have been introduced in the draft bill, championed by the National Advisory Council and spearheaded by Jairam Ramesh’s Rural Development Ministry, following consultations with a range of stakeholders. The bill will update the Land Acquisition Act of 1894, which has been shown up to be hopelessly out of tune with contemporary needs through a number of recent conflicts over land. Ramesh will meet Mamata Banerjee, West Bengal Chief Minister and head of United Progressive Alliance government’s key ally Trinamool Congress, on Saturday to continue talks over the Bill.
Under the new bill, the state will be able to invoke the provisions of eminent domain (the power of the state to acquire private property for public use) and public service under very limited circumstances. The ability to invoke the urgency clause has been limited to instances related to national security and natural calamities. Definition of ‘livelihood losers’ under the draft bill has now been changed to mean people who have been employed in the land being acquired for three years or more. So, squatters on public land, for instance, will not be able to seek immunity under this provision.
The absolute ban on the acquisition of multi-cropped irrigated land in the draft bill has now been relaxed to include some windows. Exemptions have mostly been made for linear projects such as road, rail, highways and irrigation projects. In all cases, an upper cap has been set on the acquisition of such land and circumstances must be “demonstrably last resort”.
The provisions of the new bill will be triggered whenever a parcel of land exceeding 50 acres in urban areas and 100 acres in rural areas is acquired, irrespective of whether the acquisition is being done by the state or private parties. Compensation for land in rural areas and urban areas will both now be a multiple of two on the market price. The draft bill circulated earlier proposed a multiple of three in rural areas and two in urban areas. This has now been changed after concerns that the provision will result in large-scale distortion of land prices in the rural market.
State governments have the flexibility to set their own multiples as long as it exceeds the minimum value set by the Bill.
The new law will apply retroactively in cases where the award has not yet been made or the physical possession of the property has not already been taken.
Change of purpose post acquisition will not be allowed. Transfer of land will require the permission of state government. A proposal from Mamta Banerjee that land not used within 10 years of acquisition should go into a state land bank is being considered.
Another controversial clause says that if an acquirer transfers land without developing, 20% of appreciated value must be shared with the original owner.
One of the most important provisions of the Bill is a definitive timeline for compensation, which should be awarded within three months of acquisition.
Under the bill, no involuntary displacement can happen without resettlement and rehabilitation provisions. One of the highlights of the bill is that it is unique in making resettlement and rehabilitation into law, whereas most government programs only have a policy for relief and rehabilitation.
