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Monday, September 22, 2014

The Land Acquisition, Rehabilitation and Resettlement (LAAR) Bill, 2011


SYNOPSIS
The Land Acquisition, Rehabilitation and Resettlement (LAAR) Bill, 2011

The said proposed bill (it is yet to be tabled before the Parliament) is unified legislation dealing with the acquisition of land, provide for just and fair compensation and make adequate provisions for rehabilitation and resettlement mechanism for the affected persons and their families.
The said proposed bill comprises of Chapter XIII with 107 Sections and Four Schedules.
Chapter I: Preliminary
Chapter II: Determination of social impsaid proposed Bill and public purpose
Chapter III: Special provisions to safeguard food security
Chapter IV:  Notification and Acquisition
Chapter V: Rehabilitation and Resettlement award
Chapter VI: Procedure and manner of Rehabilitation and Resettlement
Chapter VII: National monitoring committee for Rehabilitation and Resettlement
Chapter VIII: Establishment of land acquisition, Rehabilitation and Resettlement authority
Chapter IX: Apportionment of Compensation
Chapter X: Temporary occupation of land
Chapter XI: Temporary Occupation of land
Chapter XII: Offences and Penalties
Chapter XIII: Miscellaneous

Schedule I: Compensation for Land Owners
Schedule II: Elements of R&R Entitlement for all the affected Families
Schedule III: Provision of Infrastructural amenities under R&R
Schedule IV: List of Legislation regulating the Land Acquisitions and R&R.
Scope of the Said proposed Bill:
  • Government acquires land for its own use, hold and control.
  • Government acquires land with the ultimate purpose to transfer it for the use of private companies for stated public purpose.
  • The purpose of Said proposed Bill includes public-private-partnership projects, but excludes land acquired for state or national highway projects.
  • Government acquires land for immediate and declared use by private companies for public purpose.
  • fair compensation when private land is acquired for public use, and
  • fair rehabilitation of land owners and those directly affected from loss of livelihoods.
Retrospective Effect Clause:
This Bill proposes that LARR 2011 will apply to all cases of Land Acquisition where before date of commencement of LARR 2011 either:
(a)   Award has not been made under LA Said proposed Bill 1894;
or
      (b) Possession of land has not been taken
In both these cases, LA proceedings under 1894 Said proposed Bill will be considered lapsed upon commencement of LARR Said proposed Bill 2011.
Acquisition by Private Companies:
Private company purchases or acquires land through private negotiations, equal to more than one hundred acres in rural areas or equal to or more than fifty acres in Urban areas in such an event, he shall file an application with the Dist. Collector and the Collector shall pass individual awards covering the Rehabilitation and Resettlement scheme (as approved by the Commissioner as per the provision of this said proposed Bill). 
Public Purpose means:
  • Acquisition of land for purposes relating to the armed forces of India, national security or defence, police, safety of the people (strategic purpose);
  • Acquisition of land for railways, highways, ports, power and irrigation purposes for use by government or by government controlled corporations (also known as public sector companies)(Infrastructure and Industry);
  • Acquisition of land for planned development or improvement of village or urban sites or for residential purpose to weaker sections of society in rural or urban areas (Village or Urban Sites);
  • Acquisition of land for government administered educational, agricultural, health and research schemes or institutions;
  • Acquisition of land for persons residing in areas affected by natural calamities;
  • Acquisition of land for resettlement of affected people for any of the above government projects;
  • Acquisition of land by the government for public-private-partnership projects for the production of public goods or the provision of public services;
  • Acquisition of land for private companies for the production of public goods or provision of public services
The said proposed Bill included the Preliminary investigation for determination of social impact which includes the preparation, public hearing and publication of Social Impact Assessment. Further, the report on Social Impact Assessment needs to be appraised by an Expert Group and also by a committee constituted by the appropriate govt. 
The acquired land for the public purpose is not used in five years the land should be back to original land owners.
When government declares public purpose and shall control the land directly, consent of the land owner shall not be required. However, when the government acquires the land on behalf of public sector companies or for private companies in such an event, the consent of at least 80% of the project affected families shall be obtained through a prior informed process before government uses its power under the said proposed Bill to acquire the remaining land for public good.
 The said proposed Bill includes an urgency clause for expedited land acquisition. The urgency clause may only be invoked for national defense, security and in the event of rehabilitation of affected people from natural disasters or emergencies.
Land owners:
  • family whose land or other immovable property is to be acquired
  • family who was assigned land by the government under any of its social development initiatives
  • family who hold rights under India's “The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006
Livelihood losers:
  • any family whose livelihood, over most recent three years, was primarily dependent on the land being acquired, including agriculture labourers, tenants or sharecroppers
  • any family whose livelihood, over most recent three years, was primarily dependent on forests or water bodies being acquired; including forest gatherers, hunters, fisher folk and boatmen
  • any family whose livelihood, over most recent three years, was dependent primarily on the land being acquired in the urban areas
  • any family who was residing on the land being acquired in the urban areas
Forbids land acquisition when such acquisition would:
  • cumulatively exceed 5% of multi-crop irrigated area in any district in any state of India, or
  • cumulatively exceed 10% of single-crop net sown area in any district in any state of India, if the net sown area in that district was less than 50% of the total area of the district
Even below this threshold, it requires that wherever multi crop irrigated land is acquired an equivalent area of cultivable wasteland shall be developed by the state for agricultural purposes.
These limits shall not apply to linear projects.  The said proposed Bill illustrates linear projects with examples such as railways, highways, major district roads, power lines, and irrigation canals and defined under infrastructure projects (S. 2(o)).
 The said proposed Bill defines the method by which market value of the land shall be computed under the proposed law. Schedule I outlines the proposed minimum compensation based on a multiple of market value. Schedule II through VI outline the resettlement and rehabilitation entitlements to land owners and livelihood losers, which shall be in addition to the minimum compensation per Schedule I.
The market value of the proposed land to be acquired shall be:
  • the minimum land value, if any, specified in the Indian Stamp Said proposed Bill, 1899 for the registration of sale deeds in the area, where the land is situated; or
  • the average of the sale price for similar type of land being acquired, ascertained from the highest fifty per cent of the sale deeds registered during the preceding three years in the nearest village or nearest vicinity of the land being acquired
Compensation (Schedule I:  A Comprehensive compensation package):
The said proposed Bill proposes that the minimum compensation be a multiple of the total of above ascertained market value plus a solatium. Specifically, the current version of the Bill proposes the total minimum compensation be:
  • At least four times the market value for land acquired in rural areas;
  • At least two times the market value for land acquired in urban areas
whichever is higher:
PROVIDED THAT THE MARKET VALUE SO CALCULATED FOR RURAL AREAS SHALL BE MULTIPLIED BY AT LEAST A FSAID PROPOSED BILLOR OF TWO. THIS WILL BE SPECIFIED IN SCHEDULE I. (AND NOT IN THE SAID PROPOSED BILL PER SE).
·         Value of the assets attached to land: Building/Trees/Wells/Crop etc as valued by relevant govt. authority;
·         Total compensation = 1+2
·          Solatium: 100% of total compensation
·         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
·         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.
A Comprehensive R&R Package (Schedule II):
For Land Owners:
  1. Subsistence allowance at Rs. 3000 per month per family for 12 months;
  2. 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 family
3.       If a house is lost in rural areas, a constructed house shall be provided as per the Indira Awas Yojana specifications. If a house is lost in urban areas, a constructed house shall be provided, which will be not less than 50 sq mts in plinth area.
In either case the equivalent cost of the house may also be provided in lieu 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;

For Livelihood losers (including landless):
  1. 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 be provided as per the Indira Awas Yojana specifications. If a house is lost in urban areas, a constructed house shall be provided, which will be not less than 50 sq mts in plinth area.
In either case the equivalent cost of the house may also be provided in lieu 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)
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% 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;
6.       Free land for community and social gatherings;
7.       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.

Schedule III: Provision of Infrastructural amenities under R&R:

·         Schools and playgrounds;
  • Health Centres;
  • Roads  and electric connections;
  • Assured sources of safe drinking water for each family;
  • Panchayat Ghars;
  • Anganwadi’s 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
Timelines:
  1. Compensation will be given within a period of three months from the date of the award;
  2. Monetary R&R entitlements will be provided within a period of six months from the date of the award;
  3. Infrastructure R&R entitlements will be provided within a period of eighteen months from the date of the award;
  4. No involuntary displacement will take place without completion of R&R;

In irrigation or hydel projects, R&R shall be completed six months prior to submergence.

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