Land Acquisition Act 2013

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Land Acquisition Act 2013

Context:

Punjab farmers have been protesting at the Khanauri and Shambhu borders since February, demanding a legal guarantee for MSP and the implementation of the Land Acquisition Act, 2013, among other issues.

What is the Land Acquisition Act, 2013?

  • The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013, commonly known as the Land Acquisition Act, 2013, was introduced to replace the colonial-era Land Acquisition Act of 1894. 
  • The new law provides a modern framework to ensure fair compensation and rehabilitation for families affected by land acquisition. 
  • It officially came into force on January 1, 2014, with certain amendments introduced in 2015.

Key Features of the Act

  • Fair Compensation: Landowners are entitled to compensation that is twice the market value in urban areas and four times the market value in rural areas.
  • Consent Requirement: The Act mandates consent from 70% of affected families for Public-Private Partnership (PPP) projects and 80% consent for acquisitions by private companies.
  • Protection of Agricultural Land: Acquiring irrigated multi-crop land is restricted, and if such land is acquired, the government must develop an equivalent area of wasteland for agricultural use.
  • Grievance Redressal: Individuals dissatisfied with compensation or acquisition decisions can approach the Land Acquisition, Rehabilitation, and Resettlement (LARR) Authority.
  • Social Impact Assessment (SIA): A comprehensive SIA is required to assess the social, economic, and environmental effects of land acquisition.
  • Rehabilitation and Resettlement (R&R): Displaced families are entitled to Housing assistance, Financial aid for livelihood loss, Employment opportunities or annuity-based income, Development of infrastructure in resettlement areas, such as roads, schools, and healthcare facilities.

Additional Provisions

  • Narrow Definition of “Public Purpose”: The Act limits the scope of “public purpose” to prevent arbitrary acquisitions. 
    • Permissible purposes include infrastructure development, urbanisation, and industrial corridors.
  • Unused Land: If acquired land is not used for the stated purpose within five years, it must be returned to the original owners or allocated to a land bank.
  • Special Provisions for SCs and STs: The Act mandates extra benefits and consultation processes for Scheduled Castes (SCs) and Scheduled Tribes (STs).
  • Transparency Measures: Public hearings and access to SIA reports ensure transparency in the acquisition process.
  • Exemptions: Certain projects, such as those related to defence, railways, and atomic energy, are exempt from some provisions of the Act, although compensation and R&R clauses still apply.

Why Are Farmers Demanding Its Implementation?

  • Although the Land Acquisition Act, 2013, is in effect, farmers argue that it is not being implemented in its full form.
  • “Both the central and state governments are failing to enforce the Act as originally intended,” said Jagmohan Singh, General Secretary of the Bharti Kisan Union. 
  • Jagmohan also pointed out that several states have introduced amendments to the Act, diluting its provisions. 

Challenges in Implementing the Act

  • Delay and Cost: Experts highlight that the Act’s procedural requirements can delay land acquisition for development projects, while the high cost of compensation often strains public and private budgets.

Social Justice: Balancing the need for development with ensuring social justice remains a contentious issue, making the comprehensive implementation of the Act challenging.

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