Land Acquisition for Master Plan

Month & Year

Supported under

Comprehensive Capacity Building Programme

(CCBP)

Ministry of Urban Development

Government of India

Prepared by: Planning Team, CCBP

Module Preparation Team

1. Team Leader

Mr.K Sudhakar.

2. Editorial Advise, Guidance and Review

3. Content Contributions:

1. Mr.Ravi Rohan, UMC, Senior Research Associate, UMC

2. Mr.Vijay Bhaskar, Senior Research Associate, UMC

3. Mr.Narendhranath Reddy, Team Leader, RPMC, Eluru.

4. Mr. Raghu Ram, Team Leader, RPMC, Mahabubnagar

Outline of the Module

COMPONENT DESCRIPTION

BACKGROUND

INTENDED AUDENCE(S) Municipal Commissioners, City Planner, Town Planning Staff

Municipal Engineer, Sanitary Inspector, Municipal Health

Officer, Revenue Inspectors etc

LEARNING OBJECIVES To provide an understanding of the concept of Land

Acquisition at city level

To provide a step by step tool for Land Acquisition

Understand the need for Land Acquisition in Urban

areas like Master Plan

Study other best practices in urban land acquisition like

land pooling

MODULE OVERVIEW STRUCTURE/ CONTENTS

MODULE DEIVERY

OUTLINE

MODULE ACTIVITIES (METHODS OF TEACHING)

SUPPORTING MATERIALS Land Acquisition Act 2013

Land pooling

Town Planning Scheme

MODULE FEEDBACK

MODULE DEVELOPER National Institute of Urban Management

Contents of the Enclosed Compact Disc (CD)

1. Soft Copy of the Module in PDF Format

2. Power Point presentation of the Module

3. Reference Material for all Sub Modules

Land Acquisition Act 2013

AP Town Planning act 1920

Land Pooling Mechanism

Town Planning Scheme

4. Other Related Documents

Table of Contents

1 Introduction ..................................................................................................................................... 7

1.1.1 Definition of public purpose ........................................................................................ 8

1.2 Definition of 'land owner' ..................................................................................................... 9

1.3 Safeguards against indiscriminate acquisition ........................................................................ 9

2 Planning Interventions ............................................................................................................... 11

2.1 Planning Areas ...................................................................................................................... 11

2.2 Acts, Rules on Planning and Development Control.............................................................. 11

2.3 Master Plan ........................................................................................................................... 11

2.3.1 Contents of the ‘Master Plan’. ...................................................................................... 12

2.3.2 Broad Land Use Categories of a Master Plan. .............................................................. 13

2.3.3 Implementation of Master Plan ..................................................................................... 13

2.3.4 Road Widening ............................................................................................................. 13

2.4 Procedure for Land Acquisition for Planning Schemes ........................................................ 14

2.5 Principles............................................................................................................................... 14

2.6 The Town Planning Scheme Preparation Process ................................................................. 15

2.7 Key Advantages, Limitations and Potentials Of Town Planning Scheme ............................ 18

ADVANTAGES ............................................................................................................................... 18

Summary of the Module ..................................................................................................................... 20

1 Introduction The issue of land acquisition has always been plagued by controversies. For many years, contentious

issues like inadequate compensation and rehabilitation and resettlement (R&R) of the oustees have

dominated the discourse on the subject. The purpose of acquiring land has never been as seriously

debated in the Indian context as it should have been. Things have changed in the recent years with the

need for land acquisition having increased, particularly after the Special Economic Zones (SEZs) and

mining and large development projects started coming up in a big way. In recent times, a number of

land acquisition attempts have led to protests by those affected. Very often these protests have turned

violent. Against this background, the Observer Research Foundation organized a day-long conference

on the key issues and legal provisions involved in land acquisition. Experts deliberated on the subject

and suggested appropriate strategies to deal with this important public policy issue.

The aims and objectives of the Land Acquisition Act include:

To ensure, in consultation with institutions of local self-government and Gram Sabhas

established under the Constitution of India, a humane, participative, informed and transparent

process for land acquisition for industrialisation, development of essential infrastructural facilities

and urbanisation with the least disturbance to the owners of the land and other affected families

Provide just and fair compensation to the affected families whose land has been acquired or

proposed to be acquired or are affected by such acquisition

Make adequate provisions for such affected persons for their rehabilitation and resettlement

Ensure that the cumulative outcome of compulsory acquisition should be that affected persons

become partners in development leading to an improvement in their post acquisition social and

economic status and for matters connected therewith or incidental thereto

The Land Acquisition Act aims to establish the law on land acquisition, as well as the rehabilitation

and resettlement of those directly affected by the land acquisition in India. The scope of the Act

includes all land acquisition whether it is done by the Central Government of India, or any State

Government of India, except the state of Jammu & Kashmir.

The Act is applicable when:

Government acquires land for its own use, hold and control, including land for Public sector

undertakings.

Government acquires land with the ultimate purpose to transfer it for the use of private

companies for stated public purpose. The purpose of LARR 2011 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.

The provisions of the Act does not apply to acquisitions under 16 existing legislations including the

Special Economic Zones Act, 2005, the Atomic Energy Act, 1962, the Railways Act, 1989, etc

1.1.1 Definition of public purpose

Section 2(1) of the Act defines the following as public purpose for land acquisition within

India:

For strategic purposes relating to naval, military, air force, and armed forces of the

Union, including central paramilitary forces or any work vital to national security or

defence of India or State police, safety of the people; or

For infrastructure projects, which includes the following, namely:

All activities or items listed in the notification of the Government of India in the

Department of Economic Affairs (Infrastructure Section) number 13/6/2009-INF,

dated 27 March 2012, excluding private hospitals, private educational institutions and

private hotels;

Projects involving agro-processing, supply of inputs to agriculture, warehousing, cold

storage facilities, marketing infrastructure for agriculture and allied activities such as

dairy, fisheries, and meat processing, set up or owned by the appropriate

Government or by a farmers' cooperative or by an institution set up under a statute;

Project for industrial corridors or mining activities, national investment and

manufacturing zones, as designated in the National Manufacturing Policy;

Project for water harvesting and water conservation structures, sanitation;

Project for Government administered, Government aided educational and research

schemes or institutions;

Project for sports, health care, tourism, transportation of space programme;

Any infrastructure facility as may be notified in this regard by the Central Government

and after tabling of such notification in Parliament;

Project for project affected families;

Project for housing, or such income groups, as may be specified from time to time by

the appropriate Government;

Project for planned development or the improvement of village sites or any site in the

urban areas or provision of land for residential purposes for the weaker sections in

rural and urban areas;

Project for residential purposes to the poor or landless or to persons residing in areas

affected by natural calamities, or to persons displaced or affected by reason of the

implementation of any scheme undertaken by the Government, any local authority or

a corporation owned or controlled by the State.

1.2 Definition of 'land owner'

The Act defines the following as land owner:[

1. person whose name is recorded as the owner of the land or building or part thereof,

in the records of the authority concerned; or

2. person who is granted forest rights under The Scheduled Tribes and Other

Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 or under any

other law for the time being in force; or

3. Person who is entitled to be granted Patta rights on the land under any law of the

State including assigned lands; or

4. any person who has been declared as such by an order of the court or Authority

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 for

private companies, 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 Act

to acquire the remaining land for public good, and in case of a public-private project at least

70% of the affected families should consent to the acquisition process

1.3 Safeguards against indiscriminate acquisition

• Social Impact Assessment made mandatory

• Chief Secretary Committee/ Delegated Committee to approve ‘public

purpose’ and approve the SIA report if area is above 100 acres (Otherwise to

be reviewed by Delegated Committee so designated)

• Draft Notification to include:

– Summary of SIA (Social Impact Assessment)

– Particulars of Administrator for R&R who prepares R&R scheme

• Draft Declaration to include:

– Summary of R&R package

• No Change of Purpose: No change from the purposes specified in the Land

Use Plan submitted at the time of land acquisition will be allowed.

• Change of Ownership: No change of ownership without specific permission

of Appropriate Government is allowed;

• Land not Used: Land that is not used within 10 years in accordance with the

purposes, for which it was acquired at the time of acquisition, shall be

transferred to the State Government’s Land Bank.

• Sharing appreciated value: Upon every transfer of land without

development, 20% of the appreciated land value shall be mandatorily shared

with the original owner whose land has been acquired

2 Planning Interventions Different planning areas and name of the administrative jurisdictions

2.1 Planning Areas

Urban Development Authority Areas.

Urban Local Bodies.

a) Municipal Corporations.

b) Municipalities.

c) Nagar Panchayaths.

Rural Local Bodies.

a) Mandal Head Quarters.

b) Gram Panchayaths.

2.2 Acts, Rules on Planning and Development Control.

AP Town Planning Act, 1920

AP Urban Areas (Development) Act, 1975

Municipal Corporations Act,

AP Municipalities Act, 1965

AP Panchayath Raj Act, 1994.

Govt. Memo No.1569/I2/85-1 MA, dated.11.06.1985.(For preparation of ILUPs)

APGP Land Dev. (Layout & Building) Rules – 2005. (GO Ms No. 67

PR&RD(Pts.IV) Dept, dated.26.02.2002)

GHMC Act, 1955

2.3 Master Plan

a) A perspective Plan for future Development.

b) A Document of Transportation/Road Network Plan for the Present & Future needs.

c) A Tool for Regulating the Development through Land Use control & Zoning Regulations.

2.3.1 Contents of the ‘Master Plan’.

Proposals for future requirements and growth direction of the Town.

Proposals for improvement of existing roads and future road network.

Grouping of various Land Uses.

Proposals for availability and access to basic services to all Citizens.

Proposals for protection of environmentally sensitive areas.

Conservation of Heritage Buildings & Precincts.

Zoning Regulations & Building Requirements.

2.3.2 Broad Land Use Categories of a Master Plan.

* Residential Use.

* Commercial Use.

* Public – Semi Public Use – Govt offices, Institutions,

Schools, Hospitals.

* Recreational Use – Parks, Play Grounds.

* Traffic & Transportation Use.

* Industrial Use.

* Conservation Use – Water body, hillocks, CRZ

* Agriculture Use.

2.3.3 Implementation of Master Plan

Formation of Master plan roads & Road Widening.

Junction improvements.

Special schemes – housing, recreational development etc.

Land Acquisition - Private Negotiations.

Public Private Partnerships.

Development Control - Layout & Building Permissions.

Enforcement of Zoning Regulations

2.3.4 Road Widening

To improve traffic circulation and quality of environment.

Good traffic circulation helps in less fuel consumption.

Wider roads boosts city's image and land values.

The public cause is compensated through additional Built up Area.

Cash compensation for loss of structures.

Funding for compensation & roads development to be met from own sources.

2.4 Procedure for Land Acquisition for Planning Schemes

Step Description

1 Making a declaration of intension to prepare the scheme

2 Publication of declaration of intention in the official gazette and newspapers.

3 Consultation with owners.

4 Preparation of Draft Town Planning Scheme which itself could be split up

further.

5 Objections and suggestions raised by owner of affected lands are looked into

and draft scheme is modified, if necessary.

6 Draft Scheme is submitted to Government for sanction.

Government after sanctioning it appoint an Arbitrator to finalize the draft

scheme.

7 The Arbitrator after hearing, finalizes his scheme layout

8 The Arbitrator publishes his award in respect of all above matters and sends

extracts of the same to every owner.

9 The Arbitrator s decision about layout of the scheme and about compensation

receivable by each owner on account of reduction of land area are final

conclusive and binding on every owner, but betterment decisions are appealable.

10 Government constitutes a tribunal of appeal for hearing of appeals. The Tribunal

consists of a Judicial officer as chairman and 2 assessors appointed by him.

12 The arbitrator modifies the schemes financial statements in accordance with the

Tribunal s decisions and submits the scheme to the Government for final sanction.

13 State Government sanctions the scheme and fixes a date for its coming into force.

14 After the scheme is sanctioned, the earmarked for roads and public works immediately

vests in the local authority dejure

15 The local authority then executes the scheme by carrying out the works to be

undertaken by them within time limits prescribed by the arbitrator.

2.5 Principles

The four principle features of a Town Planning Scheme under the Act are:

1. Pooling of lands

2. Reconstitution of plot boundaries and provision for social and physical infrastructure;

Redistribution of the reconstituted plots amongst original owners

3. Automatic acquisition of land for public purposes

4. Recovery of betterment contribution to recoup the cost of development

2.6 The Town Planning Scheme Preparation Process

1. SURVEY OF THE AREA: A very detailed and accurate topographical survey of the entire area

for which the TPS is being prepared using Total Station Survey.

2. ESTABLISHING THE OWNERSHIP DETAILS OF EVERY LAND PARCEL

All cadastral records are collected to reflect the ownership details, extent (area), tenures, and

encumbrances for every land parcel and are compiled in a prescribed format.

3. RECONCILING THE SURVEY AND LAND OWNERSHIP RECORDS TO PREPARE A

BASE MAP

The spatial records are vectorized and reconciled with the physical survey of the area. This process is

a major bottleneck, as it must be certified by the Land Records Department.

4. DEFINING THE BOUNDARY OF THE AREA

On the final base map of the area that shows the survey, the boundary of the TPS area is clearly

marked and Land values are attributed to each plot based on available transactions (Called the

original plot (OP) value).

5. MARKING ORIGINAL PLOTS ON BASEMAP

All the OPs are marked on the base map. If more than one land parcel or plot belongs to one owner or

group of owners with exactly the same tenure status, then such land parcels or plots are consolidated

and given one OP number.

TABULATING OWNERSHIP DETAILS AND PLOT SIZE

The task of tabulating the information is commenced in a format prescribed in the ACT Rules called

the F Form. The first few columns are filled—name of the owners, land tenure, revenue survey

numbers, OP number, OP area, and OP value.

7. LAYING OUT THE ROADS IN THE AREA (Draft TPS)

• The first major step is laying out the roads.

• If a road that is shown in the Draft Plan passes through the TPS area, it is usually respected.

• About 15 to 17 percent area must be Roads.

8. CARVING OUT PLOTS FOR AMENITIES IN THE AREA

• Plots providing adequate social infrastructure such as schools, hospitals, dispensaries, clinics,

open spaces, housing for the poor, etc., are marked on the base map along with the roads. The

areas to be allocated for such uses are indicated in the ACT as tentative percentage to the total

area of the TPS is about 20 percent.

9. TABULATING DEDUCTION AND FINAL PLOT SIZE

• About 35 to 40 percent area goes under roads and amenities. The F Form is continued to be

filled further. From each OP this percentage is deducted and a final plot (FP) size is arrived.

10. DELINEATION OF FINAL PLOTS

• After the roads and amenity plots are worked out, each OP is reconstituted or redrawn. At this

stage, the irregular shapes of the OPs give way to regularly shaped FPs with the new areas.

11. TABULATING INFRASTRUCTURE AND BETTERMENT CHARGES

• At this stage, costs for a TPS are worked out. These include the following:

• Costs of key infrastructure—roads, water supply, drainage, and streetlights are calculated

• Compensation to be paid to each landowner for the land is appropriated based on the Square

Feet value

• Administrative costs of implementing the TPS are accounted for the final value for each plot

is systematically assessed.

• A portion of this increase in land value is taken as betterment charges

• A “G Form” summing up the inflows and outflows for a TPS is prepared summarizing the

overall financial strategy of the TPS

• The “F Form” is completed—each landowner is given compensation for the land taken and a

portion of the land value is taken as betterment; based on the two, the net demand is

computed for each owner.

12. OWNER’S MEETING

• Landowners are consulted and heard at this stage for the first time when the work on the draft

schemes is completed. A well-publicized landowner’s meeting is prescribed in the ACT

13. MODIFICATION OF THE DRAFT TPS AND ITS APPROVAL

• Based on the second round of objections and suggestions, it is modified and then submitted to

the State Government for approval. Once approved, the draft TPS is now called the

sanctioned draft TPS. The proposals for roads can be implemented.

14. APPOINTMENT OF TOWN PLANNING OFFICER

• After approval of the draft TPS, a quasi-judicial officer called the town planning officer

(TPO) is appointed. The TPO’s task is to deal with each landowner both on the physical

planning proposal—the shape and location of the FP and the financial proposal—the

compensation and betterment issues, and eventually demarcate the FP on ground and hand it

over to the owner.

15. INDIVIDUAL HEARING TO EACH LAND OWNER ON PRELIMINARY TPS

• The TPO gives individual hearings to each landowner and revises the preliminary TPS if

required. Inputs from the State Government and local authority and development authority are

sought. The preliminary TPS may be modified if required, and the TPO gives a second round

of hearings. These hearings, as mentioned above are on the physical planning proposals.

16. FINALIZATION OF PRELIMINARY TPS AND ITS APPROVAL

• Based on the second hearing TPO finalizes the preliminary TPS by writing his or her

decisions with regard to every plot and is published in the local newspapers. It must be

approved within two months.

17. INDIVIDUAL HEARING TO EACH LAND OWNER ON FINAL TPS

• At this stage, the financial proposals are taken up with each owner. These pertain to the

compensation and betterment charges.

18. FINALIZATION OF FINAL TPS, ITS APPROVAL AND IMPLEMENTATION

• Once the hearings are done, the financial proposals may be modified and sent to the State

Government for opinion. There may be some modifications. The TPO then finalizes the TPS

and publishes it in the local newspapers. This is referred to as the “Award of the Final TPS”.

A Board of Appeals for further issues on financials is constituted. Once all appeals are

resolved and the final TPS is modified, it is sent to the State Government for approval. The

State Government is required to sanction it within three months.

• Once approved, the drawings and documents are sent to the State’s Revenue Department to

update the records.

2.7 Key Advantages, Limitations and Potentials Of Town Planning Scheme

ADVANTAGES

Long history: Introduced in 1915 by legislation, continuously improving to make the process more

responsive to the changing context of development.

Democratic and participatory: The landowners are involved in the process of planning and have

ample opportunity to present their views on the proposals and place on record their objections.

Fair: The process is fair, as all owners loose the same proportion of land.

Equitable and inclusive development: The process facilitates equitable and inclusive development; a

portion of land is appropriated for accommodating urban poor.

Respects property rights and is non disruptive: The process respects property rights and is non

disruptive; the landowners are not thrown off their lands and are given a better-shaped land parcel,

usually very close to the original land parcel.

Non coercive and non authoritarian: The proposals are reviewed at several stages that are formally

prescribed in the act.

Win-win proposition: The process has been a “win-win” proposition for both the landowners and the

planning agencies.

Transparent: clearly described in legislation and people understand and accept it.

• Tested in law courts: It is tested in law courts; it has been challenged in law courts and has

withstood the challenges successfully.

• Making development pay for the cost of infrastructure: The cost of infrastructure is in a

sense paid for by the owners directly, and the planning agency and development authority is

not required to make huge investments up-front.

LIMITATIONS:

• Lengthy time frames: The timelines proposed in the regulatory framework— four years—are far too

long.

• Inadequate attention to substantial issues: Substantial issues are dealt with in an inadequate

manner. These need to be supported by preparing manuals and guidelines.

• No asset management framework is in place: The significant land assets generated by the local

authority are not managed in an appropriate manner.

• Centralized processes: The processes are far too centralized—too much power is vested in the State

Government to approve and sanction the DPs and TPS. Inadequate capacities in terms of lack of staff

and qualified planners add to the problem.

• Disconnect with the city budgeting process: At the moment, there is no clear linkage of the DPs and

TPS with the city budgeting process.

Summary of the Module

The transformation of rural and urban fringe land for intensive and higher-order urban uses poses a

major challenge to city planners in most countries. Such challenges are acutely felt in India, where the

pace of physical development is very rapid, demographic pressures are intense, and the institutional

and administrative mechanisms are not able to respond appropriately. Additionally, since under the

Indian Constitution, urban issues are a state responsibility, legal, administrative, and procedural

matters concerning urban land differ between states. Very often, therefore, mechanisms under use in

one state are not well known in the other states

Pressures of rapid growth and years of neglect have severely stressed the condition of India’s cities

and towns. This is evident in the innumerable challenges facing them—large areas not serviced by

roads, water supply, sewerage and storm water networks, inadequate health and education amenities,

traffic congestion, ineffective and inadequate public transportation systems, unregulated and chaotic

growth, slums, poor building stock, destruction of heritage resources, etc. All of these make India’s

cities and towns polluted, unlivable, inefficient, and vulnerable to disasters

Land Pooling, the public planning agency or development authority temporarily brings together a

group of landowners for the purpose of planning, under the aegis of the state-level town or urban

planning act. As there is no acquisition or transfer of ownership involved, there is no case for paying

compensation. A master plan of the area is prepared, laying out the roads and plots for social

amenities. The remaining land is reconstituted into final plots for the original owners. The size of the

final plot is in proportion to the size of the original plot, and its location is as close as possible to the

original plot. A betterment charge based on the cost of the infrastructure proposed to be laid is levied

on the landowners. Infrastructure is then provided utilizing these funds.

In view of the above considerations, new concept of Town Planning Scheme is envisaged for land

acquisitions in urban areas. The module has put forward with the details of town planning scheme

taking a views from Gujarat Town Planning Scheme.