LARR Act 2013 (1)

THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND

ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013

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Both LA and R&R Provisions will apply when:1.Government acquires land for its own use, hold

and control2.Government acquires land for private companies

(including PPP projects)

Land Acquisition under 2 above can take place provided 80% of the project affected families give prior informed consent to the proposed

acquisition.

Scope of LARR Act, 2013

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Only R&R provisions will apply when:• Private companies buy land, more than the

limit prescribed by appropriate government [Section 2 (3) (a)]

Only LA provisions will apply to the area to be acquired, but R&R provisions will apply to the entire project area when:

• Private company approaches Government for partial acquisition for public purpose [ Provisio u/s 2 (3) ]

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Only R&R provisions will apply when:• Private companies buy land, more than the

limit prescribed by appropriate government [Section 2 (3) (a)]

Only LA provisions will apply to the area to be acquired, but R&R provisions will apply to the entire project area when:

• Private company approaches Government for partial acquisition for public purpose [ Provisio u/s 2 (3) ]

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• For private companies, prior consent of at least 80% of affected families required [Section 2 (2) (b) (i)].

• For PPP, consent of 70% of affected families required [Section 2 (2) (b) (ii)].

• R&R provisions also to apply in private purchases equal to more than such limit as may be prescribed by the Appropriate Government

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– At present, does not apply to projects where LA is regulated by enactments listed in Schedule IV [section 105 (1)]

– Central Govt. can change the list of enactments in Schedule IV [Section 105 (2) and 106 (1)]

– within 1 year (till 31.12.2014), provisions pertaining to determination of compensation and R&R entitlements to be made applicable to enactments in schedule IV 6

Salient Features Urgency Clause

The Urgency Clause can only be invoked in the following cases [Section 40]:

1. Defence of India or national security

2. Emergencies arising out of natural calamities

3. Any other emergency (with the approval of Parliament)

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•‘Land Owner’ includes :1. person who is granted forest rights under the Forest Rights Act,

20062. Who is entitled to be granted Patta rights

•‘Affected family’ :• includes the following whose primary source of livelihood is

affected due to acquisition of land:1. Agricultural labourers, tenants, those holding usufruct rights,

share-croppers, artisans2. Holders of forest rights under the FRA, 2006 (rights getting

affected)3. Dependents on forests or water bodies – including gatherers of

forest produce, hunters, fisher fold and boatmen4. Person assigned land under a government scheme5. Urban dwellers

Cut-off date – 3 years

Salient Features of the Draft Bill

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Salient Features of the Draft BillSafeguarding Food Security

1. Multi-crop irrigated land will not be acquired except as a demonstrably last resort measure, which in no case should lead to acquisition of more than 5 percent of multi-crop irrigated area in a district.

2. Wherever multi crop irrigated land is acquired an equivalent area of culturable wasteland shall be developed for agricultural purposes.

3. In districts where net sown area is less than fifty per cent of total geographical area, no more than ten per cent of the net sown area of the district may be cumulatively acquired under all land acquisition projects put together in that district.

1. and 2. above shall not apply in the case of linear projects (such as Railways, highways, Major District Roads, power lines, and irrigation canals) [Provisio to section 10]

• Determination of compensation– Market value to be determined as highest of the following:

• Market value under Stamp Act for registration of sale deed• Average sale price for similar land situated in vicinity• Consented rate in case of private / PPP projects

– Market value to be multiplied by a factor of 1 to 2 in case of Rural areas depending on distance from urban area. In case of urban areas, the factor is 1. To this, value of assets is to be added to arrive at the compensation. (First Schedule)

• Solatium is 100% of the amount of compensation, determined as above (does not include R&R amount),

• 12 % per annum interest payable on market value from the date of publication of notice of SIA u/s 2(4) till the date of award or the date of taking possession, whichever is earlier [section 30(3)]

Salient Features of the Draft BillMinimum Compensation for Land

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Salient Features of the Draft Bill Minimum R&R Entitlements

• Provision of housing units in case of displacement• House in rural areas as per the Indira Awas Yojana • In urban areas, a constructed house, not less than 50 sq.mts.

in plinth area.

• The above benefits to be extended to any affected family which is without homestead land (cut-off date 3 years)

• Alternative - one-time financial assistance for house construction, which shall not be less than one lakh fifty thousand rupees:

• Alternative - In rural areas - equivalent cost of the house may be offered in lieu of the constructed house:

• Explanation.--The houses in urban areas may, if necessary, be provided in multi-storied building complexes. 11


• Land for Land in irrigation projects(as far as possible and in lieu of compensation to be paid for land Acquired)

• Each affected family, - shall be allotted a minimum of one acre of land in the command area

• owning agricultural land in the affected area and whose land has been acquired or lost, or

• who has, as a consequence of the acquisition or loss of land, reduced to the status of a marginal farmer or landless

(in the name of each person included in the records of rights with regard to the affected family)

• Persons losing land and belonging to the Scheduled Castes or the Scheduled Tribes will be provided land equivalent to land acquired or two and a one-half acres, whichever is lower.

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• Offer for Developed Land• In case the land is acquired for urbanisation

purposes, twenty per cent. of the developed land will be reserved and offered to land owning project affected families, in proportion to the area of their land acquired and at a price equal to the cost of acquisition and the cost of development:

• Provided that in case the land owning project affected family wishes to avail of this offer, an equivalent amount will be deducted from the land acquisition compensation package payable to it.

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• Choice of Annuity or Employment• Affected families to be provided following options:• (a) where jobs are created through the project, job to at

least one member per affected family in the project or such other project as may be required, after providing suitable training and skill development; or

• (b) one time payment of five lakhs rupees per affected family; or

• (c) annuity policies that shall pay not less than two thousand rupees per month per family for twenty years, with appropriate indexation to the Consumer Price Index for Agricultural Labourers.

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• Choice of Annuity or Employment• Affected families to be provided following options:• (a) where jobs are created through the project, job to at

least one member per affected family in the project or such other project as may be required, after providing suitable training and skill development; or

• (b) one time payment of five lakhs rupees per affected family; or

• (c) annuity policies that shall pay not less than two thousand rupees per month per family for twenty years, with appropriate indexation to the Consumer Price Index for Agricultural Labourers.

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• Subsistence grant for displaced families for a period of one year

• Each displaced family shall be given a monthly subsistence allowance equivalent to three thousand rupees per month for a period of one year from the date of award.

• In addition to this amount, the Scheduled Castes and the Scheduled Tribes displaced from Scheduled Areas shall receive an amount equivalent to fifty thousand rupees.

• In cases of displacement from the Scheduled Areas, as far as possible, the affected families shall be relocated in a similar ecological zone, so as to preserve the economic opportunities, language, culture and community life of the tribal communities. 16


• Transportation cost for displaced families• Each displaced family shall get a one-time financial

assistance of fifty thousand• rupees as transportation cost for shifting of the family,

building materials, belongings and cattle.• Cattle shed/petty shops cost• Each affected family having cattle or having a petty shop

shall get one-time financial assistance of such amount as the appropriate Government may, by notification, specify subject to a minimum of twenty-five thousand rupees for construction of cattle shed or petty shop as the case may be.

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• One-time grant to artisan, small traders and certain others

• Each affected family of an artisan, small trader or self-employed person or an affected family which owned non-agricultural land or commercial, industrial or institutional structure in the affected area, and which has been involuntarily displaced from the affected area due to land acquisition, shall get one-time financial assistance of such amount as the appropriate Government may, by notification, specify subject to a minimum of twenty-five thousand rupees.

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• Fishing rights• In cases of irrigation or hydel projects, the

affected families may be allowed fishing rights in the reservoirs, in such manner as may be prescribed by the appropriate Government.

• One-time Resettlement Allowance• Each affected family shall be given a one-

time "Resettlement Allowance" of fifty thousand rupees

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• Stamp duty and registration fee• The stamp duty and other fees payable for registration of

the land or house allotted to the affected families shall be borne by the Requiring Body.

• The land for house allotted to the affected families shall be free from all encumbrances.

• The land or house allotted may be in the joint names of wife and husband of the affected family.

• No Income Tax to be levied on award or agreement made under the Act [section 96]

(except private negotiation cases covered u/s 46)

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Salient Features of the Draft BillInfrastructural Amenities under R&R

(Schedule III)

25 infrastructural amenities to be provided in the Resettlement area, including:

• 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

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Salient Features of the Draft BillRetrospective Effect Clause

• Proceedings under LA Act, 1984:• Where no award under section 11 of LA Act has been made,

compensation to be determined as per the new Act [Section 24 (1) (a)].

• In case the award was made, proceedings to go as per old Act [Section 24 (1) (b)].

• In case the award was made, but compensation in respect of a majority of land holdings has not been deposited in the account of beneficiaries – all beneficiaries to get compensation as per new Act [provisio to Section 24]

• Where an award was made 5 years or more prior to 01.01.2014, but physical possession of land has not been taken, or the compensation has not been paid, in such cases, fresh proceedings will initiate under new Act. [Section 24 (2)]

Process Flow

Proposal is Received by the Appropriate

Government

Legitimacy of ‘Public Purpose’ and SIA is approved by CS Committee (if above 100 acres) or by a Delegated Committee

if below 100 acres)

Social Impact Assessment (SIA) Conducted by Appropriate

Government

Finalization of R&R Scheme (within 6 months of PN)

Publication of Preliminary Notification to acquire

Public Hearing

Pre-Notifica-tion

Notifica-tion

• Collector submits report on status of alternative sites

Awards

Draft Declaration& R&R Scheme published

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• SIA to be examined by independent Expert Group

• Consent of 80% of Affected sought

Institutional Structure

State LA&RR Authority

State Commissioner, RR

Administrator, RR

District Collector

RR Committee

Centre

State

Project-level

• Dispute Resolution for State Projects

• Overall Admin for LA&RR in State

• Admin Project-level RR

• Overall coordination and implementation

• Oversight (Elected reps, civil society, line agencies)

Chief Secy Committee • Determine whether projects are for public purpose

National Monitoring Committee

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• Oversight at Central Level for all projects

Salient Features of the Draft BillSafeguards 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 – 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 25

Salient Features of the Draft BillTransparency Provisions

• Social Impact Assessment– Gram Sabha to be consulted– Summary of SIA notified along with Draft Notification– SIA document made available for public scrutiny

• R&R Scheme – Summary notified along with Draft declaration – Made available for public scrutiny

• Individual Awards passed

• Public Disclosure– All documents mandatorily to be made available in the public domain

and on the website

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Salient Features of the Draft BillPenalties

•6 months imprisonment, or fine upto Rs 1 Lakh, or both for false information, mala-fide action, etc.•6 months imprisonment, extendable to 3 years, or fine, or both for contravention of provisions of the Act

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Salient Features of the Draft Bill Awards

Collector passes 2 types of Awards:

1. Award for Land Acquisition– Award made in respect of every affected family whose land is being

acquired and containing details of LA compensation as listed in Schedule I;

2. Award for R&R– Award made in respect of every affected family, regardless of

whether they may be losing land or not, containing details of R&R entitlements as listed in Schedule II.

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Salient Features of the Draft BillTimelines

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;

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

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1. The LARR Bill 2011 allows all States to enact any law or policy related to LA&RR, provided the same does not contradict or reduce the entitlements under LARR 2011.

2.Any State can therefore confer higher compensation or make provisions for rehabilitation and resettlement which enhance or go beyond those provided for under the Bill

3.If any existing State policy or law provides for entitlements that are greater than those listed in the LARR Bill then the State is free to continue with those.

4.The proportion in which States can acquire land for private parties has been left entirely to the discretion of the States i.e. States can step in and acquire land for private parties after any percentage of total acquisition has taken place.

5. The only conditions are that at the very least • the land acquisition provisions of LARR 2011 will apply to that part of the land that is acquired by the State Government and • the R&R provisions of LARR 2011 will apply to all of the land already purchased by the private party as well as the remaining part of the land to be acquired by the State Government.

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Salient Features of the Draft Bill Special Provisions for the States

Documents

LARR Act 2013 (1)