India

The Right To Fair Compensation And Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Bill, 2015 (2015 Bill) was introduced in Parliament on February 24, 2015 amidst a lot of protests of it being anti-farmer and pro industrialist. The 2015 Bill seeks to simplify the complex and stringent land acquisition process as introduced under the Right To Fair Compensation And Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (2013 Act).

2015 Bill
The 2015 Bill proposes several amendments to the 2013 Act, however, the most opposed and the topic under discussion here, is the exemption granted to five categories of projects from: obtaining consent from affected families; conducting the Social Impact Assessment (SIA) study; and restriction in acquiring irrigated multi-crop land.
The following projects are exempted:

  • national security or defence;
  • rural infrastructure including electrification;
  • affordable housing and housing for poor people;
  • industrial corridors; and
  • infrastructure projects including projects under public-private partnership where the government owns the land.

The 2013 Act
The complicated SIA study, which is required to be completed within six months of its commencement, should, inter alia, focus on the following aspects:

  • areas that would be most adversely affected by the project;
  • whether the quantum of land sought for the project is more than what is necessary;
  • the feasibility and alternative sites;
  • whether the land proposed to be acquired is a demonstrable last resort;
  • a detailed analysis of the type, structure and location of the
    land; and

  • the ownership pattern, holding size and details of land owners.

Prior consent from 70 percent and 80 percent of the people affected due to public private partnership projects and private companies projects, respectively is required to be obtained. This consent also includes consent to the amount of compensation that shall be paid.

Impact
It is pertinent to note that the five exempted categories of projects under the 2015 Bill are essentially infrastructure projects and projects of national security. Obtaining consent from the families affected is a convoluted, time consuming and tedious process which will hamper India’s growth. Certain sections of the society with motivated interest can delay the process of obtaining consent by influencing the affected families. Most of the projects proposed to be exempted from the consent clause will benefit rural India. People in India require a better standard of living, which includes improved infrastructure, housing and other utilities. Considering the fact that India is poised for a strong position globally with respect to growth and development, in the event the 2015 Bill is brought into effect, the Indian infrastructure industry will attract domestic as well as international investment which will in turn promote development especially in rural India.

The 2015 Bill only simplifies the procedure to acquire land for selected projects: the rate of compensation paid to the affected families remains the same as provided for in the 2013 Act i.e. four times the market value if the land is situated in a rural area and two times the market price if the land is situated in an urban area.

Other changes proposed in the 2015 Bill

  • Land acquired for private hospitals and private educational institutions brought in consonance with the 2013 Act.
  • 13 enactments relating to land acquisition brought under the purview of the 2013 Act.
  • Unutilised land to be returned within five years or any period specified at the time of setting up the project, whichever is later, as opposed to five years as stipulated in the 2013 Act.
  • Time period calculated for retrospective application of the 2013 Act be amended.
  • ‘Private entity’, which includes a proprietorship, partnership firm, corporation, non-profit organisation, or other entity under any other law, can acquire land through the government as against only private companies.
  • Any official cannot be prosecuted for offences under the 2013 Act without the sanction of the government.

Conclusion
The overall effect of the 2015 Bill is development and growth oriented. It maintains a balance between development on one hand which is the need of the day for modern India and compensating the affected families in a just and appropriate manner on the other hand.

Clasis Law
1st Floor, Bajaj Bhawan, 226, Nariman Point
Mumbai – 400 021, India
Tel: (91) 22 4910 0000 / Fax: (91) 22 4910 0099
Email:
mustafa.motiwala@clasislaw.com
apeksha.amin@clasislaw.com
Website: www.clasislaw.com

Related Articles by Firm
Radical changes in the Foreign Direct Investment regime
INDIA- It is observed that India has the potential to attract even more foreign investment which could be achieved by liberalising ...
Mare Maritime Singapore Pte Ltd Vs. M.T. Everrich 8 [Notice of Motion (L) No. 2418 of 2015 in Admiralty Suit No. 854 of 2015]
Background: The owners of EVERRICH 8 (the Vessel), through their subsidiary Yuanland Ltd, entered into voyage charterparty with Rakha Al Khaleej International LLC ...
India's The Arbitration and Conciliation (Amendment) Ordinance, 2015 makes major changes to the Arbitration & Conciliation Act, 1996
The Arbitration and Conciliation (Amendment) Ordinance 2015 gives the necessary impetus for ease of conducting arbitration in India and enables speedy settlement of commercial disputes.
Multiple lenders = multiple stamping
On August 11, 2015 the division bench of the Supreme Court of India overturned a full bench decision of the Gujarat High Court in the matter of Coastal Gujarat Power Limited v. Chief Controlling Revenue Authority....
Indian patent office revokes Hoffman-La Roche’s ‘Valganciclovir’ patent
The Controller of Patents (India) recently revoked the patent granted for the anti-retroviral drug ‘Valganciclovir’ used for treating active cytomegalovirus retinitis infection (CMV) ...
Urban reforms – three urban rejuvenation schemes launched
There is a compelling need to develop sustainable and technology-driven urban centres, partly as the burgeoning urban population is creating pressure on existing cities and partly to address the growing ...
Highlights of the Companies (Amendment) Act, 2015
The Companies (Amendment) Act, 2015 (Amendment Act), which aims to amend the rigidities of the Companies Act, 2013 (Act), has ...
India - Projects, energy and infrastructure update
Including: Long-term infrastructure bonds;Smart cities mission and urban rejuvenation scheme; Railways to e-auction re-development of stations; New hybrid annuity model of PPP for the road sector; Shell set for global acquisition of BG; and IFC signs master co-operation agreement ...
Prima Facie Validity of a registered trade mark in India – A strong but rebuttable presumption
The Indian trademarks law recognises both statutory as well as common law remedy to protect the rights of the proprietor of a trade mark. However, it is well-known that …
Insurance Laws (Amendment) Bill passed as ordinance in India
The long-awaited Insurance Laws (Amendment) Bill (the Bill) has become a provisional law in India. The Bill, which could not be passed in Parliament in its winter session, was promulgated by the President …
Need for uniform stamp duty incidence across all States of India
‘Stamp Duty’ is a tax levied on an instrument by which any right or liability is, or purports to be created, transferred, limited, extended, extinguished or recorded …
‘Make in India’ campaign: Opportunities for investors
With a vision of leading the economy towards a path of high sustainable growth, the Prime Minister of India on September 25th, 2014 launched the ‘Make in India’ campaign. Through the …
Bumpy road ahead for vehicle manufacturers in India – pulled up by the competition watchdog
South Asian markets are one of the fastest growing markets for vehicle manufacturers worldwide. However, doing business in South Asia has its own challenges. The anti-monopoly watchdog of India …
Introduction of real estate investment trusts in India
The Real Estate Investment Trusts (REITs) in India have been in the news for some time. The World Bank1 describes REIT as a security sold to investors for the purpose of investing in real estate. REITs …
SC Larger Bench decision in case of Kone Elevators – distinction between ‘contracts of sale’ vis-a-vis ‘works contract’
The Constitutional Bench of the Hon’ble Supreme Court (SC), over-ruling the earlier decision of three-member Bench re State of A.P. v. Kone Elevators (India) Ltd1, has held that the activity of manufacturing, …
Companies Act, 2013 – implications for investors
One of the recent initiatives of the Indian Government towards ensuring sustainable economic growth and improving investment climate is enactment …
India Update, inc. Medical device controls
An overview of how and where regulatory controls apply to medical devices in India. Plus: key judgements passed by the Hon’ble Supreme Court; changes in corporate and commercial matters; and case laws in indirect taxation.
Related Articles
Related Articles by Jurisdiction
ONGC vs Sime Darby consortium
An unsuccessful party cannot possibly apply for interim relief in aid of what it lost before the arbitral tribunal.
IP & TMT
Our IP & TMT Report includes Anjie Law Firm's article 'China makes detailed liability rules available for social media' and the 'WWE v. Reshma' case study, courtesy of Anand & Anand. We also get insights from ...
Latest Articles