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

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