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Table of Content
1. Background..02
2. Why new Land acquisition act..02
3. Objective of the new land acquisition act04
4. Some important highlights of New Land Acquisition Act..05
5. Jurisprudence behind the new land acquisition act....06
6. Contravening Provisions and Problematic Issues of the act..07
7. Conclusion..10
8. References...11

Background:
The Right of Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 is an act passed by Indian Government in 2013. It was passed for the

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purpose of fair compensation in case of land acquisition, as well as transparency in

rehabilitation and resettlement. This act has replaced the previous land acquisition act of
1894. This act was passed due to certain lacunas and loopholes in old land acquisition act of
1894.
Its footing goes back in 2007 when UPA government introduced Amendment bill, 2007 in
parliament. After that land acquisition act, 2009 and the rehabilitation and resettlement bill,
2009 was introduced in parliament. Both bill lapsed in parliament. National Advisory Council
after digging into depth of circumstances and issues related to land acquisition decided to
recommend a single comprehensive legislation, i.e.

National Development, Land

Acquisition, Resettlement and Rehabilitation Act., rather than the two separate ones, viz.
Land Acquisition (Amendment) Bill 2009 (LAA 2009) and Resettlement and Rehabilitation
Bill, 2009 (R&R 2009).1 Thus in furtherance of it the LARR bill, 2011was introduced in the
parliament, which was passed in 2013 and became an act.

Why new Land acquisition act:

When we look to the need of new land acquisition act, we can find many important reasons
and issues. Some of the main chosen issues and reasons are as followed:

Due to development of industries and globalisation, Special Economic Zone etc. the
need for urbanisation and land has increased. On the other hand the land owners
whose land has to be acquisitioned by state must be provided with fair compensation
and, resettlement and rehabilitation arrangements. Thus requirement of land is

1 Press Release of National Advisory Council (2009),

http://nac.nic.in/press_releases/25_may_2011.pdf

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essential for the economic growth and industrialisation, and on the other hand the

affected people must also not suffer due to such acquisition.2

The word public purpose has caused major problem. Supreme Court in cases like
Yamuna Express way, Smt. Somavati & ors. case etc. has given wide meaning to the
word public purpose. In such cases, court has held that acquiring land and giving it to
private company for some projects which does not use it for public purpose in true
manner is valid. Thus such loose interpretation and lack of clear guidelines is also one

of the main reasons for new land acquisition.3

The old act had nothing for resettlement and rehabilitation in case of eminent domain
acquisition by state or acquisition for private company for the operation related to
public purpose. The affected people faces great problem regarding it although

compensation is provided to them.

Previously the compensation deciding authority was collector. The compensation paid
was to be calculated on the basis of local market value. But detail procedure for the
calculation of the compensation and any other guidelines were not there. In certain

cases the land owner were fooled. 4

Old act didnt contain provision for consent from land owner whose land government
plans to seize. Due to lack of such provisions incidents like Nandigram took place,
where for the setup of SEZ (Special Economic Zone) government decided to seize the
land of the farmers and sudden notice was given to them.5

2 THE DRAFT NATIONAL LAND ACQUISITION AND REHABILITATION &

RESETTLEMENT BILL, 2011
3 Mihir Desai (2011) 46, Land Acquisition Law and Proposed Changes, Economic & Political
Weekly, 26-27, p.95-100
4 LAND ACQUISITION ACT,1894
5 http://www.livemint.com/Politics/I1CAfbH2Und58UkVckctVP/The-Nandigram-story-till-now.html

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One major problem in old act was section 17, which talks about urgency clause. This
urgency clause has highly been misused by the private companies and the state. There
is no better example than Nandigram incident.

Objective of the new land acquisition act:

The objective of the The Right of Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013, can be obtained from the act and the national
draft LARR bill 2011. The following objective can be construed from the act and national
draft LARR bill 2011:6

First objective of the act is to define and guide such process with the consultation with
local self-government and Gram Sabha for the land acquisition, which is transparent,
informative and participative & the objective of such land acquisition is for
development of essential infrastructure and urbanisation, which is necessary for
public purpose.

Second objective is to ensure and make such arrangements that the land owners
whose land is to be acquired are getting just and fair compensation taking into
consideration all the economic and social circumstances. And to ensure proper process
and guideline for the same.

When a land is acquired apart from land owners some other families which are
directly or indirectly dependent on that land also suffer. Third major objective which
was not in old land acquisition act is rehabilitation and resettlement of the affected
land owners and families.

6 THE RIGHT OF FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION

AND RESETTLEMENT ACT, 2013; THE DRAFT NATIONAL LAND ACQUISITION AND
REHABILITATION & RESETTLEMENT BILL, 2011AVAILABLE at
http://rural.nic.in/sites/downloads/policies/Final.pdf

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The first objective somehow incorporates economic approach of jurisprudence. And other
two objectives tend to incorporate sociological school of jurisprudence. The jurisprudence of
the act will be discussed in further part of this write up.

Some important highlights of New Land Acquisition Act:7

New Land Acquisition Act gives a wider and clearer explanation of the purpose for
which land can be acquired as compared to previous act. It also elaborates which
industrial projects this act covers. (Section 1 and Section 2(l))

Unlike old act, the new act makes it compulsory to acquire the consent of the affected
people and land owners (Section 2(b)). For the purpose of accessing consent the
Social Impact Assessment Study has been incorporated in section 4.

It increases the time period of notice to be given in urgency clause from 15 to 30 days.
Apart from it, it provides provisions for sharing of profit in case acquired land is
transferred and in case of resale of land prior permission of government is must.

One of the important and must require provision incorporated is rehabilitation and
resettlement arrangements for the affected people.

Jurisprudence behind the new land acquisition act:

First objective of the act focuses on the development of industries and infrastructure of the
country by acquiring the lands of general public. This objective of industrialisation and

7 THE RIGHT OF FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION,

REHABILITATION AND RESETTLEMENT ACT, 2013;

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infrastructure leads to economic development of the country, and other objectives are flow
from it and are there to reduce the effect of it.
Further the objective talks about acquisition of land for the public purpose. Public purpose in
wide sense includes public welfare and has a wide ambit. As said by the Apex Court in Dev
Sharan v. State of Uttar Pradesh 8, the public purpose in case of land acquisition should be
viewed in an angle consistent with the concept of welfare state. Welfare state talks about
interest of society and general public. Social Engineering concept given by Rosco Pound
which focuses on construction of efficient society which satisfies the wants of all present in
society fits this act.9He talked about three interests, viz. private, public and social interest.
The given act provides compensation to all the affected families, thus protecting their private
interests.
Rehabilitation and resettlement tends to make change in the social and economic condition of
the affected families. As their source of earning and shelter are acquired by the government.
Because of this change in social and economic conditions of affected families, the act
provides the rehabilitation and resettlement arrangement to them.
While defining the objective of the acts in the given write up, it was mentioned that
jurisprudence behind this act is related to economic approach and sociological approach.
Now after detail and elucidate discussion of the objective, it can be concluded that the act
adopts economic and sociological approach.

Contravening Provisions and Problematic Issues of the act:

8 2011 4 SCC 769

9 V.D.MAHAJAN, JURISPRUDENCE & LEGAL THEORY,(5TH ED.,2012)

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The given act primarily is objected at land acquisition for the public purpose. The new has
widened the scope of the term public purpose. (Section 2(l)) This widened scope covers a
large array of projects. Thus the probability of misusing has increased due to widening in
scope of public purpose.10 This probability of misusing will defeat the very purpose of
economic development through industrialisation.
The major change is related to acquisition by private companies. In the new act certain
requirements which are needed in case of acquisition by private company. The new act
requires consent of 80% in case of private company and 70% in case of public company of
affected families. For this it has given SIA assessment technique. But the given act fails to
define at certain pints of SIA assessment for example how SIA would be conducted and by
which authority or body. Because of it the private companies can use different inappropriate
means for acquiring consent. But the given act does not require consent of affected families,
in case the land is acquired by the government in certain cases as given in section 2(l) public
purpose clause. Now the given clause is in contravention of the objective which talks about
participative, informative and transparency in land acquisition.11
One of the major provisions incorporated in new land acquisition act is Rehabilitation and
Resettlement provision. On the one hand the act is providing the rehabilitation and
resettlement arrangements to the affected people which not only include land owners but
other affected families also. Section 69 says that calculation of the rehabilitation and
resettlement cost should be done in accordance with section 26 and 30. Section 26 talks
about calculation of market value of land and section 30 talks about Solatium based on that
10 Supra note 3 at Page 99
11 Alphonsa Joja, Anviti Chaturvedi, Ayesha Talpade, Modhulika Bose, Stella James ans Saurabh (2011) 3, Of
Platitude and Million-Dollar Promises- A Critique of The Land Acquisition, Rehabilitation and Resettlement
Bill, 2011, Journal of India Law and Society, p.29 to 66

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calculate market value under section 26. How can rehabilitation and resettlement cost can be
calucalated on the basis of market value and how reasonably it depends on the market value?
The answer this question is not there. Also section 40 gives power to Government to seize
land in urgency on expiration of 30 days of notice given in section 30, even if such awards
are not given by collector. This section contradicts the third objective.
Other problematic issue is regarding the compensation provisions from Section 26 to Section
30. The calculation of compensation is on the basis of the market value if any specified in
Indian Stamp Act, 1899 regarding the sale of land or average sale price of land in that locality
and nearby. Although the method for calculation of the compensation is given, but still it is
arbitrary as market value does not take into account future value of the land and price stated
in the act may be understated. So the objective of giving just and fair compensation is
somehow goes sceptical, although the compensation in rural area is double of market value.12
Further it provides the provisions for compensation and process for calculating it, further it
provides incentives for the affective parties to litigate for the compensation given to them.
The tendency to litigate for compensation will remain same as the basis for deciding
compensation has not undergone significant change, although the amount of award is double
in rural areas. The new act although replace the ADJ court with LARR Authority in case of
compensation related disputes, but it meres transfer burden from ADJ court to LARR
authority which is not an appropriation solution to problem of litigation and the resulting
wastage of resources. 13

12 Supra note 10 at Page 57.

13 Ram Singh (2012) 47, Inefficiency and Abuse of Compulsory Land Acquisition- An Enquiry into
Forward, Economic & Political Weekly, 19, p.10-14

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The act does take account the economic loss but it does not take into account the other. When
families are located, apart from economic loss they also suffer from social, psychological and
status loss. Because it is not necessary that the compensation and arrangements made for
them will give same status and wealth which a land could give.14 Further Section 105
exempts land acquired in certain acts from ambit of this act.
The new act although has incorporated certain changes has failed to take care of certain
aspects and has loopholes.

Conclusion
The new Land Acquisition Act primarily was enacted for the purpose of filling the gaps of old
act and to cop up with the problems old land acquisition faced. It tends to maintain economic
14 Michael M. Cernea, For a New Economics of Resettlement: A Sociological Critique of the Compensation
Principle, 173 International Social Science Journal 16, (2003),
http://web.mit.edu/cis/www/migration/dec05workshop/presentations/Cernea_New_Economicsof_Resettlement_ISSJ_2003.pdf

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as well as social balance in the country, acquiring land for public purpose and at the same
time, by giving proper compensation, rehabilitation and resettlement arrangements. But at
certain points this act has failed in maintain consistency with its objective as discussed in
above part. Overall analysis of the act show certain loopholes and gaps which can be reason
of future problems regarding the new act. It is duty of the Legislature and the Judiciary to
cover up these holes, and it must be done in best interest of public.

References:
Books:

V.D.MAHAJAN, JURISPRUDENCE & LEGAL THEORY,(5TH ED.,2012)

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Acts and Bills:

The Right of Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act, 2013

Land Acquisition Act,1894

The Draft National Land Acquisition and Rehabilitation & Resettlement Bill, 2011
available at http://rural.nic.in/sites/downloads/policies/Final.pdf

Articles:

Mihir Desai (2011) 46, Land Acquisition Law and Proposed Changes, Eco. &
Pol. Weekly, 26-27, p.95-100

Alphonsa Joja, Anviti Chaturvedi, Ayesha Talpade, Modhulika Bose, Stella James and
Saurabh (2011) 3, Of Platitude and Million-Dollar Promises- A Critique of The
Land Acquisition, Rehabilitation and Resettlement Bill, 2011, Journal of Indian
Society, p.26-66, http://jils.ac.in/wp-content/uploads/2012/09/3_alphonso-jojan-c.pdf

Ram Singh (2012) 47, Inefficiency and Abuse of Compulsory Land Acquisition- An
Enquiry into Forward, Economic & Political Weekly, 19, p.10-14

Michael M. Cernea (2003) nr 175, For a New Economics of Resettlement: A

Sociological Critique of the Compensation Principle, International Social Science

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Journal,p.16,http://web.mit.edu/cis/www/migration/dec05workshop/presentations/Cer
nea_New_Economics-of_Resettlement_ISSJ_2003.pdf

Press Release and Newspaper:

Press Release by National Advisory Council (2009), available at

http://nac.nic.in/press_releases/25_may_2011.pdf

http://www.livemint.com/Politics/I1CAfbH2Und58UkVckctVP/The-Nandigramstory-till-now.html

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