The Right to Fair Compensation and Transparency Land Acquisition, Rehabilitation & Resettlement Act

Q. The Right to Fair Compensation and Transparency Land Acquisition, Rehabilitation and Resettlement Act, 2013 has come into effect from 1st January, 2014. What are the key issues which would get addressed with acts in place? What implications would it have on

industrialisation and agriculture in India? 

Ans. Replacing the 120 years old law of British rule, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 came into effect from 1st January, 2014. The key issues addressed by the act are 

•  It provided just and fair compensation to the affected families whose land will be acquired. Compensation for the owners of the acquired land shall be four times the market value in case of rural areas and twice in case of urban areas.

•  All acquisitions require rehabilitation and resettlement to be provided to the people affected by the acquisition.

• To ensure consultation with institutions of local self-government and gram sabhas established under the Constitution, the law also ensures that all rights guaranteed under such legislation as the Panchayat (Extension to Scheduled Areas) Act, 1996 and the Forest Rights Act, 2006 are taken care of.

• In case of acquisition of land for use by private companies or public private partnerships, consent of 80% of the displaced people will be required.

• The Act provides for a humane, participative, informed and transparent process for land acquisition for industrialisation, development of essential infrastructural facilities and urbanization with the least disturbance to the owners of the land and other affected families.

Implications of the act on industrialisation and agriculture

•  A few sections have sounded concerns that the act could be an impediment to the process of industrial development. Due to the restrictions and conditions placed by the act on land acquisition issues, a large number of projects have become stalled, putting the economic development in conundrum.

•  The requirement of a social impact assessment for every acquisition without a minimum threshold may delay the implementation of important industrial projects.

• The acquisition of agricultural land and multi-crop land has to be carried out as a last resort. To safeguard food security and to prevent arbitrary acquisition, the act directs states to impose limits on the area under agricultural cultivation that can be acquired.

• When acquiring agricultural land, the state has to cultivate an equivalent area of land elsewhere as agricultural land. If they cannot do this then they must deposit an amount equivalent to its value in an account to be used for the purposes of enhancing food security. This condition reduces acquisition of agricultural land.

•  However, there could be large-scale acquisitions and a dip in market values in a drought year, when despondency among farmers peaks. Farming may be kept depressed intentionally in regions where industry is keen on land acquisition.