Taking a cue from the Noida Extension fiasco, the government has drafted a bill that aims to prevent such problems in the future.
In the wake of the prevailing controversy over land acquisition in Noida Extension, the Central Government has come up with the Draft National Land Acquisition, Rehabilitation and Resettlement Bill, 2011 to balance the need of facilitating land acquisition while preventing the human and social suffering caused by involuntary displacement.
The bill proposes that land to be acquired should be in larger public interest and that only the absolute minimum area of land required for a project be acquired. However, irrigated multi-crop land shall not be acquired under any circumstances. The bill also mandates that consent of at least 80% of families affected by the acquisition be obtained before any such acquisition.
The bill addresses a common complaint that land is acquired by the government at a low rate and subsequently sold to third parties at a much higher price. In order to bring about parity in the level of profits obtainable from such transfers, the bill provides that wherever land acquired is subsequently transferred by the government, 20% of the profit made from the action shall be paid to person/s from whom the land was acquired.
The bill provides for a Social Impact Assessment study to be conducted where the land to be acquired is equal or more than 100 acres.
This study shall be subjected to an examination by an independent multi-disciplinary expert group. However, in the event of urgency, and even then only in the rarest or rare cases only, the government may take possession of land without having to undertake the Social Impact Assessment study. Such appropriation shall be restricted to the requirements of defence, national security or natural calamities only. The bill envisages an active participation of the local administrative bodies, which must be consulted before a notification to acquire land is issued. Power has been given to any person interested in land so notified to object to the extent and choice of land proposed to be acquired or justification offered for acquisition and findings of the Social Impact report.
The determination of the market value of the land, for the purposes of compensation payable to the owners shall be made by the collector, and shall be based upon the minimum land value, if any, specified in the Indian Stamp Act, 1899, for the registration of sale deeds pertaining to the chosen; or the average sale price for similar land tracts in the area, whichever is higher.
However, the market value so calculated shall be multiplied by three in rural areas. The value of the land so computed shall also take into consideration the value of any building, trees, plants or standing crops on the said land and the entire sum shall be payable.
In addition to the payment for the land so acquired, the draft bill also envisages that those house-owning families displaced be provided a house having a minimum of 150 sq m of plinth area in rural areas or 50 sq m of plinth area in urban areas. Furthermore, the bill contemplates payment of annuities, subsistence grant for displaced families, payment of a one-time transportation to those displaced, and financial assistance for families of displaced artisans, small traders or selfemployed persons etc.
Importantly, the bill proposes the setting up of a dispute redressal authority for the purpose of providing speedy disposal of disputes relating to land acquisition.
Such dispute redressal authority shall exist at both the state and central levels.
In case the dispute relates to the amount of compensation paid to the affected party, the bill provides for a re-determination of the amount of compensation for the persons interested in the other areas covered by the same acquisition notification.
However, a person who has received the initial compensation without protest shall not be entitled to raise any application to the dispute redressal authority. While the proposed bill is yet to be passed, it is hoped that this would ease the turbulent real estate sector in India and ensure that the buyers do not fall victim to any fiascos in the future. However, this may also increase cost of land for the ultimate buyer.
The author is senior partner, ZEUS Law Associates, a corporate commercial law firm. One of its areas of specialisation is real estate transaction and litigation work.
