mohammed ibrahim (Architect -Valuer -ADR Professional) 17 March 2015

Amendments to larr act 2013

Amendments to RTFCT LARR Act 2013 Ordinance 2014 & BILL 2015.

^{"QUOTE" (1)}“Land is a precious natural resource and is main source of livelihood of the millions in the Country. 58 percent of the labour in the Country is still engaged in agriculture and allied occupation. Besides, as per 'Economic Survey of India 2011' over 1.8 crore rural families in India are landless. Till 44th Constitution Amendment (notified w.e.f. 20.06.1979) holding property was one of the Fundamental Rights under Part-III of the Constitution of India. However, with the enactment of 44th Constitution (Amendment) Act, ‗Right to Property‘ has been made a legal right vide Article 300 A of the Constitution of India which provides as under: -

―Persons not to be deprived of Property save by authorities of law - No person shall be deprived of his property save by authority of law”.

Presently, the Central Government and State Governments acquire land across the country for setting up infrastructure projects like airports, roads, for setting up universities/scientific institutions, projects of basic amenities, water/ sanitation works/hospitals, industry and urban development. The land acquisition process is carried out under the provisions of the Land Acquisition Act, 1894 which came into force w.e.f. 2 February, 1899. This Act has been amended from time to time (in pre-independence and post-independence). So far, the Act has been amended 17 times. Since 1960's large scale acquisition is also being done for companies and private sector. Various sections of the Act have also been amended from time to time by the State Governments to meet their specific requirements

⁽¹⁾ Source: 31^st Lok Sabha Report Dated 17/5/2012. (Unquote)

The said ordinance was promulgated on 31^st December 2014 as ordinance 9 of 2014 and the aim of current 2015 RTFCT LARR (Amendment Bill) introduction in the Parliament is to replace the ordinance as per requirement of statute).

The LARR (Land Acquisition, Rehabilitation and Resettlement) Act, 2013 outlines the process to be followed when a land is acquired for a public purpose. Key changes made by the Ordinance / Bill are:

AMENTMENTS:

Section: 2(1)(b)(i): All activities or items listed in the notification of the Government of India in the Department of Economic Affairs (infrastructure Section) number l3/6/2009-lNF, dated the 27th March,2012, excluding private hospitals, private educational institutions and private hotels;

Proposed Amendment: All activities or items listed in the notification of the Government of India in the Department of Economic Affairs (infrastructure Section) number l3/6/2009-lNF, dated the 27th March,2012, excluding private hotels;.

Comment by the Author: Despite the fact that “Doctrine of Eminent Domain” is a recognized factor around the globe, according to some welfare Organizations opinion, India is perhaps the only country which acquires public land (General Public Private Land) for private companies.

S (2): Application of the Act.

Proposed Amendment: New Insertion: 2 (2)

"Provided also that the acquisition of land, for the projects listed in section 10A (Food Security) and the purposes specified therein, shall be exempted from the provisions of the first proviso to this sub-section."

S 10: Food Security: (a) The collector has to make sure that no other unutilized land is available before he moves to acquire farm land. (b) Restrictions/threshold on limit of irrigated multi-crop land and net sown area per district or state available for acquisition is left to the discretion of state governments. (c) If acquired, the state government 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.

Proposed Amendment: S 10 (A): NEW Insertion:

10A. The appropriate Government may, in the public interest, by notification, exempt any of the following projects from the application of the provisions of Chapter II (Determination of Social Impact and Public purpose) and Chapter III (Special provision to safeguard Food Security) of this Act, namely:—

(a) Such projects vital to national security or defence of India and every part thereof, including preparation for defence or defence production;

(b) Rural infrastructure including electrification;

(d) Industrial corridors; and

(e) Infrastructure and social infrastructure projects including projects under public-private partnership where the ownership of land continues to vest with the Government."

S (24): Land acquisition process under Act No. I of 1894 shall be deemed to have lapsed in certain cases & Remedy.

Proposed Amendment: New Insertion:

"Provided further that in computing the period referred to in this sub-section, any period or periods during which the proceedings for acquisition of the land were held up on account of any stay or injunction issued by any court or the period specified in the award of a tribunal for taking possession or such period where possession has been taken but the compensation lying deposited in a court or in any account maintained for this purpose shall be excluded.".

Comment by the Author: The delay due to court/tribunal proceedings shall not be counted.

S (46) (6) (b): Provisions relating to R & R to apply in case of any persons other than specified persons:

Proposed Amendment: (6) "specified persons" includes:

(i) appropriate Government:

(ii) Government company;

(ill) association of persons or trust or society as registered under the Societies Registration Act. 1860, wholly or partially aided by the appropriate Government or controlled by the appropriate Government.

S 87: Government Servants Accountability:

Proposed Amendments: Where an offence under this Act has been committed by any person who is or was employed in the Central Government or the State Government, as the case may be, at the time of commission of such alleged offence, no court shall take cognizance of such offence except with the previous sanction of the appropriate Government, in the manner provided in section 197 of the Code of Criminal Procedure, 1973.".

S(101) Return of un-utilized land.

Proposed Amendment: (New Insertion) A period of five years shall be substituted as “A period for setting up of any project or five years whichever is later.

S(105) and the Fourth Schedule: THE FOURTH SCHEDULE (See section 105). LIST OF ENACTMENTS REGULATING LAND ACQUISITION AND REHABILITATION AND RESETTLEMENT (13 Laws) were exempted from R & R Provisions.

Proposed Amendments:

The Bill brings the compensation, rehabilitation, and resettlement provisions of these 13 laws in consonance with the LARR Act, 2013.

S (113) (1): Power to remove difficulties.

Proposed Amendment: (i) for the words "the provisions of this Part", the words "the provision of this Act" shall be substituted;

(ii) in the proviso, for the words "a period of two years", the words "a period of five years" shall be substituted.

And

Substitution of certain expression throughout the ACT RTFCT LARR 2013: (30 of 2013): For the words “PRIVATE COMPANY” wherever they occur, the words “PRIVATE ENTITY” shall be substituted”.

New Insertion in Section 3 (ii) (yy) as: “PRIVATE ENTITY” means any entity other than Government Entity or Undertakings and includes PROPRIETORYSHIP, PARTNERSHIP COMPANY, CORPORATION, NON-PROFIT MAKING ORGANISATION or OTHER ENTITY under any law for the time being in force..

It is for the LEGISLATURES to decide.

A.Mohammed Ibrahim.

Architect & Property Valuer

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8 Replies

mohammed ibrahim (Architect -Valuer -ADR Professional) 18 March 2015

LARR BILL 2015 is attached herewith

Attached File : 91124044 larr bill 2015.pdf downloaded: 129 times

mohammed ibrahim (Architect -Valuer -ADR Professional) 26 March 2015

AMENDMENT TO LAND ACQUISITION ACT 2013: (Item I to VII are dealing with the PRINCIPAL ACT & VIII deals with amendments)

I. Land acquisition refers to the process by which government forcibly acquires private property for public purpose without the concurrent of the land owner. The land owner is not a willing seller, therefore, compensation and the way in which compensation were payable, is to be fair and reasonable. RTFCAT LARR Act 2013 (The LARR Act) provides for land acquisition as well as rehabilitation and resettlement (R & R) entitlement as per Second & Third Schedule Proviso and replaces the Land Acquisition Act 1894.

Retrospective operation: Where no award under the 1894 LA Act has been made, the new Act shall apply with regard to compensation in the following circumstances: where an award has been made but the affected individuals have not accepted compensation or have not yet given up possession, and the proceedings have been pending for 5 years or more and where a majority of individuals in an affected area have not received compensation, then the new law shall apply.

II: Public purpose & Consent Clauses:

When the appropriate government acquires land for public purposes u/s 2(1) *LA, compensation, R&R shall apply. S: 2 (1).* .	When the appropriate government acquires land for public purposes for PPP projects, Private companies *LA, compensation, R&R shall apply. S: 2(2) (a) & (b).*	Where private companies purchase through private negotiation or appropriate government acquires for private companies a part of area. S: 2 (3). *R & R only shall be applicable*
*Public Purpose Activities: S: 3(za) read with S: 2(1).* (a) for strategic purposes, (b) for infrastructure projects, (c) project for project affected families, (d) project for housing for such income groups to be specified by the appropriate government, (e) project for planned development or the improvement of village sites or any site in the urban areas or provision of land for residential purposes for the weaker sections in rural and urban areas, and (f) project for residential purposes to the poor or landless or Io persons residing in areas affected by natural calamities, or to persons displaced or affected by reason of the implementation of any scheme undertaken by the Government, any local authority or a corporation owned or controlled by the State.	(a) For public private partnership projects, where the ownership of the land continues to vest with the Government, for public purpose as defined u/s 2(1). (b) For private companies for public purpose as defined u/s 2 (1).	(a) A private company purchases land, equal to or more than such limits in rural areas or urban areas, as may be prescribed by the appropriate Government through private negotiations with the owner of the land in accordance with the provisions of section 46, (b) a private company requests the appropriate Government for acquisition of a part of an area so prescribed for a public purpose, provided that where a private company requests the appropriate Government for partial acquisition of land for public purpose, then, the rehabilitation and resettlement entitlements under the Second Schedule shall be applicable for the entire area which includes the land purchased by the private company and acquired by the Government for the project as a whole.
No consent of people is required	Consent of 70% for PPP / 80% for Private Companies of affected people is required. . It includes consent for amount of compensation vides section 26 (1) (c).	Not available (N/A)
*R & R:* Second and Third Schedules shall be applicable.	*R&R:* Second and Third Schedules shall be applicable.	*R&R:* Second Schedule for private purchase.
*Affected families:* S: 3 (c) I to vi.	*Affected families* S;3 ( c ) I and v.	*Affected families*: N/A
*Appropriate Government = specified person:* State governments, and the government of Puduchery, Central government in case of Union Territories except Puduchery and where land acquisition involving more than one state government. Any person other than appropriate government is “any person other than a specified person”.
Social Impact Assessment (SIA) study is mandatory		SIA Study is not known.

III. Time Limit for award assuming no extension:

*Social Impact Assessment (SIA) Notification u/s 4 (2)*	*Expert Group Appraisal (EIA) u/s 7 (4) & 7(5)*	*PN (Preliminary Notification u/s 11*	*Declaration u/s 19 (4)*	*Notification to Indivuduals u/s 21*	*Award u/s 25*	*Possession u/s 38 (1)*	*Total time (Assuming no extesion) for compensation*
6 months	2 months	12 months	12 months	12 months	12 months	3 to 18 months (see below Note)	59 months. (See note below)

Note: After payment within 3 months for compensation; within 6 months for monetary part of R & R and within 18 months for infrastructure entitlement of Schedule II & III

IV: Section: 10. Food Security (Special Provision to safeguard food security): (a) The collector has to make sure that no other unutilized land is available before he moves to acquire farm land. (b) Restrictions/threshold on limit of irrigated multi-crop land and net sown area per district or state available for acquisition is left to the discretion of state governments. (c) If acquired, the state government 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.

V. Section. 40. Urgency Clause in the Principal LARR ACT 2013;

S (40) (1) Urgency clause can be invoked for a public purpose for the Defense of lndia or National Security or for any emergencies arising out of natural calamities or any other emergency after expiration of 30 days from publication of S. 21 Notification (Notice to persons interested) with prior approval Parliament; though no compensation is paid.

Before taking possession of any land, eighty percent of compensation is payable to the persons interested entitled thereto.

The appropriate Government also can waive from application of any one or many provisions from chapter II to VI. I.e. Determination of social impact and public purpose, Irrigated land, Notification and acquisition, R&R Awards and procedures and, if it does so direct, a declaration may be made under section 19 (Publication ol' declaration and summary of Rehabilitation [and Resettlement) in respect of the land at any time after the date of the publication of the preliminary notification under section 11 (1).

An additional compensation of seventy-five per cent. of the total compensation as determined under section 27. Shall be paid by the Collector in respect of land and property for acquisition of which proceedings have been initiated under sub-section (/) of this section:

Provided that no additional compensation will be required to be paid in case the project is one that affects the sovereignty and integrity of lndia, the security and strategic interests of the State or relations with foreign States.

(Quote: AM IBRAHIM)

Say Compensation Payable is assessed @ INR 2,00,00,000/= Say “C”

Additional compensation @ 75% of “C”. 1,50,00,000 Say “D”

Total compensation payable C+D 3,50,00,000

___________________________________________________________________

Before taking possession payable @ 80% of “C” 1,60,00,000 Say “AC”

Additional compensation payable @ 80% of “D” 1,12,50,000Say “AD”

Compensation Stage I (AC + AD) 2,72,50,000/=

(INR Two Crore and Seventy Two Lac and Fifty Thousand only). (UnQuote: AM IBRAHIM)..

The following components shall constitute the minimum compensation package to be given to those whose land is acquired and to tenants referred .

Award by the Collector: Determination of market value of land by collector u/s 26: The higher of (a) the market value specified in Indian Stamp Act, 1899 for the registration of sale deeds or agreements to sell as the case may be, in the area where the land is situated; or (b) the average sale price for similar type of land situated in the nearest village or nearest vicinity (The market value shall be determined by the Collector based on one-half of the total number of sale deeds or the agreements to sell recorded in preceding 3 years where highest sale price have been mentioned); (c) consented amount of compensation as agreed upon in case of acquisition for PPP or private companies projects as defined in section 2(2)..

Section 29 (1) The Collector in determining the market value of the building and other immovable property or assets attached to the land or building which are to be acquired, use the services of a competent engineer or any other specialist in the relevant field, as may be considered necessary by him.(2) The Collector for the purpose of determining the value of trees and plants attached to the land acquired, use the services of experienced persons in the field of agriculture, forestry, horticulture, sericulture, or any other field, as may be considered necessary by him. (3) The Collector for the purpose of assessing the value of the standing crops damaged during the process of land acquisition may utilize the services of experienced persons in the field of agriculture as considered necessary by him.

S. 30 (1) In addition to the market value of the land as above provided, the collector shall in every case award a solatium (i.e., extra compensation for the forcible nature of acquisition) of one hundred per cent over the total compensation amount.

(Quote: AM IBRAHIM) VI: Valuation: URBAN AREA:

Section of Bill	Descriptttttttion	Amount INR
S. 26, 27 and 30 (1) & Schedule I	The value of land: Extent of land 35,000 sf @ INR 7,000 / sq.ft. (Say “P”)	24,50,00,000
	Multiplier 1 (P x 1): Market value of land “MVL”	24,50,00,000
	Market value of land. Say “MVL”	24,50,00,000
	Assets attached to land Say “B”	0
	Market value of acquired property Say “MVAP” (MVL+B)	24,50,00,000
	Add Solatium @ 100% of MVAP. Say “S”	24,50,00,000
	Compensation MVAP + S	49,00,00,000
(INR Forty Nine Crore only)

Urban area compensation is @ 100 percentages increase of land value assessed (P) or 2.00 times.

VII: Rural AREA:

Section of Bill	Descriptttttttion	Amount INR
S. 26, 27 and 30 (1) & Schedule I	The value of land: Extent of land 35,000 sf @ INR 7,000 / sf (Say “P”) The value of land: Extent of land 35,000 sf @ INR 7,000 / sf (Say “P”)	24,50,00,000
	Multiplier Say 2 (P x 2): Market value of land “MVL”	49,00,00,000
	Market value of land. Say “MVL”	49,00,00,000
	Assets attached to land Say “B”	0
	Market value of acquired property Say “MVAP” (MVL+B)	49,00,00,000
	Add Solatium @ 100% of MVAP. Say “S”	49,00,00,000
	Compensation MVAP + S	98,00,00,000
(INR Ninety Eight Crore only)

(Unquote: AM IBRAHIM).

(Please note: The land value in rural area is not like urban area; the above is only for illustration). Rural area compensation is @ 300 percentages increase of land value assessed (P) or 4.00 times.

Note: The land value (Say “P”) thus calculated shall be multiplied by a factor 1 for urban area and regarding rural area, the Act only provides the baseline for compensation and has devised a sliding scale which allows state Governments to fix the multiplier from 1 to 2 when moved from urban to rural area. The precise slabs shall be left to respective state governments.

VIII: AMENDMENT TO THE PRINCIPAL ACT 2013: An amendment to the Principal Act 2013 was passed in the Lok Sabha on 10/3/2015 which is summarized as below: (Source: ^ The RFCTLARR_AmendmentBIll_Passed by Lok_Sabha (1)pdf).

The Reason for amendment according to Government Source: Quote: "Out of 32 State Governments and UTs, 28 of these said changes are needed, else it would be impossible to move ahead….”. Unquote. Source: The Times of India Trichy, Dated 26/3/2015 / PP8.

VIII (i): Substitution of certain expression throughout the ACT RTFCT LARR 2013: (30 of 2013): For the words “PRIVATE COMPANY” wherever they occur, the words “PRIVATE ENTITY” shall be substituted”.

VIII (a): New Insertion in Section 3 (ii) (yy) as: “PRIVATE ENTITY” means any entity other than Government Entity or Undertakings and includes PROPRIETORYSHIP, PARTNERSHIP COMPANY, CORPORATION, NON-PROFIT MAKING ORGANISATION or OTHER ENTITY under any law for the time being in force.

VIII (ii): New Insertion Section 10 (A) Food Security: 10A (1). Exemption from Social Impact & Special Provision to safeguard food security: The appropriate Government may, in the public interest, by notification, exempt any of the following projects from the application of the provisions of Chapter II and Chapter III of this Act, namely:—

(a) Such projects vital to national security or defence of India and every part thereof, including preparation for defence or defence production;

(b) Rural infrastructure including electrification;

(d) industrial corridors set up by the appropriate Government and its undertakings (in which case the land shall be acquired up to one kilometer on both sides of designated railway line or roads for such industrial corridor); and

(e) Infrastructure projects include projects under public-private partnership where the ownership of land continues to vest with the Government.": Provided that the appropriate Government shall, before the issue of notification, ensure the extent of land for the proposed acquisition keeping in view the bare minimum land required for such project.

(2) The appropriate Government shall undertake a survey of its wasteland including arid land and maintain a record containing details of such land, in such manner as may be prescribed by the appropriate Government.

VIII (iii): Section 24 deals with Land acquisition process under Act No. I of 1894 shall be deemed to have lapsed in certain cases & Remedy in the Principle Act; The amendment is the delay due to court/tribunal proceedings shall not be counted.

Amendment to Section 31: In the principal Act, in section 31, in sub-section (2), in clause (h), after the words ‘affected families’, the words ‘including compulsory employment to at least one member of such affected family of a farm laborer' shall be inserted.

In the author’s view, in addition to employment to one member in the family, the Government to ensure the rest of family members to continue in agricultural sectors with necessary support.

VIII (iv): Section 67A (New Insertion) Hearing to be held by Authority in district or districts to decide grievances: ‘ The Authority shall, after receiving reference under section 64 and after giving notice of such reference to all parties concerned, hold the hearing in the district where the land acquisition takes place for settlement of the objections raised in the reference.’

VIII (v): Section 87 deals with Government Servants Accountability and the amendment protects Government Servants thus: Where an offence under this Act has been committed by any person who is or was employed in the Central Government or the State Government, as the case may be, at the time of commission of such alleged offence, no court shall take cognizance of such offence except with the previous sanction of the appropriate Government, in the manner provided in section 197 of the Code of Criminal Procedure, 1973.".

VIII (VI): Section 101: Return of unutilized land after 5 years is amended as “A period for setting up of any project or five years whichever is later.

VIII (vii): S(105) and the Fourth Schedule (1) Subject sub section 3 (1), the provisions of this Act shall not apply to the enactments relating to land acquisition specified in the Fourth Schedule.(2) Subject to sub-section (2) of section 106. the Central Government may, by notification. omit or add to any of the enactments specified in the Fourth Schedule.; THE FOURTH SCHEDULE (See section 105). LIST OF ENACTMENTS REGULATING LAND ACQUISITION AND REHABILITATION AND RESETTLEMENT (13 Laws) were exempted from R & R Provisions is mended as The Bill brings the compensation, rehabilitation, and resettlement provisions of these 13 laws in consonance with the LARR Act, 2013.

VIII (viii): (S (113) (1) Power to remove difficulties: (i) for the words "the provisions of this Part", the words "the provision of this Act" shall be substituted; (ii) in the proviso, for the words "a period of two years", the words "a period of five years" shall be substituted.

Collective legislative decision of upper houses is awaited.

A. MOHAMMED IBRAHIM

ARCHITECT

Source: LARR ACT 2013, LARR Amendment Bill 2015 & LARR Bill as passed by Lok Sabha..

Disclaimer: Utmost care is taken while compiling this data and this is for information purpose only. The Principal Act, Guidelines, Rules and subsequent amendments to be consulted.

The article “Valuation for Land Acquisition” can be viewed in ^ https://www.lawyersclubindia.com/articles/Valuation-for-Land-Acquisition-5910.asp & ^ https://www.lawweb.in/2013/12/valuation-for-land-acquisition.html & update can be viewed in ^ https://www.valuersworld.com/newsite/forum/viewtopic.php?t=1568

mohammed ibrahim (Architect -Valuer -ADR Professional) 26 March 2015

https://www.rlarrdc.org.in/

mohammed ibrahim (Architect -Valuer -ADR Professional) 26 March 2015

The Attached is Lok Sabha Passed LARR Amendment Bill 2015

Attached File : 514096657 the rfctlarr amendment bill 2015 passed by lok sabha (1).pdf downloaded: 109 times

mohammed ibrahim (Architect -Valuer -ADR Professional) 29 April 2015

Amendment to Land Acquisition Act 2013 (RTFCT LARR Act 2013) for a short “The Principal Act”.

Brief History: The Ordinance No. 4 of 2015 is to replace the earlier Ordinance No. 9 of 2014 which was passed by Lok Sabha (The House of People) with some amendments and could not be passed by the Rajya Sabha (The Council of States) and hence this Ordinance

Before studying the Ordinance, some key features of the Principal Act is discussed below:

I Definition: U/s: 3(c) “Affected families”: (i) A family whose land or other immovable property has been acquired, (ii) a family which does not own any land but a member or members of such family may be agricultural laborers, tenants including any form of tenancy or holding of usufruct right, share-croppers to artisans or who may be working in the affected area for three years prior to the acquisition of the land, whose primary source of livelihood stand affected by the acquisition of land, (iii) the Scheduled Tribes and other traditional forest dwellers who have lost any of their forest rights recognized under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 due to acquisition of land, (iv) family whose primary source of livelihood for three years prior to the acquisition of the land is dependent on forests or water bodies and includes gatherers of forest produce, hunters, fisher folk and boatmen and such livelihood is affected due to acquisition of land, (v) a member of the family who has been assigned land by the State Government or the Central Government under any of its schemes and such land is under acquisition, and (vi) a family residing on any land in the urban areas for preceding three years or more prior to the acquisition of the land or whose primary source of livelihood for three years prior to the acquisition of the land is affected by the acquisition of such land.

Pith and substance of the Act: Application of the Act: S: 2 (1). The provisions of this Act relating to land acquisition, compensation, rehabilitation and resettlement, shall apply, when the appropriate Government acquires land for its own use, hold and control, including for Public Sector Undertakings and for public purpose, and shall include the following purposes, namely:-

When the appropriate Government acquires land for public purpose u/s 2 (1), LA, Compensation and R & R (rehabilitation & Resettlement entitlements) shall apply for the following:

II. Public Purpose Activities: S: 3(za) read with S: 2(1). When the appropriate government acquires land for public purposes u/s 2(1):

(a) for strategic purposes, (b) for infrastructure projects, (c) project for project affected families, (d) project for housing for such income groups to be specified by the appropriate government, (e) project for planned development or the improvement of village sites or any site in the urban areas or provision of land for residential purposes for the weaker sections in rural and urban areas, and (f) project for residential purposes to the poor or landless or Io persons residing in areas affected by natural calamities, or to persons displaced or affected by reason of the implementation of any scheme undertaken by the Government, any local authority or a corporation owned or controlled by the State. Consent of affected families is not required and Social Impact Assessment is mandatory. Affected Families: Section 3 (c) I to VI.

III. When the appropriate government acquires land for public purposes for PPP projects, Private Companies, LA, Compensation, Consent and Social Impact Assessment is mandatory. Affected families Section 3 (c) i & v.

(a) For public private partnership projects, where the ownership of the land continues to vest with the Government, for public purpose as defined u/s 2(1).

(b) For private companies for public purpose as defined u/s 2 (1).

IV. Where private companies purchase through private negotiation or appropriate government acquires for private companies a part of area. S: 2 (3). LA, Compensation and R&R Second Schedule are applicable. Not known about consent and Social Impact Assessment applications and affected families.

U/s: 46. When private companies intends to purchase land through private negotiation, shall file an application to the Collector stating their (a) intention to purchase, (b) purpose for which such purchase is being made, (c) particulars of lands to be purchased. It shall be the duty of the Collector to refer the matter to the Commissioner of R&R for the satisfaction of all relevant provisions under this Act related to rehabilitation and resettlement. Based upon the Rehabilitation and Resettlement Scheme approved by the Commissioner, the Collector shall pass individual awards covering Rehabilitation and Resettlement entitlements. No land use change shall be permitted if R&R is not complied with in full.

U/s 2 (3) (a) & 46 (6), Original land owner specified date is 5/9/2011. lf any land has been purchased through private negotiations by a person other than specified person on or after the 5^th day of September.2011, which is more than such limits as may be notified by the appropriate Government as per Section 46(1) and If the same land were acquired within three years from the date of commencement of this Act (01/01/2014), then, forty per cent of the compensation paid for such land acquired shall be shared with the original land owners. Any purchase of land by a person other than specified persons without complying with the provisions of Rehabilitation and Resettlement Scheme shall be void ab initio; provided that the appropriate government may provide for R & R provisions on sale and purchase of land in its state and shall fix the limits or ceiling for the said purpose. (Application of the Act).

Section: 10.Food Security: (a) The collector has to make sure that no other unutilized land is available before he moves to acquire farm land. (b) Restrictions/threshold on limit of irrigated multi-crop land and net sown area per district or state available for acquisition is left to the discretion of state governments. (c) If acquired, the state government 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.

New Inser after Section 2 (3) of the Principal Act Proposed:

Amendment to the Principal Act: Section: 10A (**): The appropriate Government may exempt the following projects from Consent and Social Impact Assessment procedures (Chapter II & III of the Principal Act):

a). such projects vital to national security or defence of India, b). Rural infrastructure including electrification, c). Affordable housing and housing for poor people, d) Industrial corridors set up by the appropriate Government and its undertakings (the land shall be acquired upto one kilometer on both sides of designated railway line or roads for such industrial corridor) and e). Infrastructure projects under public-private partnership where the ownership of land continues to vest with the Government. (** As proposed to amended in 2005). No consent and Social Impact Assessment is required and food security is compromised.

Section 87 of the Principal Act deals with offences committed by Government Officials if proved punishable under some circumstances; which are now proposed to amend as per procedure laid down in CRPC Act 1973 under section 197.in which the prior sanction of the Government is required.

Section 101 of the Principal Act envisages the return of unutilized land after 5 years and the amendment proposed is 5 years or the project period whichever is later.

Section 105 deals with 13 Central Acts in the Fourth Schedule and sub section 3 empowers Government to come with proposal for application of LARR ACT 2013 without any diminution of Compensation package within one year from LARR ACT 2013.. Accordingly these 13 Central Acts are now proposed to have LA, Compensation and Social Impact Assessment..

OPINION: Land is precious. “India has only 2% of world’s geographical area, out of which 1.5% (1^1/2percent) of forest and pasture land has to feed about 16.7 percent of world’s population” (Source: Supra in Page 1, Land Data). This Green is gift from the “SUPREME POWER”. For long term prosperity of any country, the natural resources are to be preserved.

The Article 300-A of the Constitution of India deals with any person’s rights in her/his property, also permits that person to sell that property in an open market under normal condition, in such a situation Fair Market Value of the Property has to be fetched. The power of the Sovereign to take private property for public use also known as Eminent Domain ( Dominum eminens) or Compulsory Purchase. But it is to be added that while this is done, the State is bound to make good the loss to those who lose their property.

Market value assessable in the principal act 2013 is higher of guideline value or the consented market value of land under section 2(2); the consent clause is proposed to be amended. In such a situation, in the author's view the formula for compensation has to be reworked since the consent clause is proposed to be compromised.

The Principal Act has a good package but silent about the fair market value/expert valuer’s opinion regarding market value of land which had provisions in the superseded LA Act 1894. As per section 30 (2) r/w the First Schedule, a bare minimum package of compensation for urban land is at two times the market value of acquired land and 4 times in the rural area (Subject to a sliding scale of distance when moved from urban area to rural area). This is based on guideline value or Circle Rates published for registration purpose. Real market price is not reflected in the guideline value. Therefore a fudge-factor has to be added (actual price paid divided by the price recorded in the document). Suggested fudge-factor adjusted formula for compensation. Say a fudge-factor (ff) of 1.5 will result in 3/6 times, ff 1.75 in 3.5/7 and ff 2 will result in 4/8 times in Urban/Rural areas. Assuming market value of land as Rs. 1,000 as per S.30(2) r/w Schedule - I of the Principal Act for both Urban & Rural Area:

Suggested Formula		fudge-factor
Market value decided u/s 30 (2) r/w Schedule I Say	1000	1.5	1500
Multiplier	0	1	1500
Bldg			0
Land+bldg			1500
Solatium			1500
	Urban	Area	3000

Market value decided u/s 30 (2) r/w Schedule I	1000	1.5	1500
Multiplier	0	2	3000
Bldg			0
Land+bldg			3000
Solatium			3000
	Rural	Area	6000

And it is to be recorded here that SIA (The Social Impact Assessment) is a condition precedents for relocation of the affected families and backbone of the Principal Act and the consent clause as well.

AM IBRAHIM

Attached File : 174527 20150429212845 13444470 3rd apri 2015 ordinance opt.pdf downloaded: 88 times

mohammed ibrahim (Architect -Valuer -ADR Professional) 21 July 2015

(Opinion) Possible action of Conflict of Interest in public purposes (Strategic purpose & Infrastructure projects):

Section

Conflict of interest in Public Purposes as defined in the principal act and

In the proposed amendment

2(1)

Principal

Act 2013

(a) for Strategic purposes relating to naval, military, air force, and armed forces of the Union, including central paramilitary forces or any work vital to national security or defence of India or State police, safety of the people; or

(b ) for infrastructure projects, which includes the following, namely:-

(i) all activities or items listed in the notification of the Government of India in the Department of Economic Affairs (infrastructure Section) number l3/6/2009-lNF, dated the 27th March,2012, excluding private hospitals, private educational institutions and private hotels;

(ii) projects involving agro-processing, supply of inputs to agriculture, warehousing, cold storage facilities, marketing infrastructure for agriculture and allied activities such as dairy, fisheries, and meat processing, set up or owned by the appropriate Government or by a farmers' cooperative or by an institution set up under a statute;

(lii) project for industrial corridors or mining activities, national investment and manufacturing zones, as designated in the National Manufacturing Policy;

(iv) project for water harvesting and water conservation structures, sanitation:

(v) project for Government administered, Government aided educational and research schemes or institutions;

(vi) project for sports, heath care, tourism, transportation or space programme;

(vii) any infrastructure facility as may be notified in this regard by the Central Government and after tabling of such notification in Parliament;

(d) Project for such housing for such income groups as may be specified from time to time by the appropriate govt.

(e) Project for planned development or the improvement of village sites or any site in the urban areas or provision of land for residential purposes for the weaker sections in rural and urban areas.

(f) Project for residential purposes to the poor or landless or to persons residing in areas affected by natural calamities, or to persons displaced or affected by reason of the implementation of any scheme undertaken by the Government, any local authority or a corporation owned or controlled by the State.

Compensation: Minimum compensation as per Schedule I, Collector’s final award as per section 28 and if referred to Authority, the award as per Section 69. Social Impact Assessment Entitled for R&R packages.

10(1) & 2(2)

Proposed

amendment

The appropriate Government may exempt the following projects from Social Impact Assessment procedures, public purposes and special provision to safeguard food security (Chapter II & III of the Principal Act):

a). Such projects vital to national security or defence of India, b). Rural infrastructure including electrification, c). Affordable housing and housing for poor people, d) Industrial corridors set up by the appropriate Government and its undertakings (the land shall be acquired upto one kilometer on both sides of designated railway line or roads for such industrial corridor) and e). Infrastructure projects under public-private partnership where the ownership of land continues to vest with the Government.

Compensation: Minimum compensation as per Schedule I, Collector’s final award as per section 28 and if referred to Authority, the award as per Section 69. Entitled for R&R packages.

9 / 40

Principal

Act

Urgency Clause can be invoked after Section 19 declaration or the expiry of 30 days from section 21 Notice. It provides special powers to the appropriate Government to acquire land in urgency cases for the purposes of defence of India or national security or for any emergency arising out of natural calamities; or any other emergency with the approval parliament. Compensation payable shall be as per section 27 of the Act Say “MV” plus 75% of “MV”, out of which 80% shall be payable prior to taking possession. Any one or many provisions from chapter II to VI are exempted. I.e. SIA, Food Security, and notification and acquisition. One month from the publication of the section 21 notifications plus within 48 hours, occupiers of buildings if any, are to be vacated.

Compensation: If one rupee is compensation as per the act, the affected person is eligible for Rupee 1.75 (175 paise) as compensation, out of which, 80 paise shall be paid before eviction and the balance of 95 paise payment date is not defined in the Act. R& R Package is not clear.

In the opinion of the author, the above matter can kindly be considered.

mohammed ibrahim (Architect -Valuer -ADR Professional) 01 September 2015

RFCT LARR ACT 2013 is restored. (Removal of Difficulties).

The LA Act 2013 Brief: Compensation package - The appropriate Government shall constitute multi-member land pricing commission or authority to finalize cost of land acquisition/compensation State-wise/area-wise as determined under Section 30(1) read with Schedule I to the Act. The Second Schedule lists eleven (11) elements of Rehabilitation and Resettlement entitlements in addition to those provided in the First Schedule. The Third Schedule enumerates twenty five (25) infrastructural amenities to be provided for resettlement to the affected families.

The Fourth Schedule lists thirteen (13) Central legislations, which are sought to be exempted from the provisions of the Act in the Principal Act 2013 and as per executive order dated 28th August 2015 these 13 (Thirteen) acts are within the scope of RFCTLARR ACT 2013. I.e. Compensation, Rehabilitation and resettlement entitlements are included. The LARR Act 2013 is restored by an Executive Order Dated 28th August 2015.

Word web British dictionary meaning of rehabilitation is the restoration of someone to a useful place in a society and resettlement is the transportation of people (As a family or colony) to a new settlement (As after an upheaval of some kind). According to Black’s Law Dictionary, Executive Order is, “Directive action from a Prime minister or President to its executive governmental agencies on an official document (i.e. The Gazette of India; Ministry of Rural Development F.No. 13011/01/2014-LRD dated 28th August, 2015). (Attached)

Attached File : 174527 20150901065013 556473706 rfctlarr removal of difficulties order 2015.pdf downloaded: 161 times

mohammed ibrahim (Architect -Valuer -ADR Professional) 01 September 2015

Minimum & Final Award by the Collector: Compiled by A.Mohammed Ibrahim. FICA

Award by the Collector: Determination of market value of land by collector u/s 26: The higher of (a) the market value specified in Indian Stamp Act, 1899 for the registration of sale deeds or agreements to sell as the case may be, in the area where the land is situated; or (b) the average sale price for similar type of land situated in the nearest village or nearest vicinity (The market value shall be determined by the Collector based on one-half of the total number of sale deeds or the agreements to sell recorded in preceding 3 years where highest sale price have been mentioned); (c) consented amount of compensation as agreed upon in case of acquisition for PPP or private companies projects as defined in section 2(2).

Valuation as per First Schedule: The land value (Say “P”) thus calculated shall be multiplied by a factor 1 for urban area and regarding rural area, the Act only provides the baseline for compensation and has devised a sliding scale which allows state Governments to fix the multiplier from 1 to 2 when moved from urban to rural area. The precise slabs shall be left to respective state governments. Market value of land “MVL” thus calculated is added with assets attached to land say “B”. Market value of acquired property “MVAP” is MVL + B.

Add a solatium Say “S” of 100% of MVAP. The Award is MVAP+S and the Second Schedule elements of rehabilitation and resettlement entitlements for all the affected families (Both land owners and families whose livelihood is primarily dependent on land acquired) in addition to those provided in the First Schedule.

Valuation: URBAN AREA:

The following components shall constitute the minimum compensation package to be given to those whose land is acquired and to tenants referred to in clause (c) of section 3 in a proportion to be decided by the appropriate Government:

Section of Bill	Descriptttttion	Amount INR
S. 26, 27 and 30 (1) & Schedule I	The value of land: Extent of land 35,000 sf @ INR 7,000 / sq.ft. (Say “P”)	24,50,00,000
	Multiplier 1 (P x 1): Market value of land “MVL”	24,50,00,000
	Market value of land. Say “MVL”	24,50,00,000
	Assets attached to land Say “B”	0
	Market value of acquired property Say “MVAP” (MVL+B)	24,50,00,000
	Add Solatium @ 100% of MVAP. Say “S”	24,50,00,000
	Compensation MVAP + S	49,00,00,000
(INR Forty Nine Crore only)

Urban area compensation is @ 100 percentages increase of land value assessed (P) or 2.00 times.

Rural AREA:

Section of Bill	Descriptttttion	Amount INR
S. 26, 27 and 30 (1) & Schedule I	The value of land: Extent of land 35,000 sf @ INR 7,000 / sf (Say “P”) The value of land: Extent of land 35,000 sf @ INR 7,000 / sf (Say “P”)	24,50,00,000
	Multiplier Say 2 (P x 2): Market value of land “MVL”	49,00,00,000
	Market value of land. Say “MVL”	49,00,00,000
	Assets attached to land Say “B”	0
	Market value of acquired property Say “MVAP” (MVL+B)	49,00,00,000
	Add Solatium @ 100% of MVAP. Say “S”	49,00,00,000
	Compensation MVAP + S	98,00,00,000
(INR Ninety Eight Crore only)

X. Parameters are to be considered by the collector in determination of award (Final Award Format):

S. 28. In determining the amount of compensation to be awarded for land acquired under this Act, the collector shall take into consideration—

Reference	Particulars of Compensation	Amount INR
Section -28 Firstly	(A) The market value as determined under section 26 and the award amount in accordance with the First Schedule & (B) the Second Schedule	A+B = say “C”
Secondly	Damage to crops or any standing trees	D
Thirdly	The depreciation in the value of the claimant’s retained interest arising from the severing of the land acquired from the original whole.	E
Fourthly	Injurious affection to the retained land may arise as a result of the execution and use of the works; the depreciating effect is to be related to the new works to be situated on the land taken and elsewhere.	F
Fifthly	In consequence of the acquisition of the land by the Collector, the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change.	G
Sixthly	The damage (if any) bona fide resulting from diminution of the profits of the land between the time of the publication of the declaration under section 19 and the time of the Collector’s taking possession of the land.	H
Seventhly	Any other ground which may be in the interest of equity, justice and beneficial to the affected families.	J
	Compensation Say “K”	C+D+E+F+G+H+J
Section 30 (1)	Solatium Amount @ 100 percent of “K” Say “L”	L
Section 30 (3)	12 % interest payable on “A” Say “M” from S. 4(2) SIA notification till the date of the award of the Collector or the date of taking possession of lhe land, whichever is earlier.	M
	Total AWARD	L+M

The date of valuation is section 11 notification; provided that any price paid as compensation for land acquired under the provisions of this Act on an earlier occasion in the district shall not be taken into consideration and any price paid which in the opinion of the Collector is not indicative of actual prevailing market value may be discounted for the purposes of calculating market value.

To be Concluded.