Document Actions
The Land Acquisition (Amendment) Bill, 2007
AS INTRODUCED IN LOK SABHA
ON 6TH DECEMBER, 2007
THE LAND ACQUISITION (AMENDMENT) BILL, 2007
[Bill No. 97 of 2007]
A
BILL
further to amend the Land Acquisition Act, 1894.
Be it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:--
1. Short title and commencement.--
(1) This Act may be called the Land Acquisition (Amendment) Act, 2007.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as reference to the coming into force of that provision.
2. Amendment of long title.--
In the long title to the Land Acquisition Act, 1894 (hereinafter referred to as the principal Act), the words "and for Companies" shall be omitted.
3. Amendment of preamble.--
In the principal Act, in the preamble, the words "and for Companies" shall be omitted.
4. Insertion of new section 1A.--
After section 1 of the principal Act, the following section shall be inserted, namely:--
"1A. Application of Rehabilitation and Resettlement Act, 2007 to persons affected due to land acquisition.--
The provisions of the Rehabilitation and Resettlement Act, 2007 shall apply in respect of acquisition of land by the appropriate Government under this Act.".
5. Amendment of section 3.
In section 3 of the principal Act,--
(i) for clause (b), the following clause shall be substituted, namely:--
(b) the expression "person interested" includes,--
(i) all persons claiming an interest in compensation to be made on account of the acquisition of land under this Act;
(ii) tribals and other traditional forest dwellers, who have lost any traditional rights recognised under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006;
(iii) a person interested in an easement affecting the land; and
(iv) persons having tenancy rights under the relevant State laws;';
(ii) after clause (cc), the following clause shall be inserted, namely:--
'(ccc) the expression "cost of acquisition" includes--
(i) compensation awarded including the solarium and other amount and interest payable thereupon;
(ii) demurrage to be paid for damages caused to the land and standing crops in the process of acquisition;
(iii) cost of acquisition of out-project land for settlement of displaced or adversely affected families;
(iv) cost of development of infrastructure and amenities at resettlement sites;
(v) additional cost of resettlement as may be required after admissible adjustment of rehabilitation and resettlement cost against compensation awarded to affected persons or families;
(vi) administrative cost of acquisition of land including both in-project and out-project areas lands; and
(vii) administrative cost involved in planning and implementation of resettlement and rehabilitation packages for providing physical rehabilitation and resettlement to the entitled and interested families, displaced or adversely affected on account of in-project acquisition of land;
(iii) clauses (d) and (e) shall be omitted;
(iv) for clause (ee), the following clause shall be substituted, namely:--
(ee) the expression "appropriate Government" means,--
(i) in relation to acquisition of land for the purposes of the Union, the Central Government;
(ii) In relation to acquisition of land for the purposes of any infrastructure project in more, than one State, the Central Government; and
(iii) in relation to acquisition of land for any other purpose, the State Government;';
(v) for clause (f), the following clause shall be substituted, namely:--
'(f) the expression "public purpose" includes,--
(i) the provision of land for strategic purposes relating to naval, military and air force works or any other work vital to the State;
(ii) the provision of land for infrastructure projects of the appropriate Government, where the benefits accrue to the general public; and
(iii) the provision of land for any other purpose useful to the general public, for which land has been purchased by a person under lawful contract to the extent of seventy per cent but the remaining thirty per cent of the total area of land required for the project as yet to be required.'.
Explanation.--The word "person" shall include any company or association or body of individuals, whether incorporated or not.';
(vi) after clause (f), the following clause shall be inserted, namely:--
'(ff) the expression "infrastructure project" shall include,--
(i) any project relating to generation, transmission or supply of electricity;
(ii) construction of roads, highways, bridges, airports, ports, rail systems or mining activities;
(iii) water supply project, irrigation project, sanitation and sewerage system; or
(iv) any other public facility as may be notified in this regard by the Central Government in the Official Gazette.'.
(vii) in clause (g) for the expression "court", wherever it occurs, the expression "the Authority for the Centre or, as the case may be, the Authority" shall be substituted;
(viii) after clause (g), the following clauses shall be inserted, namely:--
'(h) the expression "Authority" means the Land Acquisition Compensation Disputes Settlement Authority established by the State Government under subsection (1) of section 17A;
(i) the expression "Authority for the Centre" means the Land Acquisition Compensation Disputes Settlement Authority for the Centre established by the Central Government under sub-section (1) of section 17L;
(j) the expression "Member" means a Member of the Authority for the Centre, or as the case may be, the Authority, and includes the Chairperson.'.
6. Omission of the expression "or for a company" throughout the Act.--
Throughout the principal Act, the words "or for a company" along with their grammatical variations, shall be omitted.
7. Substitution of words "Authority ' for the Centre or the Authority" in place of words "the Court" throughout the Act.--
Throughout the principal Act except in Explanation to sub-section (1A) section 23, for the words "the Court", along with their grammatical varieties the words "the Authority for the Centre, or as the case may be, the Authority" shall be substituted.
8. Insertion of new section 3A.--
After section 3 of the principal Act, the following section shall be inserted," namely:--
'3A. Mandatory social impact assessment prior to acquisition of land under this Act.:- Whenever the appropriate Government intends to acquire land for public purpose involving physical displacement of--
(i) four hundred or more families en masse in plain area; or
(ii) two hundred or more families en masse in tribal or hilly areas or Desert sixth Development Programme blocks or areas specified in V Schedule or Schedule VI to the Constitution, a social impact assessment study shall be carried out in the affected area for the purpose of social impact appraisal, incorporation of Tribal Development Plan, plan for giving emphasis for the Scheduled Castes, the Scheduled Tribes and other vulnerable sections of the society, provision for infrastructural amenities and facilities in the proposed resettlement area in terms of the provisions contained in Chapters II, IV, V and VI of the Rehabilitation and Resettlement Act, 2007, in such manner and within such time as may be prescribed by rules made by the Central Government.'.--
9. Amendment of section 4.--
In section 4 of the principal Act,--
(a) in sub-section (1), the following provisos shall be inserted, namely:--
"Provided that where no declaration is made consequent upon the issue of a notification under sub-section (1) within the time-limit specified in subsection (1) of section 6, no fresh notification under this sub-section shall, subsequent to the expiry of the period aforesaid, be made for a period of one year in respect of the same land:
Provided further that in case a notification issued under sub-section (1) in respect of a particular land lapsed for the second time, no proceeding under subsection (1) shall be initiated at least for a period of five years from the date of such notification.";
(b) After sub-section (1), the following sub-sections shall be inserted, namely:--
"(1A) No person shall make any transaction or cause any transaction of land specified in the notice of acquisition to create any encumbrances on such land from the date of publication of such notice under this section till the final declaration under section 6, or the award made and paid under section 16 of the Act, whichever is earlier:
Provided that the Collector may, on the application made by the land owner in respect of the land so notified, exempt in special circumstances to be recorded in writing, such owner from the operation of this sub-section:
Provided further that any loss or injury suffered by any person due to his wilful violation of this provision shall not be made up by the Collector.
(1B) After issuance of notice under sub-section (1), the Collector shall, before issue of declaration under section 6, undertake and complete the exercise of updating of land records, classification of land and its tenure, survey and standardisation of land and property values in respect of the land under acquisition.".
10. Amendment of section 6.--
In section 6 of the principal Act, in sub-section (1),--
(i) the words "subject to the provisions of Part VII of this Act" shall be omitted;
(ii) the Explanation 1 shall be omitted.
11. Insertion of new section 8A.--
After section 8 of the principal Act, the following section shall be inserted, namely:--
"8A. Evaluation of damages during survey, measurement, etc.-- The damages caused while carrying out works on land such as survey, digging or boring sub-soil, marking boundaries or cutting trenches or clearing away any standing crop, fence or forest or doing such other acts or things which may cause damages while acting under section 4 particularly relating to land which is excluded from acquisition proceeding, shall be evaluated and compensation shall be paid to the persons having interest in that land, within six months from the completion of the said works.".
12. Substitution of section 11 A.--
For section 11A of the principal Act, the following section shall be substituted, namely:--
"11 A. Period within which an award shall be made.-- The Collector shall make an award under section 11 within a period of one year from the date of the publication of the declaration and if no award is made within that period, the entire proceedings for the acquisition of the land shall lapse:
Provided that in a case where the said declaration has been published before the commencement of the Land Acquisition (Amendment) Act, 2007, the award shall be made within a period of one year from such commencement:
Provided further that the Collector may, after the expiry of the period of limitation, if he is satisfied that the delay has been caused due to unavoidable circumstances, and for the reasons to be recorded in writing, he may make the award within an extended period of six months:
Provided also that where an award is made within the extended period, the entitled person shall, in the interest of justice, be paid an additional compensation for the delay in making of the award, every month for the period so extended, at the rate of not less than five per cent, of the value of the award, for each month of such delay.".
13. Insertion of new sections after section 11A.--
After section 11A of the principal Act, the following sections shall be inserted, namely:--
"11B. Determination of market value of land.-- (1) The Collector shall adopt the following criteria in assessing and determining the market value of the land,--
(i) the minimum land value, if any, specified in the Indian Stamp Act, 1899 (2 of 1899) for the registration of sale deeds in the area, where the land is situated; or
(ii) the average of the sale price for similar type of land situated in the village or vicinity, ascertained from not less than fifty per cent, of the sale deeds registered during the preceding three years, where higher price has been paid; or
(iii) the average of the sale price, ascertained from the prices paid or agreed to be paid for not less than fifty per cent, of the land already purchased for the project where higher price has been paid, for the purpose of item (iii) of clause (1) of section 3, whichever is higher.
(2) Where the provisions of sub-section (1) are not applicable for the reason that:
(i) the land is situated in such area where the transactions in land are restricted by or under any other law for the time being in force in that area; or
(ii) the registered sale deeds for similar land as mentioned in clause (1) of sub-section (1) are not available for the preceding three years; or
(iii) the minimum land value has not been specified under the Indian Stamp Act, 1899 by the appropriate authority, the concerned State Government shall specify the floor price per unit area of the said land based on the average higher prices paid for similar type of land situated in the adjoining areas or vicinity, ascertained from not less than fifty per cent, of the sale deeds registered during the preceding three years where higher price has been paid, and the Collector may calculate the value of the land accordingly.
(3) The Collector shall, before assessing and determining the market value of the land being acquired under this Act,---
(a) ascertain the intended land use category of such land; and
(b) take into account the value of the land of the intended category in the adjoining areas or vicinity, for the purpose of determination of the market value of the land being acquired.
(4) 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, the Collector may use the services of a competent engineer or any other specialist in the relevant field, as may be considered necessary by the Collector.
(5) The Collector may, for the purpose of determining the value of trees and plants, 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.
(6) For the purpose of assessing the value of the standing crops damaged during the process of land acquisition proceedings, the Collector may utilise the services of experienced persons in the field of agriculture as he considers necessary.
11C. Part payment of compensation by, shares, debentures, etc.-- (1) When land is acquired for the purpose of item (iii) of clause (1) of section 3 and the person for whom the land is acquired is a company authorised to issue shares and debentures, such company shall, with the previous approval of the appropriate Government, offer its shares or debentures to the extent of fifty per cent but in any case not less than twenty per cent, of the compensation amount to be paid to the person whose land has been acquired.
(2) On the acceptance of the offer, a part of the compensation amount shall be adjusted by transfer of shares and debentures to the person to whom such compensation is due and on such transfer the liability of the company in respect of such part of the compensation shall stand discharged.
(3) The allotment of shares and debentures mentioned in this section shall be made by the company in such manner as may be prescribed.
Explanation.--In this section, the expression "shares and debentures" has the same meaning as assigned to it under the Companies Act, 1956.".
14. Amendment of section 12.--
In section 12 of the principal Act, after sub-section (2), the following sub-sections shall be inserted, namely:--
"(3) The Collector shall keep open to the public and display a summary of the entire proceedings undertaken in a case of acquisition of land including the amount of compensation awarded to each individual along with details of the land finally acquired under this Act.
(4) For the purposes of sub-section (3), the summary of the entire proceedings shall include the summary of schedule for payment of compensation, dates of taking possession of the land and such other information as may be prescribed.
(5) It shall be the duty of the Collector to ensure that physical possession of the land is taken over and the amount of compensation is paid within a period of sixty days commencing from the date of the award.
(6) The possession of the land acquired shall not be taken unless the compensation due under this Act is paid in full or is tendered to the entitled person.".
15. Amendment of section 15.--
In section 15 of the principal Act, for the words and figures "sections 23 and 24", the words, figures and letter, "sections 11B, 23 and 24" shall be substituted.
16. Amendment of section 17.--
In section 17 of the principal Act, after sub-section (4), the following sub-section shall be inserted, namely:--
"(5) Without prejudice to the provisions of sub-section (3) and sub-section (3A), an additional compensation of seventy-five per cent, of the market value as determined under section 11B, shall be paid by the Collector in respect of land and property for acquisition of which proceedings have been initiated under sub-section (1) of this section.".
17. Insertion of new Parts IIA and IIB.--
After Part II of the principal Act, the following Parts shall be inserted, namely:--
PART IIA
ESTABLISHMENT OF THE STATE AUTHORITY
17A. Establishment of Land Acquisition Compensation Disputes Settlement Authority.--
(1) The State Government shall, for the purpose of providing speedy disposal of disputes relating to land acquisition compensation, establish, by notification in the Official Gazette, an Authority for the State to be known as the (name of the State) Land Acquisition Compensation Disputes Settlement Authority to exercise the jurisdiction, powers and authority conferred on it by or under this Act with regard to acquisition of land by the State Government:
Provided that a State Government may constitute more than one Authority or the benches thereof, for the purposes of this Act, if considers necessary.
(2) The head office of the Authority shall be at such place as the State Government may, by notification, specify.
(3) The Authority shall consist of not more than three but not less than two Members, including the Chairperson to be appointed by the State Government.
(4) The Members of the Authority shall be persons of ability, integrity and standing who have adequate knowledge of, and have shown capacity in, dealing with the problems relating to land acquisition matters, public administration, finance, economics and law.
(5) A person shall not be qualified to be a Member of the Authority unless he is or has been--
(i) a judge of a district court;
(ii) an officer of the State Government not below the rank of District Collector;
(iii) an officer of the State Government in the Law Department not below the rank of Director.
(6) The Members of the Authority shall not hold any other office.
(7) The Authority shall ensure transparency while exercising its powers and discharging its functions.
17B. Term of office and conditions of service of Members.--
(1) A Member shall hold office for a term of five years from the date he enters upon his office:
Provided that the Member shall not be eligible for re-appointment in the same capacity in that Authority in which he had earlier held the office:
Provided further that no Member shall hold office as such after he has attained the age of sixty-seven years.
(2) A Member of the Authority may, by notice in writing under his hand addressed to the State Government, resign his office:
Provided that the Member shall, unless he is permitted by the State Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.
(3) The salary, allowances and other terms and conditions of service of the Members shall be such as may be prescribed by the State Government:
Provided that the salary, allowances and other terms and conditions of service of the Members, shall not be varied to their disadvantage after appointment.
17C. Removal of Member.--
(1) No Member shall be removed from office except in accordance with the provisions of this section.
(2) The State Government may by order remove from office any Member, if lie-
(a) has been adjudged an insolvent;
(b) has been convicted of an offence which, in the opinion of the State Government, involves moral turpitude;
(c) has become physically or mentally incapable of acting as a Member;
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member;
(e) has so abused his position as to render his continuance in office prejudicial to the public interest; or
(f) has been guilty of proved misbehaviour.
(3) No person shall be removed under this section until that person has been given an opportunity of being heard in the matter.
17D. Officers and employees of Authority.--
(1) The State Government may specify the numbers, nature and categories of the officers and employees of the Authority.
(2) The salaries and allowances payable to, and other terms and conditions of service of, the officers and employees of the Authority shall be such as may be prescribed by the State Government.
17E. Proceedings of Authority.--
The Authority shall have its sittings at the head office or any other place and at such time as the Chairperson may direct, and shall observe such rules of procedure in regard to the transaction of business in its sittings as it may specify.
17F. Filling of a casual vacancy.--
A casual vacancy in the office of a Member of the Authority shall be filled by the State Government, by notification in the Official Gazette, as soon as may be, after the occurrence of the vacancy.
17G. Powers of Authority.--
(1) The Authority shall, for the purposes of the settlement of disputes relating to land acquisition compensation under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:--
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) discovery and production of any document or other material object producible as evidence;
(c) receiving evidence on affidavits;
(d) requisitioning of any public record;
(e) issuing commission for the examination of witnesses;
(f) reviewing its decisions, directions and orders;
(g) any other matter which may be prescribed;
(2) The Authority shall have the powers to pass such interim order in any proceeding, hearing or matter before it as it may consider appropriate.
17H. Proceedings before Authority.--
All proceedings before the Authority shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code and the Authority shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973.(2 of 1974)
17-I. Speedy disposal of disputes by Authority.--
The applications relating to settlement of land acquisition compensation under this Act, shall be decided by the Authority as expeditiously as possible and endeavour shall be made by it to dispose of the disputes finally within a period of six months from the date of receipt of the reference under section 18.
17J. Members and officers of Authority to be public servants.--
The Members and officers of the Authority shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.
17K. Jurisdiction of civil courts barred.--
No civil court shall have jurisdiction to entertain any dispute relating to land acquisition in respect of which the Collector or the Authority is empowered by or under this Act, and no injunction shall be granted by any court in respect of any such matter.
PART IIB
ESTABLISHMENT OF THE AUTHORITY FOR THE CENTRE
17L. Establishment of Land Acquisition Compensation Disputes Settlement Authority for the Centre.--
(1) The Central Government may, for the purpose of providing speedy disposal of disputes relating to land acquisition compensation, by notification, establish one or more Authority to be known as the Land Acquisition Compensation Disputes Settlement Authority for the Centre to exercise jurisdiction, powers and authority conferred on it by or under this Act with regard to the acquisition of land by the Central Government.
(2) The Central Government shall specify in the notification referred to in sub section (1) the matters and places in relation to which the Authority for the Centre may exercise jurisdiction.
(3) The Authority for the Centre shall consist of a Chairperson and not less than two Members to be appointed by the Central Government.
(4) A person shall not be qualified to be a Member of the Authority for the Centre unless he,--
(i) is or has been a Judge of a High Court; or
(ii) has for at least fifteen years held any Legislative or Legal post of the Union and a post in the Grade II of the Indian Legal Service for at least three years; or
(iii) a person who is or has been a member of the Indian Administrative Service having sufficient knowledge of land acquisition and has held the post of Collector of a district and a post equivalent to a Joint Secretary in the Government of India:
Provided that no appointment of a sitting Judge under clause (i) shall be made except after consultation with the Chief Justice of the High Court concerned.
(5) The Authority for the Centre will have a Secretariat consisting a Secretary-General and such other staff as may be decided by the Central Government.
17M. Application of certain provisions relating to Authority for compensation disputes settlement to Authority for the Centre.--
The provisions of sections 17B, 17C, 17D, 17E, 17F, 17G, 17H ,17-I, 17J and 17K shall apply to the Authority for the Centre and shall have effect, subject to the following modifications, namely:--
(a) references to "Authority" shall be construed as references to "Authority for the Centre";
(b) references to "State Government" shall be construed as references to "Central Government";
(c) for the reference "any Member" in sub-section (2) of section 17C, the reference "any Member except a sitting Judge of a High Court" shall be substituted.'.
18. Amendment of section 18.--
In section 18 of the principal Act,--
(i) in sub-section (1), the following provisos shall be inserted, at the end, namely:--
"Provided that the Collector shall, within a period of fifteen days from the date of receipt of application, make a reference to the Authority for the Centre, or as the case may be, the Authority;
Provided further that where the Collector fails to make such reference within the period so specified, the applicant may apply to the Authority for the Centre, or as the case may be, the Authority, requesting it to direct the Collector to make the reference to it within a period of thirty days.";
(ii) in sub-section (2), after the proviso, the following proviso shall be inserted, namely:--
"Provided further that the Collector may entertain an application after the expiry of the said period, within a further period of one year, if he is satisfied that there was sufficient cause for not filing it within the period specified in the first proviso.".
19. Amendment of section 23.--
In section 23 of the principal Act,--
(i) in sub-section (1), in item "first", after the words "market value of the land", the words, figures and letter "in terms of section 11B" shall be inserted;
(ii) in sub-section (2), for the words "a sum of thirty per centum on such market-value", the words "a sum of sixty per centum on such market-value" shall be substituted.
20. Insertion of new section after section 28A.--
After section 28A of the principal Act, the following section shall be inserted, namely:--
"28B. Determination of amount of compensation in pending or unsettled cases.-- Where an award is pending or remains unsettled at any stage under the Act, prior to the coming into force of the Land Acquisition (Amendment) Act, 2007, then the amount of compensation payable to the entitled person may be determined on the basis of section 11B as inserted by the said Act.".
21.Omission of Part VII.--
Part VII of the principal Act relating to "Acquisition of Land for Companies" and sections 38 to 44B (both inclusive) shall be omitted.
22. Insertion of new sections 54A and 54B.--
After section 54 of the principal Act, the following sections shall be inserted, namely:--
"54A. Utilisation of land for the purpose it is acquired.-- (1) The land acquired under this Act shall not be transferred to any other purpose except for a public purpose, and after obtaining the prior approval of the appropriate Government,
(2) When any land or part thereof, acquired under this Act remains unutilised for a period of five years from the date of taking over the possession, the same shall return to the appropriate Government by reversion.
54B. Sharing with landowners the difference in price of a land when transferred for a higher consideration.-- Whenever any land acquired under this Act is transferred to any person for a consideration, eighty per cent, of the difference in the acquisition cost and the consideration received, which in no case shall be less than the acquisition cost, shall be shared amongst the persons from whom the lands were acquired or their heirs, in proportion to the value at which the lands were acquired, and for the purpose, a separate fund may be maintained which shall be administered by the Collector in such manner as may be prescribed.".
23. Amendment of section 55.--
In section 55 of the principal Act, in sub-section (1),--
(i) the first proviso shall be omitted;
(ii) in the second proviso, for the words "Provided further that", the words "Provided that" shall be substituted;
(iii) in the third proviso, for the words "Provided also", the words "Provided further" shall be substituted.