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General Studies 2 >> Governance

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LAND ACQUISITION ACT 2013

LAND ACQUISITION ACT 2013

 
 
 
1. Context
 
Farmers from Punjab have been camping at the Khanauri and Shambhu borders of Punjab and Haryana since February, demanding legal recognition for the Minimum Support Price (MSP) of crops, along with several other demands from the central government. One of their key demands is the implementation of the Land Acquisition Act of 2013.
 
2. Land Acquisition Act 2013
 
  • The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013, commonly referred to as the Land Acquisition Act, 2013, was introduced by the Central Government to replace the outdated Land Acquisition Act of 1894.

  • This Act provides a contemporary framework for land acquisition, ensuring equitable compensation and rehabilitation for affected families. Effective from January 1, 2014, with amendments introduced in 2015, it has faced criticism from protesting farmers who claim it is not being fully implemented as intended.

  • The Act's core features include fair compensation and consent requirements. Landowners are entitled to compensation amounting to twice the market value in urban areas and four times the market value in rural areas. Consent from 70% of affected families is necessary for Public-Private Partnership (PPP) projects, and 80% consent is required for private company acquisitions.

  • The acquisition of irrigated multi-cropped land is restricted within state-specified limits. If fertile land is acquired, the government is obligated to develop an equivalent area of wasteland for agriculture.

  • Individuals dissatisfied with an award under the Act may approach the Land Acquisition, Rehabilitation, and Resettlement (LARR) Authority for dispute resolution.

  • The Act mandates a Social Impact Assessment (SIA) to assess the social, environmental, and economic implications of land acquisition.

  • Rehabilitation and Resettlement (R&R) provisions under the Act include:
    📍 Housing for displaced families.
    📍 Financial aid for loss of livelihood.
    📍 Employment or annuity-based income for dependent families.
    📍 Infrastructure development in resettlement areas, including roads, schools, and healthcare facilities.

  • To prevent arbitrary acquisitions, the Act defines "public purpose," covering infrastructure projects, urbanization, and industrial corridors. If acquired land remains unused for five years, it must either be returned to the original owners or transferred to a land bank.

  • Certain projects, such as those related to defence, railways, and atomic energy, are exempt from the Act, but compensation and R&R provisions remain applicable. Transparency is promoted through public hearings and access to SIA reports, with additional benefits and consultation processes for Scheduled Castes (SCs) and Scheduled Tribes (STs)

 
 
 
Challenges in implementing the Landing Acquisition Act
 
Experts highlight several challenges that hinder the effective implementation of the Act. These include:
📍 Lengthy procedural requirements that frequently cause delays in acquiring land for development projects.
📍 High compensation costs that can create financial burdens for both public and private project budgets.
📍 The ongoing struggle to balance development objectives with the principles of social justice, which remains a sensitive and debated issue
 
 
3. Colonial Period and Land System
 

To strengthen their control in India, the British recognized the need to standardize the revenue collection system. They negotiated various agreements with different sections of the peasantry across regions. By the time of Independence, three primary forms of land tenure were in place: the zamindari system, the ryotwari system, and the mahalwari system.

  • Zamindari System:
    Under the zamindari system, land was owned by landlords who were solely responsible for paying land revenue. However, the actual cultivation was carried out by tenants under the control of absentee landlords. The system had two variations:
    (i) Permanent Settlement: Here, the revenue owed by landlords was fixed and unchangeable. Landlords supervised the land while tenants handled the cultivation and labor. This system was prevalent in regions like Bengal, Orissa, Banaras, and parts of Madras.
    (ii) Periodic Settlement: In this version, the revenue payable by landlords was revised periodically. It was implemented in areas such as the central provinces of Uttar Pradesh, Punjab, and the Central Provinces (C.P.).

  • Ryotwari System:
    In this system, the cultivators, known as ryots or peasant proprietors, owned and worked on the land. The state retained authority over the ryots, and land revenue was assessed for each individual holding, making the ryot directly responsible for payment. Revenue settlements under this system were temporary.
    The ryotwari system was introduced in 1792 by Captain Read and Thomas Munro in the Bara Mahal district. It was later expanded to regions like Bombay, Assam, and Bihar.

  • Mahalwari System:
    This system involved collective ownership of land by the village community, although individuals carried out the cultivation. The village community was tasked with collecting and paying revenue to the state.
    The Mahalwari system was primarily found in Punjab, Agra, and Awadh. Villages were divided into mahals, which were designated areas for the payment of land revenue

 
4. Court Rulings on Land Acquisition Act
 
  • The Supreme Court clarified that land acquisition proceedings initiated under the Land Acquisition Act of 1894 do not lapse if compensation has been tendered, even if possession has not been taken.
  • The ruling overruled earlier conflicting judgments and established that the mere delay in taking possession does not annul the acquisition process
  • The Court held that if compensation has not been paid or deposited with the landowner or a designated authority, the acquisition proceedings initiated under the 1894 Act would lapse
  • The Supreme Court reiterated that land acquisition proceedings do not lapse if the authorities demonstrate a genuine attempt to pay compensation, even if the landowner refuses to accept it.
  • The Court stated that compensation must be made available in a designated account if landowners are unavailable
  • The Supreme Court held that land acquisition for private entities must clearly serve a public purpose, and mere claims of economic development are insufficient
 
For Prelims: Key Provisions of the LARR Act, 2013, Ryotwari, Zamindari, and Mahalwari systems
For Mains: GS Paper II – Governance and Social Justice
 
Source: Indianexpress

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