Right To Fair Compensation Act
Right To Fair Compensation Act
Right To Fair Compensation Act
• Causing least possible disturbance to the owners of the land and other
affected families
• Provide just and fair compensation to the affected families whose land has
been acquired or proposed to be acquired or are affected by such acquisition.
• Make adequate provisions for such affected persons for their rehabilitation
and resettlement – intertwined with acquisition.
• Ensuring that the cumulative outcome of compulsory acquisition should be
that affected persons become partners in development leading to an
improvement in their post-acquisition social and economic status.
•Sub section 2 - Provisions relating to – ACRR and consent – shall apply when
Appropriate Government acquires land for
• public private partnership projects, where the ownership of the land
continues to vest with the Government – for a public purpose.
• for a private company – for a public purpose
• Provided that in the case of acquisition for:
o private companies, the prior consent of at least eighty per
cent of those affected families
o public private partnership projects, the prior consent of at
least seventy per cent. of those affected families
o shall be obtained through a process as may be prescribed by
the appropriate Government:
• The process of obtaining the consent shall be carried out along with
the Social Impact Assessment study.
• No land shall be transferred by way of acquisition, in the Scheduled
Areas in contravention of any law relating to land transfer, prevailing
in such Scheduled Areas.
• Some Definitions:
• Public Purpose – means the activities specified under sub-section (1) of Section 2;
• Market Value - means the value of land determined in accordance with Section 26
• Affected area - means such area as may be notified by the appropriate Government
for the purposes of land acquisition.
• Private Entity - means any entity other than a Government entity or undertaking
and includes a proprietorship, partnership, company, corporation, non-profit
organisation, or other entity under any law for the time being in force.
• an area where the affected families who have been displaced as a result of
land acquisition are resettled by the appropriate Government;
• SIA to take into account - Consider the impact that the project is likely to
have on various components, for instance:
• Livelihood of affected families –
• Assets and infrastructure particularly roads - public transport,
drainage, sanitation, sources of drinking water, sources of water for
cattle- community ponds, grazing land, plantations.
• Public utilities such as post offices, fair price shops, food storage
godowns, electricity supply, health care facilities, schools and
educational or training facilities, children parks, places of worship,
burial, and cremation grounds
• List the ameliorative measures required to be undertaken for
addressing the impact for a specific component - from those
mentioned above – Social Impact Management Plan.
• Only the minimum area of land required for the project is proposed to be
acquired.
• There is no unutilised land which has been previously acquired in the area.
• The land, if any, acquired earlier and remained unutilised, is used for such
public purpose, and make recommendations in respect thereof.
• It includes:
• a list of Government buildings to be provided in the Resettlement Area
• details of the public amenities and infrastructural facilities which are to be
provided in the Resettlement Area – include the timelines for scheme
implementation.
• To be given wide publicity in the affected area – public hearing – submit
the scheme along with his report on the claims and objections raised in the
Public hearing to the Collector.
• Section 22. Collectors power to require and enforce the making of statements as to
names and interests – may require statements to be made – person possessing an
interest in the land – tenant / mortgagee - Discuss – implications:
• Legally bound to do so within the meaning of sections 175 and 176 of the
IPC
• Section 24: Sub Section 1 - Land acquisition process under Act No. 1 of 1894
shall be deemed to have lapsed in certain cases:
• Notwithstanding anything contained in this Act - in any case of land
acquisition proceedings initiated under the Land Acquisition Act, 1894,
• (a) where no award has been made - under section 11 of the said Land
Acquisition Act - then all provisions of this Act relating to the determination
of compensation shall apply; or
• (b) where an award has been made - under said section 11 (1894 Act) - then
such proceedings shall continue under the provisions of the said Land
Acquisition Act, as if the said Act has not been repealed.
•Case Law -Pune Municipal Corporation & Anr v Harakchand Misrimal Solanki &
Ors
• Discuss Facts / Issues / Contentions - Judgement
• Explaining what amounts to payment of compensation:
• The compensation may be said to have been “paid” within the meaning of
Section 24(2) when the Collector (or for that matter Land Acquisition
Officer) has discharged his obligation and deposited the amount of
compensation in court / made that amount available to the interested person.
• The 1894 Act - being an expropriatory legislation - the procedure, mode,
and manner for payment of compensation are prescribed has to be strictly
followed.
• where a power is given to do a certain thing in a certain way, the thing
must be done in that way or not at all.
• WRT case:
• Since the 1894 Act provided for payment of compensation to interested
persons or deposit of compensation in the designated Court - Other methods
of performance are necessarily forbidden.
• It is clear that the award pertaining to the subject land has been made more
than five years prior to the commencement of the 2013 Act.
• The compensation so awarded has neither been paid to the
landowners/persons interested nor deposited in the court. The deposit of
compensation amount in the government treasury is of no avail and cannot
be held to be equivalent to compensation paid to the landowners/persons
interested.
• Land acquisition deemed to have lapsed as mandated by section 24.
• The aftermath:
•Pune Municipal Corporation & Anr v Harakchand Misrimal Solanki & Ors-
was a 3 Judge Bench.
• In another case - Indore Development Authority v Shailendra - a Bench of
three Judges was of the view that the judgment in Pune Municipal
Corporation judgement did not consider several aspects relating to the
interpretation of Section 24 of the Act of 2013 – 2 judges opined prima facie
that decision appeared to be per incuriam.
• In yet another case - Indore Development Authority v Shyam Verma & Ors
- considered it appropriate to refer the matter to Hon’ble the Chief Justice of
India to refer the issues to be resolved by a larger Bench at the earliest – The
main contention - Compensation paid / “or” – should it be disjunctive or
conjunctive – should it be read as “and.” – Parliament divesting the State of
its Title - could that have been the legislative intent?
• This question answered in …..
• Case Law - Indore Development Authority v. Manoharlal and Others
• The word ‘or’ used in Section 24(2) between possession and compensation
has to be read as ‘nor’ or as ‘and’. The deemed lapse of land acquisition
proceedings under Section 24(2) of the Act of 2013 takes place where due to
inaction of authorities for five years or more prior to commencement of the
said Act, the possession of land has not been taken nor compensation has
been paid. In other words, in case possession has been taken, compensation
has not been paid then there is no lapse. Similarly, if compensation has been
paid, possession has not been taken then there is no lapse.
• The provisions of Section 24(2) providing for a deemed lapse of
proceedings are applicable in case authorities have failed due to their
inaction to take possession and pay compensation for five years or more
before the Act of 2013 came into force.
Section 34 - Adjournment of enquiry –The Collector may, for any cause he thinks
fit, from time to time adjourn the enquiry to a day to be fixed by him.
• Section 75 – Apportionment:
• When there are several persons interested - if such persons agree in the
apportionment of the compensation - the particulars of such
apportionment shall be specified in the award - and as between such
persons the award shall be conclusive evidence of the correctness of the
apportionment.
• Section 76 – Disputes with regards to Apportionment:
• When the amount of compensation has been settled, if any dispute arises
as to the apportionment of the same or any part thereof - the Collector
may refer such disputes to the Authority.
• Case Law - Kedarnath Yadav v State of West Bengal and others – The Singur
Case.