Salient Features Of Laws Governing Land Acquisition


Posted On : March 16, 2022
Salient Features Of Laws Governing Land Acquisition
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Land Acquisition Laws

Land Acquisition in India is a matter of theory but in practice, it is not an easy deal for most of the landowners. So far as Land acquisition in Maharashtra is concerned, it apparently seem to be a very easy and affordable deal for the landowners when their land is declared to be required by the government. there are certain acts which governs these acquisition proceedings. these acts include, ULC Act (Repealed on 29/11/07), Land Acquisition Act, 1894 (Repealed), MIDC Act, NIT Act, MRTP Act, NHAI Act, MLR Code, etc. Recently, by the repeal of central act, LA Act, the new act named Right to Fair Compensation Act came to be introduced by the government.

 Major Acts governing Land Acquisitions are described as under:


1. Urban Land Ceiling Act ( repealed w.e.f. 29/11/07)

  Salient Features of the Act :

  • Imposition of Ceiling on both ownership and possession of vacant land in urban agglomerations.
  • Acquisition of surplus vacant land.
  • payment of compensation to the landowners for such acquisition.
  • grant of exemption in respect of certain categories of vacant lands.
  • regulating transfer of vacant land within a ceiling limit, etc.

Main shortcoming of the said act was Vesting of wide discretionary powers in the state government in granting exemption. it not only led to corruption but also caused unnecessary harassment to people. Therefore, as it was not helpful to achieve its main objective, the act came to be repealed and ULC (Repeal) Act came to be in force. 


2. Land Acquisition Act, 1894 ( Repealed w.e.f. 01/01/14) by Right to Fair Compensation and Transparency in Land Acquisition, rehabilitation and resettlement act, 2013

  Salient Features and Major Differences between both the Acts:  

  • the Purpose of 1894 Act was mainly acquisition of land. on the other hand, the title clause of Act of 2013 reflects its objective as Fair Compensation, resettlement and rehabilitation along with acquisition of land. therefore, the new Act of 2013 is wider in its perspective than that of Old law of 1894.
  • there were forced acquisitions under the old act. however, under new act, the government has ensured that no forcible acquisitions can take place. 
  • No real appeal mechanism was prescribed under the old act. New Act of 2013 provides for multiple checks and balances.
  • compensation which was awarded to the land owners was very meagre and was not even equal to the prevailing market rate. the new act of 2013, on the contrary, provides for payment of compensation four times the actual market value in rural areas and twice the market rate in urban areas.

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3. Maharashtra Industrial Development Act, 1961

Salient Features of the Act:

  • The main purpose of this Act is to secure orderly establishment in industrial areas and industrial estates of industries in State of Maharashtra and to establish Industrial Development Corporation for carrying out that purpose. 
  • Acquisition of land for the purposes of carrying out functions of said corporation or for fulfilling any purpose as prescribed under the Act.
  • Any person who is aggrieved by the awarded compensation by the collector, may within a period of 60 days apply to the collector for referring the matter to the court for determination of compensation under the land acquisition act.
  • As per Section 32 (4), when a notice under Section 32(1) for acquiring land is published in the official gazette, the land stands vested in the government free from all encumbrances from the date of publication.  

4. Nagpur Improvement Trust Act, 1936

Salient Features of the Act:

  • The Main purpose of this Act is to do improvements and expansion of the Nagpur District and to establish Nagpur Improvement Trust for performing such duties by exercising such powers as prescribed under the Act.
  • Framing of Improvement Scheme under the Act.
  • implementation of Sanctioned Scheme under the Act.
  • Trust may enter into an agreement with the landowners residing in the area of sanctioned scheme.
  • Provision for compulsory acquisition.
  • Modified Provisions of land acquisition act are applicable for the purposes of acquisition and compensation. 


5. Maharashtra Regional & Town Planning Act , 1966

           Salient Features of the Act:

  • The main purpose of this act to make provision for planning the development and use of lands in regions established for that purpose and for the constitution of regional planning boards to make better provisions for preparation of development plans with a view to ensure proper town planning schemes.
  • Chapter VII of the MRTP Act provides for acquisition of land required for public purposes. Section 125 provides that any land required, reserved or designated in a regional plan, development plan or town planning scheme for a public purpose or purposes including plans for any area of comprehensive development or for any new town shall be deemed to be land needed for a public purpose within the meaning of the LA Act. This is further made clear by the provisions of Section 126. As per section 126(1) of the M.R.T.P. Act of 1966 whenever land is required or reserved for a public purpose specified in the plan, then the appropriate authority can acquire the land either by an agreement or by making an application to the State Government for acquiring the land under Land Acquisition Act, 1894.
  • However, In the scheme of the MRTP Act there is no need for publication of a fresh notification under Section 4(1),and giving an opportunity of hearing contemplated under Section 5-A of the LA Act because under Section 126, a planning authority or a development authority can only acquire land which is already specified or reserved for a public purpose in any draft regional plan, a development plan or any other plan or town planning scheme already prepared.  a detailed procedure to that effect has been contemplated by Sections 16, 17, 21, 22, 23, 26, 28, 29 and 31, or 115, as the case may be, of the MRTP Act leading to the State Government arriving at the satisfaction under Section 126(2) that the land specified in the application made under sub-section (1) thereof is needed for a public purpose.
  • Thus, though the MRTP Act contains a complete procedure for preparation of development plan and the holding of an inquiry before specifying the user and public purpose of land included in the plan, it does not contain any independent machinery or provisions for acquisition of land.
  • The legislature has, therefore, adopted the provisions of the LA Act by reference for the purpose of acquisition of land under Section 126 of the MRTP Act. 
  • The only difference in acquisition of land initiated via the MRTP Act vis-a-vis the LA Act is that, in the MRTP Act, the legislature has done away with the requirement of publication of the notification under Section 4, and holding an inquiry under Section 5-A of the LA Act for the obvious reason that this requirement has been sufficiently taken care of by the analogous provisions in Sections 16, 17, 23, 26, 28, 29, or 115, as the case may be, and Section 31 of the MRTP Act read with sub-section (3) of Section 126. However, except for the provisions of Section 126(1) under which a planning authority could apply to the State Government to acquire a land, sub-sections (3) and (4) thereof for determining the relevant date for valuation of the land, and Section 129 under which a planning authority could apply to the State Government for taking possession of the land in case of urgency, the MRTP Act does not have any of the provisions required for taking the gamut of proceedings for acquisition of land e.g. for holding an enquiry for determining the area and the value of the land, and the apportionment of the compensation among the interested persons, for reference from the award made by the Collector and the guidelines to be followed by the Collector for determining the market value, payment of interest on the market value and solatium etc. 
  • As such, once the declaration is made by the State Government under Section 6 of the LA Act read with Section 126(2) of the MRTP Act the provisions of the LA Act, mutatis mutandis, shall apply to such acquisition. In this respect, therefore, the LA Act is supplemental to the MRTP Act because unless the LA Act supplements the MRTP Act, the latter cannot function insofar as acquisition of land reserved for public purpose in a plan is concerned. It is, therefore, clear that the MRTP Act cannot be construed to be a complete code for acquisition of land.

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6. The National Highways Authority of India Act, 1988

The National Highways Act, 1956 is used to acquire land, which is required for the building, maintenance, management or operation of a National Highway. The Act was enacted for the declaration of certain highways to be national highways and for other supplementary matters connected to this process. The Act in addition to other matter broadly deals with (1) acquisition of land (2) taking over possession of land (3) assessment of compensation and (4) payment of compensation. 

The various stages in the procedure of acquisition are enumerated below to have a clear understanding of the processes involved under the Act:

-      The Central Government stating that a particular land is needed for a ‘public purpose’ issues a preliminary notification also known as the ‘intention notification’.

-      After the publication of the intention notification, the act provides that any ‘person interested’ in any land, may within 21 days from the date of publication of the notification, object to the acquisition of the land.

-      A ‘person interested’ is not defined under the Act but it is defined in Land Acquisition Act, 1894 to mean a person who is interested in land and is entitled to claim an interest in compensation if the land is acquired under the Act. It also includes a person who is a holder of an easement that is going to be acquired. 

-      The objections are given in writing to the ‘competent authority’ that is required to give the objector an opportunity of being heard. 

-      After hearing the objections SLAO has to decide the objections and record the reasons for the decision. The decision of the ‘competent authority’ on these objections is final. 

-      After the objections are decided, the central Government makes a formal declaration of the intended acquisition. 

-      The declaration is to be published within a period of one year from the date of the intention notification. On declaration, the land vests with the Central Government. 

-      After land is vested in the government, any person can enter the land to carry out various operations connected with the national highway. 

-      The SLAO is required to publish notice to the ‘persons interested’ to submit their claim for compensation. The ‘person interested’ submits its claim on the nature of interest in the land and the compensation payable for the acquired land. 

-      The SLAO has to determine the amount of compensation payable to a person whose easementary right has been acquired or affected. 

-      It is computed at 10% of the amount of compensation determined for that land. The compensation determined by the SLAO comprises of the market value of the acquired land on the date of intention notification, severance charge for the damage sustained while acquiring a part of the land, damages sustained on account of the acquisition affecting the earnings of the person and expenses for shifting of residence or place of business on account of acquisition. 

-      After conducting the inquiry, the SLAO announces the award containing particulars on the compensation payable to ‘persons interested’ and its apportionment among the various claimants. 

-      If the compensation determined by the SLAO is not acceptable, the matter is then referred to an arbitrator for deciding on the compensation. 

-      The arbitrator is appointed by the Central Government. The act does not provide for any time limit for appointment of the arbitrator. The proceedings before the arbitrator are regulated as per the Arbitration and Conciliation Act, 1996. 

-      The advantage of the proceeding under the Arbitration and Conciliation Act, 1996 is that the award can only be challenged on the grounds specified in the act. If the amount of compensation determined by the arbitrator is more than what was awarded by ‘competent authority’ then interest of 9% is payable on the difference from the date, possession was taken on declaration to the date of actual deposit. 

-      The ‘competent authority’ can take possession of the land after determination and deposit of compensation for the acquired land. A notice for a period of 60 days is given to the ‘person interested’ to hand over the possession of land to the ‘competent authority’. 

-      The Central government has to deposit the compensation within a period of seven days of determination of the compensation by ‘competent authority’ and the arbitrator. 

-      In the event of a dispute as to the person entitled to receive the compensation or apportionment among various persons, the matter is referred by the SLAO to the civil court for a decision. There is an express prohibition on the application of Land Acquisition Act, 1894 to an acquisition under the present act. 


7. Maharashtra Land Revenue Code, 1966

Main Objective of Land Revenue Administration is:

1.   to assess and collect of land revenue, collection of local cess on behalf of local bodies, collection of court fees, recovery of loans and advances, other dues of various departments, and all other dues recoverable as arrears of land revenue,

2.  to Prepare and maintain "Land Records" related to revenue accounts,

3.  to exercise the statutory powers endowed under the Maharashtra Land Revenue Code, 1966, the Mamlatdar Courts Act, the Land Acquisition Act, 1894 and various other land reform enactments. 

Thus, in simple words, the main principle behind land acquisition is that Government acquires land of an individual for the purposes of using it for public purpose and in return, grants compensation as per the procedures prescribed in the Acts under which the land was decided to be acquired by the government.


 

Written By:
KETKI  JALTARE

KETKI JALTARE


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