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How the Right to Fair Compensation Act of 1894 Improved Land Acquisition in India

Footpath at Stretton, looking to new housing at Henbury Gardens

The Land Acquisition Act 1894

Contents

  1. Origin and history
  2. Important Sections
  3. Case laws
  4. Comparison with right to fair compensation and transparency in land acquisition, Rehabilitation, and resettlement Act of 2013
  5. Conclusion between 1894 Act and 2013 Act.

The land acquisition act of 1894 is a significant legislation in India that governs the process of land acquisition by the government for public purposes. This act was enacted during the British colonial rule and has undergone several amendments over the years to address the changing needs of the country.

  1. Origin and History:-

The land acquisition act of 1894 was introduced by the British Government to facilitate the acquisition of land for various public purposes such as infrastructure development, industrialization, and urbanization. The act provided a legal framwork for the government to acquire land from private individuals or communities in exchange for fair compensation.

The act was primarily influenced by the British Land Clauses Consolidation Act of 1845, which aimed to streamline the process of land acquisition in England. The British government adapted and modified this act to suit the Indian context, taking into account the diverse land ownership patterns and cultural sensitivities prevalent in the country.

  1. Important Sections:-

The Land Acquisition Act of 1894 consists of several important sections that outline the procedures and principles for land Acquisition. Some of the key sections include:-

  1. Section 4:- This section empowers the government to issue a notification declaring its intention to acquire land for a specific public purpose. The notification is published in the official gazette and serves as a notice to the landowners and other interested parties.
  2. Section 5:- This section allows interested parties to file objections against the proposed acquisition within a specified time frame. The objections are then considered by the government before proceeding with the acquisition process.
  3. Section 23:- this section deals with the determination of compensation for the acquired land. It states that the compensation should be based on the market value of the land at the time of the notification, along with additional factors such as the value of standing crop, trees, and structures.
  4. Section 24:- This section provides for the payment of interim compensation to the landowners during the pendency of the acquisition proceeding. It ensures that the landowners are not left financially disadvantaged during the lengthy acquisition process.
  5. Section 31:- this section outlines the procedure for taking possession of the acquired land. It specifies that the government can take possession only after compensating the landowners and providing them with a reasonable opportunity to be heard.
  6. Case laws:-
  7. Indore Development Authority vs. Manoharlal & Ors. (2020): in this case, the Hon’ble Supreme Court held that the acquisition of land under the Land Acquisition Act 1894 cannot be challenged on the ground of delay in taking possession if the compensation has been paid to the landowners.
  8. Pune Municipal Corporation vs. Harakchand Misirimal Solanki (2020): The Hon’ble Supreme Court held that the acquisition of land for public purposes cannot be challenged merely on the ground that the land was subsequently used for a different public purpose.
  9. State of Haryana vs. Gopi Chand (2019): the Hon’ble Supreme court held that the acquisition of land under the Land Acquisition Act, 1894 cannot be challenged on the ground of delay in filing objections by the landowners.
  10. State of Punjab vs. Manpreet Singh (2018): The Hon’ble Supreme Court held that the Acquisition of land under the Land Acquisition Act, 1894 cannot be challenged on the ground of procedural irregularities if the landowners have accepted the compensation.
  11. State of Kerala vs. K. Bhaskaran (2017): the Hon’ble Supreme Court held that the acquisition of land under the Land Acquisition Act, 1894 cannot be challenged on the ground of delay in filing objections if the landowners have accepted the compensation.
  12. Comparison with right to Fair compensation and transparency in land acquisition, Rehabilitation, and Resettlement Act of 2013:-

The Land Acquisition Act of 1894 and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013 are both laws related to land acquisition in India. However, there are significant differences between the two acts.

  1. Purpose: The Land Acquisition Act of 1894 was primarily focused on the acquisition of land by the government for public purposes or for companies. The Right to Fair Compensation and transparency in land acquisition, Rehabilitation, and resettlement Act of 2013, on the other hand, aimed to provide fair compensation, rehabilitation, and resettlement to those affected by land acquisition, and to ensure transparency in the process.
  2. Compensation: the 1894 Act provided for compensation based on the market value of the land at the time of acquisition. The 2013 Act expanded the scope of compensation and introduced the concept of “Solatium”, which is an additional amount to be paid to the affected parties. It also mandated the payment of rehabilitation and resettlement benefits to those displaced by the acquisition.
  3. Consent: the 1894 Act did not require the consent of the Landowners for acquisition. However, the 2013 Act introduced the requirement of obtaining the consent of at least 70% of the affected landowners for a acquisition by private companies, and the consent of 80% of the affected landowners for acquisition by public-private partnership projects.
  4. Social Impact Assessment: the 2013 Act made it mandatory to conduct a Social Impact (SIA) to determine the potential social, economic, and environmental impacts of the proposed acquisition. The 1894 Act did not have such a provision.
  5. Rehabilitation and Resettlement: the 1894 Act did not have specific provisions for the rehabilitation and resettlement of those affected by land acquisition. The 2013 Act, however, made it mandatory to provide rehabilitation and resettlement benefits, including land for land, to those displaced by the acquisition.
  6. Transparency and Grievance Redressal: the 2013 Act introduced provisions for transparency in the land acquisition process, including the requirement to hold public hearings and disclose relevant information. It also established a grievance redressal mechanism for those affected by the acquisition. The 1894 Act did not have such provisions.
  7. Conclusion:-

Over the years, the Land Acquisition Act of 1894 has faced criticism for its perceived shortcomings, including inadequate compensation and insufficient safeguards for the rights of landowners. As a result, the act has been amended being the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act of 2013.

In conclusion, the Land Acquisition has a rich history and has played a crucial role in facilitating land acquisition for public purposes. While it has undergone amendments to address its limitations, the act continues to be an important legal framework for land acquisition in the country.

Overall, the Right to fair Compensation and transparency in land acquisition, Rehabilitation, and resettlement Act of 2013 aimed to address the shortcomings of the land Acquisition Act of 1894 by providing fair compensation, rehabilitation, and resettlement to those affected by land acquisition, and ensuring transparency in the process.

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