Land Acquisition Act
Encyclopedia
The Land Acquisition Act of 1894 is a law in India
and Pakistan
that allows the government to acquire private land in those countries.
“Land Acquisition” literally means acquiring of land for some public purpose by government/government agency, as authorised by the law, from the individual landowner(s) after paying a government fixed compensation in lieu of losses incurred by land owner(s) due to surrendering of his/their land to the concerned government agency.
, health
or slum clearance, apart from the projects for rural
planning or formation of sites. The word "government" refers to the central government
if the purpose for acquisition is for the union and for all other purposes it refers to the state government
. It is not necessary that all the acquisition has to be initiated by the government alone. Local authorities, societies registered under the societies registration act
, 1860 and co-operative societies
established under the co-operative societies act can also acquire the land for developmental activities through the government.
I of the land acquisition act was first enacted by the British government
in the year 1824. Its application was throughout the whole of the Bengal provinces
immediately subject to the Presidency of Fort William. The rules empowered the government to acquire immovable property
at, what was deemed to be, a fair and reasonable price for construction of roads, canals or other public purposes. In 1850 some of the provisions of regulation I of 1824 were extended to Calcutta through Act I of 1850, with a view to confirm the land titles in Calcutta that were acquired for public purposes. At that time a railway network
was being developed and it was felt that legislation
was needed for acquiring land for the purposes of the railways. Building act XXVII of 1839 and act XX of 1852 were introduced to obviate the difficulties pertaining to the construction of public buildings in the cities of Bombay and Madras. Act VI of 1857 was the first full enactment, which had application to the whole of British India. It repealed all previous enactments relating to acquisition and its object. Subsequently act X of 1870 came in to effect which was further replaced by land acquisition act 1894, a completely self contained act, in order to purge some of the flaws of act X of 1870.
After independence
in 1947, the Indian government adopted “Land Acquisition Act-1894” as a tool for land acquisition. Since then various amendments have been made to the 1894 act from time to time. Despite these amendments the administrative procedures have remained same.
, as envisaged under section 4(1) of Land Acquisition Act, 1894. The notification has to be essentially published in the official gazette
and in two daily newspapers circulating in that locality of which at least one shall be in the regional language. Further, it is also necessary that the notification has to be affixed in conspicuous places of that locality.
. On completion of the enquiry, award will be passed to that effect and published by the competent authority. After passing the award, the Collector
or the Deputy Commissioner
shall send notice to the owners or their representatives who were not present personally at the time of passing of the Award.
Objections can also be raised against the measurement of the land, enhancement of compensation or apportionment of the compensation by filing a written application before the Deputy Commissioner, as provided under section 18 of the Act, requesting the authority to refer the matter to the court for determination of the grounds raised in the application. An application to that effect has to be filed by the person who was personally present when the award was passed, within six weeks from the date of the award passed by the Collector. In other cases, the application will have to be made within six weeks from the date of receipt of the notice issued under section 12(2) or within six months from the date of the award passed by Deputy Commissioner, whichever is earlier.
Judicial Interpretation of the word "Dispute" in the land acquisition proceedings—State of Madras Vs. B.V. Subramania Iyer AIR 1962 Mad. 313- The Word “Dispute”- Includes any controversy with regard to the title of a single claimant- The word ‘dispute’ has been used in a wide and not in a literal sense and implies any controversy at to title, whether as between the actual claimants, or as appearing from the documents made available by the government. It is obvious that when the government exercises its power of eminent domain and acquires property, Public funds have to be utilized for the payment of compensation to the true owner, and not merely to any claimant who cares to appear on the scene. The government has a special responsibility in this regard, and cannot later take refuge behind the pretext that the compensation was paid to the claimant who actually appeared wile others did not appeared. So long as that is the situation the acquiring officer has a right to make such a reference, even if a dispute or controversy as to the arises on the documents before him. He cannot be made liable for costs, and it is the party who has to bear the costs incurred in establishing the title, of the party to receive the compensation amount.
Status of the Tenant occupying the land to be acquired under Land Acquisition Act, 1894—M/s Indarprastha Ice and Cold Storage Ltd. Vs. Union of India AIR 1987 Del 171- Tenant is entitled to only a nominal compensation- Only a nominal portion of the compensation of the acquired land is to be paid to the tenant and substantial amount has to be taken by the landlord. The tenant is not entitled to 1/3 or 1/4 of the amount of compensation on the basis of judicial decisions relating to agricultural land on which the tenant had aright to purchase under Section 18 of the Punjab Security of Land Tenures Act. The tenant is only entitled to 1/8 share of the compensation
The government, under section 16 of the Act is at liberty to withdraw from acquisition of land except in cases provided under section 36. However, if the possession of land has been taken, then the government will have no authority to withdraw from such acquisition.
The procedure involved for acquisition of land for companies are dealt with under chapter VII of the act, which requires an agreement to be entered into by the company with the appropriate government and the same has to be published in the official gazette. The government cannot initiate acquisition proceedings without issuing proper notice to the owners in any of the prescribed mode of service provided under the act and provide them sufficient opportunity. If any of the provisions envisaged in the act is violated or mandatory procedures are not followed, then the entire acquisition proceedings would become void.
to landowners over the property value.
People who argue that the act is draconian claim that a number of projects with no public purpose attached, as in the case of SEZs, usurped land from property owners, with the help of the Land Acquisition Act, at what is claimed as, well below the market value of these properties. It is argued that, even in the case of projects that are genuinely for public purposes, there is a considerable difference between the market value of the property and the value that the land acquisition officer pays the land owners. It is also argued that the relocation and rehabilitation of land owners displaced by the actions of the act, is not followed up adequately, and that this is not covered comprehensively in the framework of the act. A notable instance of opposition to land acquisition, through the land acquisition act, is the Nandigram violence
incident.
It is for this reason that government has proposed further amendments in the Act to strict define the purposes for which land could be acquired. If the Amendments get through, the provisions of the Act could be invoked only in limited conditions.There are some suggestion by various commission in different states, to provide rehabilitation for whom evicted from their own land. The land acquisition (kerala amendment) bill proposed by Justice V.R Krishna Iyer Committee submitted on 26 January 2009 is an example. It is in the consideration of Kerala Government till the date.
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
that allows the government to acquire private land in those countries.
“Land Acquisition” literally means acquiring of land for some public purpose by government/government agency, as authorised by the law, from the individual landowner(s) after paying a government fixed compensation in lieu of losses incurred by land owner(s) due to surrendering of his/their land to the concerned government agency.
Purpose of Land Acquisition Act
The land acquisition act of 1894 was created with the expressed purpose of facilitating the government’s acquisition of privately held land for public purposes. The word "public purpose", as defined in the act, refers to the acquisition of land for putting up educational institutions or schemes such as housingPublic housing
Public housing is a form of housing tenure in which the property is owned by a government authority, which may be central or local. Social housing is an umbrella term referring to rental housing which may be owned and managed by the state, by non-profit organizations, or by a combination of the...
, health
Health care
Health care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...
or slum clearance, apart from the projects for rural
Rural
Rural areas or the country or countryside are areas that are not urbanized, though when large areas are described, country towns and smaller cities will be included. They have a low population density, and typically much of the land is devoted to agriculture...
planning or formation of sites. The word "government" refers to the central government
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...
if the purpose for acquisition is for the union and for all other purposes it refers to the state government
States and territories of India
India is a federal union of states comprising twenty-eight states and seven union territories. The states and territories are further subdivided into districts and so on.-List of states and territories:...
. It is not necessary that all the acquisition has to be initiated by the government alone. Local authorities, societies registered under the societies registration act
Indian Societies Registration Act
The Indian Societies Registration Act of 1860 was enacted under the British Raj in India. It provided for the registration of literary, scientific and charitable societies....
, 1860 and co-operative societies
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
established under the co-operative societies act can also acquire the land for developmental activities through the government.
History of Land Acquisition Act
RegulationRegulation
Regulation is administrative legislation that constitutes or constrains rights and allocates responsibilities. It can be distinguished from primary legislation on the one hand and judge-made law on the other...
I of the land acquisition act was first enacted by the British government
British Raj
British Raj was the British rule in the Indian subcontinent between 1858 and 1947; The term can also refer to the period of dominion...
in the year 1824. Its application was throughout the whole of the Bengal provinces
Bengal Presidency
The Bengal Presidency originally comprising east and west Bengal, was a colonial region of the British Empire in South-Asia and beyond it. It comprised areas which are now within Bangladesh, and the present day Indian States of West Bengal, Assam, Bihar, Meghalaya, Orissa and Tripura.Penang and...
immediately subject to the Presidency of Fort William. The rules empowered the government to acquire immovable property
Immovable property
Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it - property that is fixed to the Earth, such as land or a house. In the United States it is also commercially and legally known as real estate and in Britain as property...
at, what was deemed to be, a fair and reasonable price for construction of roads, canals or other public purposes. In 1850 some of the provisions of regulation I of 1824 were extended to Calcutta through Act I of 1850, with a view to confirm the land titles in Calcutta that were acquired for public purposes. At that time a railway network
Indian Railways
Indian Railways , abbreviated as IR , is a departmental undertaking of Government of India, which owns and operates most of India's rail transport. It is overseen by the Ministry of Railways of the Government of India....
was being developed and it was felt that legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
was needed for acquiring land for the purposes of the railways. Building act XXVII of 1839 and act XX of 1852 were introduced to obviate the difficulties pertaining to the construction of public buildings in the cities of Bombay and Madras. Act VI of 1857 was the first full enactment, which had application to the whole of British India. It repealed all previous enactments relating to acquisition and its object. Subsequently act X of 1870 came in to effect which was further replaced by land acquisition act 1894, a completely self contained act, in order to purge some of the flaws of act X of 1870.
After independence
Independence
Independence is a condition of a nation, country, or state in which its residents and population, or some portion thereof, exercise self-government, and usually sovereignty, over its territory....
in 1947, the Indian government adopted “Land Acquisition Act-1894” as a tool for land acquisition. Since then various amendments have been made to the 1894 act from time to time. Despite these amendments the administrative procedures have remained same.
Notification
The process of acquisition begins with the issuance of preliminary notificationPreliminary Notice
In Mechanics lien law a Preliminary Notice is a notice sent by the contractor, subcontractor, materialmen, equipment lessors or other parties to a construction project not to create a Mechanics lien but rather to establish a right to file a...
, as envisaged under section 4(1) of Land Acquisition Act, 1894. The notification has to be essentially published in the official gazette
Gazette
A gazette is a public journal, a newspaper of record, or simply a newspaper.In English- and French-speaking countries, newspaper publishers have applied the name Gazette since the 17th century; today, numerous weekly and daily newspapers bear the name The Gazette.Gazette is a loanword from the...
and in two daily newspapers circulating in that locality of which at least one shall be in the regional language. Further, it is also necessary that the notification has to be affixed in conspicuous places of that locality.
Filing of objections
The main objective of issuing preliminary notification is to call for objections, if any, against such acquisitions from the owners or others who are having certain interest over the property; giving them an opportunity to raise their claims against the move of the government for acquiring their lands. The persons aggrieved by such notification shall file their objections within thirty days from the date of preliminary notification(date of the publication of notification).Final declaration
After receipt of objections, the concerned authority shall consider those objections, and if found unsatisfactory, then a final declaration rejecting the claims will be issued. Section 6 of the amended Act provides that the final declaration shall be issued by the authority within a period of one year from the date of issuance of preliminary notification under section 4(1) of the Act. However, prior to the amendment, the time stipulated under the Act for final declaration was three years from the date of publication of the preliminary notification. The final declaration has to be published as required under section 6(2) of the Act.Award
Section 11 of the Act provides that after receiving the objections, the authority will have to hold an enquiry. However, it is necessary that actual extent of land proposed to be acquired and the value of the land has to be assessed before starting the enquiry, as required under sections 8 and 9 of the statuteStatute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
. On completion of the enquiry, award will be passed to that effect and published by the competent authority. After passing the award, the Collector
District collector
The District Collector is the district head of administration of the bureaucracy in a state of India. Though he/she is appointed and is under general supervision of the state government, he/she has to be a member of the elite IAS recruited by the Central Government...
or the Deputy Commissioner
Deputy Commissioner (India)
The deputy commissioner or district magistrate or district collector or district magistrate and collector is the head of the revenue administration of an Indian district. The DC is required to be an Indian Administrative Service officer who is in charge of governmental assets in his district of...
shall send notice to the owners or their representatives who were not present personally at the time of passing of the Award.
Time limit
Once the enquiry is concluded, it is the duty of the competent authority to pass the award within two years from the date of publication of the declaration under section 6, as envisaged under section 11 A of the Act. If the authority fails to adhere to the time schedule prescribed under the Act, the entire proceedings initiated for land acquisition will lapse. After passing of the award, the Deputy Commissioner or any other competent authority may take possession of the land immediately, which shall thereupon vest absolutely with the government, free from all claims, whatsoever.Special powers
Section 17 of the Act confers special powers with the concerned authority wherein passing of award may be dispensed with and yet permits to take possession of the land notified for acquisition. Further holding of enquiry can also be waived, as envisaged under section 5 A of the Act. However, such powers can be exercised only in case of urgency. After passing of the award, the person whose land has been proposed to be acquired can give his consent for such acquisition and agree to receive the compensation.Objections can also be raised against the measurement of the land, enhancement of compensation or apportionment of the compensation by filing a written application before the Deputy Commissioner, as provided under section 18 of the Act, requesting the authority to refer the matter to the court for determination of the grounds raised in the application. An application to that effect has to be filed by the person who was personally present when the award was passed, within six weeks from the date of the award passed by the Collector. In other cases, the application will have to be made within six weeks from the date of receipt of the notice issued under section 12(2) or within six months from the date of the award passed by Deputy Commissioner, whichever is earlier.
Compensation
Provision for settlement of dispute pertaining to apportionment of the compensation amount is available under section 30 of the Act. In such a situation, the Deputy Commissioner should refer the matter to the court. The claimant will be entitled to the compensation which is determined on the basis of the market value of the land determined as on the date of preliminary notification. According to section 34, if there is delay in payment of compensation beyond one year from the date on which possession is taken, interest at the rate of 15 per cent per annum shall be payable from the date of expiry of the said period of one year on the outstanding amount of compensation till the date of payment.Judicial Interpretation of the word "Dispute" in the land acquisition proceedings—State of Madras Vs. B.V. Subramania Iyer AIR 1962 Mad. 313- The Word “Dispute”- Includes any controversy with regard to the title of a single claimant- The word ‘dispute’ has been used in a wide and not in a literal sense and implies any controversy at to title, whether as between the actual claimants, or as appearing from the documents made available by the government. It is obvious that when the government exercises its power of eminent domain and acquires property, Public funds have to be utilized for the payment of compensation to the true owner, and not merely to any claimant who cares to appear on the scene. The government has a special responsibility in this regard, and cannot later take refuge behind the pretext that the compensation was paid to the claimant who actually appeared wile others did not appeared. So long as that is the situation the acquiring officer has a right to make such a reference, even if a dispute or controversy as to the arises on the documents before him. He cannot be made liable for costs, and it is the party who has to bear the costs incurred in establishing the title, of the party to receive the compensation amount.
Status of the Tenant occupying the land to be acquired under Land Acquisition Act, 1894—M/s Indarprastha Ice and Cold Storage Ltd. Vs. Union of India AIR 1987 Del 171- Tenant is entitled to only a nominal compensation- Only a nominal portion of the compensation of the acquired land is to be paid to the tenant and substantial amount has to be taken by the landlord. The tenant is not entitled to 1/3 or 1/4 of the amount of compensation on the basis of judicial decisions relating to agricultural land on which the tenant had aright to purchase under Section 18 of the Punjab Security of Land Tenures Act. The tenant is only entitled to 1/8 share of the compensation
The government, under section 16 of the Act is at liberty to withdraw from acquisition of land except in cases provided under section 36. However, if the possession of land has been taken, then the government will have no authority to withdraw from such acquisition.
1. Investigation
- When a local authority or a company requires a land, an application is required to be made by it to the revenue authority.
- The application should be accompanied with a copy of the plan showing survey nos., purpose of acquisition and the reason for the particular site to be chosen and the provision made for the cost of the acquisition.
- After the government has been fully satisfied about the purpose, the least area needed, and other relevant facts as provided under land acquisition rules, it will issue a notification under Section 4 of the act that the particular land is required for public purpose.
- One of the revenue officers is appointed as the collector to hold an inquiry under Section 5-A of the Act.
- After notification the owner is prohibited from selling his property or disposing of it and prevented from carrying out any works of improvements for which no compensation will be paid if executed without prior permission from the collector.
2. Objection and Confirmation
- Objections are invited from all persons interested in land within thirty days from the date of notification.
- The objections will be valid on one or more of the following grounds:
- i. That the purpose for which the land is proposed for acquisition is not a public purpose.
- ii. That the land is not or less suitable than another piece of land for the said purpose.
- iii. That the area under acquisition is excessive.
- iv. That the acquisition will destroy or impair historical or artistic monuments or will desecrate religious buildings, graveyards and the like.
- The collector after hearing the objections will submit his report to the government who will finally declare the land for acquisition under the Section 6 of the Act.
- After notification the collector proceeds with the claim. He has the site marked out, measured and a plan of the same is made.
3. Claim and Award
- The collector will issue notices under Section 9 to all persons interested in the acquisition to file their claim reports.
- The collector is not to be a party to the proceedings, is to possess an expert knowledge on valuation, and offers a fair price to an owner and checks that the public funds are not wasted.
- The claim filed should contain the names of the claimants and co-shares if any rents or profits for last three years and a valuation report of the land from an architect or an engineer.
- The government can abandon the acquisition proceedings by simply canceling the notification. However, in that case compensation has to be paid under Section 48(2).
- In determining the compensation the market value of the land is determined at the date of notification. The rise and fall in the value during the period of transaction and notification is taken into consideration.
- Compensation is also payable when:
- i. Part of the property is proposed for acquisition in such a manner that the remainder depreciates in value.
- ii. When the land notified for acquisition has standing crops or trees.
- iii. If the person interested has to change his place of residence or business then the excess rent payable for the new premises is also considered for compensation.
- Matters which are not taken into consideration for the purpose of land acquisition are:
- i. The degree of urgency which has led to the acquisition.
- ii. Any disinclination of the person interested to part with the land.
- iii. Any increase in the land value likely to accrue from the use to which it will be put when acquired.
- • After necessary inquiries the collector declares his award showing true area of the land, total amount of compensation payable and apportionment of compensation if there are more than one owners or claimants.
- The collector has to make the award under section 11 within a period of two years from the date of notification.
4. Reference to Court
- Any person interested to whom the award is not satisfactory can submit a written application to the court.
- This application should be made within six weeks from the date of declaration of the award.
5. Apportionment
- In apparent of the compensation each of the claimants are entitled to the value of his interest, which he has lost, by compulsory acquisition.
- Thus it is required to value a variety of interest, rights and claims in the land in terms of money.
Authorities and agencies involved
- Union Government
- State Government
- Public authorities/agencies like DDADelhi Development AuthorityThe Delhi Development Authority was created in 1955 under the provisions of the Delhi Development Act "to promote and secure the development of Delhi".-History:...
, NOIDANoidaNoida , short for the New Okhla Industrial Development Area, is an area in India under the management of the New Okhla Industrial Development Authority . Noida came into administrative existence on 17 April 1976 and celebrates 17 April as "Noida Day". It was set up as part of an urbanization...
, CIDCO - Companies like RelianceReliance IndustriesReliance Industries Limited is an Indian conglomerate company headquartered at Mumbai, India. The company operates through three business segments: petrochemicals, refining, and oil and gas, other segment of the company includes textile, retail business, special economic zone development and...
, TataTata GroupTata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Tata Group is one of the largest companies in India by market capitalization and revenue. It has interests in communications and information technology, engineering, materials, services, energy,...
(for SEZSEZSEZ may refer to:*Special Economic Zone*Seychelles International Airport...
s)
The procedure involved for acquisition of land for companies are dealt with under chapter VII of the act, which requires an agreement to be entered into by the company with the appropriate government and the same has to be published in the official gazette. The government cannot initiate acquisition proceedings without issuing proper notice to the owners in any of the prescribed mode of service provided under the act and provide them sufficient opportunity. If any of the provisions envisaged in the act is violated or mandatory procedures are not followed, then the entire acquisition proceedings would become void.
Criticism
The Land Acquisition act has been criticized by groups that view the act as weak and ineffective, and by groups that view the act as draconian. People who feel that act is weak argue that the procedure followed is cumbersome and costly, often resulting in inordinate delay in land acquisition. This group argues that, the determination of public purpose should be matter of executive discretion and should not be contestable at law. It has also been argued that the property valuation techniques are flawed and that the land owners get to peg the value higher than the real value, based on ‘potential value’ and ‘opportunity value’ of their property; resulting in, what is claimed as, a heavy strain on public finances and restrictions on the scale of development and redevelopment projects. There is also opposition to the additional payment of solatiumSolatium
Solatium is a form of compensation for emotional rather than physical or financial harm.- Scots law :It is used in Scots law mainly to denote reparation for pain and suffering in personal injury cases...
to landowners over the property value.
People who argue that the act is draconian claim that a number of projects with no public purpose attached, as in the case of SEZs, usurped land from property owners, with the help of the Land Acquisition Act, at what is claimed as, well below the market value of these properties. It is argued that, even in the case of projects that are genuinely for public purposes, there is a considerable difference between the market value of the property and the value that the land acquisition officer pays the land owners. It is also argued that the relocation and rehabilitation of land owners displaced by the actions of the act, is not followed up adequately, and that this is not covered comprehensively in the framework of the act. A notable instance of opposition to land acquisition, through the land acquisition act, is the Nandigram violence
Nandigram violence
The Nandigram violence was an incident in Nandigram in the West Bengal state of India, where, to curb the terror build by All India Trinamool Congress and Maoists, on the orders of the West Bengal government, police entered the Nandigram area and violence erupted...
incident.
It is for this reason that government has proposed further amendments in the Act to strict define the purposes for which land could be acquired. If the Amendments get through, the provisions of the Act could be invoked only in limited conditions.There are some suggestion by various commission in different states, to provide rehabilitation for whom evicted from their own land. The land acquisition (kerala amendment) bill proposed by Justice V.R Krishna Iyer Committee submitted on 26 January 2009 is an example. It is in the consideration of Kerala Government till the date.