DRAFT LAND ACQUISITION (AMENDMENT) BILL, 1998

A BILL to further amend the Land Acquisition Act, 1894

Be it enacted hy the Parliament in the Forty-Ninth year of the Republic of India as follows:

1. Short title: This Act may be called the Land Acquisition (Amendment) Act, 1998.

2. New Section 2 to contain the definitions: - Section 3 of the Principal Act shall now be renumbered as section 2, which was repealed by the repealing Acts, 1914 (10 of 1914) and 1938 (1 of 1938). The new section 2 shall now all contain all the definitions of words and expressions so far contained in section 3 of the Principal Act.

3.Insertion of additional clauses in section 2 or Amendment Act: -

In the new section 2, which contains definition, the definitions of the following new words and expressions shall be included, as provided below:

(i) After clause (aa), the following clause shall be inserted, namely:-

"(aaa) the words and expressions "additional land acquisition ... collectors" shall mean the officers so appointed by the appropriate government to assist a collector under this Act in discharging specified duties and performing specified functions as may he delegated by the collector."

(ii) After clause (aaa), clause (b) shall he substituted by the following clause, namely:-

(b) The expression "person interested" includes persons having interest in land and also all such persons claiming an interest in the compensation to be made on count of the acquisition of land under this Act. A person shall be deemed to be interested in land if the land covered under an acquisition proceeding tends to alienate his rights, title or other interests on the land to be acquired and such persons shall include tenants, sub-tenants, sharecropeers, encroachers, attached agricultural workers or persons ahving adverse prossesion. A person shall also be deemed to be having interest in compensation whose land has not been acquired but whose livelihood is directly dependent or associated with the land to be acquired, but whose economic interests are otherwise adversely affected on account of the acquisition of land under this Act. Such persons include those whose earnings have been reduced or land value has been reduced on account of severance, loss of easement rights or damages caused to the land or for any other reasons causing loss or injury to the land, though not acquired, but as a consequence of acquisition of land in the adjacent area.

Explanation:-For the purpose of this Act, a person shall be deemed to be an attached agricultural worker on a particular land if such person is found to be providing wage labour in cultivating such a land being so engaged by the land-owner or his authorized agent fro a specified period not less than a period of one year under any terms of payment for his labour in cultivating such land under any contract ofr payment of wages, daily, monthly or annual basis, or payment in kind or through share of produce, as the case may be".

(iii)After clause (b), the following clause shall be inserted, namely:-

"(bb) the expression 'project', for the purpose of this Act, shall mean and include every activity, public, semi-public or private, which results in acquisition of land. The land to be acquired to serve the primary objective of a project shall be treated as "in-project" acquisition and land to be acquired as a consequence of 'in-project' acquisition to provide resettlement and rehabilitation or to meet up the land required for such other consequential reasons, shall be treated as "out-project" acquisition. While for the purpose of in-project acquisition, acquisition of homestead land or agricultural land leading to displacement will be allowed, such thing shall not be permissible for the purpose of out-project acquisition.

(Iv)After clause (cc), the following clause shall be inserted, namely:-

"(ccc) the words and expression "cost of acquisition" shall mean and include (i) the compensation awarded including the solatium and interest applicable thereupon (ii)demurrage to be paid for damages caused to the land and standing crops in the process of acquisition, (iii)cost of acquisition of out-project land for settlement of displaced or adversely affected families,(iv)cost of development of infrastructure and amenities at resettlement sites, (v)additional cost of economic resettlement as may be required after admissible adjustment of RR cost against compensation awarded to individual families, (vi)administrative cost of acquisition of land in both in-project and out-project areas and (vii)administrative cost involved in planning and implementation of RR packages for providing physical resettlement and rehabilitation to the entitled and interested families displaced or adversely affected on account of in-project acquisition of land",.

(V)At the end of the sentence contained in clause (ee), of new section 2, the following sentence shall be inserted, namely:-

"However, the expression "appropriate Government" means in relation to acquisition of land for the purpose of the Union Go0vernment or for the purpose of any infrastructure projects involving more than one State Governments, being set up by any person, the Central Government and in relation to acquisition of land for any other purposes, the State Government".

(Vi)After sub-clause (ciii), clause (f)of new section 2, a new subclause (ix) shall be inserted, namely:-

"(ix)Notwithstanding anything contrary contained in any sub-clause of this clause, the land required for setting up nay infrastructure project as may be notified by the Central Government from time to time shall be deemed to be a public purpose within the meaning of section 3(1) and for the purpose of the Land Acquisition Act. The expression 'infrastructure projects' shall mean and include any of the following:-

(a)Any project relating to generation, transmission or supply of electricity;

(b)Construction of roads, highway, ridges, airport, port or rail system.

(c)Water supply project, irrigation project, sanitation and sewerage system; or

(d)Any public facility as may be notified by the Central Government in this regard in the Official Gazette."

(Vii)After clause (g), the following clause shall be inserted, namely:-

"(h)the words and expressions" designated officer" shall mean the officer so appointed by a company or a project authority or nay requiring body to represent the said company, project authority or requiring body to do liaison with the collector or the appropriate government in nay land acquisition case, arranging negotiations with the persons interested in land in the matters of finalization of compensation award or cost of resettlement and rehabilitation including implementation thereof."

(Viii)After the new clause (h), the following clause shall be inserted, namely:-

"(i)the words and expression "requiring body" shall mean and include any party, company, body corporate, institution, government organization for who land is to be acquired under this Act as per order of the appropriate government. The appropriate government may also be treated as a requiring body if the requisition for land is received directly from such government either for their own use or for subsequent allotment of such land to any other party in public interest or to any company under lease, license or any other terms as the case may be."

(ix) After the new clause (i), the following clause shall he inserted, namely:-

"(j)the word and expression 'Tribunal' shall mean and include any tribunal ski constituted by the appropriate government at the State or regional level as may be prescribed, for the adjudication or trial by such tribunals of any disputes, complaints or offences with respect to all or any of the matters specified in this Act."

4. Insertion of new section 3 with 10 sub-sections:-

After renumbered section 2, new section 3 with ten sub-sections shall be inserted in the Principal Act as follows:-

(1) The Collector shall entertain only such land acquisition proposal which is complete in all respect and contains such necessary information, documents and certificates as may be prescribed.

(2) The requiring body shall take all appropriate steps to identify and select appropriate area, location, parcel of land after necessary field visits and collecting of necessary field-related data to minimize acquisition of homestead or prime agricultural land as far as possible and the revenue officials of the concerned district shall supply all necessary land related data to assist the requiring,, body in preparation of appropriate land acquisition proposal.

(3) ]be requiring body shall enclose with the formal proposal for land acquisition a written undertaking to bear the cost of acquisition of both "in-project" land (required for project works) as well as "out-project" land (required for resettlement and rehabilitation of displaced families from in-project. area). The mode of acquisition for out-project land be so specified that the same does not result in displacement of any family.

(4) 'Re requiring body shall also enclose with the formal proposal for acquisition of land a written undertaking for placement of 80% of the preliminarily assessed cost of acquisition of land within 15 days from the date of notification under section 4 or within 7 days if such notification is issued under section 9 for urgent acquisition of land under section 17 and undertake to pay from time to time the additional cost involved with the acquisition of land as may be revised by the Collector at the time of issuing the award of compensation or as may be subsequently modified by the tribunal or the court.

(5) The requiring body shall enclose with each separate proposal d specific order of the appropriate Government for application of Land Acquisition Act, 1894 for acquiring land for the public purpose or for a company as the case may be.

(6) The appropriate government may, before issuing specific order for acquisition of land in favour of any requiring body, examine, verify or take cognizance of any relevant matter as may he considered fit and for that purpose cause any enquiry or solicit specific report from the Collector, State Land Use Board, municipal body or Local Development Authorities concerned as the case may be, to satisfy itself about the just requirement of the in-project area, selection of appropriate land for the appropriate purpose and such order of the appropriate government may indicate the specific public purpose or the name of the company as well as the purpose for which land is to he acquired for a company including the terms of reference for transfer of the acquired land to the company. Such order should also authorise and empower the collector to make necessaiy and reasonable alternation of the site, parcel, area, location and exact quantum of the land to be acquired to serve the purpose of the requiring body after due public hearing and necessary field visits without any further reference to the appropriate government.

Provided, however, in case the Collector agrees with the objection of the landowners to drop the proceedings or to propose for acquisition of substantialially or altogether different land, he would seek fresh orders of the appropriate government which will be communicated to him within three weeks failing which the notification under section 4 shall lapse: provided however, if the appropriate government communicates its decision within the time prescribed above, such decision of the appropriate government shall be final.

(7) The State Government may, however, from time to time appoint suitable number of Additional Land Acquisition Collectors considering the total volume of activities pertaining to land acquisition in each concerned district and mobilize necessary supporting staff including filed staff.

(8)In case the land acquisition order is issued by any department/Ministry of the Union Government, requiring substantial quantum of land, the said government may approach the concerned State Government for appointment of an exclusive Land Acquisition Collector in such special or large size projects, which may reasonably qualify for such exclusive appointment.

(9) No land shall be acquired under this Act, which is in excess of the prescribed ceiling limit for holding by a person/family and therefore. is to be vested to the Government and compensation, if any, to be provided for such vested land, shall be payable at the rate and in the manner provided in the specific ceiling Acts, either on urban holdings or on agricultural holdings.

(10) No Collector shall, acquire any land under L.A. Act, 1894 or any other Act for the time being in force, in the Scheduled Areas specified by the Fifth Schedule of the Constitution without prior consultation with the Gram Sabha or the Panchayats at the appropriate level."

5. Amendment of section 4:-

After sub-section(l) of section 4 of the Principal Act, a new sub-section(2) shall be inserted, namely:-

"(2)No person shall make any transaction or cause any transaction of land or create any encumbrances on such land covered in the notice of' acquisition, from the date of publication of such notice under this section till the award is made and paid under section 16 of the Act without prior per-mission of the Collector. Any loss or injury suffered by any person due to his willful violation of this provision. shall not be made up either by the Collector or by the requiring body."

(ii) The existing sub-section (2) of section 4 of the Principal Act shall now be renumbered as sub-section (3) of section 4 of the Principal Act.

(iii) After sub-section(3), a new sub-section(4) of section 4 in the Amendment Act be inserted, namely:-

"(4) Immediately after issuance of notice under section 4, the Collector shall arrange complete updation of land records, and issue identity cards to the persons likely to be displaced or adversely affected and such tasks should be completed before issuance of notice under section 6".

6. Amendment of section 5A of the Principal Act: -

(i) Section 5A of the Principal Act shall be now renumbered as Section 5 of the Amendment Act.

(ii) Sub-section (1) of renumbered section 5 of the Amendment Act shall contain all the provisions of sub-section (1) of section 5A of the Principal Act with the exception that the words "thirty days" shall be substituted by the words " twenty one days".

(iii) Sub-section (2) of the renumbered section 5 of the Amendment Act shall be replaced by the following four sub-sections, namely:

"(2) The Collector shall organize open public hearing of all objections received from each village, on a fixed date, at a public place, with prior notice, and such public hearing shall be conducted in the presence of representatives of people including the Pradhan/ Sarpanch of the concerned Gram Panchayat(s) or the Councilors/ Commissioners of the concerned ward of a Municipality or a Corporation. or any special organization constituted or supported by the persons ha@,inc, interest in land. as the case may be.

(3)After such public hearings and necessary field visits, the Collector may after due consultation with the people having interest in land as well as with the requiring body, may modify the site, parcel, area, location and exact quantum of land to be acquired and it shall be lawful for the Collector to issue notice under section 6 incorporating such chan es as referred to above without referring the matter to the appropriate government.

(4) In the event of Collector coming to a conclusion after public hearing and necessary field visits., that the whole area or major part of the area covered under the acquisition proposal cannot be or should not be acquired on account of public disagreement or for the common good of the people or for any other specific reason, he shall forthwith forward his report to the appropriate government, containing his observations and recommendations on the objections, if any, together with the record of the proceedings held by him, for the decision of the government.

(5)On receipt of the report of the Collector, the appropriate government may within 3 weeks indicate its decision either to drop the proposal for acquisition or to revise the area, location, quantum of land and issue specific order for acquisition of the revised or modified area and quantum of land and such direction of the appropriate government shall be final."

(iv) Sub-section (3) of original section 5A of the Principal Act, shall now appear as sub-section (6) of renumbered section 5 of the Amendment Act.

7. Amendment of section 6 of the Principal Act:-

(i) Sub-section (1) of section 6 of the Principal Act along with first proviso under the said sub-section, shall be substituted by the following six sub-sections appearing hereinafter, namely:-

"(1)The Collector, after disposal of objections under section 5(3) in the manner prescribed, or on receipt of appropriate government's direction under section 5(5), publish notice in two daily newspapers printed preferably in the local language and also cause display of such public notice 'at convenient places in the said locality.

(2)Notice of the Collector published under sub-section(l) of section 6 shall contain the final declaration, which shall be treated as a conclusive evidence, to the effect that the land covered under the notice is needed for a public purpose or for a company, as the case may be. The Collector shall, in his notice mention the order number and date of order of the appropriate government for acquisition of the concerned land.

Provided that no declaration in respect of any particular land, covered by a notice under section 6, sub-section(l) published after the commencement of the Und Acquisition (Amendment) Act,, 1998 shall be made after expiry of six months from the date of publication of the notification under sub-section(l) of section 4 of the Principal Act in connection with all on-going land acquisition proceedings and fresh notice under the amended section 4 shall be required in case any on-going land acquisition proceeding has crossed the time limit prescribed above.

(3) Notice under this section shall also invite written claims from all concerned for payment of suitable compensation, against each plot or parcel of land. Such claims shall be submitted by all persons interested in the lands covered under the notice within three weeks from the date of issuance of notice or from the date of publication of the same in the local newspaper, whichever is later.

(4) The claim for compensation from each individual should be in a single petition containing details of amounts claimed in separate sheets for each plot/parcel of land giving detailed grounds for seeking specific amount under each item i.e. land, buildings, trees, crops, anything attached to land, damages caused, devaluation caused to property, not acquired, as the case mas, be, enclosing supporting documents and evidence justifi7ino, the amounts claimed.

(5)Persons having interest in land, may in addition to claiming compensation, also express in writing, their intentions to avail the resettlement and rehabilitation (RR) benefits, if the same is applicable to them under the rules/guidelines for the time being in force, by adjustment of cost of such resettlement and rehabilitation against the of compensation admissible or due. to the extent prescribed by the law or the National State Guidelines as the case mas, be.

(6)The Collector shall have the exclusive power of identification and selection of land required for allotment as homesteads or agricultural land for resettlement and rehabilitation of the persons displaced or adversely affected. anywhere outside the area contained in the proposal of the requiring body, and it shall be binding upon the requiring body to bear the cost of acquisition of such land for the aforesaid purpose and provide all necessary information and support services as may be required for payment of compensation. incurring cost for resettlement and rehabilitation including, development of basic amenities and infrastructure. Land so selected by the Collector for the aforesaid purpose may be in lieu of or in addition to the land estimated by, the requiring, body for resettlement and rehabilitation. and such land shall be deemed to have always been a part of the original proposal submitted in accordance with section 3 of this Act. and the Collector shall have the power to acquire such additional land under revised or subsequent notices under section 6. as the case may be."

(ii)Sub-section(2,) and sub-section(3) of section 6 of the Principal Act are repealed.

8. Deletion of section 7:-

Section 7 of the Principal Act is repealed.

9. Amendment of section 8:-

Section 8 of the Principal Act shall now he renumbered as Section 7.

10. Insertion of nee section 8:-

A new section 8, with the following three sub-sections shall be inserted as provided bellow:-

(1) Whenever there be any, fresh or subsequent requirement of causing survey, measurement, marking, out of an area covered under declaration for final acquisition under section 6, sub-section(l), either for preparing any site plan for the protect or tor the resettlement of the displaced the officer authorized to carry out the tasks assigned under section 7, shall the procedures prescribed under sub-sections (3) and (4) of section 4 of this Act.

(2) Damages caused while causing, surrey, digging or boring subsoil, marking boundaries or cutting trenches or clearing away any standing crop, fence or jungle or causing any other damages while acting under sections 4 and 7. particularly relating to land which ultimately is excluded from the acquisition proceedings, shall be evaluated and paid to the persons having interest in the concerned land within three months from completion of the aforesaid works under the aforesaid sections. However, payment for costs of damages as may be caused for the aforesaid purposes to such land not to be acquired. may be made to such persons whose other land has been acquired, along with. compensation payable for acquisition of land under section 16 of this Act.

After sub-section (2) of new section 8, the provisions of section 5 of the Principal Act shall reappear as sub-section and thus section 5 of the Principal Act shall stand deleted.

11. Amendment of section 9 of the Principal Act:

The entire section 9 of the Principal Act with four -Subsections be repealed and

substituted by the newly drafted section 9 with eight sub-sections appearing hereinafter as follows:-

"9.(1) The Collector shall then cause public notice to be given at convenient places on or near the land to he taken. stating that the Government intends to take possession of the land. .and hence all persons claiming, compensations for all Interests in such land male. appear before him for hearing at the venue. date and time in the notice. In case such notification under this section is issued for emergency acquisition of land in exercise of power given to the collector under section 17, the notice shall also invite submission of written claims for compensation and or resettlement and rehabilitation benefits as the case may be.

(2)Such notice shall be issued to all persons owning or having lim interest in land. individually or jointly, which shall mean and include land-owners, sharecroppers, tenants and sub-tenants, encroachers, attached agricultural workers, persons having adverse possesion and persons having legal rights and interests but yet to have physical possession and control over the land.

(3)Any person who has received such notice or those who have not received such notice but have legal rights and interests in the on land may appear personally or by agent before the Collector at a time and place therein mentioned (but not later than fifteen days after the date of publication of the notice), and to state the nature of their respective interests in the land and the amount and particulars of their claims for compensation of such interests, and their objections (if any) to the measurements made under section 7. The Collector may in any case require such in any case require such statement to be made in writing and signed by the party or his agent.

( 4) The Collector shall also serve notice to the same effect on the occupier (if any) of such land and on all such persons known or believed to be interested therein, or to be entitled to act for persons time so interested, as reside or have authorized agents to receive service their on their behalf, within the revenue district in which the land is situated.

(5)In case any person so interested resides elsewhere, and has no such agent, the notice shall be sent to him by post in a letter addressed to him at his last known residence, address or place or business and registered under section 28 and 29 of the Indian Post Office Act, 1989.

(6)The Collector may select resettlement sites, create necessary assets and infrastructures associating and involving the beneficiaries or their representatives to the extent possible and practicable. He shall also finalise the entitlement and allot assets after necessary hearing of the claims of prospective beneficiaries issuing appropriate public notices in this regard. The offer of allotment should --provide details of the assets, costs thereof to be adjusted against the compensation payable, to the extent and subject to other limitations prescribed by law or national and state guidelines on the subject, for the time being in force."

(7)The Collector shall prepare a separate estimate for necessary resettlement and rehabilitation of persons displaced or adversely affected on account of acquisition of home-stead and other land, as may be required after necessary and admissible deduction have of RR costs from the award of compensation, and it shall be lawful on the part of the requiring body to place such amount to the Collector for causing appropriate resettlement and rehabilitation. It shall be lawful on the part of the Collector to make a charge on account of administrative cost including the contingent expenditure required to be borne for execution of land acquisition works and implementation of resettlement and rehabilitation programmes provided however that such administrative costs shall not exceed 10% of the total cost of compensation awarded as well as the actual cost of resettlement and rehabilitation.

(8)The Collector shall issue simultaneous notices to the requiring body to remain present through its designated officer at the time of hearing the persons having interest in land, settlement of their claims for compensation as well as for resettlement and rehabilitation and to participate in negotiations for making any consent award and signing any agreement between the concerned party as well as the requiring body in such form as may be prescribed by the rules.

12. Amendments of section 11 of the Principal Act and placing the amended provisions in fresh section 15 of the Amendment Act:-

Section 15 of the Principal Act be deleted and section 11 of the Principal Act shall now be renumbered as section 15 of the Amendment Act, with the following amendments, namely:-

(i)In sub-section (1) of section 11 of the Principal Act. the words "under section 8" be substituted by the words under section 8" be substituted by the words "under section 7".

(ii)Both the proviso under sub-section(1) be deleted

(iii)Sub-section (2) of section 11 of the Principal .Act be substituted by the following sentence which shall not. appear as sub- section (2) of section 15 of the .Amendment Act, namely:-

"Notwithstanding anything contained in sub-section (1),if at any stage of the proceedings the Collector is satisfied on the basis or. oral and documentary evidence placed before him that the points of objection raised by the persons interested in land on any of the issues pertaining to clauses (i), (ii) and (iii) of sub-section (1) are valid and that the requiring body is agreeable to negotiate in the matters to settle the disputes or to the amount of compensation or apportionment thereof, the Collector may fix up another date within a fortnight giving the last chance to the party for negotiating with the requiring body and in the event of the interested persons appearing before him Section with a written agreement signed between the requiring body and the persons interested in land stating amount of compensation to be paid to each of the individual claimants, the Collector may take into consideration such written agreement and pass an award in accordance with the terms of such agreement provided however that the amount so settled for compensation by the concerned parties is not less than what is otherwise due under the provisions of this Act and the terms and conditions inter alia include an undertaking that the persons having interest in land would surrender the land on payment of consent award and shall not seek further reference either to the court or tribunal for further enhancement of the award.

(iv) Sub-sections (3) and ( 4) of the Principal Act shall now appear as sub-sections (3) and (4) of section 15 of the Amendment Act.

(V)After sub-section (5), a new sub-section (6) shall be inserted under section 15 of the Amendment Act, namely:-

"(6) The amount to be paid to any person having interest in land as compensation or balance of compensation after adjustment against resettlement and rehabilitation cost, shall be paid only through government cheques issued in the name of the concerned person mentioning his bank account number. "

(vi) After sub-section (8) of section 15 of the Amendment Act, a fresh sub-section (9) shall be inserted, namely:-

"(9) Notwithstanding anything contained in sub-section (2) above, the Collector shall make separate award of compensation for any person claiming an interest in compensation, on various accounts including damages caused or losses inflicted n the on his land not acquired due to severance, loss of easement rights or any other consequential losses inflicted upon him in land the process of acquisition of any land on which he does not

of have any interest; and the amount involved in such award is to be paid by the requiring body separately and not by apportionment of the award made for the land acquired."

13. Amendment of section 11A of the Principal Act:-

Section 11A of the Principal Act shall now reappear as sub section (7) of section 15 of the Amendment Act, with the following amendments, namely:-

(i) In first sentence of section ll A the words "two years" to be and substituted by the words "one year" and the word "declaration" to be substituted by the word "notification under section 4".

(ii) In the proviso under section 11A the figure "1984" be substituted by the figure "1998" and the words "two years" be substituted by the words "one year".

(iii)In explanation under section 11A the words "two years" shall be substituted by the words "one year", and after the word "Court" the words "or of a Tribunal" shall be added.

Assessment of valuation and fixation of claims

14.Insertion of new section 11 in the Principal Act:-

Fresh section 11 shall now be inserted with 5 sub-sections to prescribe procedures relating to fixation of market value of land and any other things attached to land, in the following order, namely:-

"11.(1)For determining market value of the land the Collector will take recourse to three different systems of assessment. Firstly he may take into account such prescribed rates or the average of the actual transaction rates of similar lands for contemporary years which sale deeds are registered. Secondly. the market value may be assessed taking into consideration 20 times of the annual value of gross production of the concerned land, averaged over the preceding five years. Thirdly, in case, a State has prescribed the minimum land value under the Indian Stamp Act for the purpose of registration of sale deeds under the Indian Registration Act of 1908, the Collector shall fix up market value of land so prescribed by the government The market value to be fixed up by the Collector shall be the amount which shall be the highest among the three amounts arrived at by the aforesaid three alternative methods.

(2.)For fixation of market value of the buildings and other immovable property property of assets attached to the land or the buildings to be acquired, the Collector may use services of competent engineers or any concerned subject-matter specialists as may be considered necessary.

(3)For the purpose of assessing the value of permanent trees b and plants, the Collector may use the services of competent officials of the Department of Agriculture, Forest, Horticulture, Sericulture, etc, as may be necessary.

( 4)For the purpose of assessing the value of the standing crops damaged or to be damaged during the process land acquisition proceedings or on taking the possession of the concerned land, the Collector may use the service of competent officers from the Department of Agriculture as may be considered necessary

(5)For the purpose of assessment of economic losses sustained by the persons affected by the acquisition of land in any other form including the loss of value of the land not acquired or loss of livelihood, profession or business the same may be duly assessed while computing the amount payable as compensation".

15. Rearrangement of the contents of section 12 of the Principal Act:-

(i) Sub-section(l) of section 11 of the Principal Act shall now reappear as sub-section(8) of section 15 in the amendment Act.

(ii)Sub-section(2) of section 12 of the Principal Act shall now reappear as sub-section(9) of section 15 in the amendment Act.

16. Insertion of fresh section 12 in the Principal Act:-

Fresh section 12 shall now be inserted taking the whole contents of section 23 of the Principal Act, with following amendments, namely:-

(i) In the t-irst sentence in sub-section(l) of the fresh section 12, the word 'court' be substituted by the word 'Collector'

(ii) Sub-section(lA) of section 23 shall now appear as sub-section(2) of the fresh section 12, by substituting the word 'court' by the word 'Collector'.

(iii) Sub-section(2) of section 23 shall now appear as sub-section(3)of fresh Section 12 with the following amendments:-

a) The word 'court' shall be substituted by the word 'collector';

b) The words 'thirty per centum' shall now be replaced by s the words 'hundred per centum'.

17. Rearrangement of section 13 of the Principal Act: -

Section 13 of the Principal Act shall now reappear as sub section (10) of section 15 of the Amendment Act

18. Insertion of fresh section 13 in the Principal act:-

Fresh section 13 shall now be inserted taking the whole con- tents of section 24 of the Principal Act with to following amendments, namely:-

In the first sentence of the fresh section 13 the word 'court' shall be substituted by the word 'collector'.

19. Rearrangement of section 13A of the Principal Act:-

(i) Sub-section(l) of section 13A along with its proviso shall now reappear as sub-section(l) of section 15A of the Amendment Act.

( ii) Sub-section(2)of a section 13A of the Principal Act shall now appear as subsection(2) of Section 15A of the Amendment Act.

(iii)Sub-section(3) of Section 13A of the Principal Act shall now appear as sub-section(3) of Section 15A of the Amendment Act.

(iv)As a consequence of rearrangement of the contents of section 13A of the Principal Act as provided above, the said section shall be omitted from the Amendment Act.

20. Rearrangement of section 14 of the Principal Act:-

Section 14 of the Principal Act shall not re-appear as sub-section (10) of Section 15 of the Amendment Act

21. Insertion of fresh section 14 in the Amendment Act.

Since the provisions of section 14 of the Principal Act have, been incorporated in sub-section (10) of section 15 of the Amendment Act, section 15A of the Principal Act shall now reappear as fresh section 14 of the Amendment Act

22. Amendment of section 16 of the Principal Act:-

(i) The existing section 16 of the Principal Act shall now reappear as sub-section(1) of section 16 in the Amendment Act with the following amendment:

The words "under section 11" shall be substituted by the words "under section 15"

(ii)After sub-Section(1) a new action (2) shall appear, namely-

(2) The Collector shall display a summary of the total proceedings taken in any land acquisition case including compensation awarded to each individual against details of land finally summary of the resettlement and rehabilitation plan, schedule tor payment of compensation. dates of taking possession and other information as may be prescribed. The Collector shall cause publication of the summary of the proceedings in the official gazette in addition to making the same available free of cost in a booklet form to all persons interested."

(iii) After sub-section(2), a new sub-section(3) shall be inserted, namely:-

"(3) Payment of compensation and taking over physical possession shall be completed within 60 days from the date of displaying the award of compensation or the summary of the proceedings, whichever is later and the aforesaid actions shall not be held up for actual publication of the summary of the proceedings in the official gazette prescribed, Any amount out of the compensation awarded if spent for arranging resettlement and rehabilitation or transferred to the RR account for arranging such resettlement and rehabilitation, with the con- sent of the awardee, shall be treated as an amount paid to the awardee, However, after adjustment of RR costs, any balance payable to the awardee shall be released in one installment through government cheque only ,"

23. Amendment of section 17 of the Principal Act:-

In sub-section( 4) of section 17, the word" 5A" be substituted by the figure "5".

24. Amendment of section 18 of the Principal Act:-

(i) At the end of sub-section(l ), of section 18 of the Principal Act, the following sentences are to be inserted, namely:-

The Collector shall, within 30 days from the date of receiving such written application made to the Collector, make a reference to the Court or to the Tribunal. If the Collector does not make such reference within such period, the applicant may apply to the court to direct the Collector to make the reference, and the court may direct the Collector to make the reference within such time as the court may fix".

25. Deletion of section 23 of the Principal Act:-

The section 23 of the Principal Act be deleted.

26.Insertion of new section 23 in the Amendment Act:-

A fresh section 23 in the Amendment Act shall be constituted with the following sub-sections, namely:-

"23.(1)The appropriate Government may appoint any Tribunal for expeditions adjudication of litigation relating to land acquisition in specific important projects involving large-scale acquisition of land. It shall be lawful for the Collector to refer any case to such specific Tribunals constituted for specific project work in lieu of referring the cases to the court of original jurisdiction.

Provided, however, that in the absence of a Tribunal or till such a Tribunal is constituted for any specific project, the Collector shall continue to refer the cases to the court of original jurisdiction till such time as such Tribunals are constituted.

(2)Notwithstanding anything contained in section 18 of the Principal Act, the Collector shall refer all such cases to such Tribunal as may be required under sub-section (1) above, even if the aggrieved person applies for reference to the court.

(3)The Appellate authority to the judgement passed by the Tribunal so appointed by the appropriate Government, shall be the High Court.

(4)The procedures prescribed in this Act for making reference to the court shall also be followed for making reference to the tribunals by the Collector.

(5)Notwithstanding anything contained anywhere in this Act, the tribunal shall also adopt the procedure in disposal of cases has been prescribed by the Act for the court."

(6)The Tribunal shall consist of one Chair-person and two members Chair-person of the Tribunal shall be from judicial services or may be a retired Judge of High Court and one member of the tribunal shall be from Indian Administrative Service having sufficient knowledge of land acquisition and experience of holding charge as Collector of a district for a period not less than one year while the other member of the tribunal should be from technical services serving in the Government of India or in State Governments or in an autonomous body under the control of the Government of India or of a State Government. The salary and other conditions of service (including the tenure of appointment) of the Chairman and other members of the tribunal shall be so fixed by the appropriate Government as may be prescribed in view of the special nature and size of each project

27. Deletion of section 24 of the Principal Act:-

Section 24 of the Principal Act be deleted

28. Insertion of new section 24 in the Amendment Act:-

The new section 24 shall re-appear in the Amendment Act , with the following wordings: -

"24. In determining the amount of compensation, the Court, or the Tribunal, as the case may be, shall be guided by the. provisions contained in fresh Sections 12 and 13 of the Principal Act "

29. Deletion of section 25 of the Principal Act:-

The existing section 25 of the Principal Act shall be deleted

30. Amendment of section 29 of the Principal Act:-

At the end of section 29 of the Principal Act, the provision shall be inserted with the following words, namely:-

"Provided, however, Collector may apportion the award of compensation amongst the persons being co-sharers of an interest in the compensation, but not having any interest in the land acquired".

31. Amendment of section 31 of the Principal Act:-

After sub-section (4) of section 31, a new sub-section (5) shall be inserted namely:-

(5) Notwithstanding anything contained in this section the , Collector, suo-motu or on receipt of written application for providing physical resettlement and rehabilitation from such persons/ families entitled for the same as per the rules /guidelines or currently in vogue or to be subsequently framed by the concerned State or by the National Government, to provide homestead land along with dwelling house, may allot such quantum of minimum agricultural land to the entitled families, as may be prescribed by the rules. guidelines or legislatitons, adjusting admissible amount of cost against amount of compensation awarded to such families; and if such amount of compensation falls short of the requirement for necessary resettlement and rehabilitation, the additional amount required for the aforesaid purpose shall be paid by the requiring body as a part of the 'cost for acquisition of land', as defined in sub-section (4) of section 3 of the Amendment Act including cost for displacement, loss of livelihood and impoverishment below a certain limit, prescribed by rules or guidelines".

32. Insertion of new section 38 in the Principal Act:-

Section 38 which was repealed by Act 68 of 1984, shall now reappear as a new section 38 with the following three sub-sections, namely:-

"38(1) The appropriate Government may acquire suitable land for development of Industrial Estates, Urban Centres etc under any perspective plan for instant allocation of land for the purpose of planned development of industries, urban agglomerations and basic socio-economic infrastructure projects. For such advance acquisition of land for prospective Industrial Estates, urban centres and infrastructure projects, locations may be so carefully identified by the appropriate Government, selecting, as far as possible, less productive land or wasteland and developing the same with all necessary economic and physical infrastructures, as may be required to make the land readily useable by industries, urban authorities or for other public purposes.

(2)The cost of acquisition, rehabilitation, resettlement and planned development of Industrial Estates may be borne by the concerned urban development authorities or concerned Departments/ Ministries of the appropriate Government.

(3)The appropriate Government shall be at liberty to allot parts of such estates to such industries on lease or by other arrangements realising any amount from the allottees which may include the cost of acquisition as defined in section 2 of the Amendment Act, cost of development of land and other infrastructures, amenities and for maintenance of essential services."

33. Consequential amendments of various sections of the Principal Act:-

(i) The words "under section 11" shall be substituted by the Words "under section 15" in sections 17(3B), Section 19(1)(c), Sec tion 28 A( 1 ), Section 30, Section 31(1 ), Section 49(1) first provision and Section 49(3) of the Principal Act.

ii) After the word "court" the words "or the tribunal as the case may be" shall be inserted in sections 20,22, 25, 27, 28, 28A, 30, 31, 32, 33, 37, 45, 49, 50, 53 and 54 wherever they appear including the titles of the aforesaid Sections of the Principal Act.

The Dntft Land Acquisition (Amendment) Bill, 1998 to be further modified incorporating the following decisions:-

1) The compensation and Rehabilitation and Resettlement benefits proposed to be given to the "encroachers'. for loss of interest in land and also for loss of livelihood shall now be retermed as "occupier"-

2) In case, it is not possible to fix market value because of remoteness of the area the method of multiple of net annual value of production would be used-

3)' The Rehabilitation and Resettlement action plan would be finalised before the land acquisition is finalised, specially in irrigation projects-

4) In order to facilitate return of land acquired in excess of requirement or which is no longer required a provision would be made in the Act for de-acquisition of already acquired land-

5) The proposed reduction of the time-frame for hearing of objections etc- from 30days to 21 days would be restored now to the original 30 days time.

6) The Collector would be allowed to make changes in criteria, plots, and total quantum of land for acquisition with the concurrence of the requiring body.

7) It is also proposed to allot the acquired land on long-term lease basis so as to facilitate de-acquisition of the acquired land in case, the land is not utilised within a specified period and or put to some other use for which the land was not acquired. The land would he de-acquisitioned and taken over by the appropriate Government without making any payment to the requiring body.