• NHAI land acquisition bill and state's amendments to it

We are loosing our farm lands for a express highway project between chennai and bangalore.
Our state Andhra Pradesh has recently got a amendment changing the actual NH compensation factors. The multiplication factors in the 2013 bill was 5 times for rural lands and now due to this amendment the factor is being made as 2.5.
This project goes through 3 states (Tamil Nadu, Karnataka and Andhra Pradesh), where the first 2 states are still compensating with the factor of 5 times but for us its 2.5 times. Also, in our same vicinity there was compensation settled with 4 times factor for a different NH project few months ago. But for this acquisition they are applying 2.5 times. The question is how can a state govt can apply different and separate compensation rules for a central govt project (funded by NHAI)?

Also, can we challenge our compensation in comparison with recent announcement for a different project in the vicinity? 
What are the legal procedures to protest this compensation announcement?
Should we accept the current compensation announcement and file our protest or should we file without accepting the compensation award?
Any Land Acquisition and compensation knowledgeable lawyer's contact would be of great help
Asked 8 years ago in Property Law
Religion: Hindu

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8 Answers

1. Yes, you can always challenge the compensation package.As per section 26 of the Act the following factors are taken into consideration for determining the quantum of compensation.

“(1) The Collector shall adopt the following criteria in assessing and determining the market value of the land, namely:— (a) the market value, if any, specified in the Indian Stamp Act, 1899 (2 of 1899) for the registration of sale deeds or agreements to sell, as the case may be, in the area, where the land is situated; or (b) the average sale price for similar type of land situated in the nearest village or nearest vicinity area; or (c) consented amount of compensation as agreed upon under sub-section (2) of section 2 in case of acquisition of lands for private companies or for public private partnership projects, whichever is higher: 20 Provided that the date for determination of market value shall be the date on which the notification has been issued under section 11. Explanation 1.—The average sale price referred to in clause (b) shall be determined taking into account the sale deeds or the agreements to sell registered for similar type of area in the near village or near vicinity area during immediately preceding three years of the year in which such acquisition of land is proposed to be made. Explanation 2.—For determining the average sale price referred to in Explanation 1, one-half of the total number of sale deeds or the agreements to sell in which the highest sale price has been mentioned shall be taken into account. Explanation 3.—While determining the market value under this section and the average sale price referred to in Explanation 1 or Explanation 2, any price paid as compensation for land acquired under the provisions of this Act on an earlier occasion in the district shall not be taken into consideration. Explanation 4.—While determining the market value under this section and the average sale price referred to in Explanation 1 or Explanation 2, any price paid, which in the opinion of the Collector is not indicative of actual prevailing market value may be discounted for the purposes of calculating market value. (2) The market value calculated as per sub-section (1) shall be multiplied by a factor to be specified in the First Schedule. (3) Where the market value under sub-section (1) or sub-section (2) cannot be determined for the reason that— (a) the land is situated in such area where the transactions in land are restricted by or under any other law for the time being in force in that area; or (b) the registered sale deeds or agreements to sell as mentioned in clause (a) of sub-section (1) for similar land are not available for the immediately preceding three years; or (c) the market value has not been specified under the Indian Stamp Act, 1899 (2 of 1899) by the appropriate authority, the State Government concerned shall specify the floor price or minimum price per unit area of the said land based on the price calculated in the manner specified in sub-section (1) in respect of similar types of land situated in the immediate adjoining areas: Provided that in a case where the Requiring Body offers its shares to the owners of the lands (whose lands have been acquired) as a part compensation, for acquisition of land, such shares in no case shall exceed twenty-five per cent, of the value so calculated under sub-section (1) or sub-section (2) or sub-section (3) as the case may be: Provided further that the Requiring Body shall in no case compel any owner of the land (whose land has been acquired) to take its shares, the value of which is deductible in the value of the land calculated under sub-section (1): Provided also that the Collector shall, before initiation of any land acquisition proceedings in any area, take all necessary steps to revise and update the market value of the land on the basis of the prevalent market rate in that area: Provided also that the appropriate Government shall ensure that the market value determined for acquisition of any land or property of an educational institution established and administered by a religious or linguistic minority shall be such as would not restrict or abrogate the right to establish and administer educational institutions of their choice.”

2. The procedure to deal with such acquisition has been dealt with under section 15 of the Ac which states as follows-“15. Hearing of objections.–(1) Any person interested in any land which has been notified under sub-section (1) of section 11, as being required or likely to be required for a public purpose, may within sixty days from the date of the publication of the preliminary notification, object to— (a) the area and suitability of land proposed to be acquired; 16 (b) justification offered for public purpose; (c) the findings of the Social Impact Assessment report. (2) Every objection under sub-section (1) shall be made to the Collector in writing, and the Collector shall give the objector an opportunity of being heard in person or by any person authorised by him in this behalf or by an Advocate and shall, after hearing all such objections and after making such further inquiry, if any, as he thinks necessary, either make a report in respect of the land which has been notified under sub-section (1) of section 11, or make different reports in respect of different parcels of such land, to the appropriate Government, containing his recommendations on the objections, together with the record of the proceedings held by him along with a separate report giving therein the approximate cost of land acquisition, particulars as to the number of affected families likely to be resettled, for the decision of that Government. (3) The decision of the appropriate Government on the objections made under sub-section (2) shall be final.”

Section 22 of the Act is also important in this respect which speaks of - 22. “(1) The Collector may also require any such person to make or deliver to him, at a time and place mentioned (such time not being less than thirty days after the date of the requisition), a statement containing, so far as may be practicable, the name of every other person possessing any interest in the land or any part thereof as co-proprietor, sub-proprietor, mortgagee, tenant or otherwise, and of the nature of such interest, and of the rents and profits, if any, received or receivable on account thereof for three years next preceding the date of the statement. (2) Every person required to make or deliver a statement under this section shall be deemed to be legally bound to do so within the meaning of sections 175 and 176 of the Indian Penal Code (45 of 1860).”

3. You may red my post published in The Hindu- file:///D:/Hindu%20post.html

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

Section 106 thereof, makes it clear that the Central Government cannot amend or alter any of the Schedules to the said Act including the First Schedule, so as to reduce the compensation payable or for diluting the provisions of the Act relating to compensation or rehabilitation and resettlement. Section 107 of the Act of 2013, empowers the State Legislature, to enact any law to enhance or add to the entitlement enumerated under the Act, which confers higher {25} Final 4274.14 wp.odt compensation than the one payable under the Act of 2013. Thus, the State Legislature can enact any law conferring higher compensation than the one provided under the Act of 2013. Section 108 of the Act of 2013 provides an option to affected families to avail better compensation and rehabilitation and resettlement if State law or policy so provides. The thrust seems to be that the compensation cannot be lower than the one prescribed under the Act of 2013.

2)you can challenge the compensation offered in comparison to different project in vicinity

3)Andhra Pradesh Right to Fair Compensation and

Transparency in Land Acquisition, Rehabilitation and Resettlement Rules, 2014 –

rule 28 compensation

all parties whose land or other immovable property or assets attached to the land or

building have been acquired. The multiplication factor under item(2) of the First Schedule

for rural areas shall be 1.25 other than scheduled areas and 1.50 for scheduled (tribal)

areas subject to any further notification as may be notified by Government.

3)under section 38 (1) of new land acquisition act payment is to be made within period of 3 months of award

4) section 77 of new land acquisition act provides that payment of compensation is to be made by collector by depositing in bank accounts of persons whose land is acquired

5)you cna accept payment under protest you can apply to collector to refer mattter to authority for re determination of compensation awarded

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (also Land Acquisition Act, 2013) is an Act of Indian Parliament that regulates land acquisition and lays down the procedure and rules for granting compensation, rehabilitation and resettlement to the affected persons in India.

Section 27 of the Act defines the method by which market value of the land shall be computed under the proposed law.

The market value would be multiplied by a factor of, at least one to two times the market value for land acquired in rural areas and at least one times the market value for land acquired in urban areas. The Act stipulates that the minimum compensation to be a multiple of the total of above ascertained market value, value to assets attached to the property, plus a solatium equal to 100 percent of the market value of the property including value of assets.

The disparity shown by the state government while compensating the acquisition, may be taken up with the special courts set for land acquisition disputes.

You can first accept the compensation now given with protest/objection and then approach court for enhancement

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Hi, you can challenge the notification of state govt. by filing a writ in high court and asking for additional compensation

Hemant Chaudhary
Advocate, Gurgaon
4632 Answers
67 Consultations

Sec.25 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, whereby the Collector shall make an Award within a period of twelve months from the date of publication of the declaration under Sec.19 and if no award is made wtihin that period, the entire proceedings for the acquisition of the land shall lapse. However, the Government shall have the power to extend the period of 12 months if in its opinion, circumstances exist justifying the same and any such decision to extend the period shall be recorded in writing and the same shall be notified and be uploaded on the website of the authority concerned.

In the case of any delay in determining and paying the compensation to the land owners, they are entitled to get interest at the rate of 9% p.a. When the Land Acquisition Act 1894 has been repealed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,

S.26(1) (b) the collector shall adopt the following criteria in assessing and determining the market value of the land namely:-

The average sale price for similar type of land situated in the nearest village or nearest vicinity area and whichever is higher:

Provided the date for determination of the market value shall be the date on which the notification has been issued.

The multiplication factor will be 1:2 X market value.

As per S.30, a solatium in addition to the compensation which is equal to 100% shall be paid.

As per S.30(3), an interest at the rate of 12% shall be awarded from the date of publication till possession.

As per S.73(3); any person who has not accepted the award of the collector may by written application to the collector require that the matter be referred to the determination of the authority concerned. Authority (District Judge).

Rajaganapathy Ganesan
Advocate, Chennai
2300 Answers
8 Consultations

You may challenge the said amendment by means of a writ petition under article 226 of the Constitution of India.

Do not accept the current compensation, approach the HC at the earliest.

Contact a local lawyer.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Dear Client,

Above proposition of applying differentiate rates of compensation is discriminatory. At least, govt. is not suppose to change it`s compensatory policy so frequently; according to project and location of site. Violation of Article 14 of Constitution of India.

Challenge the same before HIGH COURT, Also, keep ur dissent recorded even if u receive compensation before filling in HIGH COURT, this way court will be more inclined to be believe that u r forced to accept the payment at 2.5 and not willfully.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

You can do both the ways accept the present compensation under protest and then challenge for the new compensation. Or without taking any compensation challenge the same.

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

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