Right To Fair Compensation And Transparency In Land Acquisition

The “Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013,” also known as the Land Acquisition Act, 2013,” the LARR Act, or the RFCTLARR Act, was enacted by the Central Government and took effect on January 1, 2014, repealing the colonial Land Acquisition Act of 1894 (the “Old Act”).  

Act’s necessity 

  • Fair compensation is required to protect the property rights of people whose land is purchased, as it ensures people receive fair compensation for the value of their land and any potential damage to their livelihood. 
  • Preventing Exploitation: Transparent procedures and just compensation help to protect landowners, especially those who may be in financial difficulty or are unaware of the value of their property. 
  • Protecting Social Justice: A strong emphasis on social justice principles to prevent evictions of vulnerable populations. It necessitates the implementation of appropriate rehabilitation and resettlement procedures, providing impacted individuals with alternative means of support, housing, and other facilities. 
  • Fostering Public Trust: Transparent and accountable processes increase public trust in the government’s decision-making. When land acquisition procedures are transparently and equitably, the government, landowners, and impacted communities can avoid problems. 

Features 

  • Application to Private Players such as Industrialists: Land can be purchased for “public purposes” as defined by the Act, such as infrastructure projects, public-private partnerships, and military, navy, and air force strategic goals. To purchase land for public-private co-ops or on behalf of private companies carrying out public functions, the government must obtain approval from 70% and 80% of the affected households, respectively. The rule on rehabilitation and resettlement must also apply if private actors acquire land above the amount set by the relevant government through informal negotiations. 
  • Rehabilitation and Resettlement: The Rehabilitation and Resettlement Package under the Acts is more comprehensive with its components. In addition to monetary compensation, it includes provisions for employment, the allocation of alternative housing units, another piece of land, and other entitlements. It also refers to infrastructure facilities at the new location. In addition, when property purchases of more than 100 acres occur, a Rehabilitation and Resettlement Committee consisting of representatives from various stakeholders is formed to oversee and carry out the Rehabilitation and Resettlement Clause. 
  • Compensation: As the title suggests, the most prominent aspect of the New Act is fair pay. The act establishes a system to ensure a minimum level of compensation, which includes payments of 1 to 2 times the market value of the real estate, the value of the asset tied to the land, and Solatium. Solatium refers to the sum paid in addition to the compensation, which is 100% of the Compensation Amount. The initial landowners must receive a minimum payment under Section 26 of the Act. This compensation involves calculating using a multiple of market value. Depending on whether it is rural or urban, the market values the cost of living one or two times. However, the amount of compensation is far more than under the Old Act. 
  • Consent: When the government purchases land for public use and directly operates the land bank, the landowners’ participation or approval is not required. When purchasing property for the start-up of private companies, the consent of at least 80% of the affected families is essential. In a public-private partnership, 70% of the affected families must approve the land purchase process. The statute requires that 20% of the proceeds from the sale of the acquired land or any part of it be paid to the original landowner or their legal heirs to prevent profiteering. 

The Act’s Drawbacks 

  • High Compensation Costs: The Act requires that compensation for land acquired be at least four times the market value in rural areas and twice the market value in urban areas. It can be a significant financial burden for the government and cause delays in land acquisition projects. 
  • The Act is a complex and lengthy process that can make it difficult for the government to acquire land quickly and efficiently. It can also cause delays in infrastructure projects. 
  • Lack of Transparency: The act fails to provide adequate transparency in the land acquisition process. It can lead to corruption and abuse of power by government officials. 
  • Inadequate rehabilitation and resettlement: The act doesn’t provide adequate recovery and resettlement for those displaced by land acquisition. It can cause social unrest and conflict. 
  • The Act fails to consider the social and environmental consequences of land acquisition. 
  • The Act does not provide adequate safeguards for tribal and other marginalized communities’ rights. 
  • The Act does not address the judiciary’s role in land acquisition disputes. 

The Future 

  • Involvement of impacted communities, landowners, and other stakeholders in decision-making: The government can ensure that communities, landowners, and other stakeholders participate meaningfully in decision-making. Holding public hearings, meetings, and consultants to gather feedback, resolve issues, and incorporate them into land purchase and resettlement plans. 
  • Run education campaigns and activities to assist government officials, affected communities, and other stakeholders to enhance their capacities. Inform them of their rights and entitlements as the procedures for acquiring, rehabilitating, and resettling land. Improve understanding of the obligations for transparency and equitable remuneration. 
  • Tracking and Appraisal: Implement a dependable auditing and appraisal mechanism to ensure that the requirements for transparent hiring and remuneration are met. Regularly assess the status of land acquisition initiatives, rehabilitation efforts, and compensation payments. Any discrepancies or flaws need to be rectified with corrective action and accountability. 
  • Technology: Use technological platforms and digital tools to improve transparency, streamline procedures, and expedite the land purchase process. Implement online portals for information distribution, application submission, and compensation payment tracking. 
  • Law Review and Amendment: Conduct a thorough examination of the current land acquisition laws and regulations to identify any flaws and potential areas for change. In light of the review, consider amending the legislation to improve the clauses relating to transparency and equitable pay. 

Understand the Maharashtra Ownership of Flats Act: Explain Your Rights!

The Maharashtra Apartment Ownership Act was published in the Maharashtra Government
Gazette on February 19, 1971. This Act was established for individual ownership, making it a heritable and transferable asset. It is important to note that the Act only applies to property.
According to the Act, the owner must file a declaration, which must be duly executed and
recorded.


The Maharashtra Apartment Ownership Act led to similar legislation in other states. An
example is the Karnataka Apartment Ownership Act of 1972.
According to the Maharashtra Apartment Ownership Act 1970, apartment owners have the legal right to fully own their homes, including their proportionate share of the apartment’s undivided common areas and amenities.

It also makes apartment ownership transferable and heritable, allowing owners to secure
mortgages. Apartment owners and builders benefit from this because they can use the freed-up money to start new projects.


Along with this, the Act facilitates the formation of associations among apartment owners, who take responsibility for ensuring residents’ welfare and advancing their rights. Although there are apartment owner’s associations that are not registered, it is always advisable to protect your association’s legal rights in the event of a later dispute.

The Act gives the owner complete ownership of the apartment and the power to organize a
group of other apartment owners to set the building’s bylaws.
All the apartment owners are legally protected, as disputes that arise due to conflict in the said association of apartment owners shall be governed under the civil jurisdiction of the law.

The key features of the Act

● According to the Maharashtra Apartment Ownership Act, you will be
considered the owner of a particular apartment in the building with a
proportional share in the undivided common areas and facilities. In
other words, in addition to having all the rights of an owner, you become the sole
owner of your apartment or the entire building.


● The apartment will also become heritable and transferable, from which you can
raise capital. You have the right to transfer ownership of your apartment to
anyone you choose, provided that you follow the bylaws.

● Among other Maharashtra laws, the Cooperative Societies and Companies Act
considers a flat part of the building and a unit owned jointly by the company or
society. While a flat is a unit of the building, the Maharashtra Apartment
Ownership Act of 1970 views it as a separate unit of ownership.

You can form an association with apartment owners.

● All apartment owners willing to join the association need to come together in one
place to complete the formalities.
● The association must have at least seven members over the age of 18.
● A Memorandum of Association includes information such as the names and
addresses of the organization and the occupations of all association members.
● Along with the Memorandum of Association, the association’s rules, and
regulations, or bylaws, must be filed.
● One or more buildings must contain at least five apartments to qualify to form an
association.

Understanding the terms used in the act


Common Expenses
These expenses are sums of money rightfully levied against apartment owners for
administration, upkeep, and repair, modifying communal spaces and amenities.
Common areas and facilities
Common areas and facilities include the land on which the multi-story apartment building is
situated, gardens, cellars, parking areas, or other similar structures, as well as all the structural components such as lobbies, corridors, fire escapes, beams, and columns.


Memorandum of Association
The name and purposes of the organization are listed in the Memorandum of Association, along with the location of the organization’s registered office, the names, addresses, and occupations of the members of the governing body, as well as the signatures of those who have subscribed to the document.


Conclusion

The Maharashtra Apartment Ownership Act of 1970 gives apartment owners the right to full
ownership of their units, which includes an equal share of the undivided common space and
amenities. As a result, the apartment owners are charged with ensuring the welfare of the
residents of the building and advancing their rights. The apartments are heritable and
transferable, allowing the owner to obtain a mortgage for the particular apartment.