Context: The Supreme Court has held that proceedings under the Land Acquisition Act 1894 will not lapse if the compensation has been tendered by deposit in treasury.

What was the issue?

• The issue was the interpretation of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.This act had replaced the colonial 1894 land acquisition law.
• Section 24(2) states that in case of land acquisition proceedings, if a developer fails to take possession of land acquired under the old laws for five years or if compensation is not paid to the owner,the land acquisition process would lapse. 
• The process would then have to be re-initiated under 2013 Act which would allow the owner to get better compensation.

About the Judgement:

• The court has ruled that the compensation would be considered paid if the amount is put in the Treasury. 
• There was no obligation that the amount should be deposited in the court in order to sustain the land acquisition proceedings under the 2013 Act.
• Hence,the landowners who had refused to accept the compensation under the earlier Act cannot take benefit of deemed lapse of acquisition under Section 24 of the new act of 2013.

About Land Acquisition,Rehabilitation and Resettlement Act, 2013

• Clearly defines various types of “public purpose” projects for which, Government can acquire private land.
• Acquiring land: For private project, 80% affected families must agree. For PPP project, 70% affected families must agree. Only then land can be acquired.
• Social impact assessment: Under Social impact assessment (SIA) even need to obtain consent of the affected artisans, labourers, share-croppers, tenant farmers etc whose (sustainable) livelihood will be affected because of the given project.
• Compensation: Compensation proportion to market rates. 4 times the market rate in rural area. 2 times in urban area. Affected artisans, small traders, fishermen etc. will be given one-time payment, even if they don’t own any land.
• To ensure food security: Fertile, irrigated, multi-cropped farmland can be acquired only in last resort. If such fertile land is acquired, then Government will have to develop equal size of wasteland for agriculture purpose.
• Private entities: If Government acquires the lands for private company- the said private company will be responsible for relief and rehabilitation of the affected people. Additional rehabilitation package for SC/ST owners.
• Safeguards: State Governments have to setup dispute settlement Chairman must be a district judge or lawyer for 7 years.
• Accountability: Head of the department will be made responsible, for any offense from Government’s side. If project doesn’t start in 5 years, land has to be returned to the original owner or the land bank.  Establishment of Land Acquisition, Rehabilitation and Resettlement Authority for speedy disposal of disputes.