Explanation:

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006

• It was enacted to protect the marginalised socio-economic class of citizens and balance the right to environment with their right to life and livelihood.

The Act basically does two things:

• Grants legal recognition to the rights of traditional forest dwelling communities, partially correcting the injustice caused by the forest laws.
• Makes a beginning towards giving communities and the public a voice in forest and wildlife conservation.

Eligibility: First, everyone has to satisfy three conditions:

• Primarily residing in forests or forest lands;
• Depends on forests and forest land for a livelihood.
• One belongs to a Forest Dwelling Scheduled Tribes

Rights granted: The law recognises three types of rights:

• Land Rights: No one gets rights to any land that they have not been cultivating prior to December 13, 2005 and that they are not cultivating right now. 
• The land cannot be sold or transferred to anyone except by inheritance.

Use Rights: The law secondly provides for rights to use and/or collect the following:

• Minor forests produce things like tendu patta, herbs, medicinal plants etc “that have been traditionally collected. This does not include timber.
• Grazing grounds and water bodies 
• Traditional areas of use by nomadic or pastoralist communities i.e. communities that move with their herds, as opposed to practicing settled agriculture.
• Right to Protect and Conserve: For the first time, this law also gives the community the right to protect and manage the forest.

Procedure for granting rights: There is a transparent three step procedure for deciding on who gets rights. 

• First, the gram sabha (full village assembly, NOT the gram panchayat) makes a recommendation – i.e who has been cultivating land for how long, which minor forest produce is collected, etc. 
• The gram sabha’s recommendation goes through two stages of screening committees at the taluka and district levels. 
• The district level committee makes the final decision (see section 6(6)). The Committees have six members – three government officers and three elected persons.

Hence both statements are correct.