In huge relief to the Haryana state government, the President has accorded assent to an Act passed by the Assembly last year, paving the way for denotification of 1,019 acres acquired for the Dadupur-Nalvi canal project about three decades back.

Facts :

• The Haryana government had been waiting for the President’s assent to the Act, which was passed by the Assembly in March last year, incorporating Section 101-A in the Act to provide the state government power to denotify land acquired for the project.
• Following the President’s assent, the state government issued a notification regarding the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Haryana Amendment) Act, 2017.
• According to Section 101-A, “When any public purpose for which land acquired under the Land Acquisition Act, 1894, becomes unviable or non-essential, the state government shall be at liberty to denotify such land on such terms as considered expedient by the state government, including payment of compensation on account of damages, if any, sustained by land owners due to such acquisition.”
• Where a part of the acquired land has been utilised or any encumbrances have been created, the land owner may be compensated by providing alternative land along with payment of damages, if any, as determined by the state government.
• Now, the land will go back to the farmers. However, the farmers, who have taken the compensation, shall have to deposit back the amount with 15% interest.
• The President’s assent to the Act had paved the way for denotification of land for all those projects which could not take off for one reason or the other over the years.
• The existing laws did not provide for return of land to farmers, particularly as it was acquired way back in the 1980s.
• The Supreme Court in Tata Singur case of West Bengal had clearly held that “the compensation which has already been paid to the cultivators shall not be recoverable by the state government as they have been deprived of the occupation and enjoyment of their land for the last 10 years.

Background :

• The Dadupur-Nalvi canal project was started in the 1980s when the state was expecting the Sutlej-Yamuna-Link waters and the canal was aimed for irrigation and recharging of groundwater in Yamunanagar, Kurukshetra and Ambala districts.
• Nearly 1,000 acres had been acquired for the first phase at nearly Rs 5 lakh per acre, but the government could not acquire 1,200 acres more for the second phase in 2007 due to protests by farmers.
• After a series of cases filed by farmers for enhanced compensation, the Punjab and Haryana High Court had awarded around Rs 1.25 crore per acre to owners of nearly 700 acres, which came out to be Rs 3.5 crore after adding solatium, interest etc.
• The cost of the entire project was pegged at Rs 3,000 crore. In the backdrop of huge cost, the state Cabinet decided on September 27 last year to denotify the land.

What was the implementation model of the irrigation scheme?

• The scheme was to be completed in three phases. The first phase involving construction of 50-km Shahbad-Nalvi feeder and 24-km Shahbad distributory has been completed at a cost of Rs 160 crore.
• Under the second phase, the work for the revival of Saraswati river and Rakshi Nadi, both having a capacity of 200 cusecs each, was taken up. The construction of Nalvi distributory was also undertaken and an expenditure of Rs 48 crore has been incurred so far.
• The construction work of the third phase, which included building 23 distributories and minors offtaking from the main canal, was deferred due to protests by farmers who do not want to give their land alleging that water would be available to them only during the rainy season when they do not require water.

How has the non-implementation of the third phase affected the project?

• As minors and distribution channels could not be built, the main canal remained non-functional. The benefits of irrigation to 92,532 hectares as envisaged in the scheme could not be derived.

What were the observations of Comptroller and Auditor General (CAG)?

• The CAG observed that the project was conceived without any survey about its usefulness and without ascertaining the views of the villagers. As a result, the entire expenditure incurred on the scheme was rendered unfruitful. The irrigation department stated that the project had helped in recharging the groundwater of the area but the CAG said the reply was not convincing as the primary objective of the project of providing canal irrigation to 92,532 hectares of land could not be fulfilled.

Section 101-A :

• "When any public purpose for which land acquired under the Land Acquisition Act, 1894, becomes unviable or non-essential, the state government shall be at liberty to denotify such land on such terms as considered expedient by the state government, including payment of compensation on account of damages, if any, sustained by land owners due to such acquisition."