The law's objective is to help the people. But more often than not, legalities of end up confusing the public rather than help them. NR Chandran demystifies the Land Acquisition Act
The Land Acquisition Act has been enacted to provide for compensation on the basis of the market value of the land. The Act also provided for an opportunity to object to the acquisition before passing a final notification under section 6 of the Act. After the final notification is issued, the public purpose for which the land is acquired will be conclusive and the government can take the land only after the compensation is paid. On passing the award and after taking possession the land would vest with the government. In case of urgency, the possession can be taken before passing the award.
The Act does not take into account the safeguards prescribed under the 1894 Land Acquisition Act. The Court took the view that an acquisition for airport and land for Neyveli Lignite Corporation Limited (NLC) would be an industrial purpose. It is possible for the state to resort to this Act pursuant to a pressure exercised by a particular industry.
The Act does not contemplate a detailed procedure for considering the objections or for knowing the views of the requisitioning department to make their objections and for detailed hearing. The compensation is not paid before the lands are taken. A second appeal is not provided if a person is not satisfied with the commpensation.
It is necessary to refer to the method of determining compensation under the Industrial Acquisition Act. Section 7 of the Act which deals with the payment of compensation provides the following method for determination of compensation as per mutual agreement. If there is no such agreement, it should be determined guided by Sections 23 and 24 of the Land Acquisition Act 1894.
As per Section 23 of the Land Acquisition Act 1894, compensation is payable on the market value of the land on the date of initiation the proceedings plus any damages caused, and loss of profit in future. The law does not provide any formula for determination of market value, but certain principles had been formulated by the various decisions of the High Court and Supreme Court.
As a matter of fact, in TANSI case when former Chief Minister was charged on the ground that a unit in which she had interest having purchased the property of the TANSI at lower price than the guideline value, the learned single judge Hon'ble Justice N Dinakar had considered this issue elaborately. The learned single judge held that guidelines value need not be the market value and the concept of guideline value and market value are different. The learned judge also observed in the said judgement that the term market value is vague, uncertain and determination of market value is a matter of guess work.
The decisions of court had laid down several principles and factor to be taken into account, like potentiality for development, shape, frontage of the land. One basic principle well accepted is that market value can be the price which a willing and prudent purchaser is prepared to offer in an open market value to a willing buyer. The court also cautioned that the value of small piece of land should not be taken for into account for determination of market value of the large area of land. But the fact remains the determination of market value, finally depends upon the facts of each case depending upon various circumstances.
Even though the power of the eminent domain is a well accepted principle it is ultimately the people's power will be supreme. To avoid any litigation the only method of successfully acquiring land either in the Land Acquisition Act or Harijan Welfare Act or under the Industrial Purposes Act to give adequate compensation to the land owners and also provide welfare measures for the displaced.
The States power to compulsory acquisition is well accepted but it will be repulsive to a landowner to deny a proper compensation who therefore would resist the same at any cost resulting in delay of the entire project.
The writer is former advocate general and senior advocate
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Tags :Civil Law
