According to the Ministry of Statistics and Planning's September 2018 flash report, the top five states with cost overruns due to project delays have been identified. Maharashtra led the list with a cost overrun of Rs 1.99 trillion, affecting 129 projects. This situation prompted the introduction of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement (Amendment) Bill, 2022.
The amendment Bill is currently under review in the Rajya Sabha after receiving approval from the Lok Sabha on March 10, 2022. The bill aims to accelerate the completion of major infrastructure projects undertaken by the central and Maharashtra governments, including those in Mumbai, to prevent delays due to lengthy procedures, procedural errors, and natural disasters.
Bill 2022 Amending Land Acquisition
Section 40 of the Act grants the collector special authority to urgently purchase land necessary for national defense, national security, and any emergencies caused by natural disasters or other urgent situations, with the approval of Parliament.
Two new sections, Sections 40A and 40B, have been added to the amendment bill for the development of infrastructure projects in Mumbai by the Maharashtra government.
Section 40A Provisions
- The collector will acquire the land even if no award has been made.
- As per Section 21 of the Act, after 30 days from the notice publication, the collector can take possession based on the advice of the Single Window No Objection Certificate Approval Committee. The government then has full ownership of the land, free from any encumbrances.
- The government must notify the occupier of its intention to take possession at least 30 days and not more than 45 days prior.
- The collector will offer compensation for the land before taking possession, and if the payment is delayed, the entitled person must still receive an additional 2% compensation each month.
Section 40B Provisions
- The government must issue a notice for publication in the official gazette before appointing the Single Window No Objection Certificate Approval Committee in Mumbai’s Metropolitan City. The committee members are listed in Section 40B (2) of the amendment bill.
- Within 30 days of receiving the relevant documents from the government, the committee must submit its recommendations. However, the committee must inform the parties involved in the extension of the considerations under sub-Section 5 of Section 40B (6).
Effects of the Change
The amendment speeds up the existing multi-stage and prolonged process of land acquisition and infrastructure development. Key benefits include:
- Faster land acquisitions while preserving the rights of displaced people and landowners.
- Establishing a new committee that separates various authorities and departments currently involved in the process. A single committee with equal representation can grant or revoke government approvals, eliminating bias and ensuring a transparent process.
- Ensuring fairness in the land acquisition process and providing just compensation to affected parties and landowners. This will facilitate the smooth initiation and completion of necessary and emergency projects in the state.
Implementing such changes is crucial for streamlining the land acquisition process and timely project completion, reducing capital costs. This will help the government meet its objectives while ensuring transparency and reducing the likelihood of land-related litigations.