Chandigarh, November 17
The Punjab Council of Ministers today approved a balanced new land acquisition policy that will give more rights to farmers and not permit any official to acquire land on “whimsical” grounds.

It will be mandatory to rehabilitate the farmers whose land is acquired for any project and ensure the payment of the market price to them. It also clearly lays down guidelines on what constitutes “public purpose.”

Also, the Punjab Government will stop the forcible acquisition of land and all departments like PUDA, urban development agencies and improvement trusts will have to send land acquisition requests to the state-level Land Acquisition Board headed by the Financial Commissioner, Revenue (FCR). The board will consider it and, if it deems fit, a no-objection certificate will be issued within one month.

The policy says the prime focus should be on acquisition for economically and socially backward groups. To keep a check on delays that cause a great variation in prices, the policy says there should be a gap of a maximum of 6 months between notifications issued under Sections 4 and 6 of the Land Acquisition Act, 1894. An intention to acquire land is announced through a notification under Section 4. A notification is issued under Section 6 to say that the land is required for a public purpose. Then comes the part relating to the compensation. Crucially, the policy ensures that nobody can delay the award. If there is a delay in the giving of compensation by more than six months after a notification is issued under Section 6, the acquisition proceedings will lapse and have to be started afresh.

The market value of the land will be determined within three months from the date of issue of a notification under Section 4 of the Act. The same will incorporated when a notification is issued under Section 6. In case land is acquired as part of compulsory acquisition, 10 per cent premium will be paid to the farmer over and above the fixed market price. The government will ensure that land is acquired through negotiation and compulsory acquisition can be done only when it is needed. Also, standing order number 28 of the FCR, which lays down the procedure for land acquisition, stands amended after today’s developments.

To rehabilitate the farmer in case the project is residential or an industrial estate, he will be given a developed plot in these complexes. This will be in addition to the payment of the market price and not in lieu of that. In case the project is not a residential or industrial one, the affected framers will be rehabilitated under the National Policy on Resettlement for Project-Affected Farmers, 2003.This policy lays down in detail what all has to be done for farmers.

The much-talked-about and debated issue of land acquisition for industrial parks and projects promoted by the private sector has been dealt with in the policy. No more than 20 per cent of the total area required for the project can be acquired. The costs will be borne by the private developer.

To explain “public interest”, the government has referred to Section 3(1) of the Land Acquisition Act, 1894. This allows acquisition under the following circumstances: for town or rural planning, a scheme of the government, for a corporation owned or controlled by the state, housing for the poor, the landless and people affected by natural calamities, housing, the health sector, rehabilitation of slum dwellers, cooperative societies and for locating the premises of a public office.