1[20F. Determination of amount payable as compensation.– (1) Where any land is acquired under this Act, there shall be paid an amount which shall be determined by an order of the competent authority.
(2) The competent authority shall make an award under this section within a period of one year from the date of the publication of the declaration and if no award is made within that period, the entire proceedings for the acquisition of the land shall lapse:
Provided that the competent authority may, after the expiry of the period of limitation, if he is satisfied that the delay has been caused due to unavoidable circumstances, and for the reasons to be recorded in writing, he may make the award within an extended period of six months:
Provided further that where an award is made within the extended period, the entitled person shall, in the interest of justice, be paid an additional compensation for the delay in making of the award, every month for the period so extended, at the rate of not less than five per cent. of the value of the award, for each month of such delay.
(3) Where the right of user or any right in the nature of an easement on, any land is acquired under this Act, there shall be paid an amount to the owner and any other person whose right of enjoyment in that land has been affected in any manner whatsoever by reason of such acquisition, an amount calculated at ten per cent. of the amount determined under sub-section (1), for that land.
(4) Before proceeding to determine the amount under sub-section (1) or sub-section (3), as the case may be, the competent authority shall give a public notice published in two local newspapers, one of which shall be in a vernacular language inviting claims from all persons interested in the land to be acquired.
(5) Such notice shall state the particulars of the land and shall require all persons interested in such land to appear in person or by an agent or by a legal practitioner referred to in sub-section (2) of section 20D, before the competent authority, at a time and place and to state the nature of their respective interest in such land.
(6) If the amount determined by the competent authority under sub-section (1) or as the case may be, sub-section (3) is not acceptable to either of the parties, the amount shall, on an application by either of the parties, be determined by the arbitrator to be appointed by the Central Government in such manner as may be prescribed.
(7) Subject to the provisions of this Act, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to every arbitration under this Act.
(8) The competent authority or the arbitrator while determining the amount of compensation under sub-section (1) or sub-section (6), as the case may be, shall take into consideration–
(a) the market value of the land on the date of publication of the notification under section 20A;
(b) the damage, if any sustained by the person interested at the time of taking possession of the land, by reason of the severing of such land from other land;
(c) the damage, if any, sustained by the person interested at the time of taking possession of the land, by reason of the acquisition injuriously affecting his other immovable property in any manner, or his earnings;
(d) if, in consequences of the acquisition of the land, the person interested is compelled to change his residence or place of business, the reasonable expenses, if any, incidental to such change.
(9) In addition to the market-value of the land as above provided, the competent authority or the arbitrator, as the case may be, shall in every case award a sum of sixty per centum on such market-value, in consideration of the compulsory nature of the acquisition.]
1. Ins. by Act 11 of 2008, s. 3 (w.e.f. 31-1-2008)
Simplified Explanation
Section 20F of the Railways Act, 1989 outlines the process for determining and awarding compensation to landowners and other affected persons when land is acquired for a railway project. This section aims to ensure fair compensation for land and any related rights that are impacted by the acquisition.
Key Provisions:
- Determination of Compensation:
- When land is acquired under the Act, compensation is to be determined by the competent authority. This authority must make an award (decision) regarding the compensation amount within one year from the publication of the land acquisition declaration.
- Lapse of Acquisition Proceedings:
- If the award is not made within one year, the acquisition proceedings will lapse.
- However, if the competent authority justifies the delay due to unavoidable circumstances, the authority may make the award within an additional six-month period.
- If the award is made within this extended period, the entitled person shall receive additional compensation for the delay, calculated at 5% of the award value per month of delay.
- Compensation for Rights of Use or Easement:
- In cases where rights of user or easements (such as rights of passage) over the land are acquired, the owner or affected person will receive 10% of the compensation amount as determined for the land.
- Public Notice and Claim Process:
- Before determining compensation, the competent authority is required to issue a public notice in two local newspapers (one in a vernacular language), inviting claims from persons interested in the land.
- The notice will contain details of the land and request interested parties to appear before the competent authority to state their claims and the nature of their interest in the land.
- Dispute Resolution and Arbitration:
- If either party (the landowner or the government) does not accept the amount determined by the competent authority, the amount may be referred to an arbitrator, who will be appointed by the Central Government.
- The Arbitration and Conciliation Act, 1996 will apply to the arbitration process.
- Factors for Determining Compensation: The compensation amount will be determined by considering the following factors:
- Market value of the land at the time of the notification (as per Section 20A).
- Damage caused due to the severing of the land from other land at the time of possession.
- Damage to other immovable property or earnings due to the acquisition.
- Reasonable expenses incurred if the acquisition forces the person to change their residence or business.
- Additional Compensation for Compulsory Acquisition:
- In addition to the market value of the land, the competent authority or arbitrator must award an extra 60% of the market value as compensation to account for the compulsory nature of the acquisition.
Implications:
- Fair Compensation: The provisions ensure that individuals whose lands are acquired for railway projects are compensated not only for the land’s market value but also for any damages or inconvenience caused by the acquisition.
- Timely Awards: The one-year deadline for issuing the award ensures that compensation is provided without unnecessary delays. The possibility of extending the period by six months offers flexibility in unavoidable circumstances.
- Comprehensive Compensation: The calculation for compensation is broad, covering the market value of the land, damages to related property, and reasonable costs for relocating if necessary. This ensures the landowner is fully compensated for the impact of the acquisition.
- Protection for Affected Rights: Individuals with rights such as easements over the land are also compensated, protecting those with interests in the land beyond mere ownership.
- Arbitration Process: The provision for arbitration ensures that disputes over compensation amounts can be resolved impartially through a legal process, avoiding prolonged conflicts.
Conclusion:
Section 20F ensures a structured and fair process for determining and awarding compensation for land acquisition. It includes safeguards such as deadlines for making awards, compensation for indirect damages, and provisions for resolving disputes through arbitration. These measures protect the interests of landowners and ensure just compensation for land acquired for public purposes, particularly for railway projects.
