Land acquisition Act to come into effect from January 1

The UPA government's ambitious Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act was notified on Tuesday, and will come into effect from January 1 next year. The rules to the Act, however, are yet to finalised.

The Act, which replaces the Land Acquisition Act, 1894, has sought to correct the low rates of compensation under the old Act by providing compensation of up to four times the market value in rural areas and twice the market value in urban areas. The legislation also provides for rehabiliation and resettlement benefits in addition to one-time cash payments. It was passed by both Houses of Parliament in the monsoon session this year after much political negotiation.

While the Act is set to come into effect, its rules are still being worked on. Officials in the Ministry of Rural Development said although the Act is operational on its own, rules are broadly meant to aid in interpretation and to clarify certain processes in the Act.

The ministry had drawn up draft rules, which were sent to the Law Ministry last month. The Law Ministry is now in the process of scrutinising the rules.

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