'Only land not suited to agriculture should be acquired'

17 Oct 2007 The Times of India

NEW DELHI: The Supreme Court has said that the Land Acquisition Act, 1894, stipulates that agricultural land should not be acquired for setting up a factory or for any other corporate purpose. Striking down acquisition of land for the 'Ganesha Project' of International Tractors Limited in village Chak Gujran by the Punjab government, the Bench laid down extensive guidelines, culling it out from the statutory rules.

ITL had entered into an agreement with Renault Agriculture, France, which holds 20% shares in ITL, for manufacture of latest technology tractors to boost exports. The Punjab government had issued the land acquisition notification saying establishment of the factory would contribute to the general welfare and prosperity of the whole community.

The Bench said: "When the state intends to proceed with the acquisition of land, it must form an opinion that lands which are going to be acquired are not good agricultural lands. The rules, by and large, lay down a statutory policy and the question of ignoring it by the state does not arise".

"Good agricultural land", as per rules, means "any land which, considering the level of agricultural production and the crop pattern of the area in which it is situated, is of average productivity and includes garden or grove land," the court said.

Whenever a company makes an application to the appropriate government for acquisition of any land, that government shall direct the collector to submit a report to it after satisfying that:

• The company made its best efforts to locate land in the locality suitable for acquisition.

• The company failed to acquire the land despite reasonable efforts to get such land by negotiations with the persons concerned on payment of reasonable price.

• The land proposed to be acquired is suitable for the purpose

• The area proposed to be acquired is not excessive.

• The company is in a position to utilise the land expeditiously.

• Where the land proposed to be acquired is good agricultural land, that no alternative suitable site can be found so as to avoid acquisition of that land.

Where the land proposed to be acquired is agricultural land, the court put the onus on the collector to consult the senior agricultural officer of the district to ascertain whether it is "good agricultural land" or not. After doing so, the collector is also to ascertain the approximate amount of compensation likely to be paid for the land and also whether the company offered a reasonable price, the court said.

http://timesofindia.indiatimes.com/India/Only_land_not_suited_to_agriculture_should_be_acquired/articleshow/2464909.cms

With Thanks from The Times of India

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