http://scroll.in/article/720493/Modi%E2%80%99s-land-ordinance-may-yet-fail-the-biggest-test-%E2%80%93-of-the-Indian-Constitution

OPINION

Modi's land ordinance may yet fail the biggest test - of the Indian Constitution

There are at least two provisions that may fall foul of the Constitution.

Dhruva Gandhi, Sarangan Rajeshkumar and Shubham Jain
Yesterday ยท 03:30 pm

The vociferous debate around Modi government's Land Acquisition
Ordinance has largely been obsessed with the pros and cons of the
clauses that remove the need for landowners' consent and social impact
assessments. Nowhere in this uproar regrettably has been considered
the issue of constitutional values. Does the ordinance fall foul of
the Indian Constitution? is a question that needs urgent attention.
What follows is an attempt to answer just that.

*Failing No. 1*

Section 5 of the ordinance allows the government to exempt certain
projects from the requirements of landowners' consent, social impact
assessment and the restrictions that apply to multi-crop irrigated
lands.

The types of projects that get this special treatment are: roads,
bridges, airports, ports, inland waterways, electricity generation,
electricity transmission, power distribution, gas pipelines, oil
pipelines, water supply pipelines, storm water drainage,
telecommunication, telecommunication towers, education, hospitals,
three-star or higher category hotels, special economic zones, tourism
facilities, terminal markets, post-storage infrastructure, industrial
corridors, mines, water conservation, agro-processing and national
security - among others.

An obvious question to ask here is: what is left? (Wildlife sanctuaries, maybe?)

Now let us look at the constitutional infirmities of this clause. The
jurisprudence on Article 14 of the Constitution, mandating equality
before law, has traditionally been based on two tests. Only when both
the tests are passed can a classification drawn under law be said to
be constitutionally valid.

The first of the tests, called "intelligible differentia", requires
difference capable of being understood. (A good example of
intelligible differentia is a rule which divides people with a
fractured bone from people without one. The fracture in this case is
intelligible and thus the basis of differentiation.) The second test,
called "rational nexus", requires that the differentia must have a
nexus with the purpose sought to be achieved by the law.

Consider Section 5 of the ordinance against this backdrop. It seeks to
make a division between projects entitled to exemptions and projects
that are not. However, there seems to be no intelligible differentia
in this division. What is the intelligible differentia between, say, a
wildlife sanctuary and an inland waterway, or between a housing
project for industrial workers and highways?

Even if one were to assume that an intelligible differentia is
present, there seems to be no rational nexus to the objective of the
law. The Statement of Objects and Reasons of the Land Acquisition Act,
2013, implies that the law's objective is not merely to further
industrialisation and urbanisation but rather their promotion in such
a transparent and participative manner that it ensures overall
socio-economic development. It is clear that the classification drawn
by Section 5 has no nexus to this stated objective. For these reasons,
Section 5 may be in breach of the Constitution.

*Failing No. 2*

Section 9 of the ordinance too may not pass the constitutional test.
It does not conform to another aspect of the jurisprudence on Article
14 that relates to over-inclusiveness and under-inclusiveness. This
states that Article 14 is violated if things that should have been
excluded from a classification because of not being "similarly
situated" are included and vice versa. (An example that explains this
well is when a government wanting to curb unsafe driving prohibits all
drivers above age 80 from driving. In this case, drivers aged above 80
who diligently follow traffic rules are not "similarly situated" as
those in the same age group who do not follow the rules.)

Section 9 amends Section 101 of the 2013 Act, nullifying the provision
that allowed the return of land lying unutilised for five years. The
intent of that old provision was to promote optimum land utilisation
by dis-incentivising its hoarding. Certainly, there were good reasons
for its inclusion. A 2014 audit of special economic zones by the
Comptroller and Auditor General had revealed that a large part of land
acquired for SEZs was diverted to real estate projects or mortgaged.

Therefore, the difference between utilised land and unutilised land at
the end of five years, as made in Section 101, could have been said to
be a valid classification.

However, Section 9 of the ordinance seeks to change five years to "a
period of five years or the period specified for the setting up of the
project", whichever is later. While it can be argued that such a
change was necessary because projects get delayed for various reasons
- including business negotiations, acquisition process, procurement of
requisite clearances - these transactions cannot be effected without
the certainty of land for the project. Therefore, land lying idle
because of these reasons can at most be treated as underutilised and
not unutilised. Unutilised land here would be a plot that lies vacant
without any processes necessary for the project's progress.

Unfortunately, Section 9 can be used to deny the return of land in
both underutilised and unutilised cases. Whereas it may have sought to
extend the benefit of commercial realities to underutilised land, it
extends the same to unutilised land as well. Exploiting this, the
transferees may now allow land to remain vacant or may use it for
speculative purposes for more than five years.

We believe that Section 9 suffers from the problem of
over-inclusiveness. It includes not only what is similarly situated
with regard to purpose (underutilised land) but also what is not
similarly situated (unutilised land). In other words, the
classification confers benefits upon a wider range of individuals than
those intended to be protected.

The ordinance, as is clear, has at least two provisions that may fall
foul of the Constitution. Because of these failings, it may be
challenged in court on constitutional grounds even before the
government commences the acquisition of land for struck projects.

The authors are students at the National Law School of India
University, Bangalore.


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