Author: M.V. Geethika Reddy, Alliance University
To the Point
In Andhra Pradesh, there are over 30 officially recognized Special Economic Zones (SEZs); the biggest ones are in Visakhapatnam, Nellore, and Kakinada. When land is acquired for SEZs, farmers, fishing communities, and indigenous groups are often displaced, raising concerns about fairness and rehabilitation.
The LARR Act of 2013 mandates rehabilitation, just compensation, and consent, but its implementation is still uneven. Courts have often intervened to defend the right to property as a constitutional protection under Article 300A, balancing it against the State’s eminent domain powers.
Use of Legal Jargon
- Eminent Domain: The sovereign’s inherent right to appropriate private property for public use.
- The Public Purpose Doctrine is a concept that has evolved over time in the legal system to define what “public purpose” means when it comes to land acquisition.
- A state-mandated purchase that necessitates payment but does not require complete consent is known as a compulsory acquisition.
- Rehabilitation and resettlement, or R&R, is the statutory obligation under the LARR Act to restore the displaced people’s means of subsistence.
- The principle of proportionality is a tool used by judges to balance the needs of development with the rights of individuals.
The Proof [Legal Framework in Andhra Pradesh]
1.The Constitutional Mandate,
“No person shall be deprived of his property save by authority of law,” according to Article 300A.
Entry 42, List III (Concurrent List): Gives state and union legislatures the authority to enact legislation pertaining to the purchase and requisition of property. Compensation has been reaffirmed as a crucial component of Article 300A by judicial expansion in cases such as K.T. Plantation Pvt. Ltd. v. State of Karnataka (2011) 9 SCC 1.
2. Legal Clauses
The Special Economic Zones Act of 2005 establishes the legal foundation for the creation of SEZs. Although it gives state governments the authority to suggest locations, property acquisition must adhere to standard land acquisition regulations. The 2013 LARR Act: Consent Clause: Demands 70% of landowners’ approval for PPP projects and 80% for private projects.
Fair Compensation: Based on solatium and market value.
3. Andhra Pradesh’s History
Farmers in the Kakinada Special Economic Zone have resisted the purchase of land, arguing that they will be underpaid and lose their means of subsistence.
Amaravati Land Pooling: While not covered by SEZ law, this is a prime example of the tension between voluntary pooling and coercion. SEZs in Visakhapatnam: The fishing community is still being displaced.
Abstract
Special economic zones (SEZs) have been seen as growth and development engines in India. Specifically, Andhra Pradesh has become a center for industrial corridors and port-based SEZs. However, socioeconomic, legal, and constitutional problems have been brought about by the property acquisition procedure for these zones. This paper examines the laws governing land acquisition for Special Economic Zones (SEZs) in Andhra Pradesh, with special reference to the Special Economic Zones Act, 2005, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act), and constitutional protections under Article 300A of the Indian Constitution.
Case Laws
“K.T. Plantation Pvt. Ltd. v. State of Karnataka (2011) 9 SCC 1” historic ruling maintaining that property deprivation must be accompanied by fair, reasonable, and just compensation.
“Dev Sharan v. State of U.P. (2011) 4 SCC 769” According to the Court, land transfers to private individuals cannot be made in the name of acquisition for “public purpose.”
“Ranga Reddy v. Sooraram Pratap Reddy (2008) 9 SCC 552,” District Collector addressed the acquisition of land in Andhra Pradesh for industrial use, stressing the necessity for judges to exercise caution when making decisions regarding public goals.
“Bangalore Development Authority v. R. Hanumaiah (2005) 12 SCC 508”
defined the parameters of the eminent domain doctrine and compulsory acquisition.
Conclusion
The conflict between development and displacement is most noticeable in Andhra Pradesh’s Special Economic Zones. Even when SEZs offer jobs, economic benefits, and foreign direct investment, the statutory protections of the LARR Act and the constitution’s guarantee of property rights cannot be sacrificed for development. Courts are wary of acquisitions that disguise private gain as a public objective, based on prior rulings. Going forward, open consultation, strict enforcement of R&R laws, and judicial oversight are essential to ensuring that SEZs in Andhra Pradesh are not built on top of farmers’ rights and means of subsistence.
FAQ’s
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Q1. What is the primary legislation in India that oversees SEZs?
In India, the creation, management, and regulation of SEZs are governed under the Special Economic Zones Act, 2005.
Q2. Is it possible for Andhra Pradesh to compel land acquisition for Special Economic Zones?
Yes, but only in accordance with the 2013 LARR Act, which mandates rehabilitation, compensation, and consent.
Q3. Is purchasing land for Special Economic Zones (SEZs) considered “public purpose”?
According to court rulings, acquisitions must be in the true public interest. It might not be sufficient to just give land to private developers under the pretense of a SEZ.
Q4. What rights do landowners have in the event of an arbitrary acquisition?
Under Article 226 of the Constitution, landowners may challenge acquisitions by arguing that they lack a public purpose, that the remuneration is unreasonable, or that the purchase violates the law.
Q5. How have courts struck a balance between property rights and development?
Using the proportionality concept, courts have mandated that sufficient compensation and R&R measures be included with relocation.
