Right to Fair Compensation Act
Exemption from Social Impact Assessment in Urgency Cases: Section 9
Every procedural fortress needs a gate for genuine emergencies, and Section 9 is Chapter II's: where land is proposed to be acquired invoking the urgency provisions of Section 40, the appropriate Government may exempt the acquisition from the Social Impact Assessment. The provision is a single sentence, but everything about it is calibrated, what qualifies as urgency, what exactly is lost, and what safeguards survive. This note takes each in turn.
1. The Exemption and Its Trigger
- Keyed to Section 40: the exemption is available only where the acquisition itself proceeds under the Act's urgency power, which Section 40 confines to the defence of India or national security, emergencies arising out of natural calamities, and any other emergency with the approval of Parliament (Topic 62 takes Section 40 fully). There is no free-standing power to skip the SIA for a project that is merely behind schedule.
- Discretionary, not automatic: the word is may: even a Section 40 acquisition can carry an SIA if the Government chooses, and the choice to exempt is itself an exercise of discretion, to be made on the urgency's reality.
- The 1894 contrast: the old Section 17 let urgency extinguish the Section 5A hearing for anything the government called urgent, planned townships included, and the courts spent a decade striking down its abuse (Radhy Shyam, Dev Sharan, 2011). The 2013 design answers that history by narrowing the category (three heads, one needing Parliament) rather than trusting the adjective.
2. What Is Lost, and What Survives
The exemption removes the Chapter II stages built on the study: the Section 4 assessment, the Section 5 hearing, the Section 6 publication, the Section 7 appraisal and the Section 8 examination as a package. What survives is everything Chapter II does not carry. The preliminary notification, objections and award procedure of Chapter IV apply as Section 40 modifies them; compensation under the First Schedule formula is untouched, and urgency acquisitions attract an additional 75% of the total compensation, except for the sovereignty, security and foreign-relations projects the proviso exempts; and the R&R framework remains, the Act nowhere suspends rehabilitation for urgency. The exemption is thus a procedural fast-lane with a financial toll, not a return to 1894: the State may move fast, but it pays more and still rehabilitates.
3. The Costs of the Fast Lane
- The lost census: without the SIA there is no early, studied list of affected families, so identification shifts to the R&R survey and award stages, where the landless are historically easiest to miss, the practical reason the exemption should be rare.
- The lost appraisal: no Expert Group reads the project, so the public-purpose and cost-benefit findings are never independently made; judicial review of an urgency acquisition therefore concentrates on the genuineness of the urgency itself, with the 1894-era case law on colourable urgency fully in point.
- The lost referendum: for the rare private or PPP acquisition claiming urgency, the consent process is designed to run with the SIA; the categories barely overlap in practice, defence and calamity acquisitions are government acquisitions, which is itself a check.
- The surviving discipline: exemption or not, the acquisition must still serve a Section 2(1) purpose, clear Section 10's food-security bar as applicable, and meet Article 300A's floor, notice, hearing at the objections stage as Section 40 allows, fair compensation and conclusion (Bimal Kumar Shah, Topic 122).
4. Reading Section 9 in the Scheme
Section 9 is best understood as the Act pricing its own exceptions. Chapter II is the 2013 regime's most distinctive machinery, and the draftsman knew its two vulnerabilities: that emergencies are real, and that "emergency" is the oldest disguise of convenience. The section answers both at once, a genuine exemption for the narrow Section 40 heads, and nothing for anything else. The State amendments that exempt whole project categories from Chapter II (Topic 96) are, in effect, legislated expansions of Section 9's idea without its discipline, which is why they, and not the section itself, are where the SIA's future is being decided.
⚠ Key point Section 9: the appropriate Government may exempt from the SIA only acquisitions invoking Section 40 urgency, defence and national security, natural calamities, or another emergency with Parliament's approval. The exemption removes the study, hearing, publication, appraisal and examination, but compensation (plus the 75% urgency addition, with its security proviso), R&R and the Chapter IV procedure survive. Urgency must be genuine: the colourable-urgency case law under the 1894 Act remains the review standard. |
5. Related Topics and Provisions
- Section 40 urgency powers (Topic 62): the trigger in full
- SIA overview (Topic 16): what the exemption suspends
- State amendments (Topic 96): exemption by another route
- Defects of the 1894 Act (Topic 3): the urgency abuse this answers