RUDP: LHC says government can not acquire farmland without changing law

LAHORE: The Lahore High Court on Thursday barred the Punjab government from acquiring agriculture and cultivable farmland without making amendments in the Land Acquisition Act 1894 keeping in view the aspect of food security and environmental impact.

On Wednesday a single bench comprising Justice Shahid Karim had scrapped the Punjab government’s billion-dollar Riverfront Urban Development Project (RUDP) and issued a detailed 219 page judgment.

“It has been held that till such time that rules are prescribed, acquisition of agricultural and cultivable farmlands is prohibited. These rules and the amendment in the statute itself must prescribe circumstances which compel and constrain the taking of such land by the government and the extreme situations to justify it. Any such acquisition must be allowed only under dire and unavoidable circumstances, “read the judgment authored by Justice Karim.

The court said there is no impediment in issuing such a direction to the Punjab government to start the process of amending the Act, 1894 so as to conform with the socio-economic realities of present times and to provide for climate justice.

The judge maintained that the amendments should provide for not only environmental but also social impact assessment to conform with the dignity rights. Crucially, a comprehensive legal framework ought to be brought in relation to acquisition of agricultural and cultivated farmlands, keeping in view the aspect of food security. Any such acquisition must be allowed only under dire and unavoidable circumstances. The process of amending the law must be completed with all deliberate speed.

As far as environmental assessment of the project is concerned, the court observed that under the Punjab Environmental Protection (Registration of Environmental Consultants) Regulations, 2017 all environmental assessments to be prepared by registered consultants only. But unfortunately the same was not done in the present project.

Hence, the Punjab government is directed to notify the regulations within one month and, thereafter, constitute a consultant registration advisory committee. “Till that time no environmental impact assessment shall be prepared by an outside consultant who has not been registered in accordance with the Regulations throughout Punjab.
The court held that “The EIA prepared by RUDA and admittedly so done by an unregistered consultant is held to be ultra vires and unlawful.

The court further ruled that borrowing of funds by the RUDA has to be in accordance with the provisions of section 26 of the RUDA Act, 2020 which explained that any borrowing to be done by the Authority should be in line with the Local Authorities Loans Act, 1914 as the Authority has been deemed to be a local authority for the purpose of borrowing money.

“RUDA has admittedly entered into a loan agreement with the Government of Punjab for raising funds for the purposes of land acquisition for its project which were provided by the government to the tune of Rs.5,000 Million during financial year 2020-21, the court opined.

The court held that the provisions of the Act, 1914 empower a local authority to borrow money from the government on such terms as have been mentioned in the law. Since section 26 prescribes a special procedure for borrowing money from the government by RUDA, no other procedure can be adopted for such borrowing and any loan made by the government and raised by the Authority is ultra vires. There is no doubt that RUDA is empowered to borrow money from a financial institution which has also been defined in the Act, 2020.

But the government is not a financial institution and any loan made by the government has to conform to the provisions of the Act, 1914. Since this has not been done admittedly, the loans made by the government and raised by the Authority is unlawful and is in contravention of the provisions of section 26 of the Ruda Act, 2020. It is held to be null and of no effect, the judgment concluded.