CAG Audit Exposes Massive Shortfall in Tribal Land Compensation for Bengal Mining
A federal audit reveals West Bengal authorities failed to secure fair market value for tribal land acquired by coal mining giants. The Comptroller and Auditor General found that affected families received significantly less than legally mandated compensation between 2017 and 2022.
Key takeaways
- The CAG found that tribal landowners in West Bengal were underpaid by over 15 crore rupees for land acquired by ECL and BCCL.
- Authorities failed to implement the 100% solatium and 12% annual interest mandated by the 2013 Land Acquisition Act.
- A massive price disparity existed where the state government received up to ten times more per acre than tribal residents for similar land.
- Mandatory socio-economic impact assessments and Rehabilitation Action Plans were neglected in multiple mining sectors.
Why It Matters
The findings by the Comptroller and Auditor General (CAG) highlight a systemic failure in protecting the land rights of Scheduled Tribes in West Bengal. By bypassing mandatory valuation protocols and rehabilitation assessments, the state allowed central mining companies to acquire ancestral lands at a fraction of their actual worth, leaving marginalized communities without the financial safety net guaranteed by national legislation.
Key Facts
- Audit covers 66 land acquisition cases involving Eastern Coalfields Limited (ECL) and Bharat Coking Coal Limited (BCCL) from 2017-18 to 2021-22.
- Tribal landowners received only 2.55 crore rupees against an assessed market value of 17.79 crore rupees, a deficit of 85.68%.
- Mining companies failed to pay the mandatory 100% solatium required by the 2013 Land Acquisition Act, totaling a loss of 17.80 crore rupees for the owners.
- While the government received between 19.77 lakh and 125 lakh rupees per acre, tribal residents were paid as little as 2.50 lakh to 12.63 lakh rupees.
- Mandatory 12% annual interest on market value was omitted in every test-checked case during the five-year period.
Background
Land acquisition for coal mining in West Bengal often utilizes direct purchase methods under the West Bengal Land Reforms Act, 1955. This process requires explicit oversight from revenue officers and district welfare officers to ensure transfers occur at fair market rates determined by the Directorate of Registration and Stamp Revenue. Despite these legal guardrails, the CAG observed a total absence of socio-economic impact surveys in several mining areas, including Kunustoria and Parbelia. These surveys are essential for identifying affected persons and drafting Rehabilitation Action Plans (RAPs) under Coal India's 2012 policy.
What Happens Next
The CAG has formally recommended that the West Bengal government mandate the proactive involvement of district collectors in all future land acquisitions by ECL and BCCL. Furthermore, the auditor has called on Coal India to establish dedicated project groups to supervise the resettlement of displaced tribal families. The state is now under pressure to address the 15.25 crore rupee compensation gap and rectify the lack of administrative oversight that led to these disparities.
Source: The Hindu — National
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