CAG finds West Bengal government failed to ensure fair compensation for tribals in mining acquisitions
The Comptroller and Auditor General (CAG) has reported that the West Bengal government failed to safeguard the interests of tribal communities during land acquisition for coal mining projects, resulting in significant underpayment of compensation. The audit covered 66 land acquisition cases between 2017-18 and 2021-22 involving Eastern Coalfields Limited (ECL) and Bharat Coking Coal Limited (BCCL) in the Salanpur, Sripur, Kunustoria, Parbelia and Barakar areas.
According to the CAG report, the companies paid only ₹2.55 crore against the assessed market value of ₹17.79 crore for tribal-owned land, a shortfall of ₹15.25 crore, which is 85.68% of the market value. The companies also failed to pay the mandatory 100% solatium under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, depriving tribals of another ₹17.80 crore. The report further noted that the additional compensation at 12% per annum on the market value, also mandated by the law, was not paid in any of the test-checked cases.
The CAG highlighted wide disparities in land prices paid by ECL. For an acre of land, tribals were compensated at rates ranging between ₹2.50 lakh and ₹12.63 lakh, whereas compensation allowed to the government ranged between ₹19.77 lakh and ₹125 lakh. The audit attributed these deficiencies to the "inaction and non-involvement" of district-level functionaries, including revenue officers and district collectors.
The report also found serious shortcomings in rehabilitation measures. No socio-economic or social impact assessment surveys were conducted before acquisition in ECL's Kunustoria and Parbelia areas, although these were mandatory for identifying project-affected persons and preparing Rehabilitation Action Plans (RAPs). The CAG said RAPs were either not prepared or district authorities were not involved, contrary to Coal India's rehabilitation and resettlement policy.
ECL officials responded that land for coal mining in West Bengal is predominantly acquired through direct purchase via registered sale deeds, requiring permission under the West Bengal Land Reforms Act, 1955. They stated that the project officer-cum-district welfare officer determines the land transfer value based on the market value assessed by the Directorate of Registration and Stamp Revenue. They also said that employment is provided against every two acres of land purchased to compensate for loss of livelihood.
The CAG, however, observed that these practices failed to ensure fair compensation as required by law. The report, which is a statutory document presented to the state legislature, highlights the need for stricter oversight in land acquisition processes to protect the rights of Scheduled Tribe families. The state government has not yet issued a detailed response to the findings.
