The Land Acquisition Act, 2013, officially titled “The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013” (RFCTLARR Act, 2013), was enacted by the Parliament of India to replace the colonial-era Land Acquisition Act, 1894. The 2013 legislation came as a major reform in land acquisition law to ensure fair compensation, transparency, and humane rehabilitation and resettlement processes for affected individuals.
Objectives of the Act
The primary objectives of the Land Acquisition Act, 2013 include:
- Ensuring fair compensation for landowners and affected families.
- Providing rehabilitation and resettlement (R&R) for those displaced.
- Bringing transparency and accountability in the acquisition process.
- Protecting the rights of marginalized communities, such as SC/ST groups.
- Balancing development needs with the interests of affected persons.
Scope and Applicability of the Act
The Act applies to:
- All states of India, except Jammu & Kashmir (before Article 370 abrogation).
- Acquisition of land for public purposes and for private companies.
- Applies to both rural and urban areas.
- Applies when:
- Government acquires land for its own use.
- Government acquires land for private companies or PPP projects.
Key Definitions Under the Act
Some important terms defined in the Act are:
- Affected Families: Includes landowners and livelihood losers.
- Public Purpose: Strategic purposes like infrastructure, education, housing, etc.
- Compensation: Includes the market value plus solatium and other benefits.
- Resettlement Area: New place of residence provided to displaced families.
Important Features of the Land Acquisition Act, 2013
1. Consent Requirement
- For Private Projects: 80% consent of affected families.
- For Public-Private Partnership Projects: 70% consent required.
2. Social Impact Assessment (SIA)
- Mandatory for all land acquisitions (except in urgent cases).
- Conducted by an independent agency.
- Assesses impacts on livelihoods, environment, health, etc.
- Report must be published and reviewed by an expert group.
3. Fair Compensation
- Compensation is calculated as:
- Market value of land × Multiplier factor (1–2 depending on rural or urban area).
- 100% solatium (extra compensation).
- cost of assets on land (trees, buildings, etc.).
- R&R benefits.
- Market value of land × Multiplier factor (1–2 depending on rural or urban area).
4. Rehabilitation and Resettlement (R&R)
- Mandatory R&R for all affected families.
- Includes:
- Housing.
- Livelihood assistance.
- Transportation cost.
- Subsistence allowance.
5. Return of Unutilized Land
- If acquired land remains unutilized for 5 years, it must be returned to the original owner or state land bank.
6. Time Limit for Compensation
- Compensation and R&R must be provided within 6 months from acquisition.
7. Special Safeguards for SCs and STs
- Additional benefits:
- 1/3 R&R sites reserved.
- No acquisition in scheduled areas without Gram Sabha consent.
- Land-for-land compensation.
- Special infrastructure provisions in new resettlement areas.
Procedural Steps Under the Act
1. Preliminary Notification (Section 11)
- Notifies intent to acquire land.
- Includes details about the area, project, and purpose.
2. Social Impact Assessment (Section 4)
- Conducted within 6 months of notification.
- Report published in local language.
3. Expert Appraisal and Public Hearing (Section 7)
- SIA report reviewed by expert group.
- Public hearing to gather objections and suggestions.
4. Declaration of Acquisition (Section 19)
- Once SIA and expert appraisal is positive, a declaration is issued.
5. Compensation Award (Section 23)
- District Collector/Commissioner awards compensation.
6. Possession and R&R (Section 38)
- Land taken over only after compensation and R&R are completed.
Comparison with the Land Acquisition Act, 1894
| Feature | 1894 Act | 2013 Act |
|---|---|---|
| Consent | Not required | Required for private and PPP projects |
| Social Impact Assessment | Not provided | Mandatory |
| Compensation | Market value only | Market value + solatium + R&R |
| Rehabilitation & Resettlement | Not provided | Mandatory for all affected families |
| Transparency | Low | High – with public hearings and notices |
| Return of Unused Land | Not required | Mandatory after 5 years |
Criticism and Challenges
Though progressive in spirit, the Land Acquisition Act, 2013, has faced criticism:
- Bureaucratic Delays: Lengthy procedures like SIA delay development projects.
- High Compensation: Developers argue that higher compensation increases project cost.
- Political Hurdles: States have sought to dilute provisions for faster acquisition.
- Legal Ambiguities: Terms like “public purpose” are still vague and open to interpretation.
Land Acquisition Amendment Bill, 2015 (Proposed but not enacted)
The Land Acquisition (Amendment) Bill, 2015 sought to:
- Remove consent for certain categories like defence, rural infrastructure, and affordable housing.
- Exempt such projects from SIA.
- Speed up the acquisition process.
This Bill, however, faced strong political opposition and was not passed.
Judicial Interpretations and Key Case Laws
1. Indore Development Authority v. Shailendra (2020)
- Held that if compensation has been paid or possession taken, land cannot be returned even after 5 years.
2. Pune Municipal Corporation v. Harakchand Misirimal Solanki (2014)
- Reinforced landowners’ rights to claim higher compensation.
3. Rajiv Sarin v. State of Uttarakhand (2011)
- Established that compensation must be fair and just even for land vested in the State.
Impact of the Act
- Increased awareness among farmers about their rights.
- Fairer compensation and better rehabilitation have improved trust.
- Public participation in land decisions has grown.
- However, implementation gaps remain in many states.
Conclusion
The Land Acquisition Act, 2013 represents a monumental shift from an exploitative framework to one that respects the rights and dignity of landowners and affected persons. While its strict procedures and consent requirements have been viewed as obstacles to development by some, it is a necessary framework in a democratic country striving for inclusive growth. Strengthening implementation, reducing red tape, and maintaining a balanced approach between development and justice will ensure the true spirit of the Act is upheld.
Memory Code Table: Summary of the Act
| Code | Concept | Details |
|---|---|---|
| SIA | Social Impact Assessment | Mandatory for all acquisitions; evaluates social and environmental effects. |
| 80/70 | Consent Requirement | 80% for private, 70% for PPP projects. |
| R&R | Rehabilitation and Resettlement | Mandatory for all affected families with housing, livelihood, etc. |
| FCP | Fair Compensation Principle | Market value + solatium + R&R + cost of assets. |
| 5YR | Return of Unused Land | Land to be returned if unused for 5 years. |
| SC/ST | Special Protection for SC/ST | Extra benefits, no acquisition without Gram Sabha consent. |
| OLD vs NEW | 1894 vs 2013 Comparison | Consent, R&R, transparency introduced. |
| CASE | Landmark Judgments | Indore Development, Pune Corporation, Rajiv Sarin, etc. |