The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
Overview
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (commonly called the Land Acquisition Act, 2013) is a comprehensive legislation enacted by the Indian Parliament to provide a fair process for land acquisition, ensure adequate compensation, and safeguard the rehabilitation and resettlement rights of affected persons.
It replaced the older Land Acquisition Act, 1894, which was widely criticized for being outdated and not protecting the rights of landowners and displaced persons adequately.
Objectives of the Act
To provide fair compensation to landowners whose land is acquired by the government or private entities for public purposes.
To ensure transparency and a consensual process in land acquisition.
To mandate rehabilitation and resettlement (R&R) of displaced families.
To balance the needs of development with the protection of the livelihood and rights of affected persons.
To recognize the social impact of land acquisition.
Key Definitions
Land Acquisition: The process by which government or certain private entities acquire private land for public use or projects.
Affected Family: Families whose land or livelihood is impacted due to acquisition.
Rehabilitation and Resettlement: Measures for restoring livelihoods and housing of displaced families.
Social Impact Assessment (SIA): Evaluation of the social consequences of proposed land acquisition.
Major Provisions of the Act
1. Consent Requirement (Section 10)
For acquisition by private companies or Public-Private Partnerships (PPP) for certain projects, at least 80% consent of landowners is required.
For public-private partnerships in housing, 70% consent is mandatory.
2. Social Impact Assessment (Section 4)
Before acquisition, a Social Impact Assessment must be conducted to evaluate the effects on communities.
The SIA report is made public and the concerns of affected people must be considered.
3. Compensation (Sections 26-31)
Compensation must be four times the market value in rural areas and twice the market value in urban areas.
The market value is based on the average of sale prices over the past three years.
Additional compensation is given for loss of livelihood, severance of land, and rehabilitation.
4. Rehabilitation and Resettlement (Section 41)
The Act provides detailed provisions for R&R benefits such as:
Job opportunities or annuity payments.
Housing for displaced families.
One-time grants and subsistence allowances.
R&R benefits must be provided before taking possession of land.
5. Transparency and Due Process
The Act mandates public hearings and consultation with affected families.
The process includes clear timelines, publication of notifications, and opportunities for objection.
6. Use of Land Acquired
Land acquired must be used for the declared purpose; otherwise, it must be returned or compensation paid again.
7. Special Provisions for Scheduled Areas
Additional protections and consent requirements apply in Scheduled Areas with tribal populations.
Procedure for Land Acquisition
Preliminary Notification: Government publishes intent to acquire land.
Social Impact Assessment: Conducted and shared publicly.
Consent: Required for certain projects, especially PPP/private.
Declaration: Formal declaration of land acquisition.
Compensation Determination: Based on market value and enhanced multipliers.
Rehabilitation and Resettlement: Implementation of R&R benefits.
Possession: Land is taken after completion of process.
Utilization of Land: Must be for notified purpose only.
Important Case Laws Related to Land Acquisition
1. K.T. Plantation Pvt. Ltd. v. State of Karnataka (2011)
Held: The 2013 Act was passed to correct the shortcomings of the 1894 Act.
Emphasized the importance of fair compensation and rehabilitation.
Courts have supported the consent requirement as vital to protect landowners.
2. Gujarat Urja Vikas Nigam Ltd. v. Essar Power Ltd. (2016)
Supreme Court upheld the importance of Social Impact Assessment.
Held that SIA and consent clauses cannot be bypassed except in very rare circumstances.
3. Rajasthan State Electricity Board v. Union of India (2015)
Addressed the return of unused acquired land.
Held that land not used for the declared purpose must be returned or compensation paid again.
4. Union of India v. Samir Purkayastha (2020)
Affirmed the right of affected families to rehabilitation and resettlement before possession is taken.
Ruled that failure to provide R&R benefits invalidates the acquisition process.
5. Narmada Bachao Andolan v. Union of India (2012)
Although predates the Act, this case emphasized the need for just compensation and rehabilitation.
Provided the foundation for many provisions of the 2013 Act.
Criticisms and Challenges
Implementation of R&R provisions has been uneven.
Consent and SIA processes are sometimes manipulated or bypassed.
The Act is criticized for delaying infrastructure projects due to procedural requirements.
Disputes remain on valuation of land and adequacy of compensation.
Some states have enacted amendments to dilute provisions, causing legal challenges.
Conclusion
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 aims to balance the needs of development with the protection of rights of landowners and affected communities. It introduces a transparent, participatory process and provides for fair compensation and rehabilitation.
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