Land Acquisition Act 2013 Explained: Key Features, Benefits and Process

WHAT IS LAND ACQUISITION?
• Land acquisition refers to the process by which the union or a state government acquires
private land for the purpose of industrialisation, development of infrastructural facilities
or urbanisation of the private land. Till 2013, land acquisition act in India was governed by
land acquisition act 1894.
• It allows the acquisition of land for some public purpose by a government agency from
individual landowners after paying a government-determined compensation to cover losses
incurred by landowners from surrendering their land to the agency.
• Under 1894 act, the term public purpose was ambiguous and open to executive
discretion.
• So poor people land was acquired at throwaway prices in pretext of development projects.
Sometimes such projects never started and the same cheap land was resold at higher
price to real estate developers, without building anything for public purpose.

KEY PROBLEMS WITH THE LAND ACQUISITION ACT, 1894
• Low rate of compensation – The rates paid for the land acquired are the prevailing
circle rates in the area which are notorious for being outdated and hence not even
remotely indicative of the actual rates prevailing in the area.
• Litigation– Even where acquisition has been carried out the same has been challenged in
litigations on the ground mentioned above. This results in the stalling of legitimate
infrastructure projects.
• No safeguards – There is no real appeal mechanism to stop the process of acquisition. A
hearing is prescribed but this is not a discussion or negotiation. The views expressed are
not required to be taken on board by the officers conducting the hearing.
• Silent on resettlement and rehabilitation of those displaced - There were
absolutely no provisions in the 1894 law relating to the resettlement and rehabilitation of
those displaced by acquisition.

INTRODUCTION TO LARR - 2013
• Right to fair compensation and transparency in land acquisition, rehabilitation and
resettlement act, 2013 which came into force from 1st January 2014.
• The title of old law conveyed that its primary purpose was to expedite the acquisition of
land. However, the principle objective of the new bill is fair compensation, thorough
resettlement and rehabilitation of those affected, adequate safeguards for their well-
being and complete transparency in the process of land acquisition. The title has been
amended to reflect this.
• Retrospective operation – To address historical injustice it applies retrospectively to
cases where no land acquisition award has been made. Also in cases where the land was
acquired for five years ago but no compensation has been paid land acquisition process
will be started afresh.

AIMS AND OBJECTIVES
The aims and objectives of the Act include:
• To ensure, in consultation with institutions of local self-government and Gram Sabha’s
established under the Constitution of India, a humane, participative, informed and
transparent process for land acquisition for industrialisation, development of essential
infrastructural facilities and urbanisation with the least disturbance to the owners of the
land and other affected families
• Provide just and fair compensation to the affected families whose land has been acquired
or proposed to be acquired or are affected by such acquisition
• Make adequate provisions for such affected persons for their rehabilitation and
resettlement
• Ensure that the cumulative outcome of compulsory acquisition should be that affected
persons become partners in development leading to an improvement in their post-
acquisition social and economic status and for matters connected therewith or incidental
thereto.

SALIENT FEATURES OF LARR - 2013
• SIA even need to obtain consent of the affected people, labourers, share croppers,
tenant farmers, fishermen, small traders etc.
• Compensation proportion to market rates
2 times the market rate in rural area
1 times in urban area
• Affected artisans, small traders, fisherman etc will be given one-time payment, even if
they don’t own any land.
• If the project doesn’t start in 5 years, land has to be returned to the original owner.
• To ensure food security

SALIENT FEATURES OF LARR - 2013
• Fertile, irrigated, multi-cropped farm land can be acquired only in last resort.
• If such fertile land is acquired, then government will have to develop equal size of
wasteland for agriculture purpose.
• Clearly defines various types of “public purpose” project for which government can
acquire private land.
• Land acquire only when:
For private project, 80% affected families must agree.
For PPP project, 70% affected families must agree.

NEED OF LARR - 2013
• India's Land Acquisition Act of 1894, there was an absence of a cohesive national law
that addressed fair compensation when private land is acquired for public use, and fair
rehabilitation of land owners and those directly affected from loss of livelihoods
• A combined law was necessary, one that legally requires rehabilitation and
resettlement necessarily and simultaneously follow government acquisition of land for
public purposes.
Forty-Fourth Amendment Act of 1978 omitted Art 19(1) (f) with the net result being:-
1. (Constitution 44th Amendment, w.e.f. 10.6.1979). The amendment ensured that the
right to property‟ is no more a fundamental right but rather a constitutional/legal
right/as a statutory right.
2. Moreover, no one can challenge the reasonableness of the restriction imposed by any
law the legislature made to deprive the person of his property.

NEED OF LARR - 2013
• State must pay compensation at the market value for such land, building or
structure acquired (Inserted by Constitution, Seventeenth Amendment Act, 1964),
• The word "Compensation" deployed in Article 31(2) implied full compensation, that
is the market value of the property at the time of the acquisition.
• The Legislature must "ensure that what is determined as payable must be
compensation, that is, a just equivalent of what the owner has been deprived of
the fundamental right to property has been abolished because of its incompatibility
with the goals of "justice" social, economic and political and "equality of status and
of opportunity" and with the establishment of "a socialist democratic republic, as
contemplated by the Constitution.
• The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 was introduced in
Lok Sabha.

BENEFITS AND EFFECTS OF LARR - 2013
• The 2013 Act is expected to affect rural families in India whose primary livelihood is
derived from farms. The Act will also affect urban households in India whose land or
property is acquired.
• Per an April 2010 report, over 50% of Indian population (about 60 crore people)
derived its livelihood from farm lands. With an average rural household size of 5.5,
LARR Bill 2011 R&R entitlement benefits may apply to about 10.9 crore rural
households in India.
• According to Government of India, the contribution of agriculture to Indian economy's
gross domestic product has been steadily dropping with every decade since its
independence. As of 2009, about 15.7% of India's GDP is derived from agriculture.
• Act will mandate higher payments for land as well as guaranteed entitlements from
India's non-agriculture-derived GDP to the people supported by agriculture-derived
GDP.
• It is expected that the Act will directly affect 13.2 crore hectares (32.6 crore acres) of
rural land in India, over 10 crore land owners, with an average land holding of about 3
acres per land owner.

• Families whose livelihood depends on farming land, the number of livelihood-
dependent families per acre varies widely from season to season, demands of the land,
and the nature of crop.
• Act provides to compensate rural households – both land owners and livelihood losers.
• The Act goes beyond compensation, it mandates guaranteed series of entitlements to
rural households affected.
• For a typical rural household that owns the average of 3 acres of land, the Act will
replace the loss of annual average per capita income of Rs 11,136 for the rural
household, with
- four times the market value of the land,
- an upfront payment of Rs1,36,000 for subsistence, transportation and resettlement allowances,
and
- an additional entitlement of a job to the family member, or a payment of Rs 5,00,000
- a monthly annuity totalling Rs 24,000 per year for 20 years with adjustment for inflation – the
option from these three choices shall be the legal right of the affected land owner family, not the
land acquirer, and

- a house with no less than 50 square meters in plinth area,
- if the land is resold without development, used for urbanization, or if the land owner belongs to
SC/ST or other protected groups per rules of the Government of India.
• If the affected families on the above rural land demand 100% upfront compensation
from the land acquirer, and the market value of land is Rs 1,00,000 per acre, the Act
mandates the land acquirer to offset the loss of an average per capita 2010 income of
Rs 11,136 per year created by this 3 acre of rural land, with the following:
• Rs 18,36,000 to the rural land owner; which is the total of R&R allowances of Rs 6,36,000 plus
Rs 12,00,000 – which is four times the market value of the land, plus
• a house with no less than 50 square metres in plinth area
• additional payments of Rs 6,36,000 each to any additional families claiming to have lost its
livelihood because of the acquisition, even if they do not own the land

PROVISION AND COMPENSATION OF LARR – 2013
When government declares public purpose and shall control the land directly, consent
of the land owner shall not be required.
When government acquires land for different purposes, consent of natives is obtained
for different types of projects for which the land is acquired:
• For private companies – consent of at least 80% of affected families shall be
obtained. [section 2(2-i), as defined in sub-clauses (i) and (v) of clause (c) of section
3]
• For public-private project – consent of at least 70% of affected families shall be
obtained. [section 2(2-ii), as defined in sub-clauses (i) and (v) of clause (c) of section
3]

Minimum Compensation: (According to the “FIRST SCHEDULE”)
Minimum compensation package to be given to those whose land is acquired
and to the tenants.
• Multiple of total market value,
• Value to assets attached to the property,
• Solatium equal to 100% of the market value.
• Rural areas: At least two times the market value.
• Urban areas: Same as the market value.

Provision for farmers, landless and livelihood losers [According to the
“SECOND SCHEDULE”, [See sections 31(1), 38(1) and 105(3)]
Elements of Rehabilitation and Resettlement entitlements for all the affected
families, (owners and those whose livelihood is dependent on the land acquired) in
addition to the “FIRST SCHEDULE”
• Return of unutilized land: In case land remains unutilized after acquisition, the
new Bill empowers states to return the land either to the owner or to the State
Land Bank.
• Houses for all affected families: All affected families are entitled to a house
provided they have been residing in an area for five years or more and have been
displaced. If they choose not to accept the house they are offered a one-time
financial grant in lieu of the same.
• Choice of annuity or employment: all affected families are given a choice of
annuity or employment;
I. If employment is not forthcoming they are entitled to a one-time grant of rs.5
lakh per family.
Ii. Alternatively they will provided with an annuity payment of rs.2,000 per month
per family for 20 years.

Provision for farmers, landless and livelihood losers
• Subsistence allowance: All affected families which are displaced from the land
acquired shall be given a monthly subsistence allowance equivalent to Rs.3,000
per month for a period of one year from the date of award.[Section 31(2)]
• Training and skill development: All affected families are also given training and
skill development while being offered employment. [Section 31(2)]
• Miscellaneous amounts: All affected families are given multiple monetary
benefits such as transport allowance of Rs.50,000 and resettlement allowance
of Rs.50,000. [Section 31(2)]
• One-time financial assistance: Each affected family of an artisan, small trader or
self-employed person shall get one-time financial assistance of such amount as
the appropriate government may, by notification, specify subject to a minimum
of Rs.25,000. [Section 31(2)]

• R&R to be completed in all aspects for irrigation projects: in case of acquisition
of land for irrigation or hydel project the rehabilitation and resettlement shall
be completed six months prior to submergence of the lands proposed to be
so acquired.
• Possession upon fulfilment of conditions under act: [Section 38]
• Full payment of compensation is paid.
• Tendered to the entitled person within a period of three months and six
months for monetary part of rehabilitation and resettlement entitlements
commencing from the date of award.
• Families will not be displaced from this land till their alternative R&R sites are
ready for occupation.
• Time limit for provision of R&R entitlements:
Infrastructural entitlements shall be provided within a period of 18 months from
the date of the award.

• Special powers in case of urgency to acquire land in certain cases: [Section 40]
• In cases of urgency, whenever the appropriate Government so directs, the
Collector, on the expiration of 30 days from the publication of the notice
mentioned in section 21 (Gov. notice to the public), take possession of any land
needed for a public purpose and such land shall thereupon vest absolutely in the
Government, free from all encumbrances.
• Before taking possession of any land under sub-section (1) or sub-section (2), the
Collector shall tender payment of 80% of the compensation for such land as
estimated by him to the person interested entitled thereto.
• In the case of any land to which, in the opinion of the appropriate Government,
the provisions of sub-section (1), sub-section (2) or sub-section (3) are
applicable, the appropriate Government may direct that any or all of the
provisions of Chapter II to Chapter VI shall not apply, and, if it does so direct, a
declaration may be made.

An additional compensation of 75% of the total compensation as determined
under section 27(market value of land), shall be paid by the Collector in respect of
land and property for acquisition of which proceedings have been initiated under
sub-section (1) of this section.
Provided that no additional compensation will be required to be paid in case the
project is one that affects the sovereignty and integrity of India, the security and
strategic interests of the State or relations with foreign States.

Provision for scheduled castes and scheduled tribes [Section 41]
• As far as possible no acquisition shall take place in the Scheduled Areas. And
where such acquisition does take place it has to be done with the approval/
consent of the local institutions of self-governance.
• One-third to be paid up-front:
In case of land been acquired – 1/3rd of compensation amount is paid to the
affected families as the first instalment, rest shall precede the taking over of the
possession of the land.
• Resettlement in the same scheduled area:
The Scheduled Tribes affected families shall be resettled preferable in the same
Scheduled Area in a compact block so that they can retain their ethnic, linguistic
and cultural identity.

• Alienation of tribal lands to be void: Any alienation of tribal lands or lands
belonging to members of the Scheduled Castes in disregard of the laws and
regulations for the time being in force shall be treated as null and void: and in the
case of acquisition of such lands, the rehabilitation and resettlement benefits
shall be available to the original tribal land owners or land owners belonging to
the Scheduled Castes.
• Fishing rights: The affected Scheduled Tribes, other traditional forest dwellers
and the Scheduled Castes families having fishing rights in a river or pond or dam
in the affected area shall be given fishing rights in the reservoir area of the
irrigation or hydel projects.
• If resettled outside scheduled area then additional benefits: Where the affected
families belonging to the Scheduled Castes and the Scheduled Tribes are
relocated outside of the district then they shall be paid an additional 25%
rehabilitation and resettlement benefits to which they are entitled in monetary
terms along with a one-time entitlement of Rs. 50,000.

• Higher land-for-land area for scs/sts:
In every project those losing land and belonging to the scheduled castes or
scheduled tribes will be provided land equivalent to land acquired or two-and-a-half
acres, whichever is lower (this is higher than in the case of non-SC/ST affected
families).
• Additional amounts:
In addition to a subsistence amount of rupees 3000 per month for a year (which all
affected families get), the Scheduled Castes and the Scheduled Tribes displaced
from Scheduled Areas shall receive an amount equivalent to rupees 50,000.

Law that ensures food security [Section 10]
• Special provisions have been inserted in the Law to ensure that multi-crop land is
acquired only in exceptional cases.
• States are also required to impose limits on the area of agricultural/ multi-crop
land that can be acquired in a State. No acquisition of such lands in excess of that
limit can take place.
• When acquiring agricultural land, the state has to cultivate an equivalent area of
land elsewhere as agricultural land. If they cannot do this then they must deposit
an amount equivalent to its value in an account to be used for the purposes of
enhancing food security.
• These provisions does not apply for projects which are linear in nature such as
highways, railways, power lines, etc.

Temporary occupation of land [Section 81]
• When it appears to the appropriate Government that the temporary occupation and the
use of waste of arable land is needed for any public purpose, the government may direct
the Collector to procure the occupation and use the same for such terms, not exceeding
three years from the commencement of occupation.
• The Collector gives notice in writing to the person interested to in such land of the
purpose for which the same is needed and shall use the land for the occupation. The
government to pay them such compensation, either in gross sum of money or monthly,
whichever is appropriate for the occupation.
Government Collector Person Appointed (paid by Gov.)

• Provided that, if the land has become permanently unfit to be used for the purpose
for which it was used immediately before the commencement of such term, and if
the persons interested shall so require, the appropriate Government shall proceed
under this Act to acquire the land as if it was needed permanently for a public
purpose.
• Parameters to be considered by Collector in determination of award: [Section 28]
In determining the amount of compensation to be awarded for land acquired under
this Act, the Collector shall take into consideration –
If the damage sustained by the person interested, by reason of taking of any standing
crops and trees which may be on the land or injuriously affecting his property at the
time of the Collector's taking possession.

Infrastructural facilities and basic amenities provided: [Section
32, According to SCHEDULE THREE]
The following infrastructure facilities and minimum amenities are provided for
the resettlement populations to ensure that the resettled population in the new
village or colony can secure themselves a reasonable standard of community
life and can attempt to minimise the trauma involved in displacement.
• Roads within the resettled villages and an all-weather road link to the
nearest pucca road, passages and easement rights for all the resettled
families be adequately arranged.
• Proper drainage as well as sanitation plans executed before physical
resettlement.
• One or more assured sources of safe drinking water for each family as per
the norms prescribed by the Government of India.
• Provision of drinking water for cattle.
• Grazing land as per proportion acceptable in the State.
• A reasonable number of Fair Price Shops.
• Panchayat Ghars, as appropriate.

Infrastructural facilities and basic amenities provided:
• Village level Post Offices, as appropriate, with facilities for opening saving
accounts.
• Appropriate seed-cum-fertilizer storage facility if needed.
• Efforts must be made to provide basic irrigation facilities to the agricultural
land allocated to the resettled families if not from the irrigation project,
then by developing a cooperative or under some Government scheme or
special assistance.
• All new villages established for resettlement of the displaced persons shall
be provided with suitable transport facility which must include public
transport facilities through local bus services with the nearby growth
centres/urban localities.
• Burial or cremation ground, depending on the caste- communities at the
site and their practices.
• Facilities for sanitation, including individual toilet points.
• Individual single electric connections (or connection through non-
conventional sources of energy like solar energy), for each household and
for public lighting.
• Anganwadi‘s providing child and mother supplemental nutritional services.

Infrastructural facilities and basic amenities provided:
• Sub-health centre within 2 km range.
• Primary Health Centre as prescribed by the Government of India.
• Playground for children.
• One community centre for every hundred families.
• Places of worship and chowpal/tree platform for every fifty families for
community assembly, of numbers and dimensions consonant with the
affected area.
• Separate land must be earmarked for traditional tribal institutions.
• The forest dweller families must be provided, where possible, with their
forest rights on non-timber forest produce and common property
resources, if available close to the new place of settlement and, in case any
such family can continue their access or entry to such forest or common
property in the area close to the place of eviction, they must continue to
enjoy their earlier rights to the aforesaid sources of livelihood.
• Appropriate security arrangements must be provided for the settlement, if
needed.
• Veterinary service centre as per norms.

NAG P UR -
AUR AN G AB AD -
MUMBAI HI G HWAY I N
AUR AN G AB AD CI TY
T h i s i s t h e mai n ro u te
o f t h e c i t y l ead i n g to
t wo c i t i es Pu n e an
Mu mb ai
T h i s ro u te al so l ead to
i n d u st r i al area ( Wal u j )
T h e p ar t o f l an d at t h e
ent ran c e o f t h e c i t y i n a
canto n ment area (w h i c h
i s exemp ted f ro m t h e
L. A . R. R. ACT )
t h u s t h i s l an d can n o t b e
ac q u i red fo r t h e “ p u b l i c
p u r p o se” as u n d er
cantt .
Hen c e t h e fo u r way
h i ghway at t h e ent ran c e
o f t h e c i t y d i ver t s t h e
t raf f i c to 9 m w i d e
si n gl e l an e ro ad w h i c h
makes i t a ac c i d ent
p ro n e zo n e as t raf f i c
con gest i on i s al ways at
t h i s p o i nt .

YAMUNA EXPRESS
WAY
• YAMUNA EXPRESSWAY IS ONE OF
THE EXAMPLE FROM RECENT TIMES
WHERE LAND WAS AQIRED BY
GOVNMENT AND HANDED TO BIG
BUSINESSES
• OVER 44,000 HECTORS THAT WERE
ACQUIRED FROM FARMERS OUT OF
WHICH ONLY 4092 HECTORS WENT
INTO BUILDING THE EXPRESSWAY
• THE REST OF THE LAND WAS SOLD
TO THE REAL ESTATE AGENTS TO
BUILD TOWNSHIPS AND
MYULTIPLEX
• THE COST OF THIS LAND HIKE UPP
TO 40 TIMES THE VALUE GIVEN AS
COMPENSATION TO THE FARMERS.

SAMPLE OF NOTICE PROVIDED TO THE FARMER

THANK YOU
Presented By :
• Priya Swami
• Sonali Vaidya
• Priti Patwari
• Nupur Bobde

Land Acquisition Act 2013 Explained: Key Features, Benefits and Process

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