Overview of the central and state rules related to Land Acquisition and Resettlement and Rehabilitation in India

1. The Right To Fair Compensation And Transparency In Land
Acquisition, Rehabilitation And Resettlement Act, 2013
OVERVIEW AND CASES
Meghana Mandadi
2017MURP002

2. RFCTLARR Act, 2013 - Overview
 First act law related to Land Acquisition was Land Acquisition Act in 1894 which was outdated and failed to
include decisions related to resettlement, rehabilitation and compensation.
 RFCTLARR Act, 2013 is the first National/ Central Law on the subject of Rehabilitation & Resettlement of
families affected and displaced as a result of land acquisition.
 SALIENT FEATURES OF THE NEW LAW:
 Urgency Clause
 Definition of public purpose, affected family-
Land-owners, livelihood losers
 Safeguarding food security
 Minimum compensation for land acquisition
 Minimum R & R entitlements
 Special provisions and safeguards for farmers
 Special provisions for SC/ST’s
 Reduced role of collector
 Infrastructure amenities under R&R
 Retrospective effect clause
 Compliance with other laws
 Transparency provisions
 Benefits for tenants and share-croppers
 Safeguards against indiscriminate acquisition
 Flexibility given to the states

3. Salient features of the new law:
 The COMPENSATION FOR LAND, which is to be calculated based on:
1. The market rate of land multiplied by a factor dependent on whether the land is urban or rural;
Provided that the market value so calculated for rural areas shall be multiplied by a multiplier factor of up to
‘two’.
2. Market value of any assets / property that is on the land being acquired (including buildings, crops and trees);
TOTAL COMPENSATION = 1+2
3. A solatium which is equal to the sum of the land value and value of assets i.e 100% of the total compensation.
 Where land is acquired for urbanisation, 20% of the developed land will be reserved and offered to land
owning project affected families, in proportion to their land acquired and at a price equal to cost of
acquisition and the cost of development.
 The Company for whom land is being acquired may offer shares limited to 25% of the Compensation amount.
In case the family wishes to avail this offer, there will be a deduction in equal amount from the land
acquisition compensation package.

4. Social Impact Assessment
 Under Section 109 (1) of the Act, it allows to have deviations in the State Rules from their Central
counterparts with respect to provisions for a Social Impact Assessment (SIA), consent, computing of
compensation, food security related provisions and the operation of the retrospective clause.
 One new feature which is present in the RFCTLARR Act, 2013 and absent in the Land Acquisition Act, 1894 is
the provision for a Social Impact Assessment (SIA).
Difference between Central and State Rules
manner of conducting SIA duties of SIA team selection of SIA team process of conducting SIA’s
public hearings
evaluation of the SIA
Report and SIMP
inventory of
waste/barren/unutilised land
Provisions related to

5. Comparison between Central and State Rules’ provisions
 The basic requirements under the Central Rules for initiating the process of obtaining consent, are quite
similar to those in the rules of the various states, except for Andhra Pradesh, Telangana and Tripura
Provisions
exempting the
requirement for
consent
Provisions
related to
Fifth Schedule
Areas
Provisions related to the
procedure for taking
consent from the Gram
Sabhas
Provisions
related to the
consent of
land owners
Provisions related to roles
and responsibilities of the
appropriate
Government/Requiring
Body
 Objective of the RPF is to appropriately identify, address and mitigate adverse socioeconomic impacts that
may occur due to the implementation of projects that involve the involuntary acquisition of land and
subsequent resettlement of affected families
 The Resettlement Policy Framework(RPF) based on relevant National / State laws that are the RFCTLARRA
2013 and the RFCTLARRR 2014 as well as the World Bank Operational Policy for Involuntary Resettlement
along with the Andhra Pradesh Government Land Allotment Policy
 The principles of policy framework include avoidance, least disturbance, public purpose, participative, fair
compensation, maintaining the social and economic status of families.
Resettlement Policy Framework for Power Transmission and Distribution Projects – Andhra Pradesh

6. CONCLUSION
 The state has the authority to make laws apart from the central law of The Right To Fair Compensation And
Transparency In Land Acquisition, Rehabilitation And Resettlement Act, 2013 and this gives flexibility for
the states to amend laws.
 There are major variations especially related to SIA (Social Impact Assessment) such as reduction of time
period for public hearing, etc.
 Few states have ignored the concept of consent entirely, thereby challenging the objectives of the central
act. There are also changes in the quorum of the Gram Sabha (village assembly) and combined consent
clauses incorporated by some states.
 Few states have changed the method for calculating the amount for compensation and having fixed
multiplying factor for urban as well as rural areas which is a major drawback for the affected families.
 There is no uniformity in the fixation of limits regarding the acquisition of multi-cropped land and other
agricultural lands i.e the food security. “exceptional circumstances” or the “demonstrable last resorts” are
missing from the state laws.
 The Government had put efforts to rectify some of the damages that the Land Acquisition Act, 1894 had
caused by making the RFCTLARR Act, 2013 a retrospectively operational law.