The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 was enacted by the Parliament of India to replace the old Land Acquisition Act, 1894, which was widely criticized for being unjust to landowners and affected families. The Act came into force on 1 January 2014.
It provides a legal framework for land acquisition by the government for public purposes, ensuring fair compensation, adequate rehabilitation, and resettlement of affected families.
To ensure a humane, participative, informed, and transparent process of land acquisition.
To provide just and fair compensation to landowners.
To make provisions for rehabilitation and resettlement of families displaced due to acquisition.
To safeguard the interests of farmers and those dependent on land for livelihood.
Applies when the government acquires land for public purposes (e.g., infrastructure projects, industrial corridors, defense, housing).
Covers both rural and urban areas.
Private companies: Consent of 80% of affected families required.
Public-Private Partnership (PPP) projects: Consent of 70% of affected families required.
Landowners are entitled to fair compensation:
Up to 4 times the market value in rural areas.
Up to 2 times the market value in urban areas.
Besides monetary compensation, affected families are entitled to:
Housing benefits.
Employment opportunities or annuities.
Infrastructure facilities in resettlement areas (schools, health centers, etc.).
Mandatory Social Impact Assessment before acquisition.
Conducted to assess impact on livelihoods, environment, and communities.
Public hearings required to ensure transparency.
If acquired land is not used within 5 years, it must be returned to the original owners or to the State Land Bank.
Limits acquisition of multi-crop irrigated land; such acquisition is allowed only in exceptional cases.
Extra safeguards for Scheduled Castes (SCs), Scheduled Tribes (STs), and other disadvantaged groups.
Additional compensation and resettlement benefits provided.
Publication of acquisition details.
Clear timelines for compensation and R&R packages.
Grievance redressal mechanisms.
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Applicable when land is acquired by the Central or State Government for:
Public purpose projects (infrastructure, defense, housing, industry).
Public–Private Partnership (PPP) projects.
Private companies (with consent of affected families).
80% consent from landowners for private projects.
70% consent for PPP projects.
No consent required for government projects.
Rural Areas: Up to 4 times market value.
Urban Areas: Up to 2 times market value.
Includes compensation for:
Land.
Assets attached to the land (trees, buildings, wells).
Livelihood loss.
Mandatory R&R package for affected families:
Housing unit or house site.
One-time financial grant or annuity.
Employment opportunity for one member or a subsistence allowance.
Infrastructure at resettlement areas (schools, roads, health centers).
Mandatory SIA study before acquisition.
Conducted in consultation with Gram Sabha/local bodies.
Assesses impact on:
Livelihood.
Environment.
Socio-economic conditions.
Public hearings ensure transparency.
If acquired land is not used within 5 years, it must be returned to:
Original owners, or
State Land Bank.
Restricts acquisition of multi-crop irrigated land.
Such land can be acquired only under exceptional circumstances.
Land-for-land compensation in scheduled areas.
Additional monetary compensation.
Resettlement within the same region, to preserve culture and community.
Acquisition details to be published.
Timelines fixed for:
Compensation.
Displacement.
R&R benefits.
Dispute redressal mechanism provided through Land Acquisition, Rehabilitation, and Resettlement Authority.
Officials neglecting provisions can face penalties.
Acquisition without proper consent, compensation, or R&R is unlawful.
Shifts focus from forced acquisition to participative acquisition.
Ensures livelihood security along with compensation.
Strengthens rights of farmers, tribals, and weaker sections.
Balances development projects with social justice.
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