With the growing population in India, the demand for land acquisition also grows. Hence, to ensure a proper balance between demand and supply, and facilitate infrastructure development of the country, without hindrances, the Government of India has formulated certain rules and regulations. The Land Acquisition Act 2013 is an essential pillar of this system. Since land is a scarce resource in India, granting fair compensation to each citizen involved in any kind of land transaction is imperative. To serve this purpose the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 was introduced over the redundant Land Acquisition Act, 1894. The Land Acquisition Act, 2013 mandates fair resolutions to legal disputes and makes way for smooth land acquisition. The original land acquisition act first came into existence in British India, in the 1870s. However, there were still many essential provisions missing from the law regarding any settlement grant to the original owners of the land. This resulted in a lot of grievances among the citizens of the country. After several changes, the new, improved land acquisition act was finally passed and approved in 2013. This act is also known as the right to fair compensation and transparency in the land acquisition Act or the rfctlarr act 2013.
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This is a process through which any government union or state, acquires private land for infrastructure development and industrialisation. In return for this, the government pays compensation to the landowner. This compensation amount is based on the market value. The LARR (Land Acquisition, Rehabilitation and Resettlement) Act 2013 helps in rehabilitating and resettling the original landowners.
This Act mandates that the state government or the Central Government can acquire any land for its use, for private companies or for public purposes. This includes:
The Land Acquisition Act is also known as the RFCTLARR act 2013 gives both parties (government/private entity and the original landowner) the right to fair compensation and transparency in land acquisition rehabilitation and resettlement. It also helps regulate this whole land transaction with transparency and obligates the Government to properly compensate the original landowners. This Act stresses the importance of properly compensating the poor people whose land has been taken away.
The 2013 land acquisition act has gone through multiple changes since its inception in British India in the 1870s. There were no provisions for any kind of compensation to the poor landowners. This resulted in grievance and anarchy. Even after the Indian Independence (1947), this act saw several revisions. Here is a proper timeline of this land acquisition act.
Under the new larr act 2013, landowners are given more power. Private/Government entities have to get the consent of the original landowners before acquiring any land in the village or the city.
No consent is needed from the landowner if the government acquires the land directly for developing public infrastructure. However, if the land is meant for setting up private companies, then the consent of 80% of affected families is needed. In the case of a public-private partnership project, at least 70% of affected families should give their consent.
Salient features of The Land Acquisition Act, 2013 include the following-
The cooperation or consent of the landowners is not required when the government buys land for public use and directly manages the land bank. However, the approval of at least 80% of the affected families is required when the land is bought for the creation of private businesses. Seventy per cent of the impacted families must approve the land acquisition procedure if the project is carried out through a public-private partnership.
The act stipulates that if the acquired land or any piece of it is sold, 20% of the proceeds must be paid to the original landowner who it was purchased from or their legal successors in an effort to prevent profiteering.
Section 26 of the Act establishes the framework for determining compensation for original landowners. This compensation is calculated based on multiples of the market value, whether the land is situated in rural or urban areas.
Market value, in this context, typically ranges from one to two times the highest minimum land value as specified in the Indian Stamp Act, of 1899. This value serves as the baseline for calculating compensation.
Compensation can take the form of a settlement amount, especially when land is acquired for private companies or public-private partnership projects. Under this Act, it's crucial to ensure that original landowners receive fair and just compensation for their land, which is integral to maintaining transparency and fairness in the land acquisition process.
It's important to note that the multiplication factor for market value in rural areas is typically set at 2 (two), or as specified by the appropriate Government in compliance with the RFCTLARR Act, 2013, whichever is lower, starting from January 1, 2015. This regulation ensures that landowners are adequately compensated for their valuable land assets while balancing the needs of infrastructure development and public interest.
The LARRAct 2013 mandates compensation for land acquisition for national highways, industrial corridors and expressways. The essence of this Act is public consultation while acquiring lands. However, a lot of social activists like Medha Patkar have complained that the amendments made by some states completely ignored this aspect. Unethical land acquisition procedures harmed the livelihood of lots of farmers and landowners.
Section 24 of the LARRAct 2013 outlines the situations in which land acquisition proceedings will be considered lapsed. According to this provision, if no compensation has been announced in land acquisition cases till January 1, 2014, then compensation will be determined based on the 2013 rfctlarr act. In case some compensation has already been awarded before this date, then acquisition proceedings will continue under the British 1894 Act.
Section 28 deals with the compensation amount to be awarded for land that has been acquired under this Act. This involves determining the market value and assessing the overall position of the landowners who are involved.
In this case, the Kerala State Government acquired approximately 27 acres of agricultural land to expand a technopark in South Kerala. The landowner, initially dissatisfied with the compensation offered, eventually sold the land to the state to avoid litigation. However, the state revenue agency imposed capital gains tax, considering it a "voluntary sale." The dispute reached the Supreme Court, which ruled in favor of the landowner. The Court held that the transaction was a "compulsory acquisition" due to government pressure, exempting it from capital gains tax.
In this case, the petitioner's land was encroached upon illegally by the NDMC (New Delhi Municipal Council). The petitioner filed for possession, which was granted by the court. Later, the NDMC initiated land acquisition processes. The issue revolved around whether the proviso in Section 24 of the 2013 Act could be applied. The Court ruled in favour of the petitioner, stating that compensation must be provided according to the amended Land Acquisition Act of 2013. Compensation previously released to the petitioner would be deducted from the total amount determined under the 2013 Act.
In this significant case, landowners argued that acquisitions made under the Land Acquisition Act of 1894 had lapsed and needed to be restarted under the Land Acquisition Act of 2013. The Supreme Court clarified that new procedures under the 2013 Act were only required if two conditions were met: possession of land had not occurred, and landowners had not received compensation. The Court also ruled that landowners couldn't seek compensation under Section 24(2) of the 2013 Act if they declined the offered compensation. However, if compensation was not made as of the 2013 Act's commencement date, proceedings would not be deemed lapsed, and compensation must be awarded under the 2013 Act.
These case studies underscore the importance of fair compensation and adherence to land acquisition laws, ensuring that landowners' rights are upheld while balancing the needs of development and public interest.
Land acquisition Act 2013 is certainly a complex legal matter. Not everyone has the time to sit down and understand all the nuances of the land act. But, if you’re losing land due to the land acquisition act 2013, and you need to find another home to stay in, then start your search on NoBroker! Click the link below to find homes for any budget, without brokerage!
Ans. Yes, the Indian Government can acquire land in India according to the rules and provisions of the land acquisition act 2013.
Q2. Has the Larr Act 2013 faced any protests before?Ans. Yes. The Larr act 2013 has been under fire from social activists like Medha Patkar due to unethical land acquisition procedures.
Q3. When was the land Acquisition act first introduced?Ans. This Act was first introduced by the British in 1874.
Q4. What does Section 24 of the land acquisition act contain?Ans. Section 24 deals with the situations under which land acquisition proceedings will be considered lapsed.
Q5. What does Section 28 of the land act contain?Ans. Section 28 of the land act deals with the compensation amount to be paid for lands acquired under this act.
