The Right to Fair Compensation and

Transparency in Land Acquisition,

Rehabilitation and Resettlement Act, 2013
Dr. Reshmy Nair
Associate Professor
Centre for Excellence in Management of land Acquisition, Resettlement and
Rehabilitation, ASCI, Hyderabad
[email protected]/[email protected]

2/19/2016 Dr. Reshmy Nair 1

The Background

LA RELATED MACRO-ECONOMY RELATED

 Involuntary Acquisition •Skewed distribution of national income
 Public Purpose •Agriculture still the livelihood base
 Compensation to only title •Infrastructure deficit
holders •Time/Cost Overruns
 Market value determination
 Misuse of urgency clause
 Non/Under utilization of land OTHERS
 Lack of transparency Information Revolution
Political parties-Inconsistent/ Opportunistic
 Historical injustice in LARR Media
 Regressive redistribution Civil Society Organisations
International Institutions

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 A MINING PROJECT requires 175 acres of land; including 120 acres of private land. Let
us assume that you are one of the land owners. The government decides to acquire land
for the project.
 Would the government have to take your consent for acquiring your land. Would you
have the right to object?
 Would you have any say in the price of your land and how would this determined?
 You earn your livelihood by selling milk. Incidentally, the grazing land would also be
taken for the project. Would your losses be compensated?
 Your land is only acquired partially and yet the left over land becomes non-viable.
Does the law mandate compensation in lieu of the impact on productivity
 The government decides that the project is very important and land needs to be
acquired urgently. Can the government go ahead ??
 As an agriculturist, you earn a net income of Rs 6000 per month. Would he be
entitled to the same income after his entire land is acquired.
 My neighbour’s land will not be acquired. But he fears the activities in the adjoining
areas will harm his crops as has happened in the adjacent project.
 The land is acquired but there is no guarantee that it is utilized for the purpose for
which
2/19/2016
it was utilized? Dr.
Will the land be returned to you.
Reshmy Nair 3
Land Use and Distribution
In Million Hectare Share
Total Land Area 328.7 100
Forests 69.6 21.8 % of total land area
Not Available for Cultivation 43.2 13.1% of total land area
Other Uncultivated Land 51.9 15.8% of total land area
(Including Fallow)
Net Cropped Area 143.0 43.5% of total land area
Multi-crop Area 55.0 39.1% of Net Cropped area
Net Irrigated Area 62.3 44.2% of Net Cropped area

Source: Land use data from Agricultural Statistics at a Glance, 2010….

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Size of Land Holdings and Distribution
International Comparisons –
States Marginal Holdings(<1 ha) - % Small Holdings(1-2 ha)- % Not very meaningful.
AP 61.6 21.9
Average land holding size of
Assam 63.7 21.5
3 acres nation-wide, -
Bihar 89.6 6.7
about 0.6 acres in Kerala,
Chhatisgarh 55.4 22.0
1 acre in Bihar and 2
Gujarat 34.0 28.0
acres in WB.
Haryana 47.7 19.4
Karnataka 48.2 26.6
Kerala 95.6 3.1 A 1000 acre: Land Owners
MP 40.5 27.2 France: 9
Maharashtra 44.6 30.3
US: 2
Odisha 59.6 26.5
Punjab 13.4 18.2
Canada:1
Rajasthan 33.5 21.4 India: 333
Tamil Nadu 76.0 15.1 West Bengal: 500
UP 78.0 13.8
Bihar: 1000
WB 81.2 14.4
INDIA 64.8 18.5 Kerala: 1700
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Crisis and Triggers
 Inclusive Growth Vs infrastructure deficit can be overcome (Land
acquisition and environmental issues are the two largest sources of
delay (IDR, 2011).

 Time/Cost Overruns due to Protest Induced Delays

 Compensation in Court Judgments in the 1960s – 1-2 times; 15-20
times (2000s)
 Not less than 5-7 years and as long as 2-3 decades

Information Revolution, role of media, civil society (3.3 million) and

contradictory role of political parties (inconsistent and
opportunistic).

 Universal recognition of Development as a “Win-Win” situation for

all/ ResettlementDr.as
2/19/2016
a Development Opportunity
Reshmy Nair 6
 The RFCTLARR ACT- Journey
STANDING COMMITTEE RECOMMENDATIONS – CHAIRPERSON-SUMITRA MAHAJAN

• Government should not acquire land for PPP or private company

• SIA should be completed with consent of Gram Sabha, Representatives from
the affected area.
• Beyond merely consulting Gram Sabhas, consensus or atleast consent by
majority of Gram Sabha members should be obtained in all the matters
pertaining to LARR.
• Separate Chapter on SAs, no alienation of land in SAs, Consent by GS
• All provisions regarding irrigated multi-crop land to be replaced by any land
under agriculture cultivation to ensure safeguard for food security. Limits to be
decided by SG
• If the Central and State Governments continue to enforce their existing Acts,
what would be the fate of the proposed legislation?. The proposed legislation
should be implemented in letter and spirit.
• No central legislation should be exempted from the purview of the LARR Act
• Urgency clause provisions should be retained as such.
• Limits of land purchase to be fixed by the State Governments
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 THE RFCTLARR ACT, 2013 –THE JOURNEY
2007 - The National Rehabilitation and Resettlement Policy (NRRP), 2007
Land Acquisition (Amendment) Bill, 2007 to amend the Land Acquisition Act, 1894
Feb 2009 -Bills passed by Lok Sabha, referred to Rajya Sabha-Lapses due to the dissolution of the
Lok Sabha.
5th September 2011 - LARR Bill, 2011 approved by the Cabinet.
7th September, 2011 - Introduced in the Lok Sabha, on.
13th September, 2011 - Referred to the Parliamentary Standing Committee.
17th May, 2012 - Committee gives Report .
28th August, 2012 -Cabinet refers the matter to the Group of Ministers (GOM)
13.12.2012- Cabinet approved the amendments.
09.04.2013, 18.04.2013 & 05.08.2013 - Three All Party Meetings.
08.08.2013 - Official amendments to the LARR Bill approved on by the Cabinet.
29th August, 2013- Lok Sabha, approves the Bill.
4th September, 2013 - Rajya Sabha approved with certain amendments 5th September, 2013 - Lok
Sabha, agrees to the amendments to it on.
26th September 2013 – Presidential Assent.
1st January 2014- RFCTLARR Act becomes effective .
December 2014 -RFCTLARR (Amendment) Ordinance, 2014 (Effective from 1st Jan 2015)
March 2015 - 2014-RFCTLARR (Amendment) Bill, 2015 passed by Lok Sabha
April 2015 - 2014-RFCTLARR (Amendment) Ordinance, 2015
May 2015: RFCTLARR (Amendment) Second Ordinance 2015
August 2015: RFCTLARR Removal of Difficulties Order, 2015 (Effective from 1st September 2015)
Dr. Reshmy Nair
2/19/2016(Amendment) Bill pending with the Joint Parliamentary Committee 8
RFCTLARR
 THE RFCTLARR ACT, 2013 - Preamble
An Act to ensure, in consultation with institutions of local self-
government and Gram Sabhas established urder the
Constitution, 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 and 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 and make adequate provisions for such affected
persons for their rehabilitation and resettlement and for
ensuring 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.

(Effective from Ist day of January, 2014) 9

 4 Schedules

 13 Chapters

 114 Sections

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CHAPTERS TITLE
Chapter I Preliminary
Chapter II Determination of Social Impact and Public Purpose
Chapter III Special Provision to Safeguard Food Security
Chapter IV Notification and Acquisition
•
Chapter V Rehabilitation and Resettlement Award
Chapter VI Procedure and Manner of Rehabilitation and Resettlement
Chapter VII National Monitoring Committee for R & R
Chapter VIII Establishment of Land Acquisition, Rehabilitation and Resettlement Authority
Chapter IX Apportionment of Compensation
Chapter X Payment
Chapter XI Temporary Occupation of Land
Chapter XII Offences and Penalties
Chapter XIII Miscellaneous
Dr. Reshmy Nair 11
 SCHEDULES CONTENT

Calculation Formula for Compensation to Land Owners

FIRST Section 26-30
SECOND List of 11 Compulsory R&R Benefits
Section 31(1); 38 (1)
• List of 25 Compulsory Items of Infrastructure
THIRD Sections 32, 38(1), 105(3); New ones may be added by
Notification of the Central Government.
List of 13 Acts under Section 105 including the:
FOURTH •National Highways Act, 1956; 48 of 1956.
•The Coal Bearing Areas Acquisition and Development Act,
1957

The RFCTLARR (Amendment), 2014 has extended the

compensation/R & R norms as specified under the Act to all
the above Acts from January 2015

Dr. Reshmy Nair 12

Progressive Provisions
 Social Impact Assessment prior to LA Process – Consultation/Minimising LARR
 Compensation-Upto 4 times the determined market value –More Monetary Benefit
 R & R to be an integral Part of the Land Acquisition -Mandatory & Timebound
 R & R for Livelihood Losers- Benefit to Non-Titleholders also
 Consent in case of private (80%)/PPP(70%)-Right to Dissent
 Mandatory R & R Package Beyond Acquisitions-Beyond State fixed limit
 Timelines for Payment/No Displacement before R & R – Timebound Benefits
 Demonstrable Last Resorts – SAs/Multi-crop Irrigated land- Due diligence
 Transparency & Participatory Approach

 Un-utilised Land /Change of Purpose/Change of Ownership- Curb misuse

 Option of the Lease-An alternative
 Limited Use of Urgency Clause – Curb misuse
 Institutional Mechanisms- National/State Monitoring Authorities/LARR Authority for
Disposal of Disputes/Commissioner R & R/Administrator.
 Schedule IV-13 Legislations- Compensation/R & R-1/1/2015- Min. Benchmarks13
 Mandatory Social Impact Assessment/Mandatory Analysis of alternatives to
minimize LA and displacement and Expert Committee Review, S.4 to 9.
Proposed acquisition serves the public purpose
Estimation of affected families
Extent of land, public and private properties, settlements are likely to be
affected
absolutely bare minimum requirement.
other alternative sites were considered
Social costs and benefits of the project
 Appraisal of Recommendations of Expert Group – 2 Non-Official Social Scientists, 2
Experts on Rehabilitation, 2 representatives of the panchayats/municiplaity/Gram
Sabha
 Consent Process along with the SIA
Exceptions
 Urgency clause (S.9)
 Irrigation projects where EIA is required (S.6 (2)
 Schedule IV legislations unless notified.
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 Determination of Market Value (S. 26) and Compensation (S 27-30), First
Schedule

 Market Value- Higher of the following three:

 minimum land value as per Indian Stamp Act, 1899 for registration of sale deeds
 50% of the higher sale proceeds of land during the last three years in nearest vicinity,
 consented amount of compensation incase of acquisition for private companies/PPP
project
 Multiplier between 1 and 2 in rural areas
 Solatium – 100% of compensation amount
 In Additional to Market Value -12% from PN/SIA

Final Land Award in rural areas = A + B,

Where
A= (Market Value* Multiplier) plus Value of Assets attached to land.

B= Solatium (100 % of A)
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Determination of Compensation in Rural Market Average Price in Consented
Areas (multiplier = 1.5) Value as Vicinity (Rs.) Amount
per Stamp
 Market Value as Determined in Section 26 (1) = Duty (Rs.)
Rs 150 100 per •There are 10 Rs. 120
acre transactions per acre
 To be multiplied by 1.5 = Rs 225
•Top five
 Cost of Structure = Rs. 50 transactions are:
 Cost of Trees = Rs. 25 1 –150 per acre
2 – 80 per acre
Total (for other projects) = 225+50+25 =Rs. 300 3 – 200 per acre
Solatium = Rs. 300 4 – 125 per acre
5 – 110 per acre
Total Compensation = 300 + 300 = Rs. 550
Average = 150
Exclusions:
Additional Market Value = 12% from date of SIA/PN
to date of award/taking possession whichever is •Any price not indicative of the actual prevailing
earlier. market value (in the opinion of the Collector).
•Any price paid as compensation for land
acquired on an earlier occasion in the district.
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R & R Provisions (in addition to LA Compensation) - S.31 & 32, Schedule II and III
 First legislated relief for non-title holders
 Covers all land acquisition projects irrespective of sector/number of persons affected
 Extends to land purchases by private entities beyond fixed limits.

Exceptions
 Urgency clause, S.40 (3)
 Land lease (S.104)
 Temporary occupation (S.81 and S.82)
 Land purchases by private organizations below the fixed limits (S.46)
 For ongoing projects where proceedings have been initiated under LAA, 1894 where award
has not been made (S.24(1) (a)
 Schedule IV legislations till a Central Government Notification within one year (S.105)

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 Resettlement and Rehabilitation benefits to all affected families (in
addition to compensation) – Schedule II
 R & R Package - Choice of employment/5 lakhs/Rs. 2000 per month for 20 yeears
 One-time Resettlement Allowance: Rs. 50,000/
 Cattle shed/petty shops - Rs. 25,000/
 One time grant to artisan/traders/self employed - Rs. 25,000/
 Fishing rights in reservoir
 Land for land – Irrigation projects (as far as possible) I acre of land (2.5 acres for SCs/STs in command
area)
 Land for Urbanization Purposes-20% of the developed land will be reserved and offered to the land
losers.
Displaced Families
 Housing in case of displacement (those without homestead land and staying for 3 years) – Rural
Areas (IAY specifications/costs); Urban areas (constructed house not less than 50 sq.mts in plinth
area/min Rs. 1,50,000)
 Subsistence grant for all displaced families – Rs. 3000 per month for one year (additional Rs. 50,000/
for SCs/STs).
 Transportation grant for all displaced families - Rs. 50,000/
 All monetary rehabilitation grants and benefits are adjusted based on the Consumer Price Index.
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Infrastructural Entitlements to Displaced families in Resettlement
Colonies – Schedule III

 Third Schedule lists amenities/facilities to be developed in the rural areas.

 These include 25 amenities including roads, drainage, sources of safe

drinking water for affected families, drinking water for cattle, grazing land,
fair price shops, Panchayat Ghars, village level post office, Burial or
Crimination Ground, Aanganwadi, community centres, sub health centres,
playground etc.

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Affected Family Land R&R
Compensation
Owner of Land/Immovable Property Yes Yes

Scheduled Tribes and Other Traditional Forest Dwellers – losing Yes Yes
forest rights recognised under Recognition of Forest Rights Act,
2006
Owners of Assigned Land/Entitled to be granted Patta rights Yes Yes

Primary Source of Livelihood Affected – Agricultural labourers, No Yes

tenants, share-croppers, artisans etc
Primary Source of Livelihood Affected – forests or water bodies No Yes
– gatherers of forest produce, hunters, fisher folk, boatmen and
other livelihood affected
Primary Source of Livelihood Affected – residing in Urban area No Yes

Family: A person, his or her spouse, minor children, minor brothers/sisters dependent on him
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Acquisition of Multi-crop Irrigated Land- S.10
 Should be a demonstrable last resort

 Aggregate of such lands for all projects in a district or state shall not exceed such limits notified
by appropriate government

 Equivalent area (of such lands acquired) shall be developed for agricultural purposes/amount
equivalent to the value of the land acquired shall be deposited with the appropriate government
for investment in agriculture for enhancing food security

 Acquisition of agricultural land in aggregate for all projects in a district or state, shall in no case
exceed the limits of net sown area of that district or state as notified by the appropriate
government

Exceptions
 Linear Projects – railways, highways, major district roads, irrigation canals, power lines etc.
 Schedule IV legislations unless notified

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Mandatory Consent Provisions

 Land owners - Public Private Partnership projects (70%); Private Projects (80%),
S.2. (2) (b) (i) and (ii).
 Consent from Gram Sabha for all Projects in Scheduled Areas/Consent by
Panchayats/Autonomous District Councils incase Gram Sabha is not constituted,
41(3) proviso
 Majority by Gram Sabha in Scheduled Areas (including acquisition incase of
urgency), S.41(3).
 Quorum to be 50% of the total members of the Gram Sabha and one third of the
total women members of the Gram Sabha also present (Rules).

Schedule V Areas: Andhra Pradesh, Gujarat, Chhatisgarh, MP, HP, Jharkhand,

Maharashtra, Odisha and Rajasthan

Schedule VI Areas: Assam, Meghalaya, Tripura and Mizoram

http://www.tribal.gov.in/Content/StatewiseListofScheduleAreasProfiles.aspx
2/19/2016 Dr. Reshmy Nair 22
Special Provisions for Scheduled Castes and Scheduled Tribes, S.41

 Acquisition of land in the Scheduled Areas only as a demonstrable last

report
 Prior consent of the concerned Gram Sabha including in case of urgency
Clause
 Prior Consent of Panchayats/Autonomous District Councils (where GS
does not exist or has not been constituted).
 Development Plan – development of alternate fuel, fodder and non-
timber forest produce within 5 years
 Resettlement to the extent possible in the same Scheduled area in a
compact block and higher monetary benefits if relocated outside the
district.
 All benefits including reservation to be extended in resettlement area

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 Transparency and Consultation Provisions
In addition to existing provisions of publication of notification & final declaration
in the official gazette and newspapers, the Act also mandates publishing in:
 Local language in the panchayat/municipality/offices of DC, SDM and Tehsil
 Website created for the purpose

 When should this be done ???

• Commencement of SIA study, S.4 (1)
• SIA Report and SIMP, S.5
• Recommendations of the Expert group, S.7(6)
• Decision of the appropriate government on SIA Report and SIMP, S. 8(3)
• Preliminary Notification, S.11
• Draft R & R Scheme, 16, (4), (5) (6),
• Approved R & R scheme, S.18

Immediately after PN notification, meeting with Gram Sabha at village

level/municipalities
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Mandatory consultations and public hearing: Gram Sabhas or
Panchayats/Municipalities/Municipal Corporations must be consulted
• Time of SIA study, S.4(1)
• Draft R & R scheme, S.16(4)
 Post-implementation social audit, S.44(3)

A public hearing must be held on

• Draft SIA and SIMP, S.5
• Draft R & R Scheme, S.16(5)

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Transparency Provisions
 Limitation to Urgency Clause, S.40(2)
Defence of India
National security; or
Emergencies arising out of natural calamities.
An additional 75 percent of total compensation (except one that affects the
sovereignty and integrity of India), 40(5)
 No change from the purposes specified in the Land Use Plan, S.99
 No change in ownership without permission, S.100
 Unutilized land for a period of 5 years to return to the State Land Bank/Land loser,
S. 101
 Land when transferred (without any development having taken place on such
land) for higher consideration – 40% of difference in price of land to be shared
with the original landowners in the same proportion to the value at which their
lands were acquired,Dr.S.102
Reshmy Nair 26
 Expert Group - assessing SIA & SIMP, S. 7 (1) and (2)

 An Administrator -formulation, execution & monitoring R & R, S. 43(1).

 Commissioner (R & R) – supervising formulation of R & R schemes and their

proper implementation, post implementation social audit (in consultation with
Gram Sabha in rural areas and municipality in urban areas, S. 44(1).

 An R&R committee (for projects > 100 acres) to monitor and review progress of
R & R scheme and post-implementation social audits, S.45 (1) and (2).

 National Monitoring Committee/ State Monitoring Committees – for reviewing

and monitoring the implementation of R & R scheme, S. 48(1) and S.50(1).

 LARR Authority – For disputes relating to LARR, S.51(1), Chapter VIII

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I Award under Section 11 of the Land Acquisition Act, 1894 has not been
declared– All provisions of the Act relating to the determination of
Compensation

II Award made 5 years or more before the commencement of this Act but the
physical possession of the land not taken or compensation not paid – Said
proceedings shall deemed to have lapsed and the appropriate government
if it so chooses, shall initiate the proceedings afresh in accordance to this
Act.
If compensation in respect of a majority of landholdings has not been deposited
in the accounts of beneficiaries – compensation in accordance with the
provisions of this Act.

III If any land purchased by a person on or after 5th September, 2011 (above
specified limits) and the same land is acquired within three years of this new Act
then 40% of the compensation amount will be shared with the original owners

2/19/2016 Dr. Reshmy Nair 28

 THE RFCTLARR ACT, 2013– Unchanged Processes

 Power of Eminent Domain and Acquisition of Land for Public Purpose – Only
Additions of (1) Obligation to Resettle and Rehabilitate the people affected by land
acquisition; and (2) Obligation to elicit Participation, Consultation, and Consent of the
affected people

 Procedures of LA - Preliminary Notification, Final Declaration, Award Enquiry etc.

 Time lines from PN to Award except the Time Limit between FD and Award
REDUCED to One Year from Two years in the LA Act.

 Rate of additional market value at 12 per cent - from the date of SIA/PN

 Rates of interest at 9 per cent and 15 per cent to be paid for the delay in defraying
compensation up to one year and more than one year respectively.

 Methods of valuation of crops and trees / valuation method for buildings

 Solatium Exists - Increased the rate to 100% of Compensation

 Reference to Civil Court – Only changed to reference to LA &RR Authority
29
RFCTLARR Provisions Applicability Implication
SIA No Yes. Will be much beneficial

Consultation and Transparency Mechanisms No Yes. Progressive

Integration of LA and R & R Award No Progressive to reduce the
timeline
R & R for Livelihood Losers Yes Revised Entitlement Matrix may
be planned
R & R for Land Purchases No May influence negotiations

Retrospective Clause No (LAA, 1894) Integration of CSR

Addl compensation-Multiple displacements No -
Timelines. R & R Completion No Progressive to reduce the
timeline
Consent by Gram Sabha in SA Yes Yes/Progressive. Changes may
Development Plan be made in the amended Law
Monitoring Mechanisms No Concurrent monitoring and
adaptive management critical
Return of Unutilised Land – 5 years No Mine Closure Plans. Productive
use of existing land
Multi-crop land restrictions No Due Diligence 30
MORE ON THE ACT -CONCERNS/ERRORS

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 CONCERNS -THE PRE-NOTIFICATION PROCEDURE

• Social Impact Assessment (SIA) – Misinterpreted and

Misunderstood – Need to demystify
• Already initiated by project authorities because of its benefits
• Information asymmetry induced land selling will decrease
• The transparent mechanisms likely to aid the process and
ensure that the opposition to the well-meaning development
programmes does not arise.
• Positive impact likely on minimizing land requirement,
minimizing displacement, utilization of existing unutilised land
apart from designing mitigation mechanisms.
• Has been made less stringent – No CS Committee, Exemption
to Irrigation Sector, Collectors Report Not Mandatory, Final
decision with the government
32
 The RFCTLARR ACT, 2013 – Clarity

Solatium
 S. 28: Five considerations for arriving at total compensation, besides market value
as determined under S. 26.
 S.30: Solatium is equivalent to one hundred percent of the compensation amount.
 S.69(3) …Solatium of 100 percent over the total compensation amount.
 The first Schedule in S. No. 5 defines solatium as one hundred percent of market
value (multiplied by multiplier) plus the value of assets attached to land or building

Addition to Market Value @ 12%

 S. 30(3) – From date of SIA Notification
 S. 69(2) - From date of Preliminary Notification

 Land for Land: The second schedule mentions that incase of irrigation project, as
far as possible and in lieu of compensation to be paid for land acquired, each
affected family owning agricultural land in the affected area and whose land has
been acquired or lost, or who has, as a consequence of the acquisition or loss of
land, been reduced to the status of a marginal farmer shall be allotted… a minimum
of one acre of land in the command area of the project…

33
 The RFCTLARR ACT, 2013 – Clarity

Lack of Thresholds for R & R Entitlement: Under the New Act, each affected family
(owner of land or immovable structure or whose primary source of livelihood has
been affected by the acquisition of land) is entitled to an R & R package. The Act
however does not specify the differential limits for quantum of losses, for deciding
the R & R entitlements.

Lack of thresholds for setting up of Resettlement Colony:

There is no triggering point for setting up resettlement colony and for establishing the
infrastructure facilities

Compensation Payment to SC/STs:

 Section 38 (1) The Collector shall take possession of land after ensuring that full
payment of compensation as well as rehabilitation and resettlement entitlements….
 Section 41(6) - ln case of land being acquired from members of the Scheduled
Castes or the Scheduled Tribes, at least one-third of the compensation amount due
shall be paid to the affected families initially as first installment and the rest shall be
paid after taking over of possession of the land

34
 The RFCTLARR ACT, 2013 – Clarity

Massive Potential for Reaping of R & R Entitlements by Non-Genuine Claimants

(land fragmentation/New Structures)
 The definition of affected family includes the owner of land or other immovable
property, without specifying the quantum of loss. The period between the initiation of
SIA under S.4 and Preliminary Notification under S.11, after which the census for
preparation of draft R & R scheme could extend to 1.8 years or more.

Definition of Affected Family and Persons Interested – Applicability to

Encroachers on Government Land
 Section 2 (1) and 2 (2) defines the applicability of the Act across sectors/projects
and in Section 3 (c) (i) to (vi) provides the definition of affected family These sections
specifically mention the applicability of the Act incase of acquisition of land.
However, S. 3 (x) (v) defines persons interested as “any person whose primary
source of livelihood is likely to be affected”.

 Mandatory R & R in case of Land Purchases by Government , Section - 46. (/)

35
COMPARISON

1. RFCTLARR, 2013 Vs LAA, 1894

2. RFCLARR, 2013 Vs. LAA, 1894 + NRRP,

2007

2/19/2016 Dr. Reshmy Nair 36

 THE RFCTLARR ACT, 2013 - A Comparison of Processes

LAA-1894 RFCTLARR-2013
Section 4 - Pre Notification Activities
SIA Study for LA projects (except in Urgency Clause/Irrigation
No Pre-
Projects with mandatory EIA)
Notification
proposed acquisition serves the public purpose
provision
Estimation of affected families
Extent of land, public and private properties, settlements are likely to
be affected
absolutely bare minimum requirement.
other alternative sites were considered

•Consultation with Local Bodies

•Consent – Scheduled Areas, Public Private Partnership Projects
(70%), Private Projects (80%)
•Public Hearing
•Appraisal of Recommendations of Expert Committee

Where the appropriate government, in spite of such

recommendations (EC) proceeds with the acquisition, it shall ensure
that its reasons for doing so are recorded in writing.
 THE RFCTLARR ACT, 2013 - A Comparison of Processes

LAA-1894 RFCTLARR-2013
Preliminary Notification (S. 4) Preliminary Notification (S. 11) – Within one
(1)) Only details of lands year of date of appraisal of SIA report by
required for Public interest Expert Committee (power of appr. Govt. to
extend)
Land details
summary of SIA
nature of public purpose
reasons necessitating displacement of affected
persons
details of Administrator
Land Records Updation - No 11 (5) Complete up-dation of land records
timeline within a period of 2 months of 11(1)

Hearing of Objections (Section 5A) Hearing of Objections Section 15 (1)

– •Within 60 days of Publication of the Notification
•Within 30 days of Publication of •Objection to the 1.area and suitability of land
Notification. •Justification offered for public purpose
•Findings of the SIA Report
•Objection to the acquisition of land
 THE RFCTLARR ACT, 2013 - A Comparison of Processes

LAA-1894 RFCTLARR-2013
Between PN and Between PN and Declaration
Declaration Preliminary survey of land, S.12
Preliminary survey of land Hearing of Objections , S.15 (1)
Hearing of Objections (5 A) Census of all PAFs, infrastructure and CPRs, S.16 (1)
Preparation of draft R & R Scheme, S.16 (2)
Public hearing & Raising of objections, S. 16 (5)
Review and approval of draft of R & R Scheme by Collector and
Commissioner, S.17
Finalization and publication of approved R & R Scheme in the
Gazette/made available in local language in local bodies, S. 18
Final Declaration S.6 Section 19 – within one year of S.11
within one year of s.4 (1) Publication of Declaration and Summary of R & R.
notification Demarcated details of lands with particulars of all interest holders
details of land required for ‘resettlement area’
Summary of R&R Scheme
Deposit of funds compulsory before final notification
Notices to land owners for Notices to persons interested for Compensation and R & R,
compensation, S..9 21
Award Enquiry ss. 11 and Section 23 within ONE year of S.19
12.LA Award S. 12 - within two Award shall comprise of two components, namely, LAQ and R&R
years of s.6(1) notification.
 THE RFCTLARR ACT, 2013 - A Comparison of Processes

LAA-1894 RFCTLARR-2013

Award , S.11 and 12 Award, S.23 within ONE year of S.19

Award shall comprise of two components, viz.LA
LA Award S. 12 - within and R&R
two years of S.6(1)  Section-23 Enquiry and Land Acquisition Award
notification. by Collector
11(2) Consent Award  Section-30 Individual Award with respect to land
 Section-31 (1) R & R Award by Collector
Six Conditions for No Provision for Consent Award
determining Land
Compensation – Six, s.23 Seven Conditions for determining Land
Compensation, S.28
7th Condition-“any other ground which may be in
the interest of equity, justice and beneficial to
the affected families”
 THE RFCTLARR ACT, 2013 - A Comparison of Processes

LAA-1894 RFCTLARR-2013

Land Compensation – Land Compensation - Rural

Rural and Urban Land Compensation

1. Market Value of land Market Value of land as determined in S.26 (1) X
+ Value of structures Multiplier (sliding scale)
and assets Urban - Market Value of land
+ 30% solatium +Value of structures and assets
+ 12% interest from + 100 solatium
PN to Award/Possession + 12% interest from SIA/PN to Award/Possession
No consideration for No Multiplier in Urban Areas
Multiple Displaced Double Compensation for Multiple Displaced
 THE RFCTLARR ACT, 2013 - A Comparison of Processes

LAA-1894 RFCTLARR-2013

Power to take Possession Power to take possession after full payment of

of Land after Award, S.16 compensation (3 months) as well as monetary part of
R & R (6 months) from the date of Award, S. 38

Irrigation projects/hydel projects – R & R to complete

6 months before submergence.

Urgency Clause, s.17 – Urgency Clause, S.40

Expiry of 15 days from s. Expiry of 30 days from S. 21, though no award is
9, though no award is passed (defence, national security, emergencies
passed arising out of natural calamities)
Additional compensation of 75% of the market value
No additional compensation if land is taken for
security and strategic interests
 THE RFCTLARR ACT, 2013 - A Comparison of Processes

LAA-1894 RFCTLARR-2013

Solatiums 30% of market value. Solatium - 100% of compensation.

Scope for Consent Award No provision of Consent Award per se

Additional Market Value 12% - Additional Market Value 12% -

PN to Award/Possession SIA/PN to Award/Possession

No multiplier in determination of Multiplier of 1-2 in Rural Areas

market Value

No consideration for Multiple Double Compensation for Multiple Displaced

Displaced
COMPARISON OF PROVISIONS

CBA, 1957 + CIL R & R POLICY RFCTLARR Act, 2013

Landowners: Compensation
Rural and Urban Urban - Market Value of land/Rural -Market
Market Value of land Value of land X 2 (sliding scale)
+ Value of structures and assets +Value of structures and assets
+ 30% solatium + 100 solatium
+ 12% interest-PN to + 12% interest-SIA/PN to
Award/Possession Award/Possession
Landowners: R & R
Employment: Based on Land I R & R Package
Acquired- 1. Three Options
Two Options • Employment: Based on Affected Families:
•One employment for two acres One member per affected family
•₹ 5 lakhs per affected family (lumpsum •₹. 5 lakhs per affected family;
or annuity – Upto 60 yrs/Life of project, •annuity policies-₹. 2000/-per month per
whichever is earlier). family for 20 years
II Resettlement Allowance: ₹ 50,000/- 44
COMPARISON OF PROVISIONS

CBA, 1957 + CIL R & R POLICY RFCTLARR Act, 2013

Displaced Families: R & R
1. Compensation for homestead House: Rural: Constructed house as per IAY
as per valuation by Govt. (house of 25 sq.mt). (Maharashtra Rules-
2. ₹ 3 lakhs – In lieu of alternate construction costof ₹. 600 per sq.ft )or 1.65 lakhs in
House site lieu of house. If a house is lost in urban area, a
3. Shifting Allowance, constructed house of 50 sq.mt plinth area or 5.5
Construction of cattle shed, lakhs (house of 25 sq.mt).
work shed etc – Amount not
2.Resettlement Colony with 25 Infrastructural
specified
entitlements.
4. Subsistence allowance: 25
days MAW per month for one 3. R & R Package: Employment/Annuity/ Lumpsum
year. 4. Subsistence Grant: ₹. 3000/- for one year from
date of award
5. Displaced Family owning non-agricultural land or
structure/artisan/small trader/self-employed: ₹.
25000/-
6. Displaced Family owning cattle shed: ₹ 25000/-
7. Resettlement Allowance: ₹ 50,000/- 45
COMPARISON OF PROVISIONS

CBA, 1957 + CIL R & R POLICY RFCTLARR Act, 2013

Livelihood Losers-Sharecropper, Land Lessees, Tenants and Labourers
1. Assistance for non-farm employment 1. House in Resettlement Colony with 25
through petty contracts or formation of Infrastructural entitlements (if without
co-operatives homestead land and staying in the area for more
2. Contractors may be persuaded to give than 3 years.
jobs on preferential basis 2. R & R Package: Employment/Annuity/ Lumpsum
3. Resettlement Allowance: ₹ 50,000/-
Tribals Landless/Dependent on Forest Produce
1. Assistance for non-farm employment 1. R & R Package: Employment/Annuity/
through petty contracts or formation of Lumpsum.
co-operatives 2. If displaced, additional Rs/ 50000, beyond
2. Contractors may be persuaded to give Subsistence allowance.
jobs on preferential basis 3. 25% higher compensation for shifting out of
3. Shift tribal community as a unit. the district.
4. 500 days MAW for loss of customary 4. Resettlement Allowance: ₹ 50,000/-
rights 5. Special provisions: S. 41 and 42
5. 25% higher compensation for shifting out
of the district.

46
RFCTL THE RFCTLARR ACT, 2013 – A COMPARISON WITH
LAA, 1894 + NPRR, 2007
Comp/R & R LAA-1894 + NRRP, RFCTLARR-2013 NTPC, 2010
2007
Land for land may be Irrigation projects (as Land for land for all
Land for Land an option for landless far as possible) I acre categories of land losers and
and those rendered of land in the occupiers – As per NPR -
marginal in all projects command area (land 2007, subject to availability
acquired or 2.5 acres
To the extent of actual for SCs/STs) Land upto two Ha on “willing
loss subject to a buyer willing seller basis –
maximum of I ha 20% of land to be Land price to be fixed in
(irrigated) & 2 ha reserved in projects consultation with SG on the
(unirrigated) where land is basis of market price of good
acquired for agricultural land in vicinity
Hydel Projects – urbanization
preference in the purposes
command area or
monetary
compensation at
replacement cost basis

STs -Preference in
allotment of land
RFCTL THE RFCTLARR ACT, 2013 – A COMPARISON WITH
LAA, 1894 + NPRR, 2007
Comp/R LAA-1894 + RFCTLARR-2013 NTPC, 2010
&R NRRP, 2007
House House owners – House owners Homestead Oustees
Site/House House site /Not Affected Family staying in residing in the area and
Constructio more than 250/150 the area for atleast 3 years owning the house since 3
n Allowance sqm in rural/urban years before Sec-4
areas Rural - Indira Awaas Yojana
Urban –Constructed house Min 200 sq.mtr. plot in RC. In
Urban – House of not less than 50 Sqm in case of LO’s losing more than
150 sqm carpet plinth area/house in a multi- 200 sq.mtr. then 250 sq.mtr.
area storeyed building
Plus Rs. 47000/- for
BPL family without Self Relocation - Rs 1.5 construction of house/-
homestead land – lakhs (urban)/Equivalent
House of 100/50 cost (rural) Self Relocation - Min of Rs
sqm in rural/urban 0.78 lakhs to max of Rs 1.5
areas lakh.

No provision for
self relocation
 RFCTL THE RFCTLARR ACT, 2013 – A COMPARISON WITH
LAA, 1894 + NPRR, 2007
Compen LAA-1894 + RFCTLARR-2013 NTPC, 2010
sation/ National Policy,
R&R 2007
Land for Land /employment, if
R&R Land for Land Mandatory provision for possible
Package /employment, if employment (where jobs Otherwise, RG
possible are created to one
Otherwise, RG member per affected Payable to land losers only if
family)/ Annuity (Rs. land/employment is not
Resettlement Grant of 2000 per provided.
750 days MAW for one month/lumpsum Rs. 5
year if lakhs Land losers - 1000 days MAW
employment/land is not
provided Plus Others (Agricultural and non
agricultural labourers - 750
RG of Rs. 50,000 in MAW.
addition to employment
in addition to RG flexible/in lieu of
employment/annuity employment
RFCTL THE RFCTLARR ACT, 2013 – A COMPARISON WITH
LAA, 1894 + NPRR, 2007
Compensation/ LAA-1894 + RFCTLARR- NTPC, 2010
R&R National Policy, 2013
2007
Transportation Grant Rs. 10,000 Rs. 50,000 to Actual Cost
displaced within 25 Kms or
families Rs. 25,000/-
Subsistence Allowance for 25 days per Rs. 3000 per 25 days per
displaced families month MAW for month for one month MAW for
one year year one year

Land Development Rs. 15,000 + Rs. - Rs. 16,000 +

Agr. Production/ Input subsidy 10000 per ha 12000
per Ha
Cattle Shed Rs. 15,000 Rs. 25,000 Rs. 15,000/-

Artisan/Trader/ Rs. 25,000 Rs. 25,000 Rs. 31,000/-

Self Employed
RFCTLARR (Amendment) Ordinances-Gist

2/19/2016 Dr. Reshmy Nair 51

Section 10 A Projects
1. Exempted from 70%/80% Consent of Landowners
2. The appropriate Government may, in the public interest, by notification, exempt
from SIA (Chapter II) and Special Provision to Safeguard Food Security (Chapter III)
 Projects vital to national security or defence of India
 Rural infrastructure including electrification
 Affordable housing and housing for the poor people
 Industrial corridors set up by the appropriate Government and its undertakings
(in which case the land shall be acquired up to one km on both sides of
designated railway line or roads for such industrial corridor)
 Infrastructure projects including projects under public-private partnership where
the ownership of land continues to vest with the Government.":

3. Appropriate Government shall, before the issue of notification, ensure the extent of
land for the proposed acquisition keeping in view the bare minimum land required for
such project.

10 A (2) The appropriate Government shall undertake a survey of its wasteland

including arid land and maintain a record containing details of such land, in such
manner
2/19/2016 as may be prescribed by the appropriate Government.
Dr. Reshmy Nair 52
Retrospective Clause
"Provided further that in computing the period referred to in this sub-section,
any period or periods during which the proceedings for acquisition of the
land were held up on account of any stay or injunction issued by any court
or the period specified in the award of a tribunal for taking possession or
such period where possession has been taken but the compensation lying
deposited in a court or in any designated account maintained for this
purpose shall be excluded.“

Schedule IV Legislations
For Schedule IV legislations, the provisions of this Act shall apply relating to
 the determination of compensation in accordance with the First Schedule
 Rehabilitation and resettlement in accordance with the Second Schedule
 Infrastructure amenities in accordance with the Third Schedule
(with effect from 1st January, 2015)

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In the principal Act, in section 31

 Sub-section (2), in clause (h), after the words

 ‘affected families’, the words ‘including compulsory employment to at least one
member of such affected family of a farm labourer' shall be inserted.

RFCTLARR, 2013 Act:

31. (2) The Rehabilitation and Resettlement Award shall include all of the following
families namely,
(h) derails of mandatory employment to be provided to the members of the
affected families.

 Section 46, in sub-section (6), in the Explanation, in clause (b), the words "any
person other than" shall be omitted.

2/19/2016 Dr. Reshmy Nair 54

In the principal Act, in section 101, for the words, "a period of five years", the words "a
period specified for setting up of any project or for five years, whichever is later,“
shall be substituted.

RFCTLARR Act, 2013

101: When any land acquired under this Act remains unutilized for a period of five years
from the date of taking over the possession, the same shall be returned to the
original owner or owners or their legal heirs, as the case may be, or to the Land
Bank of the appropriate Government by reversion in the manner as may be
prescribed by the appropriate Government.

“Private company" to be substituted by the words "private entity“ in 2013 Act

private entity" means any entity other than a Government entity or undertaking and
includes a proprietorship, partnership, company, corporation, non-profit organization or
other entity under any law for the time being in force”

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