UNIT — 1

THE
RIGHT TO FAIR COMPENSATION AND
TRANSPARENCY IN LAND ACQUISITION, REHABILITATION
AND RESETTLEMENT ACT, 2013

- AN OVERVIEW-
Why a New Law

Public Concern
• Heightened public concern on Land Acquisition issues
Absence of a national law to provide for the rehabilitation &
resettlement and compensation for loss of livelihoods

Outdated Law
While multiple amendments have been made to the Original Act,
the principal law continued to be the same i.e. the British enacted
Land Acquisition Act of 1894

Needfor Balance
Addressing concerns of farmers and those whose livelihoods are
dependent on the land being acquired
While facilitating land acquisition for industrialisation,
infrastructure and urbanisation

Why a CombinedLaw
1. Land Acquisition and Rehabilitation and Resettlement need
to be seen necessarily as two sides of the same coin
2. Rehabilitation and Resettlement must necessarily follow
after acquisition of land
3. Not combining the two - R&Rand land acquisition —within
one law, risks neglect of R&R.This has, indeed, been the
experience thus far
4. This is the first National/CentralLaw on the subject of
Rehabilitation & Resettlement of families affected and
displaced as a result of land acquisition

1
 Scope of the New Law
Both LA and R & R Provisions will apply when:
1. Government acquires land for its own use, hold and contrq
2.Government acquires land with the ultimate purpose
transfer it for the use of private companies for stated publi
purpose
3. Government acquires land for Public Private Partnershil
Projects
Note I: Public purpose for 2 & 3 above, once stated, cannot
changed
Note Il: Land Acquisition under 2 can take place provided tha
the consent of 80% of the affected families is obtained
Land Acquisition under 3 can take place provided
consent of 70% of affected families is obtained.
Only R&R provisions will apply when:
• Private companies purchase land for a project, and the same
exceeds the area thresholds set by the State Governmentsfor
such purchase

Salient Features of the New Law

Definition of Public Purpose
1. Land for strategic purposes relating to armed forces, national
security or defence, police, safety of the people
2. Land for infrastructure:
(i) items listed in circular of Government of India,
Department of Economic Affairs (Infrastructure
Section) Number 13/6/2009-INF, dated the 27th March,
2012 excluding private hospitals, private educational
institutions and private hotels;
(ii) projects involving agro-processing, supply of inputs to
agriculture, warehousing, cold storage facilities,
marketing infrastructure for agriculture and allied
activities such dairy, fisheries, and meat processingas
set up or owned by the appropriate;
(iii) project for industrial corridors or mining activities
national investment and manufacturing zones as
designated in the national manufacturing Policy;
 (iv) project for water harvesting
structures, sanitation;
and water conservation
(v) project for Government administered
aided educational and research and Government
schemes or institutions;
(vi) project for sports, health care, tourism,
space programme; transportation,
(vii) any infrastructure facility as may
be notifiedin
regard by the Central Government and after this
such notification in Parliament; tabling of
3. Land for the project affected people
4. Land for planned development or improvement of
village
urban sites or for residential purpose to weaker sections or
5. Land for persons residing in areas affected by natural
calamities or displaced

Salient Features of the New Law

Urgency Clause
The Urgency Clause can only be invoked in the following cases:
1. National defense and security purposes
2. Resettlement & Rehabilitationneeds in the event of natural
calamities such as floods or earthquakes
In case there is double displacement of any individual they will
receive an additional compensation of upto 75%of the compensation
already provided for under the new law.

Definition of 'AffectedFamilies':
Landowners:
1. Family or company whose land/other immovable properties
have been acquired;
2. Those who are assigned land by the Governmentsunder
various schemes;
3. Right holders under the Forest Rights Act, 2006
• Livelihood Losers:
1. Over the last three years, a family whose livelihood is
primarily dependent on the land being acquired, including
agriculture labourers, tenants or sharecroppers
 4 RIGHT TO FAIR COMPENSATION, ETC. ACT, 2013 - AN OVERVIEw
RIGHT TO FAI
2. Over the last three years, families which are dependent of
forests or waterbodies for their livelihoods when these 2. Value
acquired; including forest gatherers, hunters, fisherfolk Wells/Cro
boatmen Total compensa
3. Over the last three years, any family whose livelihood 3. Solatium
dependent primarily on the land being acquired in the urba
areas or any family who is residing on the land bein 4. Where 1
develope
acquired in the urban areas project af
Safeguarding Food Security and at a
develop
1. Multi-crop irrigated land will not be acquired exceptas avail of
demonstrably last resort measure, which in no case shoul from the
lead to acquisition of more than such limits as have been it
by the State Government under this law. 5. The co
2. Wherever multi-crop irrigated land is acquired an equivalen shares 1•
area of culturable waste land shall be developed fo the proj
agricultural purposes (or an amount equivalent to the valu equival
of the land acquired shall be deposited with the appropriati acquisi
Government for investment in agriculture for enhancint
food security). Minimum Comp
3. States are also required to set a limit on the area d Illustrative
agricultural land that can be acquired in any given district.
This m
1 and 2 above shall not apply in the case of linear projects (such as move
railways, highways, major district roads, power lines and irrigation
canals) Thepr
Illustrative
Minimum Compensation for Land Acquisition (preci
A ComprehensiveCompensation Package (First Schedule) Radial
1. Market value of the land: 0-10
(a) the minimum land value, if any, specified 10-20
Stamp Act, 1899for the registration of in the Indian 20-30
sale deeds in the 30—40
area, where the land is situated; or
40-50
(b) the average of the sale price for
situated in the immediate areassimilar type of land
adjoining the land
being acquired,ascertainedfrom fifty Minimum
per cent of the
sale deeds registered during the preceding
three years, A Compre
where higher price has been paid; or
whichever is higher: (Second S
1. Sub
Provided that the market value so calculated 121
shall be multiplied by a multiplier factor for rural areas
of upto 'two'.
 RIGHT TO FAIR COMPENSATION, ETC. ACT, 2013- AN
OVERVIEW 5

2. Value of the assets attached to land: Building/Trees/

Wells/Crop etc. as valued by relevant Government authority;
Total compensation = 1+2
3. Solatium: 100%of total compensation
4. 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 acquisitionand the cost of
development. In case the project affected family wishes to
avail of this offer, an equivalentamount will be deducted
from the land acquisition compensation package payable to
it
5. The Company for whom land is being acquired may offer
shares limited to 25%of the Compensation amount. In case
the project affected family wishes to avail of this offer, an
equivalent amount will be deducted from the land
acquisition compensation package payable to it.

Minimum Compensationfor Land

Illustrative sliding scale
This multiplier factor will gradually rise from 1 to 2 as we
move away from urban locations into rural areas.
The precise slabs will be left to respective State Govemments
Illustrative Sliding Scale
(precise scale to be determined by each State Government)
Radial distance from urban area (km) Multiplier Factor
0-10 1.00
10-20 1.20
I .40
20-30
30-40 1.80
40-50 2.00

Minimum R&R Entitlements

A Comprehensive R&R Package
(Second Schedule)
family for
1. Subsistence allowance at Rs. 3000per month per
12 months;
6 RIGHT To FAIR COMPENSATION, ETC. ACT, 2013 - AN OVERVIEw

2. The affected families shall been titled to:

(a) Where jobs are created through the project, mandato
employment for one member per affected family;
(b) Rupees 5 lakhs per family; or
(c) Rupees 2000 per month per family as annuity for 20
years, with appropriate index for inflation;
The option of availing (a) or (b) or (c) shall be that
of the affected family
3. If a house is lost in rural areas, a constructed house shall be
provided as per the Indira Awas Yojana specifications.If a
house is lost in urban areas, a constructed house shall be
provided, which will be not less than 50 sq.mts. in plinth
area.
In either case the equivalent cost of the house may also be
provided in lieu of the house as per the preference of the
project affected family;
4. One acre of land to each family in the command area, if land
is acquired for an irrigation project if possible BUT the same
shall be in lieu of Compensation;
5. Rs. 50,000 for transportation;
6. A one-time Allowance' of Rs. 50,000;

Special Provisions for SCs/STs

In addition to the R&Rpackage, SC/STfamilies will be entitled to
the following additional benefits:
1. Land to be given to each family in every project even in the
case of irrigation projects;
2. One time financial assistance of Rs. 50,000per family;
3. Families settled outside the district shall be entitled to an
additional 25%R&Rbenefits;
4. Payment of one-third of the compensation amount at very
outset;
5. Preferencein relocationand resettlementin area in same
compact block;
6. Free land for community and social gatherings;
7. In case of displacement, a Development Plan is to be
prepared.
 RIGHT To FAIR COMPENSATION, ETC. ACT, 2013 AN
OVERVIEW 7

8. Continuation of reservation and other Schedule V and

Schedule VI area benefits from displaced area to resettlement
area.

EnhancedRole for Panchayat Raj Institutions especially Grama Sabhas

SIA in consultation with PRIs: The Social Impact Assessment has
to be carried out in consultationwith the representativesof the
Panchayat Raj Institutions.
SIA Reports to be Shared: Reports prepared under the Social
Impact Assessment are to be shared with these individuals in their
local language along with a summary.
Representation in Expert Group: The Expert Group has to have
two members belonging to the Panchayat Raj Institutions. This is a
powerful body that has the power to reject a project.
Hearings in All Grama Sabhas: In case where an affected area
involves more than one Grama Panchayat or Municipality,public
hearings shall be conducted in every Grama Sabha where more than
twenty-five per cent of land belonging to that Grama Sabha is being
acquired.
Consent of Grama Sabha: The Consent of Grama Sabha is
mandatory for acquisitions in Scheduled Areas under the Fifth
Schedule referred to in the Constitution
Representation of Panchayat Chairpersons on R&R Committee
at Project Level: The Rehabilitation and Resettlement Committee at
Project Level has to have the Chairpersons of the Panchayats located
in the affected area or their nominees as representatives.
Panchayat Ghars have to be provided as per the list of
Infrastructural amenities given in the Third Schedule.

Special Provisions for Farmers

Acquisition only if necessary: The Collector has to make sure that
no other unutilised lands are available before he moves to acquire
farm land.
Enhanced Compensation: All farmers in rural areas will get upto 4
times the highest sales prices in a given area.
Strict Restrictions on Multi-Crop Acquisition: The acquisition of
agricultural land and multi-crop land has to be carried out as a last
resort.
 RIGHT TO FAIR COMPENSATION, ETC. ACT, 2013 - AN
8 OVERVIEw

Consent: Shall be prior-consent required from 70 per c

landlosers and those working on Government assigned lands
the case of Public Private Partnership projects and 80 per centin
case of private companies. This consent also includes Consenttothe
amount of compensation that shall be paid.
Return of Unutilised land: Land not used can now be returned
the original owners if the State so decides. un
Share in Sale of Acquired Land Increased: The share that has a
distributed amongst farmers in the increased land value (whenthe
acquired land is sold off to another party) has been set at 40%. th
Income Tax Exemption: All amounts accruing under this ActhavePI
been exempted from Income tax and from Stamp duty. d]

Special Safeguardsfor Farmers

Damage to crops to be included in price: The final awardhasto
include damage to any standing crops which might have been e
harmed due to the process of acquisition (including the preliminary
inspection).
Share in Developed Land: In case their land is acquiredfor
urbanisation purposes twenty per cent of the developed land will be
reserved and offered to these farmers in proportion to the area of their
land acquired and at a price equal to the cost of acquisitionand the
cost of development.
Fishing Rights: In the case of irrigation or hydel projects, affected
families may be allowed fishing rights in the reservoirs,in such
manner as may be prescribed by the appropriate Government.

ReducedRolefor Collector

T%erehas beena significantreductionof the powers that the Collector

enjoyed under the 1894Act:
Under the 1894Act, the Collector had complete authority to decide
what activity constituted 'public purpose'. Under the new law he has
been completelystripped of this function. Public purpose must fall
strictly within the parameters prescribed under this law, The
Collectorcannot add or subtract to the list given.
Under the 1894Act, the Collector could decide what quantumOf
compensation could be paid to those displaced. Under the new law'
there is a formula that does not require the Collector to exercise any
 RIGHT TO FAIR COMPENSATION, ETC. ACT, 2013 AN OVERVIEW 9

discretion. All he has to do is make sure that the rate is calculated as

directed.
Under the 1894 Act, the Collector could decide when to take
possession.He could dispossess any family by giving a moments
notice. Now possession can only be taken once all the requirements
under the law relating to the payment of compensation, rehabilitation
and resettlement have been discharged.
Under the 1894Act, the Collector had sweeping powers to invoke
the urgency clause. What constituted an urgent situation was entirely
a function of the Collector's interpretation. This loophole has been
plugged conclusivelyby limiting urgency to only two cases natural
disasters and national defence. The Collector can no longer acquire
land citing 'urgent' reasons.
Benefits for Tenants and Sharecroppers
The Law also covers all Tenants who may not own any land but are
engaged in any form of tenancy or holding a usufructury right and;
SharecroppersArtisans who have been working in the affected
area for three years prior to the acquisition and whose primary source
of livelihood stands affected by the acquisition of land shall.
They will receive not just the Rehabilitationand Resettlement
Benefits but also a share in the compensation to be provided.

Infrastructural Amenities under R&R

(Third Schedule)
25 infrastructural amenities to be provided in the Resettlement
area, including:
• Schools and playgrounds;
• Health Centres;
• Roads and electric connections;
• Assured sources of safe drinking water for each family as per
Government norms;
• Panchayat Ghars as appropriate;
• Anganwadis providing child and mother supplemental
nutritional services as per Government norms;
• Places of worship and burial and/or cremation ground
depending on the caste-communitiesat the site and their
practices;
 • Village level Post Offices, as appropriate, with

Fair price shops and seed-cum-fertilizer storage

Retrospective Effect Clause

Retrospective operation:
• Where no award under Section 11 of the 1894Acthas
made, the new law will apply with regard to compensatim,
• Where an award has been made but the affected
have not accepted compensationor have not yet given
possession, and the proceedings have been pending for5yea
or more, provisions of the new law will apply;
• Where a majority of individuals in an affected area haven
received compensation then the new law will apply.

Compliancewith other Laws

The Provisions of the New Law shall be fully compliant with0th
laws such as:
• The Panchayats (Extension to the Scheduled Areas) Act,
• The Scheduled Tribes and Other Traditional Forest Dwelle
(Recognition of Forest Rights) Act, 2006;
• Land Transfer Regulations in Schedule V Areas.
In fact,while the above legislations provide for 'consultation'wit
GramaSabhas,the new law goes one step ahead and provides fa
'consent'.

Process Flow
Proposal is Received by the
Appropriate Government
SocialImpact Assessment • SIA to be examinedby
(SIA)Conducted by independent Expert Group
Appropriate Government
 Notification Publication of Preliminary Finalization of R&R Scheme
Notification to acquire (within 6 months of PN)

Public Hearing
Draft Declaration & R&RScheme published
Awards

Institutional Structure
Centre National Monitoring • Oversight at Central
Committee Level for all projects

State LA&RR Authority • Dispute Resolution for

State Projects

Committee constituted by • Determine whether

State Appropriate Government projects are for public
purpose
State Commissioner, RR • Overall Admin for
LA&RR in State

District Collector Overall coordination

Project-level
and implementation
Administrator, RR • Admin Project-levelRR
RR Committee • Oversight (Elected reps,
civil society, line
agencies)

Safeguardsagainst indiscriminateacquisition
• Social Impact Assessment made mandatory except for
Irrigation Projects. To be concluded in 6 months;
• Draft Notification to include:
— Summary of SIA
—Particulars of Administrator for R&R who prepares R&R
scheme
• Draft Declaration to include:
—Summary of R&R package
• No Change of Purpose: No change from the purposes specified
in the Land Use Plan submitted at the time of land acquisition
will be allowed.
12 RIGHT TO FAIR COMPENSATION, ETC. ACT, 2013- AN OVERVIEW

• Change of Ownership: No change of ownership

Appropriate
specific permission of Government is allow
• Land not Used: Land that is not used within 5 Qd
accordance with the purposes for which it was acquired
time of acquisition, shall be transferred to the
Government's Land Bank OR to the original landowner.
• Sharing appreciated value: Upon every transfer of
without development, 40% of the appreciated land value
be mandatorily shared with the original owner whoselandh
been acquired

TransparencyProvisions
• Social Impact Assessment
—Grama Sabha to be consulted
—Summary of SIA notified along with Draft Notification
SIA document made available for public scrutiny
• Scheme
—Summary notified along with Draft declaration
—Made available for public scrutiny
• Individual Awardspassed
• Public Disclosure
—All documents mandatorily to be made availablein
public domain and on the website

Penalties
Stringent and Comprehensive Penalties Regime for Companiesand
Government:
• Punishment for false information, malafide action, etc.
• Penalty for contravention of provisions of Act.

Awards
Collector passes 2 types of Awards:
1. Award for Land Acquisition
• Award made in respect of every affected family whose land
being acquired (this will include landless tenants as well)an
containing details of LA compensation as listed in the Fir
Schedule.
 RIGHT TO FAIR COMPENSATION, ETC. ACT, 2013 - AN
OVERVIEW 13

2. Award for R&R

• Award made in respect of every affected family, regardless of
whether they may be losing land or not, containing details of
R&Rentitlements as listed in the Second Schedule.

Timelines
1. Compensationwill be given within a period of three months
from the date of the award;
2. Monetary R&Rentitlements will be provided within a period
of six months from the date of the award;
3. Infrastructure R&Rentitlements will be provided within a
period of eighteen months from the date of the award;
4. No involuntary displacement will take place without
completion of R&R;
5. In irrigation or hydel projects, R&R shall be completed six
months prior to submergence.

Impact of the new law on Existing Legislations related to Land Acquisition

1. There are 13 Acts of the Central Government in force that
allow for land acquisition.These are listed in the Fourth
Schedule of the Act (and include legislations relating to
National Defence, National Highways, Railways etc.). The
new law does not apply to the activities covered under these
Acts.
2. However, within one year, the provisions of the new Law
which relate to compensation, rehabilitation and
resettlement will be applied to the 13 Acts by a notification of
the Central Government.

Flexibilitygiven to States
1. The sliding scale on the basis of which compensation is to be
calculated (2-4 times market value) has been left to the
discretion of the State Governments
2. Thresholds for multi-crop irrigated lands
3. Thresholds at which R&R provisions apply to private
purchases
4. States are encouraged to adopt the option of "lease" instead
of acquisition.
5. States are also empowered by this law to provide
and safeguards that go over and above the forb
provisions