THE RIGHT TO FAIR COMPENSATION AND

TRANSPARENCY IN LAND ACQUISITION,

REHABILITATION AND RESETTLEMENT ACT, 2013
(RFCTLARR Act)
Following are the core issues that could not be answered
under Land acquisition Act of 1894

 Understanding of Public Purpose and its frequent application

including for Land Acquisition for private projects
 Applicability of Emergency clause
 Consent of People
 Calculation of Fair compensation for the land and the fixed assets
over it
 Rehabilitation and Resettlement of displaced families
 Addressing Livelihood issues and loss of Social and Economic
disjoint due to displacement
 Timely payment of compensation
 Amicably address of the family share issues
 Acceptable Rehab Colony with all legal rights
 Stake Holders Management
 Creating a proper data base to address the grievances
 Status of RFCTLARR Act. 2013
 The bill was introduced in Lok Sabha in India on 7 September 2011
 Out of the 235 members who voted on the bill, 216 backed it while 19
voted against it
 Lok Sabha on 29th August 2013 passed the Bill to replace the Land
Acquisition Act 1894 as “The Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement
Bill 2012” (Here we say “ RFCTLARR Act”)
 on 4 September 2013 the bill was passed in Rajya Sabha
 It has got presidential Accent on 26th September
 MoRD is on job to frame the rules there under. Draft Rule are placed
in website for views of Public and comment
 The New Act of 2013 (RFCTLARR Act) is made effective from
01.01.2014
 All state are asked to frame rules there under following the
provisions of Sec 109 of the Act
 Contents of RFCTLARR, 2013 in brief
 The Act has 13 no of Chapters and 114 no of Sections
 Chapter I- PRELIMINARY – SHORT TITLE , EXTENT AND COMMENCEMENT
.
 Chapter II- DETERMINATION OF SOCIAL IMPACT AND PUBLIC PURPOSE
 Chapter III- SPECIAL PROVISION TO SAFEGUARD FOOD SECURITY
 Chapter IV- PRELIMINARY NOTIFICATION AND ACQUISITION
 Chapter V- REHABILITATION AND RESETTLEMENT AWARD
 Chapter VI- PROCEDURE AND MANNER OF REHABILITATION AND
RESETTLEMENT
 Chapter VII- NATIONAL MONITORING COMMITTEE FOR
REHABILITATION AND RESETTLEMENT
 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
 IMPACT OF RFCTLARR ACT

• The New Act 2013 is a new legislation and repeals the LA

Act, 1894.
• SIA and R and R are now integral part of the land
acquisition.
• Transparency & Participatory approach at various stages
of the land acquisition, R & R processes.
• To ensure sustainable livelihood of the affected families.
• Consent inbuilt to ensure participation of the affected
families.
• Option of the lease to be explored and surrender of land
possible, if not used.
• Dedicated Authority for disposal of disputes.
• No displacement before rehabilitation.
IMPORTANT PROVISIONS IN THE NEW ACT COMPARE
TO OLD ACT
Provisions Sec .in New Act Remarks
SIA and SIA related studies Sec. 4(1) to Sec. 9 This was not in the old Act.
Special Provision for Safeguard, Sec 10 This was not in the old Act
Food Security
Publication of Preliminary Sec.11 to Sec.18 It is equivalent to Sec.4 and Sec.
notification 5(a) of old Act expect
notification with SIA Report
Publication of declaration and Sec.19 to Sec. 22 This was equivalent to Sec.6(1)
Summary of R&R Scheme of old Act. except R&R scheme
which is a new concept
Land Acquisition Award Sec. 23 to Sec. 30 This is equivalent to Sec. 11 of
Old Act.
R&R Award Sec. 31 to Sec. 37 As per R&R Policy not included
in Old Act
Power to take possession of land Sec. 38 Equivalent to Sec. 16 of old Act.
 IMPORTANT PROVISIONS IN THE NEW ACT Contd………..

Provisions Sec.in New Remarks

Act
Additional compensation in case of Sec. 39 It is a new provision
multiple displacement
Emergency provisions Sec. 40 Equivalent to Sec. 17 of old Act.
Special provision of SC&STs Sec. 41 to Sec. No such provisions in old Act
42
Procedure and manner of R&R Sec 43 to It is equivalent to the provision of
Sec 47 R&R policy of the state
government and centre. Was not
in the old Act.
State & National Monitoring Sec. 48 to No such provisions in old Act
Committee for R&R Sec 50
Establishment for Land Acquisition Sec. 51 to Similar provisions was their in
and Rehabilitation of the authority Sec 74 Sec. 18 and Sec. 30 in old Act but
not such elaborated as in the new
Act.
Comparative Timeline as defined in both the Acts
As per RFCTLARR Act 2013 As per LA Act, 1894

SIA Study (4.1) Preliminary Notification (4 .1)

Six Months Two Months

Appraisal by Expert Group SIA Study

Two Months 10 Months

Preliminary Notification (11.1)

Publication Declaration (6.1)
One year
1 year Months
Publication of Declaration (19.1)
Award by Collector (11.1)
One Year
Awarded of Collector for land 1 years Months
compensation
Taken over possession of land (16)
Two Years

Awarded of Collector for R&R

compensation

Taken over possession of land

 Retrospective Effect (Section 24)
• Where award under Section 11 of the Land Acquisition Act,
1894 has not been declared the LA compensation will jump
to new act.
• Where award under Section 11 of the LA Act, 1894 has been
made 5 years or more before the commencement of this Act
but the physical possession of the land not taken or
compensation not paid –jump to new act.
• If award has been made but compensation in case of
majority of land holding is not been deposited in the
account of beneficiaries then all notified land losers will be
entitled to new compensation calculation. BCM1
• If any land Purchased on or after 5th Sept 2011 contrary to
the provisions of sec46(1) or within three years from the
date of commencement of the act i.e 1.1.2014, then 40% of
the compensation paid for such land acquired shall be
shared with the original land owners.
Slide 9

BCM1 Odinance repealed it

Binod Chandra Mishra, 15/01/2015
 Retrospective Effect (Section 24)
• The detailed explanation regarding the same retrospective effect can
be referred to the R & DM Department letter No 1862 dated 24.01.2014.

BCM2
Slide 10

BCM2 Odinance repealed it

Binod Chandra Mishra, 15/01/2015
 Public Purpose
Section Provision in RFCTLARR Act. Provision in the Old Act

Sec. 2(1) •For strategic purpose relating to defence of India or State Police or This is classified for the
Application of the safety of the people public purpose as will be
Act for public •For infrastructure projects defined u/s I to VI of the Act, accepted by collector.
purpose or govt. •Sec. III includes projects for industrial corridors , mining activities ,
use national investment and manufacturing zone.

Sec. 2 (2) The provisions of this Act relating to land acquisition, consent, Land for private
Provisions for compensation. rehabilitation and resettlement, shall also apply, when companies or PPP
declaring land to be the appropriate Government acquires land for the following purposes, projects were acquired by
acquired for Private namely:- Govt with notification of
Companies (a) for public private partnership projects, where the ownership Public purpose through
of the land continues to vest with the Government, for IDCO/Infrastructure
public purpose as defined in sub-section (1); SEC. 2 corporations of
(b) for private companies for public purpose, as defined in sub- respective state govt who
section (I): have the power to
Provided that in the case of acquisition for- acquire land for
(i) private companies, the prior consent of at least eighty per cent. of Industry/industry related
those affected families, as defined in sub-clauses (i) and (v) of clause infrastructure and
(c) of section 3; and becomes automatically
(ii) public private partnership projects, the prior consent of at least Public Purpose
seventy per cent. of those affected families, as defined in sub-clauses
(i) and (v) of clause (c) of section 3,
shall be obtained through a process as may be prescribed by
the appropriate Government
 Provision of Public Consent (Section 2)

• To ensure transparency and participation, consent

of at least eighty/seventy percent of the land
owners in the cases of land acquisition for
Private/Public Private Partnership Projects
•In Scheduled Areas consent of the Gram
Sabhas/Panchayats/autonomous district councils
mandatory in all cases of land acquisition
• Consent to be obtained along with the process of
SIA study
Definition of Affected family (Section 3)

• A family whose land or other immovable

property has been acquired;
• A family which has lost its livelihood;
• A family of Tribes and other traditional forest
dwellers that have lost any of their traditional
rights recognized under the Scheduled Tribes
and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006 due to
acquisition of land;
• A member of the family who has been assigned
land by the Govt.
• In Old act Affected family was limited to the land
losers
 Preliminary Steps at 4(1) stage

• To assess the impact of the projects, SIA to be carried

out in all cases of land acquisition in consultation with
Panchayat or Municipal corporation with in six
months
• Social Impact Management Plan (SIMP) to list out
ameliorative measures to address adverse impact
• Summary of SIA Report to be issued along with
preliminary notification under Section 11
 SIA AS IN RFCTLARR ACT, 2013

Assessmen Whether
Extent of Whether
t as to Estimation the extent Study of
lands, public other
whether of affected of land social costs
and private, alternative
the families proposed is of the
houses, sites were
proposed and absolutely project vis-
settlements considered
acquisition families bare s-vis the
A
and other and found
serves the likely to be minimum benefits of
CPRs likely to not
public displaced requireme the project
be affected feasible
purpose nt.

Expert Group to Appraise the SIA

2 non-official social scientists,
2 representatives of Panchayat, Gram Sabha,
2 experts on rehabilitation,
1 technical expert in the subject relating to the project.
 Appraisal of SIA

• SIA Report to be evaluated by an independent multi-

disciplinary Expert Group:-
(i) Two non-official social scientists
(ii) Two representatives of local bodies
(iii) two experts on rehabilitation
(iv)A technical expert in the subject relating to project
• To make recommendations within two months
• SIA Report valid for 12 months
 SIA Criteria – Expert Committee
 Critical Assessment of Magnitude of Physical and Economic
Displacement. This may include the number of affected households to be
physically relocated as well as those rendered landless/with marginal
unviable land holdings (marginal with 1 hectare of land holding).

 Critical Evaluation of Social Impact Management Plan and whether the

ameliorative measures suggested will be adequate to effectively mitigate
the adverse impact on individual and community assets, infrastructure
and restoration of livelihood of affected families.

 Critical Assessment of Attitude of the community towards the project and

the reasons for opposition, if any - nature of the project/timing/other
specific characteristics etc - perceptions of the community about social
well-being, neighbourhood cohesion or cultural differences among
members of the community etc.

 Physical cost and benefits easy to arrive at the social costs but intangible
emotional costs would vary depending on the value
judgments/background of the evaluating team
 Minimum Land Acquisition & Minimum
Displacement (Section 8)

• Appropriate Government shall ensure that:-

a)There is a legitimate and bona fide public purpose for the
proposed acquisition
b)The public purpose, in the long term, is in the larger public
interest so as to justify the adverse social impact as
determined by SIA
c)Only the minimum area of land required for the project is
being acquired.
d)There is no unutilized Land that has been previously
acquired in the area
e)The land, if any, acquired earlier and remain unutilized, is
used for such public purpose
• SIA is exempted in case of projects acquiring land with
application of emergency clause
B1

Special provision to safeguard food security

(Section 10)

• Irrigated multi-cropped land shall not be acquired except

when land acquired does not exceed five percent
(Flexibility to appropriate government) of total irrigated
multi-crop area in that district or State.
• Whenever a multi-crop irrigated land is acquired, an
equivalent area of culturable waste land shall be developed
for agricultural purposes.
• In other cases the acquisition of agricultural land should
not exceed for all projects in a district or State such limits
of the net sown area of that district or State as may be
notified by the appropriate government.
• State to make rule what percentage of Irrigated land can
be acquired in special circumstances. B2
Slide 19

B1 BMISHRA, 19/01/2015

B2 Ordinance introduced a new section 10 A

BMISHRA, 19/01/2015
 Preliminary Notification u/s 11(1)

• Similar to the old Act. A notification relating to the land details to

be acquired with the name of the land owners as well as the
summary of the SIA report, reasons necessitating the
displacement of affected persons is to be published (a) in official
gazette, (b) in two daily newspapers circulating in the locality, at
least one in the regional language , (c) in the panchayat or
municipality, (d) uploaded in the website, (e) in the affected area.
• The cutoff date is the last date of the publication in any of the
system.
• Land transaction is restricted u/s 11(4) and Collector to ensure
updating of the land records within a period of two months u/s
11(5).
• This notification is valid for 12 months.
• In the old Act preliminary notification u/s 4(1) was confined to
publication of the list of the land loser in similar manner as
detailed at (a) to (c).
 Activities during valid period of Notification
u/s 11(1)
• Preliminary survey of land.
• Hearing of objections such as to the area and suitability of land,
justification offered for public purpose, findings of SIA.
• The administrator shall prepare rehabilitation and resettlement
scheme including the rehabilitation colony with details of public
amenities and infrastructure facilities.
• The rehabilitation scheme shall be reviewed by the Collector as well
as by R&R Committee constituted u/s 45.
• The scheme shall be submitted to the Commissioner R&R for
approval of the government.
• After approval, it will be made available in the local language of the
panchayat / municipality and uploaded in the website of the
appropriate government.
 Declaration u/s 19(1)

• Similar to the declaration provisions u/s 6(1) of the old Act. Government
shall publish the declaration along with the area identified for
resettlement site.
• The collector shall publish a summary of the R&R scheme and asked the
requiring body, to deposit an amount full/part towards cost of
acquisition of land.
• The old Act was confined to declaration of the land details intended to
be acquired for public purpose as there was no mandatory provision for
Rehab. Colony and Resettlement and Rehabilitation
• The validity of the declaration is 12 months from the date of the
declaration of publication otherwise the entire proceedings will be
lapsed.
 Market Value(Section 26)

• Market value is higher of (a) minimum land value as per

Indian Stamp Act, 1899 (b) average sale price for similar type
of land in the vicinity (c) average sale price already paid or
agreed to be paid in private or PPP projects
• Any price paid earlier as compensation for land acquired
under this Act on an earlier occasion not to be taken into
consideration
• Collector to take necessary steps to revise the market value of
the land before initiating acquisition proceedings
• Further, to ensure adequate compensation to the land owners,
the market value calculated shall be multiplied by a factor of
two in the rural area and by a factor of one in the urban area
as specified in the First Schedule.
• Solatium of one hundred percent of the compensation amount
• The calculation process is detailed in the first schedule.
 THE FIRST SCHEDULE [ 30 (2)]
COMPENSATION FOR LAND OWNERS

Serial Component of compensation Manner of determination of value under the old

No. package in respect of land
Act, land
acquired under the Act
1 2 3 compensation
1 Market value of land To be determined as provided under was calculated in
section 26. a simple manner
by taking the
2 Factor by which the market 1.00 (One) to 2.00 (Two) based on the average of 3
value is to be multiplied in distance of project from urban area, years registration
the case of rural areas as may be notified' by the appropriate price added with
Government. 30% solatium
3 Factor by which the market One
and 12% interest
value is to be multiplied in
over it. However,
the case of urban areas
4 Value of assets attached to To be determined as provided under
the cost of
land or building section 29
permanent
5 Solatium Equivalent to one hundred per objects existing
cent. Of the compensation amount of over the land is
land mentioned against serial also finally
number 1 added at the
6 Final award in rural areas {(1x2 )+ 4}+ 100 % time of making
7. Final Award in Urban Area { (1x3)+4}+100% the award
 Awards towards Compensation and
Resettlement & Rehabilitation
• Sec. 27 empowered Collector to calculate the total compensation,
including the damage of the standing crop and trees, incidental
charges, cost incurred due to severing such land from his other
land.
• Sec. 30 empowers the Collector to pass Resettlement &
Rehabilitation Award that includes Resettlement and
Rehabilitation amount, particulars housesite and houses to be
included in case of displacement, after ensuring provisions of
infrastructure amenities in the resettlement area as per the third
schedule of the Act u/s 32.
• In the old Act, there is no provision of making award for
resettlement and rehabilitation nor there is a provision for
compensation double the amount of the original estimate incase
of the double displacement.
 Institutional mechanism for R&R

• Sec. 43—Administrator for Rehabilitation and Resettlement

-Formulation, execution and monitoring of R&R Plan
• Sec. 44—Commissioner for Rehabilitation and Resettlement
-Supervision of formulation, implementation of R&R Plan
and post implementation social audit in consultation with
Gram Sabha
• Sec.45—Rehabilitation and Resettlement Committee at
project level (more than 100 acres) - monitor and review
R&R
• Sec. 48—50 -National Monitoring Committee at central
level & State Monitoring Committee at State level
 Rehabilitation and Resettlement Benefits

• Schedule Two of the Act enlists R&R benefits for the affected
families.
• In case of irrigation projects, as far as possible, each affected
family is proposed to be given one acre of land in the
command area. Persons belonging to SC or ST and losing their
land will be provided two and a one-half acres of the land.
• If the land is acquired for urbanization purpose, twenty
percent of the developed land will be reserved and offered to
the land losers.
• Mandatory employment to at least one member per affected
family. If it is not possible, then onetime payment of rupees
five lakhs per affected family or annuity policy that pays
rupees two thousand per month per family for twenty years.
• Onetime financial assistances like transportation cost, cattle
shed/petty shop costs etc.
 Important R & R Benefits
• Resettlement and Rehabilitation benefits to all affected families (in addition to
compensation)
 R & R Package - Choice of employment/5 lakhs/Rs. 2000 per month for 20 yesr0
 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
Displaced Families
 Housing in case of displacement – Rural Areas (IAY specifications); 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.
– Stamp duty/registration to be paid by the requiring body
Infrastructure Facilities in Resettlement Areas

• Third Schedule lists amenities/facilities to be

developed in the rural areas.
• These include 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.
 Urgency Provision (Section 40)

• LA Act, 1894 empowers the appropriate Government

to acquire land under urgency provision for any
public purpose U/s 17 .
•However, in new Act urgency provision restricted to:
(a) acquisition of land for defence of India; or
(b) national security; or
(c) for any emergency arising out of natural calamities.
• An additional 75 percent of total compensation shall
be paid which was not a provision in Old act
 R&R in Private Purchases (Section 46)

• If private purchase is beyond certain limits as

specified by the appropriate Governments then
R&R benefits to be extended to the affected families
• R&R scheme to be approved by the Commissioner
for the R&R
• No land use change permitted if R&R is not
complied as per the award passed by collector
• Application to Collector has to include the purpose,
particular of land to be purchased
 Land Acquisition, Rehabilitation &
Resettlement Authority ( Sec. 51—75)

• Single member authority

• Reference to Authority within six weeks of
the Collector's award
• Cases to be decided in six months
• Jurisdiction of civil courts barred
• Appeals to High Court with in sixty days
 Miscellaneous

• Land/House allotted to be in joint name

• Benefits indexed to CPI
• Ownership cannot be changed
• Purpose for which acquired cannot be changed
• 40% of the appreciated value to be shared with
original owners
• Double compensation in case of multiple
displacements
• Special provisions for SCs & STs
 Return of Land

Section 101
If any land or part thereof acquired under the Act
remains unutilized for a period of five years B3
from the
date of taking of the possession, the same shall return
to the Land Bank/returned to the original land
owners as specified by the appropriate Government
Slide 34

B3 Ordinance empowered companies to retain land till schedued time as per plan
BMISHRA, 19/01/2015
 Exempted Legislations (Sec 105)

• The Fourth Schedule enlists thirteen legislations

dealing with land acquisition which have been
exempted from the purview of this Act. B4
• The Central Government may direct by a
notification that any of the provisions of this Act
dealing with First, Second and Third Schedules;
shall apply to the cases of land acquisition under
the enactments specified under the Fourth
Schedule.
• One Year is the time limit within which all Acts to
be extended the benefits of new legislation
Slide 35

B4 Deleated through ordinance

BMISHRA, 19/01/2015
Comparison between time line for LA and RR in LA Act, 1894
and RFCTLARR Act, 2013
• 36 month Schedule from date of process at LAO in Old act as amended on 1984
• 60 months Schedule as per new Act 2013
Thank You