The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 (RFCTLARR) replaced the colonial-era Land Acquisition Act 1894 and introduced a comprehensive framework for compulsory acquisition with enhanced compensation, mandatory social-impact assessment and rehabilitation and resettlement entitlements.
Compensation under the RFCTLARR Act 2013 is determined by the Collector under Section 26 based on the market value of the land (higher of the circle rate or average sale price of similar land in the vicinity), plus the value of assets attached to the land. Section 27 adds a solatium of 100% of the market value. Section 28 provides for a multiplier of 1 to 2 (depending on the distance from urban areas) to account for the difference between the market value and the compulsory nature of the acquisition. The cumulative effect is that the compensation payable is typically 2 to 4 times the market value.
AMLEGALS advises landowners on challenging inadequate compensation through references to the Authority (LARR Authority) and appeals, and represents acquiring bodies and project proponents on the validity of the acquisition process, social-impact assessment compliance and rehabilitation obligations.
Advising landowners on challenging the Collector's award and seeking enhanced compensation through the LARR Authority.
Advising on the determination of market value under Section 26 — comparable sales, floor rates, development potential.
Advising acquiring bodies on social-impact assessment requirements and challenging SIA compliance defects.
Advising on rehabilitation and resettlement entitlements under the Second Schedule to the Act.
Advising on and challenging acquisitions under the urgency provisions of Section 40.
Advising on the lapse of acquisition proceedings under Section 24 where land was acquired under the old Act 1894.
The Collector determines the market value under Section 26 as the higher of: (a) the minimum value specified in the Indian Stamp Act for registration of sale deeds (circle rate), (b) the average sale price for similar land in the nearest village or nearest vicinity, or (c) the consented amount in case of acquisition for private entities. To this, the value of assets (trees, buildings, wells) is added. Section 27 provides a 100% solatium over the market value, and Section 28 provides a multiplier of 1 to 2 for rural areas.
Yes. A landowner dissatisfied with the Collector's award can file a reference to the LARR Authority (Land Acquisition, Rehabilitation and Resettlement Authority) under Section 64. The Authority re-determines the compensation after hearing both parties. Appeals from the Authority lie to the High Court.
Section 4 requires a social impact assessment (SIA) study before acquisition, conducted in consultation with gram sabhas in rural areas and municipalities in urban areas. The SIA assesses whether the acquisition serves a public purpose, the number of affected families, the social impact and whether the extent of land proposed is the minimum necessary. The SIA report is reviewed by an expert group, and the findings guide the government's decision on whether to proceed with the acquisition.
Section 24 of the RFCTLARR Act addresses the transition. Where an award under the 1894 Act was made five or more years before the commencement of the 2013 Act and possession was not taken or compensation was not paid, the acquisition proceedings lapse. The Supreme Court in Indore Development Authority v Manoharlal (2020) held that the deemed lapse under Section 24(2) occurs only where both conditions (possession not taken AND compensation not paid) are satisfied.
For acquisition for private companies, the consent of 80% of affected families is required under Section 2(2). For acquisition for public-private partnerships, the consent of 70% of affected families is required. For acquisition for government projects, no consent is required, but the SIA process provides a consultative mechanism.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing.
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