Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act

The “Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013” also known as the Land Acquisition Act, 2013, the LARR Act or the RFCTLARR Act, was enacted by the Central Government and went into force on January 1, 2014 withdrawing the colonial Land Acquisition Act of 1894 (the “Old Act”) from effect.

• 1 Need for the Act
• 2 Features of the Act
• 3 Drawback of the Act
• 4 Way Forward

Need for the Act

• Compensation: In order to protect the property rights of the people whose land is purchased, fair compensation is necessary. It makes sure people receive fair compensation for the value of their land, as well as for any possible damage to their livelihood.
• Preventing Exploitation: Transparent procedures and just compensation aid in protecting landowners, particularly those who may be struggling financially or are unaware of the full worth of their property. It guarantees that they won’t be forced to accept unfair recompense.
• Ensuring Social Justice: Strong emphasis on social justice principles and aims to stop the eviction of disadvantaged populations. It necessitates the implementation of appropriate rehabilitation and resettlement procedures, giving the impacted people access to alternative means of support, housing, and other facilities.
• Fostering Public Trust: Transparent and accountable processes increase public confidence in the government’s actions. The government, landowners, and impacted communities can avoid problems when land acquisition procedures are carried out in a transparent and equitable manner.

Features of the Act

1. Application to Private Players such as Industrialists: Land can be purchased for certain “public purposes” as specified by the Act, such as infrastructure projects, public-private partnerships, and strategic goals pertaining to the military, navy, and air force. In order to purchase land for public-private partnerships or on behalf of private companies carrying out public purposes, the government must have the approval of 70% and 80% of the affected households, respectively. The rule on rehabilitation and resettlement must also be applicable in the event that Private actors, through Private talks, acquire land in excess of the amount set forth by the relevant government.

2. Rehabilitation and Resettlement: The Rehabilitation and Resettlement Package under the Acts is more comprehensive in terms of its components; in addition to monetary compensation, it includes provisions for employment, the allocation of alternative housing units, another piece of land, and other entitlements. It also includes infrastructure facilities at the new location. Additionally, a Rehabilitation and Resettlement Committee made up of representatives from different stakeholders is formed in cases where property purchases that are larger than 100 acres are made in order to oversee and carry out the Rehabilitation and Resettlement plan. In the event that Private players through Private agreements acquire land in excess of the amount stipulated by the relevant government, the clause pertaining to rehabilitation and resettlement shall also apply. Case: G. Padmanabhan and Others v. Tamil Nadu State and Others.

3. Compensation: The fair recompense is the most prominent aspect of the New Act, which is evident in the title. The Act lays forth a system to guarantee a minimum level of compensation, which includes payment of 1 to 2 times the market value of the property, value of the asset tied to the land, and Solatium. Solatium is the additional sum that must be paid in addition to the compensation that is 100% of the Compensation Amount. In accordance with Section 26 of the Act, the initial landowners must receive a minimum amount of compensation. Based on multiples of market value, this compensation is calculated. The market value is increased by one or two times depending on whether it is rural or urban. The quantum of compensation is, however, far larger than under the Old Act.

4. Consent: When the government purchases land for public use and operates the land bank directly, the landowners’ participation or approval is not necessary. However, when property is purchased for the establishment of private companies, the consent of at least 80% of the affected families is necessary. If the project is carried out through a public-private partnership, 70% of the effected families must consent to the land purchase process. To avoid profiteering, the statute requires that 20% of the revenues from the sale of the acquired land or any portion of it be given to the original landowner who it was purchased from or their legal heirs.

Drawback of the Act

• High Compensation Costs: The Act stipulates that compensation for land acquired must be at least four times the market value in rural areas and twice the market value in urban areas. This can be a significant financial burden for the government, and it can also lead to delays in land acquisition projects.
• Lengthy and complex process: The Act is a complex and lengthy process, which can make it difficult for the government to acquire land quickly and efficiently. This can also lead to delays in infrastructure projects.
• Lack of transparency: The Act does not provide for adequate transparency in the land acquisition process. This can lead to corruption and abuse of power by government officials.
• Inadequate rehabilitation and resettlement: The Act does not provide for adequate rehabilitation and resettlement for those who are displaced by land acquisition. This can lead to social unrest and conflict.
• The Act does not adequately consider the social and environmental impacts of land acquisition.
• The Act does not provide for adequate safeguards for the rights of tribal and other marginalized communities.
• The Act is not clear on the role of the judiciary in land acquisition disputes.

Way Forward

• Public Participation: Government can take measures to Ensure that the impacted communities, landowners, and other stakeholders participate meaningfully in the decision-making process. Conducting public hearings, meetings, and consultations to get feedback, resolve issues, and incorporate it into the plans for land purchase and resettlement.
• Awareness: Run education campaigns and activities to help government officials, the impacted communities, and other stakeholders strengthen their capacities. Inform them of their rights, entitlements, and the procedures involved in acquiring land, rehabilitating it, and resettling it. Improve understanding of the obligations for openness and equitable remuneration.
• Tracking and Appraisal: Put in place a reliable tracking and appraisal mechanism to make sure that the requirements regarding transparent hiring and remuneration are followed. Review the status of land acquisition initiatives, rehabilitation efforts, and compensation payments on a regular basis. Any deviations or shortcomings should be addressed with remedial action and responsibility.
• Technology: Utilize technological platforms and digital tools to improve transparency, streamline procedures, and speed up the purchase of land and payment of compensation. Implement online portals for the distribution of information, the submission of applications, and the monitoring of compensation payments.
• Review and Law Amendment: Conduct an exhaustive analysis of the current land acquisition laws and regulations to spot any shortcomings and potential areas for change. Consider modifying the legislation to improve the clauses relating to transparency and equitable pay in light of the review.