07 - Chapter 4 PDF

CHAPTER-4
LAND ACQUISITION ACT, 2013: ISSUES AND

PERSPECTIVES
4.1 INTRODUCTION
The short title of the new Land Acquisition Legislation is 'the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013' (hereinafter referred to as 'the LARR Act, 2013' or simply
'the Act' for brevity's sake). LARR Act, 2013 repeals the “Land Acquisition Act,
1894” ('the 1894 Act'). In order to streamline the provisions of compulsory acquisition
of land and reduce hardships to the owners of the land and other per-sons dependent
upon such land, it is necessary to repeal the “1894 Act”, and to replace it with a new
Act with adequate provisions for rehabilitation and resettlement for the affected
persons and their families.
4.2 The objectives of the Act are set out in its long title as under :-
I. “To ensure, in consultation with institutions of local self-government and

Gram Sabhas established under 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”.
II. “To 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”
III. “To make adequate provisions for such affected persons for their rehabilitation
and resettlement”
IV. “To ensure 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”.
4.2.1 NEED FOR NEW LAND ACQUISITION LAW
As the Statement of Objects and Reasons states, "the 1894 Act is the general law
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relating to acquisition of land for public purposes and also for companies and for
determining the amount of compensation to be made on account of such acquisition".
“The provisions of the 1894 Act have been found to be inadequate in addressing
certain issues related to the exercise of the statutory powers of the State for
involuntary acquisition of private land and property”. Some of the inadequacies in the
1894 Act are as under :
♦ Does not address Rehabilitation and Resettlement (R&R) –“The 1894 Act
does not address the issues of rehabilitation and resettlement to the affected
persons and their families”.
♦ Very wide definition of 'Public Purpose' – “The definition of the expression

'public purpose' as given in the 1894 Act is very wide. It has, therefore,
become necessary to redefine it so as to restrict its scope for acquisition of
land for strategic purposes vital to the State, and for infrastructure projects
where the benefits accrue to the general public”.
♦ State intervention for acquiring private lands for companies –“The

provisions of the 1894 Act are also used for acquiring private lands for
companies therefore, this frequently raises a question mark on the desirability
of such State intervention when land could be arranged by the company
through private negotiations on a willing seller-willing buyer basis, which
could be seen to be a more fair arrangement from the point of view of the land
owner”.
♦ Acquisition of multi-cropped land- “There has been heightened public

concern on land acquisition especially multi-cropped irrigated land as this
involves issues of food security”.
♦ No option to acquire land on lease instead of outright acquisition – “A

lease (even a very long one) affords the psychological comfort to the land-
owner that he still "owns' the land. Thus, there is less emotional resistance to
compulsory acquisition by way of lease than compulsory acquisition by way
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of outright purchase. The 1894 Act contains no option for Government to
acquire by way of lease.
The idea behind repealing the 1894 Act and replacing it with a new law LARR Act,
2013 is to have “a unified legislation dealing with acquisition of land, to provide for
just and fair compensation and to make adequate provisions for rehabilitation and
resettlement mechanism for the affected persons and their families”. “As land
acquisition and rehabilitation and resettlement need to be seen as two sides of the
same coin, a single integrated law to deal with the issues of land acquisition and-
rehabilitation and resettlement has become necessary, hence the new legislation
LARR Act, 2013 addresses concerns of farmers and those whose livelihoods are
dependent on the land being acquired, while at the same time facilitating land
acquisition for industrialization, infrastructure and urbanization projects in a timely
and transparent manner”.
4.3 TERRITORIAL EXTENT OF THE LARR ACT, 2013
“The LARR Act, 2013 shall extend to the whole of India except the State of Jammu &
Kashmir”. Section 1(2)1.
4.4 EFFECTIVE DATE FOR ENFORCEMENT OF LARR ACT, 2013
Section 1(3) of the Act is a progressive and refreshing departure from the usual
practice of giving full discretion to the executive to fix the effective date of coming
into force of a new law passed by the Parliament and assented to by the President. The
executive usually delays the implementation of a law even after it is passed by the
Parliament and assented to by the President. This used to make a mockery of
Parliament as well the office of the President. Section 1(3) of the Act fixes a time-
limit of 3 months from the date of presidential assent within which the executive shall
implement the LARR Act, 2013. Accordingly the Act came into in operation from 1
January, 20142.
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Sec. 1 of “The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013”
2
Assented by the President of India on 26 September, 2013
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4.5 RETROSPECTIVE APPLICABILITY OF LARR ACT, 2013 TO
PROCEEDINGS INITIATED UNDER THE 1894 ACT3:-
“Section 24 of the Act make following provisions with regard to the applicability of
the provisions of the LARR Act to Land Acquisition proceedings initiated under the
1894 Act4” : -
a) “Where no award u/s 11 of the 1894 Act has been made –

All provisions of the Act relating to the determination of compensation,
rehabilitation & resettlement (R& R) shall apply to land acquisition
proceedings initiated under the 1894 Act”.
b) “Where an award has been made under the 1894 Act (within i.e. less than
5 years prior to commencement of 1894 Act) - LARR Act provisions will
not apply in this case. Proceedings under the 1894 Act shall continue as if the
said Act has not been repealed”.
c) “Where an award u/s 11 of the 1894 Act has been made 5 years or more
prior to the commencement of the Act but the physical possession of the
land not taken or compensation not paid”.
Land acquisition proceedings initiated under the 1894 Act shall be deemed to
have lapsed. “However if compensation in respect of a majority of land
holdings has not been deposited in the accounts of the beneficiaries - Then, all
beneficiaries specified in the notification for acquisition u/s 4 of the 1894 Act
shall be entitled to compensation in accordance with the provisions of this
Act”.
4.6 PROVISIONS FOR LAND ACQUISITIONS UNDER SPECIAL ACTS
Section 105 of the Act provides that “the provisions of the LARR Act shall not apply
to the enactments relating to land acquisition specified in Fourth Schedule”. However,
Central Government may,
3
Sec. 24 of “The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013”
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1. “by notification”,
2. “within 1 year from the date of commencement of the Act”,
3. “direct that any of the provisions of the Act relating to :-the determination of
compensation in accordance with the First Schedule and rehabilitation and
resettlement specified in the Second and Third Schedules being beneficial to
the affected families, shall apply to the cases of land acquisition under the
enactments specified in the Fourth Schedule or shall apply with such
exceptions or modifications that do not reduce the compensation or dilute the
provisions of the Act relating to rehabilitation and resettlement (R&R) as may
be specified in the notification”.
“The Fourth Schedule to the Act specifies the following enactments”:
I. “The Ancient Monuments and Archaeological Sites and Remains Act,

1958”.
II. “The Atomic Energy Act, 1962”.
III. “The Damodar Valley Corporation Act, 1948”.
IV. “The Indian Tramways Act, 1886”.
V. “The Land Acquisition (Mines) Act, 1885”.
VI. “The Metro Railways (Construction of Works) Act, 1978”.
VII. “The National Highways Act, 1956”.
VIII. “The Petroleum and Minerals Pipelines (Acquisition of Right of User in
Land) Act, 1962”.
IX. “The Requisitioning and Acquisition of Immovable Property Act, 1952”.
X. “The Resettlement of Displaced Persons (Land Acquisition) Act, 1948”.
XI. “The Coal Bearing Areas Acquisition and Development Act, 1957”.
XII. “The Electricity Act, 2003”.
XIII. “The Railways Act, 1989”.
Section 105(2)5 of the Act provides that “the Central Government may, by
notification, omit or add to any of the enactments specified in the Fourth Schedule”.
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4.6.1 ACT APPLICABLE TO LAND ACQUISITIONS UNDER SEZ ACT, 2005
:-
Special Economic Zones Act, 2005 was also one of the enactments specified in the
Fourth Schedule in the LARR Bill as originally introduced in the Lok Sabha. The
same was omitted from the Fourth Schedule at the time of passing the Bill in
Parliament. Thus, the provisions of the LARR Act shall also apply to land
acquisitions under the SEZ Act, 2005.
4.6.2 ACT APPLICABLE TO LAND ACQUISITIONS UNDER

CANTONMENTS ACT, 2006:-
The Cantonments Act, 2006 was one of the enactments specified in the Fourth
Schedule in the LARR Bill as originally introduced in the Lok Sabha. The same was
omitted from the Fourth Schedule at the time of passing the Bill in Parliament. Thus,
the provisions of the Act shall also apply to land acquisitions under the Cantonments
Act, 2006.
4.6.3 ACT APPLICABLE TO LAND ACQUISITIONS UNDER WORKS OF

DEFENCE ACT, 1903:-
The Works of Defence Act, 1903 was one of the enactments specified in the Fourth
Schedule in the LARR Bill as originally introduced in the Lok Sabha. The same was
omitted from the Fourth Schedule at the time of passing the Bill in Parliament. Thus,
the provisions of the Act shall also apply to land acquisitions under the 1903 Act.
4.7 ANALYSIS OF NEW PROVISIONS OF 2013 ACT:
Certain new concepts have been also developed and came into existence as per
the need of time and economic development. Few of them are as follows:-
4.7.1 LAND BANK6
"Land Bank" means “a governmental entity that focuses on the conversion of

Government owned vacant, abandoned, unutilized acquired lands and tax-delinquent
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properties into productive use. Section 101 of the Act provides that “when any land,
acquired under this Act remains unutilised for a period of 5 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 maybe, or to the Land Bank of the appropriate
Government by reversion in the manner as may be prescribed by the appropriate
Government”.
Section 101 of the Act applies only to land acquired under the Act which remains
unutilized for 5 years. However it does not apply to land acquired under the 1894 Act
which remains so unutilized.
4.7.2 OPTION OF THE APPROPRIATE GOVT. TO TAKE THE LAND ON

LEASE:-
“Section 1047 of the Act provides that the appropriate Government shall, wherever
possible, be free to exercise the option of taking the land on lease, instead of
acquisition, for any public purpose referred to in sub-section (1) of section 2”. This is
an innovative provision in the Act which was not there in the 1894 Act. A lease (even
a very long one) affords the psychological comfort to the land-owner that he still
"owns" the land. Thus, there is less emotional resistance to compulsory acquisition by
way of lease than compulsory acquisition by way of outright purchase. The 1894 Act
contains no option for Government to acquire by way of lease.
1.7.2 REHABILITATION AND RESETTLEMENT (R&R) PROVISIONS
The 1894 Act only provides for payment of compensation for land acquired to the
owner. It makes no provision for payments to rehabilitate and resettle those displaced
by land acquisition including land owners, livelihood losers etc. The Act contains
provisions on R&R package in the Second Schedule to the Act.
4.7.4 MANDATORY SOCIAL IMPACT ASSESSMENT STUDY
Social Impact Assessment Study made mandatory before any land acquisition.
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4.7.5 NO CHANGE OF PURPOSE
Section 99 of the Act provides that "no change from the purpose or related purposes
for which the land is originally sought to be acquired shall be allowed". “However, if
the land acquired is rendered unusable for the purpose for which it was acquired due
to a fundamental change because of any unforeseen circumstances, then the
appropriate Government may use such land for any other public purpose”.
4.7.6 40% OF APPRECIATION TO BE SHARED WITH ORIGINAL LAND

OWNERS WHERE ACQUIRED LAND SOLD WITHOUT DEVELOPMENT8
Section 102 of the Act provides as under:
(i) “Acquired land is transferred for consideration”.
(ii) “Such transfer is without any development having taken place on such land”.
(iii) “Such transfer is the first sale or transfer that occurs after the conclusion of the
acquisition proceedings”.
(iv) Such transfer takes place within 5 years from the date of acquisition.
(v) “If all conditions (t) to (iv) above are satisfied, 4096 of appreciated land value
shall be shared among the persons from whom the land was acquired or their
heirs. Such sharing shall be in proportion to the value at which the lands were
acquired”.
4.7.7 “OPTION TO AFFECTED FAMILIES TO AVAIL BETTER

COMPENSATION AND REHABILITATION AND RESETTLEMENT
UNDER STATE LAW OR POLICY”
Section 1079 of the Act provides that any State may enact any law to enhance or add
to entitlements enumerated under the Act which confers higher compensation than
payable under the Act or make provisions for rehabilitation and resettlement which is
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more beneficial than provided under the Act. Section 108(1) of the Act provides that
“where a State law or a policy framed by the Government of a State provides a higher
compensation than calculated under this Act for the acquisition of land, the affected
persons or his family or member of his family may at their option opt to avail such
higher compensation and rehabilitation and resettlement under such State law or such
policy of the State. Section 108(2) of the Act provides that where a State law or a
policy framed by the Government of a State offers more beneficial rehabilitation and
resettlement provisions than under the Act, the affected persons or his family or
member of his family may at his option opt to avail such rehabilitation and
resettlement provisions under such State law or such policy of the State instead of
under the Act”.
4.8 ANALYSIS OF IMPORTANT DEFINITIONS GIVEN IN 2013 ACT10
Certain important definitions need to know for better knowledge of land acquisition
issues and challenges.
4.8.1 "AFFECTED FAMILY"
This is a new definition. This expression wasn't defined in the 1894 Act as that Act
contained no provisions as regards R&R. Section 3(c) of the Act gives an inclusive
definition of "affected family". According to section 3(c), "affected family"
includes—
(i) “a family whose land or other immovable property has been acquired”;
(ii) “a family which does not own any land but a member or members of such
family may be agricultural labourers, tenants including any form of tenancy or
holding of usufruct right, share-croppers or artisans or who may be working in
the affected area for 3 years prior to the acquisition of the land, whose primary
source of livelihood stand affected by the acquisition of land”;
(iii) “the Scheduled Tribes and other traditional forest dwellers who have lost any
of their forest rights recognised under the Scheduled Tribes and Other
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Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 due to
acquisition of land;”
(iv) “family whose primary source of livelihood for 3 years prior to the acquisition
of the land is dependent on forests or water bodies and includes gatherers of
forest produce, hunters, fisher folk and boatmen and such livelihood is
affected due to acquisition of land”;
(v) “a member of the family who has been assigned land by the State Government
or the Central Government under any of its schemes and such land is under
acquisition”;
(vi) “a family residing on any land in the urban areas for preceding 3 years or more
prior to the acquisition of the land or whose primary source of livelihood for 3
years prior to the acquisition of the land is affected by the acquisition of such
land”.
4.8.2 Family, connotation of
“Section 3(m) of the Act defines "family". "Family" includes a person, his or her
spouse, minor children, minor brothers and minor sisters dependent on him. Widows,
divorcees and women deserted by fame-lies shall be considered separate families. An
adult of either gender with or without spouse or children or dependents shall be
considered as a separate family for the purposes of this Act”.
4.8.3 AGRICULTURAL LAND
This is a new definition. This expression wasn't defined in the 1894 Act as that Act
contained no provisions as regards food security and did not contain any restrictions
on acquisition of agricultural land. According to section 3(d) of the Act, 'agricultural
land' means land used for the purpose of—
(i) “agriculture or horticulture”;
(ii) “dairy farming, poultry farming, pisciculture, sericulture, seed farming,

breeding of livestock or nursery growing medicinal herbs”;
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(iii) “raising of crops, trees, grass or garden produce”; and
(iv) “land used for the grazing of cattle”.
4.8.4 COST OF ACQUISITION
This is a new definition. This term was not defined in the 1894 Act. According to
section 3(t) of the Act, "cost of acquisition" includes:-
(i) “amount of compensation which includes solatium, any enhanced

compensation ordered by the Land Acquisition and Rehabilitation and
Resettlement Authority or the Court and interest payable thereon and any
other amount determined as payable to the affected families by such Authority
or Court”;
(ii) “demurrage to be paid for damages caused to the land and standing crops in
the process of acquisition”;
(iii) “cost of acquisition of land and building for settlement of displaced or

adversely affected families”;
(iv) “cost of development of infrastructure and amenities at the resettlement

areas”;
(v) “cost of rehabilitation and resettlement as determined in accordance with the

provisions of this Act”;
(vi) “administrative cost”,
(A) “for acquisition of land, including both in the project site and out of
project area lands, not exceeding such percentage of the cost of
compensation as may be specified by the appropriate Government”;
(B) “for rehabilitation and resettlement of the owners of the land and other
affected families whose land has been acquired or proposed to be
acquired or other families affected by such acquisition”;
(vii) “cost of undertaking 'Social Impact Assessment study”.
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4.8.5 “APPROPRIATE GOVERNMENT”
According to section 3(e) of the Act defines "appropriate Government" to mean,-
(i) “in relation to acquisition of land situated within the territory of, a State, the
State Government;”
(ii) “in relation to acquisition of land situated within a Union territory (except
Puducherry), the Central Government;”
(iii) “in relation to acquisition of land situated within the Union territory of
Puducherry, the Government of Union territory of Puducherry;”
(iv) “in relation to acquisition of land for public purpose in more than one State,
the Central Government in consultation with the concerned State Governments
or Union territories” ; and
(v) “in relation to the acquisition of land for the purpose of the Union as may be
specified by the notification, the Central Government”.
“In respect of a public purpose in a District for an area not exceeding such as may be
notified by the appropriate Government, the Collector of such District shall be
deemed to be the appropriate Government”.
The expression "Appropriate Government" was defined in section 3(ee) of the 1894
Act. A comparison of the definitions given in section 3(e) of the LARR Act and
section 3(ee) of the 1894 Act is set out in the following Table :
Section 3(e) of the LARR Act Section 3(ee) of the 1894 Act
"appropriate Government" means in "appropriate Government" means in

relation to the acquisition of land for the relation to the acquisition of land for the
purpose of the Union as may be specified purpose of the Union as may be specified
by notification, the Central Government. by notification, the Central Government.
"appropriate Government" means,— "appropriate Government" means “in

relation to the acquisition of land for any
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(i) in relation to acquisition of land other purposes (i.e. purposes other than
situated within the territory of, a acquisition of land for the purpose of the
State, the State Government; Union as may be specified by
in relation to acquisition of land notification) shall be the State

(ii)
situated within a Union territory Government”
(except Puducherry), the Central
Government;
(iii) “in relation to acquisition of land

situated within the Union territory
of Puducherry, the Government of
Union territory of Puducherry;”
(iv) “in relation to acquisition of land

for public purpose in more than
one State, the Central Government
in consultation with the concerned
State Governments or Union
territories”.
In respect of a public purpose in a District “The 1894 Act did not envisage deeming
for an area not exceeding such as may be the Collector as the appropriate
notified by the appropriate Government, Government in respect of a public
the Collector of such District shall be purpose in a District for an area not
deemed to be the appropriate exceeding such as may be notified by the
Government. appropriate Government”.
4.8.6 DISPLACED FAMILY

This is a new definition. According to section 3(k) of the Act, Misplaced family"
means “any family, who on account of acquisition of land has to be relocated and
resettled from the affected area to the resettlement area”.
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4.8.7 Affected area
According to section 3(b) of the Act, "affected area" means “such area as may be
notified by the appropriate Government for the purposes of land acquisition”.
4.8.8 Resettlement area
According to section 3(zc) of the Act, "Resettlement Area" means an area where the
affected families who have been displaced as a result of land acquisition are resettled
by the appropriate Government.
4.8.9 COMPANY
According to section 30) of the Act, "company" means—
(i) “a company as defined in section 3 of the Companies Act, 1956 now refer
section 2(20) of the Companies Act, 2013] other than a Government
company”;
(ii) a society registered under the Societies Registration Act, 1860 or under any
corresponding law for the time being in force in a State;
The expression "company" was defined in section 3(e) of the 1894 Act. A co-
operative society was a "company" within the meaning of section 3(e) of the 1894
Act. Co-operative societies have been excluded from the definition of "company" in
section 30) of the Act.
4.8.10 “ENTITLED TO ACT”

According to section 3 “entitled to act" “in relation to a person, shall be deemed to
include the following persons, namely:—(1) trustees for other persons beneficially
interested with reference to any such case, and that to the same extent as the person
beneficially interested could have acted if free from disability”;
(1) “the guardians of minors and the committees or managers of lunatics to the
same extent as the minors, lunatics or other persons of unsound mind
themselves, if free from disability, could have acted. The provisions of Order
}00(11 of the First Schedule to the Code of Civil Procedure, 1908 shall,
mutatis mutandis, apply in the case of persons interested appearing before a
Collector or Authority by a next friend, or by a guardian for the case, in
proceedings under this Act”.
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4.8.11 “HOLDING OF LAND”
This is a new definition. According to section 3(n), “holding of land” means “the total
land held by a person as an owner, occupant or tenant or otherwise”.
4.8.12 INFRASTRUCTURE PROJECT
This is a new definition. According to section 3(o), “infrastructure project” “shall
include any one or more of the items specified in section 2(1)”.
4.8.13 LAND
According to section 3(p), “land” includes :
1. “benefits to arise out of land”, and
2. “things attached to the earth or permanently fastened to anything attached to
the earth”.
The above definition is exactly the same as the definition of “land” as given in section
3(a) of the 1894 Act.
4.8.14 LANDLESS
This is a new definition. According to section 3(q), "landless means such persons or
class of persons” who may be,—
(i) “considered or specified as such under any State law for the time being in
force”; or
(ii) “in a case of landless not being specified under clause (0, as may be specified
by the appropriate Government”.
4.8.15 LAND OWNER

This is a new definition. According to section 3I, ‘land owner includes any person”—
(iii) “whose name is recorded as the owner of the land or building or part
thereof, in the records of the concerned authority”; or
(ii) “who is granted forest rights under the Scheduled Tribes and other Traditional
Forest Dwellers (Recognition of Forest Rights) Act, 2006 or under any other
law for the time being in force”; or
(iv) “who is entitled to be granted Patta rights on the land under any law of the
State including assigned lands”; or
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(v) “who has been declared, as such by an order of the court or Authority;
According to section 3(w), “patta” shall have the same meaning as assigned to
it in the relevant Central or State Acts or rules or regulations made there
under”.
4.8.16 LOCAL AUTHORITY

According to section 3(s), “local authority” includes:-
(ii) “a town planning authority (by whatever name called) set up under any
law for the time being in force”,
(ii) “a Panchayat as defined in article 243 and a Municipality as defined in article
243P, of the Constitution”;
The definition of “local authority” in section 3(aa) of the 1894 Act was also an
inclusive definition. It included only “town planning authority” but not Panchayat and
Municipality.
4.8.17 MARGINAL FARMER
This is a new definition. According to section 3(t), marginal farmer means “a
cultivator with an un-irrigated land holding up to one hectare; or irrigated land
holding up to one-half hectare”.
4.8.18 PERSON INTERESTED
According to section 3(x), “person interested” means,—
(iii) “all persons claiming an interest in compensation to be made on
account of the acquisition of land under this Act”;
(ii) “the Scheduled Tribes and other traditional forest dwellers, who have lost any
forest rights 129ecognized under the Scheduled Tribes and Other Traditional
Forest Dwellers (Recognition of Forest Rights) Act, 2006”;
(iv) “a person interested in an easement affecting the land”;
(iv) “persons having tenancy rights under the relevant State laws including share-
croppers by whatever name they may be called”; and
(v) “any person whose primary source of livelihood is likely to be
adversely affected”.
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The definition of “person interested” in section 3( b) of the 1894 Act was an inclusive
one and included persons mentioned in (z) and (iii) above. The above definition in
section 3(x) of the Act is exhaustive. The purpose behind replacing inclusive
definition with exhaustive definition is to bring certainty in the definition of “persons
interested” and thus reduce litigation.
4.8.19 PROJECT
This is a new definition. According to section 3(z), “project” means “a project for
which land is being acquired, irrespective of the number of persons affected”.
4.8.20 “PUBLIC PURPOSE”

According to section 3(za), “public purpose means the activities specified under
section 2(1)”.
4.8.21 REQUIRING BODY
This is a new definition. According to section 3(zb), “Requiring Body” means a
company, a body corporate, an institution, or any other 130rganization for whom land
is to be acquired by the appropriate Government.
The term includes the Appropriate Government, if the acquisition of land is
♦ for such Government either for its own use, or
♦ for subsequent transfer of such land in public interest to a company, body
corporate, an institution, or any other 130rganization, as the case may be,
under lease, licence or through any other mode of transfer of land.
4.8.22 SMALL FARMER

This is a new definition. According to section 3(zd), “small farmer” means a
cultivator with :
♦ an un-irrigated land holding up to two hectares, or
♦ with an irrigated land holding up to one hectare, but more than the holding of a
marginal farmer.
4.8.23 SCHEDULED AREAS

This is a new definition. According to section 3(zd), "Scheduled Areas means the
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Scheduled Areas as defined in section 2 of the provisions of the Panchayats
(Extension to the Scheduled Areas) Act, 1996”.
4.9 APPLICATION OF 2013 ACT:-

Section 2 of the Act deals with the application of its various provisions to various
types of land acquisitions. For this purpose, it classifies the acquisitions of land into 3
categories and provisions of the Act into 4 categories.
Acquisitions of land have been classified as under :
(i) “Appropriate Government acquires land for its own use and for public
purpose”
(ii) “Appropriate Government acquires land for PPP projects/for private
companies for public purpose”.
(iii) “Purchases by private companies through private negotiations Provisions of
the Act have been classified as under by section 2 of the Act” :
(i) “provisions relating to land acquisition (LA) - Sections 4 to 25, 38, 40, 91,
93 to 95, 99”.
(ii) “provisions relating to consent - Section 2(2)”
(iii) “provisions relating to compensation - sections 26 to 30, 39, 96, First
Schedule”
(iv) “(provisions relating to rehabilitation and resettlement (R&R) -Sections
31, 32, 41, 42, 46, 47, 96, Second Schedule”. The applicability of
provisions of the Act to various land acquisitions are summarized in the
table below :
Sr. Land Acquisition Provisions of the Act applicable

No.
(i) “Appropriate Government The provisions of the Act relating

acquires land for its own use to:
Appropriate Government acquires (i) "land acquisition”,
land for its own use hold and (ii) “ compensation”,
control, including for Public Sector
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Undertakings and for public (iii) “rehabilitation and
purpose”. resettlement”
Sections 4 to 25, 38, 40, 91, 93
to 95, 99, 26 to 30, 39, 96, First
Schedule, sections 31, 32,
41,42, 46, 47, 96, Second
Schedule.
(ii) Appropriate Government acquires The provisions of the Act relating

land for PPP projects/for private to:
companies for public purpose (i) “land acquisition”,
(a) “Appropriate Government ac- (ii) “compensation”,
quires land for public, private (iii) “consent”,
partnership projects, where the
(iv) “rehabilitation and
ownership of the land continues to
resettlement”
vest with the government, for public
Sections 4 to 25, 38, 40, 91, 93 to
purpose”.
95, 99, 26 to 30, 39, 96, First
(b) “Appropriate Government ac-
Schedule, sections 31, 32, 41, 42,
quires land for private companies for
46, 47, 96, Second Schedule and
public purpose”.
Section 2(2)
(iii) Purchases by private companies The provisions of the Act relating

through private negotiations to rehabilitation and resettlement.
(a) A private company purchases “Sections 31, 32, 41, 42, 46, 47,
land, equal to or more than such and Second Schedule”.
limits in rural areas or urban areas,
as may be prescribed by the
appropriate Government, through
private negotiations with the owner
of the land
(b) A private company requests the
132
appropriate Government for
acquisition of a part of an area so
prescribed for a public purpose
4.10 ACQUISITION FOR PUBLIC PURPOSE:-
Section 2(1) provides that—“when the appropriate Government acquires land for its
own use, hold and control, including for Public Sector Undertakings and for public
purpose”, “the provisions of the Act relating to land acquisition, compensation,
rehabilitation and resettlement, shall apply”.
According to section 3(za) of the Act, the expression "public purpose" means the
activities specified under section 2(1). According to section 2(1), public purpose shall
include the following purposes, namely:—
(a) For strategic purposes relating to: “naval, military, air force, and armed
forces of the Union, including central paramilitary forces or any work vital to
national security or defence of India or State police, safety of the people”;
(b) For infrastructure projects, which includes the following, namely:—
(i) All activities or items listed in the notification of the Government of

India in the 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 as dairy, fisheries and meat
processing, set up or owned by the appropriate Government or by a
farmers' cooperative or by an institution set up under a statute”;
(iii) Project for “industrial corridors or mining activities, national

investment and manufacturing zones, as designated in the National
Manufacturing Policy”;
133
(iv) Project for “water harvesting and water conservation structures,
sanitation”;
(v) Project for “Government administered, Government aided educational

and research schemes or institutions”;
(vi) Project for “sports, health care, tourism, transportation, space

programme";
(vii) “Any infrastructure facility as may be notified in this regard by the

Central Government and after tabling of such notification in
Parliament”;
(c) Project for project affected families;
(d) Project for housing, for such income groups, as may be specified from time to
time by the appropriate Government;
(e) Project for “ planned development or the improvement of village sites” or

“planned development or the improvement of any site in the urban areas” or
“provision of land for residential purposes for the weaker sections in rural and
urban areas”;
(f) Project for “residential purpose to the poor or landless” or “persons residing
in areas affected by natural calamities”, or “persons displaced or affected by
reason of the implementation of any scheme undertaken by the Government”,
“any local authority” or “a corporation owned or controlled by the State”.
The definition of "public purpose" in section 3(za) read with section 2(1) of fire Act is
exhaustive. This is clear from the use of the word 'means' in section 3(za), from the
use of the words 'shall include' in section 2(1) and from the context of the Act made
clear in Statement of Objects and Reasons. The words 'shall include' may be
equivalent to 'means and include' if the context of the Act is sufficient to show that the
words are not merely employed for adding to the natural significance of the words
AIR 1934 SC 96 [PR. Aiyar's Advanced Law Lexicon]
Section 3(f) of the 1894 Act contains an inclusive definition of "public purpose': The
reason why the Act replaces the inclusive definition of "public purpose” in the 1894
134
Act with an exhaustive definition has been explained in the Statement of Objects and
Reasons as under
"2. The definition of the expression "public purpose" as given in the 1894 Act is wide
in nature, it has been used in discretionary manner on time and again. It has, therefore,
become necessary to redefine it so as to restrict its scope for “acquisition of land for
strategic purposes vital to the State, and for infrastructure projects where the benefits
accrue to the general public. The provisions of the 1894 Act are also used for
acquiring private lands for companies. This frequently raises a question mark on the
desirability of such State intervention when land could be arranged by the company
through prirate negotiation,: on a 'willing seller-willing buyer' basis, which could be
seen to be a more fair arrangement from the point of view of the land owner ."
4.10.1 Provisions of the Act which are applicable to acquisitions by appropriate

Govt. for own/PSU use for “public purpose”. In terms of section 2 of the Act the
provisions of the Act relating to land acquisition, compensation, rehabilitation and
resettlement, shall apply to land acquisitions by appropriate Govt. for own/PSU use
for public purpose. In other words, the following provisions shall apply to such land
acquisitions:
(i) (Land Acquisition provisions), - “Sections 4 to 25 (Chapter II of the Act), 38,

40, 91, 93 to 95, 99”.
(ii) (Compensation provisions) – “Sections 26 to 30, 39, 96 and First Schedule”.
(iii) (R&R provisions) – “Sections 31, 32, 41, 42, 46, 47, 96, Second Schedule”
4.10.1.1 APPLICATION OF THE PROVISIONS TO ACQUISITIONS BY

APPROPRIATE GOVT. FOR PUBLIC PRIVATE PARTNERSHIP
PROJECTS:-
Section 2(2)(a) of the Act provides that: when the appropriate Government acquires
land “for public private partnership projects for public purpose, where the ownership
of the land continues to vest with the government, the provisions of this Act relating
to land acquisition, consent, compensation, rehabilitation and resettlement, shall
apply”.
135
In case of acquisition for PPP projects, “the prior consent of at least 70% of those
affected families, as defined in sub-clauses (z) and (v) of clause (c) of section 3, shall
be obtained through a process as may be prescribed by the appropriate Government.
The process of obtaining the consent shall be carried out along with the Social Impact
Assessment study” [See section 4]. The Secretary DoLR (Department of Land
Resources) explained the consent provisions before the Parliamentary Standing
Committee as under :-
"If the Government is acquiring it - land for airport is a Government acquisition - no

consent is required If it is a Government project, no consent of the people is
required”. It is only when we are acquiring say for PPP model or if certain
Government acquisitions are not included in those five sub-clauses and is for private
companies, then 80 per cent consent is essential That is the legal position.11[Para 4.45
of the Report of Parliamentary Standing Committee]
“No land shall be transferred by way of acquisition, in the Scheduled Areas in

contravention of any law (including any order or judgment of a court which has
become final) relating to land transfer, prevailing in such Scheduled Areas”.
when we are acquiring say for PPP model or if certain Government acquisitions are
not included in those five sub-clauses and is for private companies, then 80 per cent
consent is essential that is the legal position: [Para 4.45 of the Report of Parliamentary
Standing Committee] “No land shall be transferred by way of acquisition, in the
Scheduled Areas in contravention of any law (including any order or judgment of a
court which has become final) relating to land transfer, prevailing in such Scheduled
Areas”.
4.10.1.2Provisions of the Act which are applicable to acquisitions by appropriate

Govt. for PPP projects for public purpose:-
In terms of section 2(2) of the Act the provisions of the Act relating to land
acquisition, compensation, rehabilitation and resettlement, shall apply to land
11
Para 4.45 of the Report of Parliamentary Standing Committee
136
acquisitions by appropriate Govt. for PPP projects. In other words, the following
provisions shall apply to such land acquisitions :
(i) (Land Acquisition provisions) – “Sections 4 to 25 (Chapter II of the Act), 38,

40, 91, 93 to 95, 99”.
(ii) (Consent) – “Section 2(2)”
(iii) (Compensation provisions) – “Sections 26 to 30, 39, 96, First Schedule”
(iv) (R&R provisions) – “Sections 31, 32, 41, 42, 46, 47, 96, Second Schedule” -
4.10.1.3 APPLICATION OF THE PROVISIONS OF THE ACT TO

ACQUISITIONS BY APPROPRIATE GOVT. FOR PRIVATE COMPANIES
FOR PUBLIC PURPOSE :-
Section 2(2)(b) of the Act provides that:-
 “when the appropriate Government acquires land for private companies for
public purpose, as defined in sub-section (1) of section 2.”
 “the provisions of this Act relating to land acquisition, consent, compensation,
rehabilitation and resettlement, shall apply”.
“In the case of acquisition for private companies, the prior consent of at least 80% of
those affected families, as defined in sub- (i) and (ii) of clause (c) of section 3 shall be
obtained through a process as may be prescribed by the appropriate Government”.
This process of obtaining the consent shall be carried out along with the Social Impact
Assessment study.
The Secretary DoLR (Department of Land Resources) explained the consent

provisions before the Parliamentary Standing Committee as under :
"Let me just explain it. If the Government is acquiring it - land for airport is a
Government acquisition - no consent is required If it is a Government project, no
consent of the people is required. It is only when we are acquiring say for PPP model
or if certain Government acquisitions are not included in those five sub-clauses and is
for private companies, then 80 per cent consent is essential that is the legal position."
[Para 4.45 of the Report of Parliamentary Standing Committee]
137
“No land shall be transferred by way of acquisition, in the Scheduled Areas in
contravention of any law (including any order or judgment of a court which has
become final) relating to land transfer, prevailing in such Scheduled Areas”.
4.10.1.4 Private Companies:-
The term "Private Companies" is not defined in the Act. Only the word "company" is
defined by the Act to cover companies (public and private) as defined in section 3 of
the “Companies Act, 2013” excluding Government companies. The term "company"
also covers “societies registered under the Societies Registration Act, 1860 or under
any corresponding law for the time being in force”. Presumably, "private companies"
should be understood as companies as defined in section 3 of the Companies Act,
2013 other than Government companies. Thus the term "private companies"
presumably means companies other than Government companies irrespective of
whether they are public companies or private companies.
4.10.1.4 Provisions of the Act which are applicable to acquisitions by appropriate

Govt. for private companies for public purpose :-
In terms of section 2(Z) of the Act the provisions of the Act relating to land
acquisition, compensation, rehabilitation and resettlement, shall apply to land
acquisitions by appropriate Govt. for PPP projects. In other words, the following
provisions shall apply to such land acquisitions :
(i) (Land Acquisition provisions) – “Sections 4 to 25 (Chapter II of the Act), 38,

40, 91, 93 to 95, 99”
(ii) (Consent – “Section 2(2)”
(iii) (Compensation provisions) – “Sections 26 to 30, 39, 96, First Schedule”
(iv) (R&R provisions) – “Sections 31, 32, 41, 42, 46, 47, 96, Second Schedule”
4.10.1.5 APPLICATION OF THE PROVISIONS OF THE ACT TO

PURCHASE BY PRIVATE COMPANIES THROUGH PRIVATE
NEGOTIATION WITH OWNER :-
Section 2(3)(a) of the Act provides that only the R&R (rehabilitation and
resettlement) provisions of the Act shall apply in the cases where:
138
♦ “a private company purchases land purchase is through private negotiations
with the owner of the land purchase is in accordance with the provisions of
section 46 land purchased is equal to or more than such limits in rural areas or
urban areas, as may be prescribed by the appropriate Government”.
In other words, the following provisions will have no applicability in such purchases
of land by private company
(i) (LA provisions) – “Sections 4 to 25, 38, 40, 91, 93 to 95, 99 Consent -
Section 2(2)”
(ii) (Compensation provisions) – “Sections 26 to 30, 39, 96, First Schedule”
Only R&R provisions is Sections 31, 32, 41, 42, 46, 47, 96, Second Schedule shall
apply.
4.10.1.6 APPLICATION OF THE PROVISIONS OF THE ACT WHERE

PRIVATE COMPANY REQUESTS APPROPRIATE GOVT. FOR PARTIAL
ACQUISITION”:-
Section 2(3)(b) of the Act provides that only the R&R (rehabilitation and
resettlement) provisions of the Act (Chapter 10 of Act) shall apply in the cases “where
a private company requests the appropriate Government for acquisition of a part of an
area so prescribed for a public purpose. Where a private company requests the
appropriate Government for partial acquisition of land for public purpose, then, the
rehabilitation and resettlement entitlements under the Second Schedule shall be
applicable for the entire area which includes the land purchased by the private
company and acquired by the Government for the project as a whole”.
In other words, the following provisions will have no applicability in such purchases
of land by private company—
(i) (LA provisions) – “Sections 4 to 25 (Chapter II of the Act), 38, 40, 91, 93
to 95, 99”
(ii) (Consent) – “Section 2(2)”
(iii) (Compensation provisions) - Sections 26 to 30, 39, 96, First Schedule
139
Only R&R provisions i.e. Sections 31, 32, 41, 42, 46, 47, 96, Second Schedule shall
apply.
4.11 SAFEGUARDS GIVEN UNDER THE NEW ACT AGAINST

INDISCRIMINATE LAND ACQUISITION:-
4.11.1 MULTI-CROPPED IRRIGATED LAND NOT TO BE ACQUIRED

EXCEPT AS LAST RESORT12
Sub-sections (1) to (3) of section 10 of the Act provide that no irrigated multi-cropped
land shall be acquired under the Act except:
(a) “in exceptional circumstances”
(b) “as a demonstrable last resort”
(c) “subject to the following conditions”:
“The acquisition of the land shall, in aggregate for all projects in a districts or State, in
no case exceed such limits as may be notified by the appropriate Government
considering the relevant State specific factors and circumstance”.
Further “an equivalent area of culturable wasteland shall be developed for agricultural
purposes or an amount equivalent to the value of the land acquired shall be deposited
with the appropriate Government for investment in agriculture for enhancing food
security”. However the above provisions not applicable to land acquisition for linear
projects.
The above provisions shall not apply in the case of projects that are linear in nature
such as those relating to railways, highways, major district roads, irrigation canals,
power lines and the like.
4.11.2 ACQUISITION OF AGRICULTURAL LAND OTHER THAN MULTI-

CROPPED IRRIGATED LAND NOT TO EXCEED PRESCRIBED % OF NET
SOWN AREA13.
Acquisition of multi-cropped irrigated land is governed by sub-sections (1) to (3) of
12
Sec 10 of 2013 Act.
13
Sec. 10 of 2013 Act
140
section 10. Section 10(4) of the Act governs the acquisition of the agricultural land
(other than multi-cropped irrigated land). “Acquisition of such agricultural land in the
aggregate for all projects in a district or State shall, in no case, exceed such limits of
the total net sown area of that district or State as may be notified by the appropriate
Government”. However the above provisions not applicable to land acquisition for
linear projects.
The above provisions shall not apply in the case of projects that are linear in nature
such as those relating to railways, highways, major district roads, irrigation canals,
power lines and the like.
4.11.3 ACQUISITION OF LAND IN SCHEDULED AREAS ONLY AS

DEMONSTRABLE LAST RESORT14.
According to section 41 of the Act, “as far as possible, no acquisition of land shall be
made in the Scheduled Areas. Where such acquisition does take place it shall be done
only as a demonstrable last resort”.
4.11.4 WHAT APPROPRIATE GOVT. MUST ENSURE WHILE EXAMINING

ALL LAND ACQUISITION PROPOSALS15 :-
Section 8(1) of the Act provides that the appropriate Govt. shall ensure that:
(a) “there is a legitimate and bona fide public purpose for the proposed acquisition
which necessitates the acquisition of the land identified”
(b) “the potential benefits and the public purpose referred to in (a) above shall
outweigh the social costs and adverse social impact as determined by the
Social Impact Assessment that has been carried out”;
(c) “only the minimum area of land required for the project is proposed to be
acquired”;
(d) “there is no unutilized land which has been previously acquired in the area”;
14
Sec. 10 of 2013 Act
Sec. 41 of 2013 Act
15
Sec. 8 of 2013 Act
141
(e) “the land, if any, acquired earlier remained unutilized, is used for such public
purpose and make recommendations in respect thereof”.
4.11.5 RETURN OF UNUSED LAND TO LAND BANK16
"Land Bank" means a governmental entity that focuses on the con-version of

Government owned vacant, abandoned, unutilized acquired lands and tax-delinquent
properties into productive use. Section 101 of the Act provides that “when any land,
acquired under this Act remains unutilised for a period of 5 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". The provisions of section 101 applies to land acquired under LARR
Act and remaining unutilised for 5 years. It has no application to land acquired under
the 1894 Act or any other land acquisition laws and remaining unutilised.
4.11.6 NO CHANGE OF PURPOSE17
Section 99 of the Act provides that "no change from the purpose or related purposes
for which the land is originally sought to be acquired shall be allowed". However, the
land acquired is rendered unusable for the purpose for which it was acquired due to a
fundamental change because of any unforeseen circumstances, then the appropriate
Government may use such land for any other public purpose.
4.12 MANDATORY CONSULTATION & SOCIAL IMPACT ASSESSMENT18
The Land Acquisition provisions are covered in :
(A) “Sections 4 to 9 "Determination of Social Impact and Public Purpose"
(B) “Section 10 [Chapter III of the Act "Special Provision to Safeguard Food
Security"
(C) “Sections 11 to 30 [Chapter IV of the Act "Notification and Acquisition"]. Of

these, sections 26 to 30 are provisions relating to compensation”
16
Sec. 101 of 2013 Act
17
Sec. 99 of 2013 Act
18
Sec. 4 of 2013 Act
142
(D) “Sections 38, 40, 91, 93 to 95, 99”.
These provisions apply when:
♦ “when the appropriate Government acquires land for its own use, hold and
control, including for Public Sector Undertakings and for public purpose when
the appropriate Government acquires land for public private partnership
projects for public purpose, where the ownership of the land continues to vest
with the government [Section 2(2)(a)”)
“when the appropriate Government acquires land for private companies for public
purpose, as defined in sub-section” (1) of section 2 [Section 2(2)(b)]
4.12.1 MANDATORY CONSULTATION & SOCIAL IMPACT

ASSESSMENT19
The Act, inter cilia, seeks to ensure "in consultation with institutions of local self-
government and Gram Sabhas established under the Constitution, a humane,
participative, informed and transparent process for land acquisition". Therefore,
section 4(1) of the Act provides that whenever the appropriate Government intends to
acquire land for a public purpose, it shall:
(A) “consult the concerned Panchayat, Municipality or Municipal Corporation, as

the case may be at village level or ward level, in the affected area”; and
(B) “carry out a Social Impact Assessment (SIA) study in consultation with them,
in such manner and from such date as may be specified by such Government
by notification”.
Thus, in terms of section 4(1) of the Act, whenever the “appropriate Government”
intends to acquire land for a “public purpose”, consultation and social impact
assessment study are mandatory before acquisition. In other words, provisions of
section 4 regarding mandatory consultation and mandatory SIA apply in cases
covered by sub-sections (1) and (2) of section 2. These provisions have no application
in cases covered by section 2(3) of the Act, i.e. purchases by private companies.
Section 2(3) provides that only R&R provisions of the Act apply in such a case.
19
Sec. 4 of 2013 Act
143
4.12.2 Exemption from SIA
Proviso to section 6 of the Act provides that in respect of irrigation projects where
Environmental Impact Assessment is required under any other law for the time being
in force, the provisions of the Act relating to SIA shall not apply. Section 9 of the Act
provides that “where land is proposed to be acquired by invoking the urgency
provisions under section 40, the appropriate Government may exempt undertaking of
the Social Impact Assessment study”.
4.12.3 SIA not a substitute for EIA
Environmental Impact Assessment (EIA) study, if any, shall be carried out

simultaneously and shall not be contingent upon the completion of the Social Impact
Assessment (SIA) study. [Proviso to section 4(4)]. Section 6(2) of the Act provides
that wherever Environment Impact Assessment is carried out, a copy of the “Social
Impact Assessment report shall be made available to the Impact Assessment Agency
authorised by the Central Government to carry out environmental impact assessment”.
4.12.4 EIA not a substitute for SIA20
Also EIA not a substitute for SIA except in the situation envisaged by proviso to
section 6. Proviso to section 6 of the Act provides that in respect of irrigation projects
where “Environmental Impact Assessment is required under any other law for the
time being in force, the provisions of the Act relating to SIA shall not apply”.
4.12.5 SIA is a time-bound exercise
“The appropriate Government shall ensure the completion of the Social Impact
Assessment study within a period of 6 months from the date of its commencement”.
4.13 PUBLICATION OF NOTICE
Section 4(1) of the Act provides that the whole exercise of consultation and SIA study
is set in motion by a notification issued by the appropriate Govt.
20
Sec. 6 of 2013 Act
144
4.13.1 Publicising the notification for consultation and SIA
Section 4(2) of the Act provides that the notification by the appropriate Government
for commencement of consultation and of the Social Impact Assessment study shall:
♦ “be made available in the local language to the Panchayat, Municipality or

Municipal Corporation, as the case may be, and in the offices of the District
Collector, the Sub-Divisional Magistrate and the Tehsil”, and
♦ “be published in the affected areas, in such manner as may be prescribed”, and
♦ “be uploaded on the website of the appropriate Government”.
4.13.2 Adequate representation in the SIA study
The first proviso to section 4(2) of the Act provides that “the appropriate Government
shall ensure adequate representation to the representatives of Panchayat, Gram Sabha,
Municipality or Municipal Corporation as the case may be at the stage of carrying out
the Social Impact Assessment study”.
4.13.3 Public Hearing for SIA
Section 5 of the Act provides that whenever a SIA is required to be prepared, the
appropriate Government shall ensure that a public hearing is held at the affected area.
Such public hearing shall be held after giving adequate publicity about the date, time
and venue for the public hearing (PH). The purpose of the PH is to ascertain the views
of the affected families to be recorded and included in the SIA Report.
4.13.4 Matters to be included in the SIA study
Section 4(4) of the Act provides that the SIA study shall amongst other matters
include all the following, namely:—
(a) “assessment as to whether the proposed acquisition serves public purpose”;
(b) “estimation of affected families and the number of families among them likely
to be displaced”;
(c) “extent of lands, public and private, houses, settlements and other common
properties likely to be affected by the proposed acquisition”;
145
(d) “whether the extent of land proposed for acquisition is the absolute bare
minimum extent needed for the project”;
(e) “whether land acquisition at an alternate place has been considered and found
not feasible”;
(f) “study of social impacts of the project, and the nature and cost of addressing
them and the impact of these costs on the overall costs of the project vis-à-vis
the benefits of the project”.
4.13.5 Various components on which impact is to be considered
Section 4(5) of the Act provides that (while undertaking a SIA study, the appropriate
Government shall, amongst other things, take into consideration the impact that the
project is likely to have on various components such as):
♦ “livelihood of affected families”
♦ “public and community properties”,
♦ “assets and infrastructure particularly”:
o “roads”,
o “public transport”,
o “drainage”,
o “sanitation”,
o “sources of drinking water”,
o “sources of water for cattle”,
o “community ponds”,
o “grazing land”,
o “plantations”,
o “public utilities such as post offices, fair price shops, food storage
godowns, electricity supply, health care facilities, schools and
educational or training facilities, anganwadis, children parks, places
of worship, land for traditional tribal institutions and burial and
cremation grounds”.
146
4.13.6 OUTPUT OF THE SIA EXERCISE - SIA STUDY REPORT AND
SOCIAL IMPACT MANAGEMENT PLAN (SIMP)
Section 4(6) of the Act provides that “(the appropriate Government shall require the
authority conducting the SIA study to prepare a Social Impact Management Plan
(SIMP). The SIMP shall list the ameliorative measures required to be under-taken for
addressing the impact for a specific component. Such measures shall not be less than
what is pro-vided under a scheme or programme, in operation in that area, of the
Central Government or, as the case may be, the State Government, in operation in the
affected area)”.
4.14 PUBLICATION OF SOCIAL IMPACT ASSESSMENT STUDY REPORT
Section 6(1) of the Act provides that the appropriate Government shall ensure that the
Social Impact Assessment study report and the social Impact Management Plan are:
♦ prepared and made available in the local language to the Panchayat,

Municipality or Municipal Corporation, as the case may be, and the offices of
the District Collector, the Sub-Divisional magistrate and the Teshil,
♦ published in the affected areas, in prescribed manner, and
♦ uploaded on the website of the appropriate Government.
4.14.1 APPRAISAL OF SIA REPORT BY AN EXPERT GROUP
Section 7(1) of the Act provides that the appropriate Government shall ensure that the
Social Impact Assessment report is evaluated by an independent multi-disciplinary
expert group, as may be constituted by it.
Section 7(2) of the Act provides that the Expert Group shall include the followings:—
(a) “non-official social scientists”;
(b) “representatives of Panchayat, Gram Sabha, Municipality or Municipal

Corporation”, as the case may be;
(c) “experts on rehabilitation”; and
(d) “technical expert in the subject relating to the project.
147
Section 7(3) of the Act provides that the appropriate Government may nominate a
person from amongst the members of the Expert Group as the Chairperson of the
Group.
4.14.2 Where Expert Group recommends that the project be abandoned 21
Section 7(4) of the Act provides that if the Expert Group is of the opinion that,—
(a) “the project does not serve any public purpose”; or
(b) “the social costs and adverse social impacts of the project outweigh the
potential benefits, it shall make a recommendation within 2 months from the
date of its constitution to the effect”:
♦ “that the project shall be abandoned forthwith” and
♦ “no further steps to acquire the land will be initiated in respect of the same.
The grounds for such recommendation shall be recorded in writing by the
Expert Group giving the details and reasons for such decision. Where the
appropriate Government, inspite of such recommendations, proceeds with the
acquisition, then, it shall ensure that its reasons for doing so are recorded in
writing”.
However, the Act does not provide any appeal against the Government's decision to
proceed with the acquisition despite the Expert Group's recommendations. This issue
cannot be agitated in a reference to the LARR Authority. Then what is the use of
requiring the appropriate Government to document the reasons for proceeding with
the acquisition despite the Expert Group's negative recommendations? Then what is
the use of section 7(6) requiring publicising the Expert Group's recommendations.
That the Act does not provide a machinery to challenge the Government's decision
and sufficiency of its reasons for going ahead with the acquisition despite the Expert
Group's recommendations. The whole of purpose of reasoned recommendations of the
Expert Group, publicising the recommendations and requiring Govt. to document
reasons for going ahead where recommendations are negative is rendered futile and
set at naught. To what extent Courts will go into the sufficiency of Government's
21
Sec. 7 of 2013 Act
148
reasons for going ahead with acquisition even when Expert Group has given negative
recommendations - this is the moot point.
4.14.3 Where Expert Group recommends that the project be proceeded with and
land be acquired:-
Section 7(5) of the Act provides that if Expert Group is of the opinion that,—
(a) “the project will serve any public purpose”; and
(b) “the potential benefits outweigh the social costs and adverse social impacts
and it shall make specific recommendations within 2 months from the date of
its constitution whether the extent of land proposed to be acquired is the
absolute bare-minimum extent needed for the project; and whether there are
no other less displacing options available”.
4.14.4 PUBLICATION OF RECOMMENDATIONS OF EXPERT GROUP
Section 7(6) of the Act provides that the recommendations of the Expert Group
referred to in sub-sections (4) and (5) of section 7 shall :
♦ be made available in the local language to the Panchayat, Municipality or

Municipal Corporation, as the case may be and the offices of the District
Collector, the Sub-Divisional Magistrate and the Tehsil, and
♦ be published in the affected areas, in prescribed manner, and
♦ be uploaded on the website of the appropriate Government.
4.14.5 DECISION BY APPROPRIATE GOVERNMENT AFTER

EXAMINATION OF LAND ACQUISITION PROPOSAL AND EXPERT
GROUP REPORT ON SIA
Section 8(1) sets out the following principles/considerations which should be factored
in by the appropriate Government in arriving at a decision on land acquisition—
(a) “there is a legitimate and bona fide public purpose for the proposed acquisition
which necessitates the acquisition of the land identified”;
149
(b) “the potential benefits and the public purpose referred to in clause (a) shall
outweigh the social costs and adverse social impact as determined by the SIA
that has been carried out”;
(c) “only the minimum area of land required for the project is proposed to be
acquired”;
(d) “there is no unutilized land which has been previously acquired in the area”;
(e) “the land, if any, acquired earlier remained unutilized, is used for such public
purpose and make recommendations in respect thereof.
Section 8 of the Act provides that “the appropriate Govt. shall examine report of the
Collector if any report of the Expert group on the SIA study After considering all the
reports, the appropriate Govt. shall recommend such area for acquisition which would
ensure minimum displacement of people, minimum disturbance to the infrastructure,
ecology and minimum adverse impact on the individuals affected. Section 8(3) of the
Act provides that the decision of the appropriate Government shall be made available
in the local language to the Panchayat, Municipality or Municipal Corporation, as the
case may be and the offices of the District Collector, the Sub-Divisional Magistrate
and the Tehsil published in the affected areas, in prescribed manner, and uploaded on
the website of the appropriate Government Where land is sought to be acquired for
the purposes as specified in sub-section (2) of section 2 (See Chapter 6), the
appropriate Government shall also ascertain as to whether the prior consent of the
affected families as required under the proviso to sub-section (2) of section 2, has
been obtained in the manner as may be prescribed”.
4.14.6 PUBLICATION OF PRELIMINARY NOTIFICATION22
Section 11(1) of the Act provides that “whenever it appears to the appropriate
Government that land in any area is required or likely to be required for any public
purpose, a notification to that effect along with details of the land to be acquired in
rural and urban areas shall be published”.
22
Sec. 11 of 2013 Act
150
On a comparison of section 11(1) of the Act and section 4(1) of the 1894 Act, the
following points emerge :
1. “The Publication of preliminary notification under the LARR Act shall follow
the SIA study, Appraisal of SIA study by Expert Group and Examination of
proposals of land acquisition, SIA Report and Expert Group Appraisal by the
Appropriate Government There is no such requirement in the 1894 Act”.
2. The 1894 Act empowered Government to publish preliminary notification
"whenever it appears to the appropriate Government that land in any area is
needed or likely to be needed for any public purpose or for a company".
Section 11(1) of the LARR Act omits the words "or for a company". This is in
view of the avowed policy of legislature under the LARR Act that
Government should not get involved in assisting private companies acquire
land for commercial/private purposes as distinct from public purposes. The
Statement of Objects and Reasons states in this regard ". The provisions of the
[1894] Act are also used for acquiring private lands for companies. This
frequently raises a question mark on the desirability of such State intervention
when land could be arranged by the company through private negotiations on
a "willing seller-willing buyer" basis, which could be seen to be a more fair
arrangement from the point of view of the land owner.
3. The LARR Act requires the preliminary notification to state the details of the
land to be acquired. This is not required by section 4 of the 1894 Act.
4. The LARR Act requires that “the preliminary notification should contain a
statement on: the nature of the public purpose involved, reasons necessitating
the displacement of affected persons, summary of the Social Impact
Assessment”
5. “Report and particulars of the Administrator appointed for the purposes of
rehabilitation and resettlement under section 43. This requirement is not there
in the 1894 Act”.
Section 14 of the Act provides that Preliminary Notification of intent to acquire land
shall be published in accordance with section 11 of the Act within 12 months from the
date of the appraisal Report of SIA submitted by the Expert Group under section 7.1f
151
not so published within 12 months, the Expert Group report shall be deemed to have
lapsed and a fresh Social Impact Assessment will have to be undertaken prior to
preliminary notification. However, the “appropriate Government, shall have the
power to extend the period of 12 months, if in its opinion circumstances exist
justifying the same. Any such decision to extend the period shall be recorded in
writing and the same shall be notified and be uploaded on the website of the authority
concerned”.
4.14.7 Contents of Preliminary Notification :- Section 11(1) of the Act provides that
“whenever it appears to the appropriate Government that land in any area is required
or likely to be required for any public purpose, a notification to that effect along with
details of the land to be acquired in rural and urban areas shall be published”.
Section 11(3) of the Act provides that “the preliminary notification shall also contain
a statement on the nature of the public purpose involved, reasons necessitating the
displacement of affected persons, summary of the Social Impact Assessment Report,
and particulars of the Administrator appointed for the purposes of rehabilitation and
resettlement under section 43”.
4.14.8 Manner of Publication of Preliminary Notification
Section 11(1) of the Act provides that Preliminary Notification shall be published in
the following manner:—
(a) “in the Official Gazette”;
(b) “in two daily newspapers circulating in the locality of such area of which one
shall be in the regional language”;
(c) “in the local language in the Panchayat, Municipality or Municipal

Corporation, as the case may be and in the offices of the District Collector, the
Sub-divisional Magistrate and the Tehsil”;
(d) “uploaded on the website of the appropriate Government”;
(e) “in the affected areas, in such manner as may be prescribed”.
152
4.14.9 Informing institutions of local self-government and Gram Sabhas at a
meeting especially called for this purpose:-
Section 11(2) of the Act provides that immediately after issuance of the preliminary
notification, the concerned Gram Sabha or Sabhas at the village level, municipalities
in case of municipal areas and the Autonomous Councils in case of the areas referred
to in the Sixth Schedule to the Constitution, shall be informed of the contents of the
preliminary notification in all cases of land acquisition at a meeting called especially
for this purpose.
4.14.10 No transactions or encumbrances after preliminary notification:-
Section 11(4) of the Act provides that “no person shall make any transaction or cause
any transaction of land specified in the preliminary notification or create any
encumbrances on such land from the date of publication of such notification till such
time as the proceedings under this Chapter are completed”.
“The Collector may, on the application made by the owner of the land so notified,
exempt in special circumstances to be recorded in writing, such owner from the
operation of this provision. Any loss or injury suffered by any person due to his wilful
violation of this provision shall not be made up by the Collector”.
4.14.11 Updation of land records by Collector:-
Section 11(5) of the Act provides that after issuance of preliminary notification, “the
Collector shall before the issue of a declaration under section 19, undertake and
complete the exercise of updating of land records as prescribed within a period of 2
months”.
4.14.12 Validity Period of Preliminary Notification-12 months
Section 19(7) of the Act provides that where no declaration is made under section 19
(See Para 8.14) within 12 months from the date of preliminary notification, then such
notification shall be deemed to have been rescinded. Further, in computing the period
of 12 months, any period or periods during which the proceedings for the acquisition
of the land were held up on account of any stay or injunction by the order of any
Court shall be excluded. The appropriate Government shall have the power to extend
153
the period of 12 months, if in its opinion circumstances exist justifying the same. Any
such decision to extend the period shall be recorded in writing and the same shall be
notified and be uploaded on the website of the authority concerned.
4.14.13 Preliminary survey of land and Power of officers to carry out survey23 :-
Section 12 of the Act provides that “for the purposes of enabling the appropriate
Government to determine the extent of land to be acquired, it shall be lawful for any
officer, either generally or specially authorised by such Government in this behalf,
and for his servants and workmen”,—
(a) “to enter upon and survey and take levels of any land in such locality”;
(b) “to dig or bore into the sub-soil”;
(c) “to do all other acts necessary to ascertain whether the land is adapted for such
purpose”;
(d) “to set out the boundaries of the land proposed to be taken and the intended
line of the work (if any) proposed to be made thereon”; and
(e) “to mark such levels, boundaries and line by placing marks and cutting
trenches and where otherwise the survey cannot be completed and the levels
taken and the boundaries and line marked, to cut down and clear away any
part of any standing crop, fence or jungle.”
(No act as above in respect of land shall be conducted in the absence of the owner of
the land or in the absence of any person authorised in writing by the owner. However,
the above may be undertaken in the absence of the owner, if the owner has been
afforded a reason-able opportunity to be present during the survey, by giving a notice
of at least 60 days prior to such survey).
On a comparison of section 12 of the LARR Act and section 4(2) of the 1894 Act, the
1. “Section 4(2) of the 1894 Act used the word thereupon, that is to say powers
of officers to carry out a survey of land became exercisable upon the
23
Sec. 12 of 2013 Act
154
publication of the preliminary notification”. The LARR Act does not say so
clearly.
2. Section 12 of the LARR Act requires that the specified acts in respect of the
land by authorized officer of the Govt. shall not be conducted in the absence
of the owner of the land or in the absence of any person authorised in writing
by the owner. However, the above may be undertaken “in the absence of the
owner, if the owner has been afforded a reasonable opportunity to be present
during the survey, by giving a notice of at least 60 days prior to such survey”.
Section 4(2) of the 1894 Act did not contain such a requirement.
3. “No person shall enter into any building or upon any enclosed court or garden
attached to a dwelling-house (unless with the consent of the occupier thereof)
without previously giving such occupier at least 7 days' notice in writing of his
intention to do so”.
Section 13 of the Act provides that “the officer so authorised shall at the time of entry
pay or tender payment for any damage caused. In case of dispute as to the sufficiency
of the amount so paid or tendered, he shall at once refer the dispute to the decision of
the Collector or other chief revenue officer of the district, and such decision shall be
final”.
4.15 RIGHT OF PERSONS INTERESTED IN ANY LAND COVERED UNDER

PRELIMINARY NOTIFICATION24
Section 15(1) of the Act provides that within 60 days from the date of publication of
preliminary notification, any person interested in any land which has been notified as
being required or likely to be required for a public purpose, may object to—
(a) “the area and suitability of land proposed to be acquired”;
(b) “justification offered for public purpose”;
(c) “the findings of the Social Impact Assessment report”.
24
Sec. 15 of 2013 Act
155
Section 15(2) provides that “every such objection shall be made to the Collector in
writing and the Collector shall give the objector an opportunity of being heard in
person or by any person authorised by him in this behalf or by an Advocate”.
“The Collector shall, after hearing all such objections and after making such further
inquiry, if any, as he thinks necessary either make a report in respect of the land
which has been notified, or make different reports in respect of different parcels of
such land, to the appropriate Government, containing his recommendations on the
objections, together with the record of the proceedings held by him, along with a
separate report giving therein the approximate cost of land acquisition, particulars as
to the number of affected families likely to be resettled, for the decision of that
Government”
Section 15(3) of the Act provides that the decision of the appropriate Government on
the objections made shall be final. The following points emerge from a comparison of
section 15 of LARR Act and section 5A of the 1894 Act :
♦ “Under the 1894 Act, time limit for interested persons submitting written
objections in respect of land acquisition to Collector was 30 days from date of
publication of preliminary notification. The LARR Act extends this time-limit
to 60 days”
♦ “The words "or for a company" in section 5A(1) of 1894 Act is omitted by the
LARR Act. The reason is the avowed policy of legislature under the LARR
Act that Government should not get involved in assisting private companies
acquire land for commercial/private purposes as distinct from public purposes.
The Statement of Objects and Reasons states in this regard.”
“The provisions of the 1894 Act are also used for acquiring private lands for
companies. This frequently raises a question mark on the desirability of such State
intervention when land could be arranged by the company through private
negotiations on a "willing seller-willing buyer" basis, which could be seen to be a
more fair arrangement from the point of view of the land owner".
156
4.16 REHABILITATION AND RESETTLEMENT SCHEME25:-
“Section 16(1) of the Act provides that upon the publication of the preliminary
notification by the Collector, the Administrator for Rehabilitation and Resettlement
shall conduct a survey and under-take a census of the affected families, in such
manner and within such time as may be prescribed”.
The survey and census shall include—
(a) “particulars of lands and immovable properties being acquired of each affected
family”;
(b) “livelihoods lost in respect of land losers and landless whose livelihoods are
primarily dependent on the lands being acquired”
(c) “a list of public utilities and Government buildings which are affected or likely
to be affected, where resettlement of affected families is involved” and
(d) “details of the amenities and infrastructural facilities which are affected or
likely to be affected, where resettlement of affected families is involved”.
(e) “details of any common property resources being acquired. Section 16(2) of
the Act provides that the Administrator shall, based on the survey and census
as above, prepare a draft Rehabilitation and Resettlement Scheme, as
prescribed”.
The draft R&R scheme shall :
(A) “include particulars of the rehabilitation and resettlement entitlements of each

land owner and landless whose livelihoods are primarily dependent on the
lands being acquired and where resettlement of affected families is involved—
a list of Government buildings to be provided in the Resettlement area; details
of the public amenities and infrastructural facilities which are to be provided
in the resettlement area”. [section 16(2)]
(B) “include time limit for implementing Rehabilitation and Resettlement

Scheme”; [section 16(3)]
25
Sec. 16 of 2013 Act
157
(C) “be made known locally by wide publicity in the affected area and discussed
in the concerned Gram Sabhas or Municipalities”. [section 16(4)]
Section 16(5) of the Act provides that “a public hearing shall be con-ducted in such
manner as may be prescribed, after giving adequate publicity about the date, time and
venue for the public hearing at the affected area and in case where an affected area
involves more than one Gram Panchayat or Municipality, public hearings shall be
con-ducted in every Gram Sabha and Municipality where more than 25% of land
belonging to that Gram Sabha or Municipality is being acquired. The consultation
with the Gram Sabha in Scheduled Areas shall be in accordance with the provisions of
the Provisions of the Panchayats”. “(Extension to the Scheduled Areas) Act, 1996”.
“Section 16(6) of the Act provides that the Administrator shall, on completion of
public hearing submit the draft Scheme for Rehabilitation and Resettlement along
with a specific report on the claims and objections raised in the public hearing to the
Collector”.
4.16.1 REVIEW OF THE R&R SCHEME BY THE COLLECTOR26
Section 17(1) of the Act provides that the Collector shall review the draft Scheme
submitted by the Administrator with the Rehabilitation and Resettlement Committee
at the Project level [See section 45].
4.16.2 SUBMISSION OF DRAFT R&R BY COLLECTOR WITH HIS

SUGGESTIONS TO COMMISSIONER (R&R)
Section 17(2) of the Act provides that “the Collector shall submit the draft
Rehabilitation and Resettlement Scheme with his suggestions to the Commissioner
Rehabilitation and Resettlement for approval of the Scheme”.
4.16.3 COMMISSIONER(R&R) TO MAKE PUBLIC APPROVED R&R

SCHEME27
Section 18 of the Act provides that “The Commissioner shall cause the approved
Rehabilitation and Resettlement Scheme to be made available in the local language to
26
Sec. 17 of 2013 Act
27
Sec. 18 of 2013 Act
158
the Panchayat, Municipality or Municipal Corporation, as the case may be, and the
offices of the District Collector, the Sub-Divisional Magistrate and the Tehsil, and be
published in the affected areas, in such manner as may be prescribed, and be uploaded
on the website of the appropriate Government”.
4.16.4 PUBLICATION OF DECLARATION AND SUMMARY OF R&R28
Section 19(1) of the Act provides that “when the appropriate Government is satisfied,
after considering the report of the Collector as regards objections from interested
persons, that any particular land is needed for a public purpose, then a declaration
shall be made to that effect along with a declaration of an area identified as the
`resettlement area' for the purposes of rehabilitation and resettlement of the affected
families and the declaration shall be under the hand and seal of a Secretary to such
Government or of any other officer duly authorised to certify its orders”.
♦ “Different declarations may be made from time to time in respect of different

parcels of any land covered by the same notification irrespective of whether
one report or different reports has or have been made.” (wherever required).
Section 19(5) provides that every declaration as above shall indicate,—
(a) “the district or other territorial division in which the land is situated”;
(b) “the purpose for which it is needed, its approximate area”; and
(c) “where a plan shall have been made for the land, the place at which such plan
may be inspected without any cost”.
Section 19(7) of the Act provides that “where no declaration is made under section 19
within 12 months from the date of preliminary notification, then such notification
shall be deemed to have been rescinded”.
“Further, in computing the period of 12 months, any period or periods during which
the proceedings for the acquisition of the land were held up on account of any stay or
injunction by the order of any Court shall be excluded and the appropriate
Government shall have the power to extend the period of 12 months, if it is to be
28
Sec. 19 of 2013 Act
159
extend the period shall be recorded in writing and the same shall be notified and be
uploaded on the website of the authority concerned”.
Section 19(2) of the Act provides as under:
♦ “The Collector shall publish a summary of the Rehabilitation and Resettlement

Scheme along with draft declaration”.
♦ “No declaration shall be made unless the summary of the Rehabilitation and
Resettlement Scheme is published along with such declaration”.
♦ “No declaration shall be made unless the Requiring Body deposits an amount,
in full or part, as may be prescribed by the appropriate Government toward the
cost of acquisition of the land”.
♦ “The Requiring Body shall deposit the amount promptly so as to enable the
appropriate Government to publish the declaration within a period of 12
months from the date of the publication of preliminary notification under
section 11”.
Section 19(3) of the Act provides that in projects where land is acquired in stages “the
application for acquisition itself can specify different stages for the rehabilitation and
resettlement, and all declarations shall be made according to the stages so specified”.
Section 19(4) of the Act provides that “every declaration as above shall be published
in the following manner”, namely:—
(a) “in the Official Gazette”;
(b) “in two daily newspapers being circulated in the locality, of such area of
which one shall be in the regional language”;
(c) “in the local language in the Panchayat, Municipality or Municipal

Corporation, as the case may be, and in the offices of the District Collector,
the Sub-Divisional Magistrate and the Tehsil”
(d) “uploaded on the website of the appropriate Government”;
(e) “in the affected areas, in such manner as may be prescribed”
160
Section 19(6) provides that “the declaration shall be conclusive evidence that the land
is required for a public purpose. After making such declaration, the appropriate
Government may acquire the land in such manner as specified under this Act”.
On a comparison of section 19 of the LARR Act and section 6(1) of the 1894 Act, the
♦ Section 6 of the 1894 Act refers to publication of declaration that "any

particular land is needed for a public purpose, or for a company". Section
19(1) of the LARR Act omits the words "or for a company" as the avowed
policy of legislature under the LARR Act that Government should not get
involved in assisting private companies acquire land for commercial/ private
purposes as distinct from public purposes. The Statement of Objects and
Reasons states in this regard ". The provisions of the 1894 Act are also used
for acquiring private lands for companies. This frequently raises a question
mark on the desirability of such State intervention when land could be
arranged by the company through private negotiations on a "willing seller-
willing buyer" basis, which could be seen to be a more fair arrangement from
the point of view of the land owner.
♦ “Time-limit for publication of declaration that land is required for public

purpose was 1 year from the date of publication of preliminary notification.
The time-limit for publication of such declaration under the LARR Act is 12
months from the date of publication of preliminary notification”.
Under the 1894 Act, the appropriate Govt. is not empowered to extend that aforesaid
time limit of 1 year. Section 19(7) of the LARR Act provides “that the appropriate
Government shall have the power to extend the period of 12 months, if in its opinion
circumstances exist justifying the same. Any such decision to extend the period shall
be recorded in writing and the same shall be notified and be uploaded on the website
of the authority concerned”.
Manner of publicizing the declaration has been changed drastically by the LARR Act.
The LARR Act requires that the declaration be also published "in the local language
in the Panchayat, Municipality or Municipal Corporation, as the case may be and in
161
the offices of the District Collector, the Sub-divisional Magistrate and the Tehsil" and
uploaded on the website of the appropriate Govt.
The LARR Act introduces the following new requirements which were not there in
1894 Act. “No declaration shall be made unless the summary of the Rehabilitation
and Resettlement Scheme is published along with such declaration.”
 “No declaration shall be made unless the Requiring Body deposits an amount,
in full or part, as may be prescribed by the appropriate Government toward the
cost of acquisition of the land”.
 “The Requiring Body shall deposit the amount promptly so as to enable the
appropriate Government to publish the declaration within a period of 12
months from the date of the publication of preliminary notification under
section 11”.
 Section 19(5) provides that “every declaration as above shall indicate,— (a)
the district or other territorial division in which the land is situated; (b) the
purpose for which it is needed, its approximate area; and (c) where a plan shall
have been made for the land, the place at which such plan may be inspected
without any cost.”
4.16.5 (LAND TO BE MARKED OUT, MEASURED AND PLANNED

INCLUDING MARKING OF SPECIFIC AREAS)29
“Section 20 of the Act provides that the Collector shall thereupon cause the land,
unless it has been already marked out under section 12, to be marked out and
measured. If no plan has been made thereof, a plan to be made of the same”.
4.16.6 NOTICE TO PERSONS INTERESTED TO MAKE CLAIMS FOR

COMPENSATION/R&R30
Section 21 of the Act provides that “the Collector shall publish the public notice on
his website and cause public notice to be given at convenient places on or near the
land to be taken, stating that the Government intends to take possession of the land,
29
Sec. 20 of 2013 Act
30
Sec. 21 of 2013 Act
162
and claims to compensations and rehabilitation and resettlement for all interests in
such land may be made to him.”
“The public notice shall state the particulars of the land so needed, and require all
persons interested in the land to appear personally or by agent or advocate before the
Collector at a time and place mentioned in the public notice not being less than 30
days and not more than 6 months after the date of publication of the notice, and to
state the nature of their respective interests in the land and the amount and particulars
of their claims to compensation for such interests, their claims to rehabilitation and
resettlement along with their objections, if any, to the measurements made as above”.
The Collector may in any case require such statement of interests to be made in
writing and signed by the party or his agent. The Collector shall also serve notice to
the same effect on the occupier, if any, of such land and on all such persons known or
believed to be interested therein, be entitled to act for persons so interested, as reside
or have agents authorised to receive service on their behalf, within the revenue district
in which the land is situate.
In case any person so interested resides elsewhere, and has no such agent, the
Collector shall ensure that “the notice shall be sent to him by post in letter addressed
to him at his last known residence, address or place or business and also publish the
same in at least two national daily newspapers and also on his website”.
4.16.7 Power to require and enforce the making of statements as to names and
interests31
Section 22 of the Act provides that the “Collector may also require any such person to
make or deliver to him, at a time and place mentioned (such time not being less than
thirty days after the date of the requisition), a statement of details of persons
possessing interest in the land”. The statement shall contain so far as may be
practicable :
a. the name of every other person possessing any interest in the land or any part
thereof as co-proprietor, sub-proprietor, mortgagee, tenant or otherwise, and
31
Sec. 22 of 2013 Act
163
b. of the nature of such interest, and of the rents and profits, if any, received or
receivable on account thereof for 3 years next preceding the date of the
statement.
Every person required to make or deliver a statement under this section shall be
deemed to be legally bound to do so within the meaning of sections 175 and 176 of
the Indian Penal Code.
4.16.8 ENQUIRY AND LAND ACQUISITION AWARD BY COLLECTOR32
Section 35 of the Act provides that for the purpose of enquiries under this Act, the
Collector shall have powers:
(i) “to summon and enforce the attendance of witnesses, including the parties
interested of any of them”, and
(ii) “to compel the production of documents by the same means, and (so far as
may be) in the same manner as is provided in the case of a Civil Court
under the Code of Civil Procedure, 1908”.
Section 34 of the Act provides that the Collector may, for any cause he thinks fit,
from time to time adjourn the enquiry to a day to he fixed by him.
Section 23 of the Act provides that on the day so fixed, or on any other day to which
the enquiry has been adjourned, the Collector shall proceed to enquire into the
objections (if any) which any per-son interested has stated pursuant to a notice given.
The objections stated may be as to :
(i) the measurements made under section 20,
(ii) the value of the land at the date of the publication of the notification, and
(iii) the respective interests of the persons claiming the compensation and
rehabilitation and resettlement.
“After such enquiry, the Collector shall make an award under his hand of—
32
Sec. 35 of 2013 Act
164
(a) the true area of the land;
(b) the compensation as determined under section 27 along with Rehabilitation

and Resettlement award as determined under section 31 and which in his
opinion should be allowed for the land; and
(c) the apportionment of the said compensation among all the persons known or
believed to be interested in the land, or whom, or of whose claims, he has
information, whether or not they have respectively appeared before him”.
4.16.9 Period within which an award shall be made33:-
Section 25 of the Act provides that the Collector shall make an award within a period
of 2 years from the date of publication of the declaration under section 19. If no award
is made within that period, the entire proceedings for the acquisition of the land shall
lapse.
The appropriate Government shall have the power to extend the period of 12 months
if in its opinion, circumstances exist justifying the same. Any such decision to extend
the period shall be recorded in writing and the same shall be notified and be uploaded
on the website of the authority concerned. (Section 25)
On a comparison of section 25 of the LARR Act and section 11A of the 1894 Act,
♦ Section 11A of the 1894 Act requb-e-award to be made within 2 years from
the date of public at ;an of declaration of public purpose failing which entire
acquisition proceedings shall lapse. The LARR Act has reduced the time-limit
from 2 years to 12 months.
♦ For calculating the time-limit, section 11A of 1894 Act provided for exclusion
of time during which any action/proceeding in pursuance of the declaration
was stayed. The LARR Act omits this exclusion of time.
33
Sec. 19 & 25 of 2013 Act
165
♦ The 1894 Act doesn't empower appropriate Govt. to extend the time-limit. The
LARR Act, 2013 provides that “the appropriate Government shall have the
power to extend the period of 12 months if in its opinion, circumstances exist
justifying the same. Any such decision to extend the period shall be recorded
in writing and the same shall be notified and be uploaded on the website of the
authority concerned”.
4.16.10 Corrections to awards by Collector34 :-
Section 33 of the Act provides that “Collector may at any time, but not later than 6
months from the date of award by order, correct any clerical or arithmetical mistakes
in either of the awards or errors arising therein. The Collector may do so either on his
own motion or on the application of any person interested or local authority and
where he has been required under the provisions of this Act to make a reference to the
Authority under section 64, Collector may make such correction before the making of
such reference”.
 “No correction which is likely to affect prejudicially any person shall be made
unless such person has been given a reasonable opportunity of making
representation in the matter”.
 “The Collector shall give immediate notice of any correction made in the
award so corrected to all the persons interested”.
 “Where any excess amount is proved to have been paid to any per-son as a
result of the correction made , the excess amount so paid shall be liable to be
refunded and in the case of any default or refusal to pay, the same may be
recovered, as prescribed by the appropriate Government”. (Section 33) 0
4.16.11 (Power to call for records, etc.)
“Section 36 of the Act provides that the appropriate Government may at any time
before the award is made by the Collector call for any record of any proceedings
(whether by way of inquiry or otherwise) for the purpose of satisfying itself as to the
legality or propriety of any findings or order passed or as to the regularity of such
34
Sec. 33 of 2013 Act
166
proceedings and may pass such order or issue such direction in relation thereto as it
may think fit”.
“The appropriate Government shall not pass or issue any order or direction prejudicial
to any person without affording such person a reasonable opportunity of being heard”.
4.16.12 Awards of Collector when to be final35
Section 37 of the Act provides that “the Awards shall be filed in the Collector's office.
“The Awards shall, except as hereinafter provided, be final and conclusive evidence,
as between the Collector and the persons interested :
 whether they have respectively appeared before the Collector or not, of the
true area and market value of the land and the assets attached thereto,
 solatium so determined, and
 the apportionment of the compensation among the persons interested”.
 “The Collector shall give immediate notice of his awards to such of the
persons interested who are not present personally or through their
representatives when the awards are made and he shall keep open to the public
and display a summary of the entire proceedings undertaken in a case of
acquisition of land including the amount of compensation awarded to each
individual along with details of the land finally acquired under this Act on the
website created for this purpose”.
4.16.13 POWER TO TAKE POSSESSION OF LAND TO BE ACQUIRED36
Section 38 of the Act provides that the Collector shall ensure that full payment of
compensation as well as rehabilitation and resettlement entitlements are paid or
tendered to the entitled persons:
♦ within a period of 3 months for the compensation, and
35
Sec. 37 of 2013 Act
36
“Sec. 38 of 2013 Act”
167
♦ within a period of 6 months for the monetary part of rehabilitation and
resettlement entitlements listed in the Second Schedule commencing from the
date of the award.
The Collector shall take possession of land after ensuring that full payment of
compensation as well as rehabilitation and resettlement entitlements are paid or
tendered to the entitled persons as above.
The components of the Rehabilitation and Resettlement Package in the Second and
Third Schedules that relate to infrastructural entitlements shall be provided within a
period of 18 months from the date of the award.
In case of acquisition of land for irrigation or hydel project, being a public purpose,
the rehabilitation and resettlement shall be completed six months prior to
submergence of the lands proposed to be so acquired.
The Collector shall be responsible for ensuring that the R&R process is completed in
all its aspects before displacing the effected families.
On a comparison of section 38 of the Act and section 18 of the 1894 Act, the
♦ The 1894 Act allows Collector to take possession of land acquired on making
the award. LARR Act allows taking of possession only after ensuring full
payment of compensation and monetary part of R&R.
♦ Under 1894 Act, taking of possession by Collector vests the acquired land in
the Government "absolutely" and "free from all encumbrances". Section 38 of
LARR Act omits this provision. In fact, the LARR Bill, 2011 contained this
provision [sub- section (3) of section 38] which was omitted at the time of
passing the Bill in Parliament.
4.16.14 Magistrate to enforce surrender37 :-
Section 91 of the Act provides that “if the Collector is opposed or impeded in taking
37
“Sec. 91 of 2013 Act”
168
possession under this Act of any land, he shall, if a Magistrate, enforce the surrender
of the land to himself and If not a Magistrate, he shall apply to a Magistrate or to the
Commissioner of Police. Such Magistrate or Commissioner, as the case may be, shall
enforce the surrender of the land to the Collector”.
4.17 SPECIAL POWERS IN CASE OF URGENCY
Section 40 of the Act provides that “in cases of urgency, whenever the appropriate
Government so directs, the Collector, though no such award has been made, may, on
the expiration38 of 30 days from the publication of the notice mentioned in section 21,
take possession of any land needed for a public purpose. Such land shall thereupon
vest absolutely in the Government, free from all encumbrances”.
 The powers of the appropriate Government shall be restricted to the minimum

area required for the defence of India or national security or for any
emergencies arising out of natural calamities.
 The Collector shall not take possession of any building or part of a building
without giving to the occupier thereof at least 48 hours notice of his intention
to do so, or such longer notice as may be reasonably sufficient to enable such
occupier to remove his movable property from such building without
unnecessary inconvenience.
Before taking possession of any land as above, the Collector shall tender payment of
80% of the compensation for such land as estimated by him to the person interested
entitled thereto.
An additional compensation of 75% of the total compensation as determined under

this Act, shall be paid by the Collector in respect of land and property for acquisition
of which proceedings have been initiated under the urgency clause as above. This
additional compensation of 75% is in addition to regular compensation which can be
upto 4 times the market value in urban areas and upto twice the market value in rural
areas and “no additional compensation will be required to be paid in lease the project
38
“Sec.40 of 2013 Act”
169
is one that effects the sovereignty and integrity of India, the security and strategic
interests of the State or relations with foreign States”.
 “In the case of any land to which, in the opinion of the appropriate
Government, the urgency clause applies, the appropriate Government may
direct that any or all of the provisions of Chapter II to Chapter VI of the Act
shall not apply and If it does so direct, a declaration may be made under
section 19 in respect of the land at any time after the date of the publication of
the preliminary notification”.
4.17.1 COMPLETION OF ACQUISITION NOT COMPULSORY, BUT

COMPENSATION TO BE AWARDED WHEN NOT COMPLETED39
“Section 93 provides that the appropriate Government shall be at liberty to withdraw

from the acquisition of any land of which pos-session has not been taken and
whenever the appropriate Government withdraws from any such acquisition, the
collector shall determine the amount of compensation due to the damage suffered by
the owner in consequence of the notice or of any proceedings thereunder, and shall
pay such amount to the person interested, together with all costs reasonably incurred
by him in the prosecution of the proceedings under this Act relating to the said land”.
4.17.2 ACQUISITION OF PART OF HOUSE OR BUILDING
Section 94 of the Act provides that “the provisions of the Act shall not be put in force
for the purpose of acquiring a part only of any house, manufactory or other building,
if the owner desires that the whole of such house, manufactory or building shall be so
acquired and If any question shall arise as to whether any land proposed to be taken
does or does not form part of a house, manufactory or building, the Collector shall
refer the determination of such question to the Authority concerned and shall not be
taken possession of such land until after the question has been determined”.
In deciding on such a reference made, the LARR Authority shall have regard to the
question whether the land proposed to be taken, is reasonably required for the full and
unimpaired use of the house, manufactory or building.
39
“Sec. 93 of 2013 Act”
170
If, in the case of any claim under this Act, by a person interested, on account of the
severing of the land to be acquired from his other land, the appropriate Government is
of opinion that the claim is unreasonable or excessive, it may, at any time before the
Collector has made his award, order the acquisition of the whole of the land of which
the land first sought to be acquired forms a part.
In the case of any acquisition of land so required no fresh declaration or other

proceedings under sections 11 to 19, (both inclusive) shall be necessary; but the
Collector shall without delay furnish a copy of the order of the appropriate
Government to the person interested, and shall thereafter proceed to make his award.
4.17.3 ACQUISITION OF LAND AT COST OF A LOCAL AUTHORITY OR

REQUIRING BODY40
Section 95 of the Act provides that where the provisions of this Act are put in force
for the purpose of acquiring land at the cost of any fund controlled or managed by a
local authority or of any Requiring Body, the charges of land incidental to such
acquisition shall be defrayed from or by such fund or Requiring Body. In any
proceeding held before a Collector or LARR Authority in such cases the local
authority or Requiring Body concerned may appear and adduce evidence for the
purpose of determining the amount of compensation. No such local authority or
Requiring Body shall be entitled to demand a reference to the LARR Authority under
section 64.
4.17.4 NO CHANGE OF PURPOSE TO BE ALLOWED
Section 99 of the Act provides that “no change from the purpose or related purposes
for which the land is originally sought to be acquired shall be allowed. If the land
acquired is rendered unusable for the purpose for which it was acquired due to a
fundamental change because of any unforeseen circumstances, then the appropriate
Government may use such land for any other public purpose”.
40
“Sec. 95 of 2013 Act”
171
4.18 COMPENSATION PROVISIONS OF THE ACT
The compensation provisions are contained in sections 26 to 30, 39, 96, First
Schedule of the Act.
These provisions apply when the appropriate Government acquires land for its own
use, hold and control, including for Public Sector Undertakings and for public purpose
when the appropriate Government acquires land for public private partnership projects
for public purpose, where the ownership of the land continues to vest with the
Government [Section 2(2)(a)].
♦ when the appropriate Government acquires land for private companies for
public purpose, as defined in sub-section (1) of section 2 [Section 2(2)(b)]
These provisions have no application when private company purchases land in

situations contemplated by section 2(3) of the Act.
4.18.1 THE FIRST SCHEDULE PROVISIONS AS TO COMPENSATION
A comprehensive compensation package as per First Schedule is as under:
(1) Market value of land as on date of preliminary notification u/s 11 multiplied

by factor of
♦ 1.00 to 2.00 as may be notified for urban land
♦ 1.00 for rural land
(2) Value of assets attached to land
(3) Solatium - 100% of total compensation [Le. (1) plus (2)]
(4) Final award=(1)+(2)+(3)
Thus, effectively a land-owner in urban area whose land is acquired gets 4 times the
market value of his land as compensation. If rural land is acquired, land owner
effectively gets double the market value as compensation.
172
Note : When land is acquired for urbanisation, 20% of developed land to be reserved
and offered to land-owning project-affected families. If offer accepted by any family,
value of land to be deducted from compensation payable to it [Item 2A of Second
Schedule].
THE FIRST SCHEDULE
[See section 30(2)]
Compensation for land owners
The following components shall constitute the minimum compensation package to be

given to those whose land is acquired and to tenants referred to in clause (c) of section
3 in a proportion to be decided by the appropriate Government
Sr. Component of compensation Manner of determination of Date of

No. package in respect of land value determination
acquired under the Act of value
(1) (2) (3) (4)
1. Market value of land To be determined as provided

under section 26
2. Factor by which the market 1.00 (One) to 2.00 (Two)

value is to be multipled in the based on the distance of
case of rural areas project from urban area, as
may be notified by the
appropriate Government
3. Factor by which the market 1(One)

value is to be multipled in the
case of urban areas
4. Value of assets attached to To be determined as provided

land or building under section 30
173
5. Solatium Equivalent to one hundred per
cent of the market value of
land mentioned aninst serial
number I multiplied by the
factor specified against serial
number 2 for rural areas or
serial number 3 for urban
areas plus value of assets
attached to land or building
against serial number 4 under
column (2).
6. Final award in rural areas Market value of land

mentioned against serial
number 1 multiplied by the
factor specified against serial
number 2 plus value of assets
number 4 under column (2)
plus solatium mentioned
column (2).
7. Final award in urban areas Market value of land

number I multiplied by the
factor spetified against serial
number 3 plus value of assets
number 4 under column (2)
174
plus solatium mentioned
column (2)
8. Other component, if any, to

be included
Note.—The date on which values mentioned under column (2) are determined should
be indicated under column (4) against each serial number.
4.18.2 DETERMINATION OF MARKET VALUE OF LAND BY

COLLECTOR
Section 26(1) of the Act provides that the market value of the land shall be the highest
of the following three values :—
(a) the market value, if any, specified in the Indian Stamp Act, 1899 for the
registration of sale deeds or agreements to sell, as the case may be, in the area,
where the land is situated; or
(b) the average sale price for similar type of land situated in the nearest village or
nearest vicinity area; or
(c) consented amount of compensation as agreed upon under sub-section (2) of

section 2 in case of acquisition of lands for private companies or for public
private partnership projects,
The date for determination of market value shall be the date on which the notification
has been issued under section 1141.
“The Collector shall, before initiation of any land acquisition proceedings in any area,
take all necessary steps to revise and update the market value of the land on the basis
of the prevalent market rate in that area”.
“The appropriate Government shall ensure that the market value determined for
acquisition of any land or property of an educational institution established and
41
Refer Sec. 11 of “The Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013”
175
administered by a religious or linguistic minority shall be such as would not restrict or
abrogate the right to establish and administer educational institutions of their choice”.
4.18.2.1 Average Sales Price
“The average sale price in (b) above shall be determined taking into account the sale
deeds or the agreements to sell registered for similar type of area in the near village or
near vicinity area during immediately preceding 3 years of the year in which such
acquisition of land is proposed to be made”.
For determining the average sale price, one-half of the total number of sale deeds or
the agreements to sell in which the highest sale price has been mentioned shall be
taken into account.
While determining the market value and the average sale price:
1. “any price paid as compensation for land acquired under the provisions of this
Act on an earlier occasion in the district shall not be taken into consideration”.
2. “any price paid, which in the opinion of the Collector is not indicative of
actual prevailing market value may be discounted for the purposes of
calculating market value”.
4.18.2.2 Where market value cannot be determined
Where the market value cannot be determined for the reason that—
(a) “the land is situated in such area where the transactions in land are restricted
by or under any other law for the time being in force in that area”; or
(b) “the registered sale deeds or agreements to sell for similar land are not
available for the immediately preceding three years”; or
(c) “the market value has not been specified under the Indian Stamp Act, 1899 by
the appropriate authority and the concerned State Government shall specify
the floor price or minimum price per unit area of the said land based on the
price calculated in the manner specified above in respect of similar types of
land situated in the immediate adjoining areas”.
176
4.18.2.3 25% of market value may be paid in shares at the option of the owner of
the land
“Where the Requiring Body offers its shares to the owners of the lands (whose lands
have been acquired) as a part compensation, for acquisition of land, such shares in no
case shall exceed 25% of the market value”.
“The Requiring Body shall in no case compel any owner of the land (whose land has
been acquired) take its shares, the value of which is deductible in the market value of
the land calculated as above”.
4.18.2.4 DETERMINATION OF VALUE OF ASSETS ATTACHED TO

LAND42:-
Section 27 of the Act provides that the Collector having determined the market value
of the land to be acquired shall calculate the total amount of compensation to be paid
to the land owner (whose land has been acquired) by including all assets attached to
the land.
♦ The Collector in determining the market value of the building and other
immovable property or assets attached to the land or building which are to be
acquired, use the services of a competent engineer or any other specialist in
the relevant field, as may be considered necessary by him.
♦ The Collector for the purpose of determining the value of trees and plants
attached to the land acquired, use the services of experienced persons in the
field of agriculture, forestry, horticulture, sericulture, or any other field, as
may be considered necessary by him
♦ The Collector for the purpose of assessing the value of the standing crops
damaged during the process of land acquisition, may utilise the services of
experienced persons in the field of agriculture as considered necessary by him.
42
“Sec. 27 & 29 of 2013 Act”
177
4.18.2.5 PARAMETERS TO BE CONSIDERED BY COLLECTOR IN
DETERMINATION OF AWARD
“In determining the amount of compensation to be awarded for land acquired under
this Act, the Collector shall take into consideration following things:-
1. “the market value as determined under section 26 and the award amount in
accordance with the First and Second Schedules.”
2. “secondly, the damage sustained by the person interested, by reason of the
taking of any standing crops and trees which may be on the land at the time of
the Collector's taking possession thereof”.
3. “thirdly, the damage (if any) sustained by the person interested, at the time of
the Collector's taking possession of the land, by reason of severing such land
from his other land”;
4. “fourthly, the damage (if any) sustained by the person interested, at the time of
the Collector's taking possession of the land, by reason of the acquisition
injuriously affecting his other property, movable or immovable, in any other
manner, or his earnings”;
5. “fifthly, in consequence of the acquisition of the land by the Collector, the
person interested is compelled to change his residence or place of business, the
reasonable expenses (if any) incidental to such change”;
6. “sixthly, the damage (if any) bona fide resulting from diminution of the profits
of the land between the time of the publication of the declaration under section
19 and the time of the Collector's taking possession of the land”; and
7. “seventhly, any other ground which may be in the interest of equity, justice
and beneficial to the affected families”.
The following points are noteworthy :
 The LARR Act omits section 24 of the 1894 Act which stipulated "Matters to
be neglected in determining compensation". Section 28 of the LARR Act says
that in determining the compensation for land acquired, the Collector shall
178
take into consideration "seventhly, any other ground which may be in the
interest of equity, justice and beneficial to the affected families"
 Thus, those matters which were required to be neglected by section 24 of the

1894 Act in determining compensation may now be considered under LARR
Act if considering it is "in the interest of equity, justice and beneficial to the
affected families".
Section 24 of the 1894 Act is reproduced below for ready reference :
"24. Matters to be neglected in determining compensation.—But the Court shall not

take into consideration-
1. the degree of urgency which has led to the acquisition;

2. secondly, any disinclination of the person interested to part with the land
acquired;
3. thirdly, any damage sustained by him which, if caused by a private person,
would not render such person liable to a suit;
4. fourthly, any damage which is likely to be caused to the land acquired, after
the date of the publication of the declaration under section 6, by or in
consequence of the use to which it will be put;
5. fifthly, any increase to the value of the land acquired likely to accrue from the
use to which it will be put when acquired;
6. sixthly, any increase to the value of the other land of the person interested
likely to accrue from the use to which the land acquired will be put;
7. seventhly, any outlay or improvements on, or disposal of the land acquired,
commenced, made or effected without the sanction of the Collector after the
date of the publication of the notification under section 4, sub-section (1); or
8. eighthly, any increase to the value of the land on account of its being put to
any use which is forbidden by law or opposed to public policy."
4.18.2.6 AWARD OF SOLATIUM - 100% OF THE COMPENSATION

AMOUNT [SECTION 30]
Section 30 of the Act provides that “the Collector having determined the total
compensation to be paid, shall, to arrive at the final award, impose a 'Solatium'
179
amount equivalent to 100% of the compensation amount. “Solatium shall be in
addition to the compensation payable to any person whose land has been acquired.
The Collector shall issue individual awards detailing the particulars of compensation
payable and the details of payment of the compensation as specified in the First
Schedule”.
4.18.2.7 INTEREST AT THE RATE OF 12% P.A. ON AMOUNT OF

COMPENSATION:-
Section 30(3) of the Act provides that in addition to the market value of the land
(section 26). “The Collector shall, award interest at the rate of 12% per annum on
such market value and interest shall be awarded for the period on and from the date
of the publication of the notification of the SIA study, in respect of such land, till the
date of the award of the Collector or the date of taking possession of the land,
whichever is earlier”.
4.18.2.8 ADDITIONAL COMPENSATION IN CASE OF MULTIPLE

DISPLACEMENTS
Section 39 provides that the Collector shall, as far as possible, not displace any family
which has already been displaced by the appropriate Government for the purpose of
acquisition under the provisions of this Act. If so, displaced, the Collector shall pay an
additional compensation equivalent to that of the compensation determined under this
Act for the second or successive displacements.
4.18.2.9 EXEMPTION FROM INCOME-TAX, STAMP DUTY AND FEES43
 No income tax or stamp duty shall be levied on any award or agreement made
under this Act, except under section 46 (private purchases through
negotiations), and
 No person claiming under any such award or agreement shall be liable to pay
any fee for a copy of the same.
43
“Sec. 96 of 2013 Act”
180
4.19 REHABILITATION & RESETTLEMENT AWARDS FOR AFFECTED
FAMILIES
Section 31(1) of the Act provides that the Collector shall pass Rehabilitation and
Resettlement Awards for each affected family in terms of the entitlements provided in
the Second Schedule as follows:
MINIMUM R&R ENTITLEMENTS
FOR LAND OWNERS
(as per Second Schedule)
 Subsistence allowance – Rs. 3,000 per month per affected family for 1 year
 Each affected family may opt for one of (a)/(b)/(c) below : -
(a) Job to 1 family member (if project creates jobs) –
(b) Rs.5,00,000
(c) Annuity – Rs. 3,000 p.m.
 1 acre land to each family owning agricultural land in the affected area, if land
acquired for irrigation project
 Rs.50,000 - transportation cost and one-time resettlement allowance of Z

50,000
 If a house is lost in rural areas, a constructed house shall be provided as per

Indira Awas Yojana specifications. If a house is lost in urban areas, a
constructed house not less than 50 sq mts plinth area shall be provided.
Note : The above is in addition to compensation for land as per First Schedule
MINIMUM R&R ENTITLEMENTS
FOR LIVELIHOOD LOSERS INCLUDING LANDLESS
(as per Second Schedule)
 Subsistence allowance - Rs. 3,000 per month per affected family for 1 year
181
 Each affected family may opt for one of (a)/ (b)I(c) below : -
(a) Job to 1 family member (if project creates jobs) –
(b) Rs. 5,00,000 –
(c) Annuity - 3,000 p.m.
 Rs. 50,000 - transportation cost and One-time resettlement allowance of Rs.

50,000
 Housing benefit as under :
 “If a house is lost in rural areas, a constructed house shall be provided as per
Indira Awas Yojana specifications. If any affected family in rural areas so
prefers, the equivalent cost of the house may be offered in lieu of the
constructed house”.
 “If a house is lost in urban areas, a constructed house not less than 50 sq mts
plinth area shall be provided and if any such family in urban areas which opts
not to take the house offered, shall get a one-time financial assistance for
house construction, which shall not be less than 1,50,000”.
 “The benefit shall also be extended to any affected family which is without
homestead land and which has been residing in the area continuously for a
period of not less than 3 years preceding the date of notification of the affected
area and which has been involuntarily displaced from such area”.
 “No family affected by acquisition shall be given more than one house”.
4.19.1 Cattle shed or petty shop
“Each affected family having cattle or having a petty shop shall get one-time financial
assistance of such amount as the appropriate Government may, by notification,
specify subject to a minimum of Rs. 25,000 for construction of cattle shed or petty
shop as the case may be”.
182
4.19.2 One time grant to artisan, small traders and certain others
“One-time financial assistance of such amount as the appropriate Government may,

by notification, specify subject to a minimum of 25,000 to each affected family of an
artisan, small trader or self-employed person or an affected family which owned non-
agricultural land or commercial, industrial or institutional structure in the affected
area, and which has been involuntarily displaced from the affected area due to land
acquisition”.
4.19.3 Fishing rights
“In cases of irrigation or hydel projects, the affected families may be allowed fishing
rights in the reservoirs, in such manner as may be prescribed by the appropriate
Government”.
Compulsory contents of R&R award Under section 31 of the Act Rehabilitation and
Resettlement Award shall include all of the following, namely:—
(a) “rehabilitation and resettlement amount payable to the family”
(b) “bank account number of the person to which the rehabilitation and
resettlement award amount is to be transferred”;
(c) “particulars of house site and house to be allotted, in case of displaced

families”;
(d) “particulars of land allotted to the displaced families”;
(e) “particulars of one time subsistence allowance and transportation allowance in

case of displaced families”;
(f) “particulars of payment for Cattle Shed and petty shops’;
(g) “particulars of one-time amount to artisans and small traders”;
(h) “details of mandatory employment to be provided to the members of the

affected families”;
(i) “particulars of any fishing rights that may be involved”;
183
(j) “particulars of annuity and other entitlements to be provided”;
(k) “particulars of special provisions for Scheduled Castes and the Scheduled
Tribes to be provided”.
 “In case any of the matters specified under (a) to (k) above are not applicable
to any affected family the same shall be indicated as "not applicable" and the
appropriate Government may, by notification increase the rate of rehabilitation
and resettlement amount payable to the affected families, taking into account
the rise in the price index”.
4.19.4 “Provision of infrastructural amenities in resettlement area44”
Section 32 provides that in every resettlement area, “the Collector shall ensure the
provision of all infrastructural and basic amenities specified in the Third Schedule,
namely :-
 “Roads within the resettled villages and an all-weather road link to the nearest
pucca road, passages and easement rights for all the resettled families be
adequately arranged”.
 “Proper drainage as well as sanitation plans executed before physical
resettlement”.
 “One or more assured sources of safe drinking water for each family as per the
norms prescribed by the Government of India”.
 “Provision of drinking water for cattle”.
 “Grazing land as per proportion acceptable in the State”.
 “A reasonable number of Fair Price Shops”.
 “Panchayat Ghars, as appropriate”.
 “Village level Post Offices, as appropriate, with facilities for opening saving
accounts”.
 “Appropriate seed-cum-fertilizer storage facility if needed”.
 “Efforts must be made to provide basic irrigation facilities to the agricultural
land allocated to the resettled families if not from the irrigation project, then
44
“Sec. 32 of 2013 Act”
184
by developing a co-operative or under some Government scheme or special
assistance”.
 “All new villages established for resettlement of the displaced persons shall be
provided with suitable transport facility which must include public transport
facilities through local bus services with the nearby growth centres/urban
localities”.
 “Burial or cremation ground, depending on the caste communities at the site
and their practices”.
 “Facilities for sanitation, including individual toilet points”.
 “Individual single electric connections (or connection through non-
conventional sources of energy like solar energy), for each household and for
public lighting”.
 “Anganwadi's providing child and mother supplemental nutritional services”.
 “School as per the provisions of the Right of Children to Free and Compulsory
Education Act, 2009”.
 “Sub-health centre within two kilometres range”.
 “Primary Health Centre as prescribed by the Government of India”.
 Playground for children.
 One community centre for every hundred families.
 “Places of worship and chowpal/tree platform for every fifty families for
community assembly, of numbers and dimensions consonant with the affected
area”.
 “Separate land must be earmarked for traditional tribal institutions”.
 “The forest dweller families must be provided, where possible, with their
forest rights on non-timber forest produce and common property resources, if
available close to the new place of settlement and, in case any such family can
continue their access or entry to such forest or common property in the area
close to the place of eviction, they must continue to enjoy their earlier rights to
the aforesaid sources of livelihood”.
 “Appropriate security arrangements must be provided for the settlement, if
needed”.
185
 “Veterinary service centre as per norms”.
4.19.5 SPECIAL PROVISIONS FOR SCHEDULED CASTES AND

SCHEDULED TRIBE45:-
Section 41 of the Act provides that as far as possible, no acquisition of land shall be
made in the Scheduled Areas. Where such acquisition does take place it shall be done
only as a demonstrable last resort.
 “In case of acquisition or alienation of any land in the Scheduled Areas, the
prior consent of the concerned Gram Sabha or the Panchayats or the
autonomous District Councils, at the appropriate level in Scheduled Areas
under the Fifth Schedule to the Constitution, as the case may be, shall be
obtained, in all cases of land acquisition in such areas, including acquisition in
case of urgency, before issue of a notification under this Act, or any other
Central Act or a State Act for the time being in force and the consent of the
Panchayats or the Autonomous District Councils shall be obtained in cases
where the Gram Sabha does not exist or has not been constituted”.
 “In case of a project involving land acquisition on behalf of a Requiring Body
which involves involuntary displacement of the Scheduled Castes or the
Scheduled Tribes families, a Development Plan shall be prepared, in such
form as may be prescribed. The Development Plan shall lay down the details
of procedure for settling land rights due, but not settled and restoring titles of
the Scheduled Tribes as well as the Scheduled Castes on the alienated land by
undertaking a special drive together with land acquisition and the
Development Plan shall also contain a programme for development of
alternate fuel, fodder and non-timber forest produce resources on non-forest
lands within a period of 5 years, sufficient to meet the requirements of tribal
communities as well as the Scheduled Castes”.
 “In 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
45
“Sec. 40 & 41 of 2013 Act”
186
paid to the affected families initially as first installment and the rest shall be
paid after taking over of the possession of the land”.
 “The affected families of the Scheduled Tribes shall be resettled preferably in
the same Scheduled Area in a compact block so that they can retain their
ethnic, linguistic and cultural identity”.
 “The resettlement areas predominantly inhabited by the Scheduled Castes and
the Scheduled Tribes shall get land, to such extent as may be decided by the
appropriate Government free of cost for community and social gathering”.
 “Any alienation of tribal lands or lands belonging to members of the
Scheduled Castes in disregard of the laws and regulations for the time being in
force shall be treated as null and void. In the case of acquisition of such lands,
the rehabilitation and resettlement benefits shall be made available to the
original tribal land owners or land owners belonging to the Scheduled Castes”.
 “The affected Scheduled Tribes, other traditional forest dwellers and the
Scheduled Castes having fishing rights in a river or pond or dam in the
affected area shall be given fishing rights in the reservoir area of the irrigation
or hydel projects. Where the affected families belonging to the Scheduled
Castes and the Scheduled Tribes are relocated outside the district, then, they
shall be paid an additional 25% rehabilitation and resettlement benefits to
which they are entitled in monetary terms along with a one-time entitlement of
Rs. 50,000”.
4.19.6 RESERVATION AND OTHER BENEFITS46:-
Section 42 of the Act provides that all benefits, including the reservation benefits
available to the Scheduled Tribes and the Scheduled Castes in the affected- areas shall
continue in the resettlement area.
Whenever the affected families belonging to the Scheduled Tribes who are residing in
the Scheduled Areas referred to in the Fifth Schedule or the tribal areas referred to in
the Sixth Schedule to the Constitution are relocated outside those areas, than, all the
statutory safeguards, entitlements and benefits being enjoyed by them under this Act
46
“Sec. 42 of 2013 Act”
187
shall be extended to the area to which they are resettled regardless of whether the
resettlement area is a Scheduled Area referred to in the said Fifth Schedule, or a tribal
area referred to in the said Sixth Schedule, or not.
Where the community rights have been settled under the provisions of the Scheduled
Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act,
2006, the same shall be quantified in monetary amount and be paid to the individual
concerned who has been displaced due to the acquisition of land in proportion with
his share in such community rights.
APPOINTMENT OF ADMINISTRATOR BY STATE GOVT47:-
“Section 43 of the Act provides that where the appropriate Government is satisfied
that there is likely to be involuntary displacement of persons due to acquisition of
land, then, the State Government shall, by notification, appoint in respect of that
project, an officer not below the rank of Joint Collector or Additional Collector or
Deputy Collector or equivalent official of Revenue Department to be the
Administrator for Rehabilitation and Resettlement”.
4.19.7 COMMISSIONER FOR R & R TO BE APPOINTED BY STATE GOVT.

:-
Section 44 of the Act provides that “the State Government shall appoint an officer of
the rank of Commissioner or Secretary of that Government for rehabilitation and
resettlement of affected families under this Act, to be called the Commissioner for
Rehabilitation and Resettlement [Commissioner (R&R)].
The Commissioner shall be responsible for supervising the formulation of

rehabilitation and resettlement schemes or plans and proper implementation of such
schemes or plans. The Commissioner shall be responsible for the post-implementation
social audit in consultation with the Gram Sabha in rural areas and municipality in
urban areas”.
47
“Sec. 43 of 2013 Act”
188
4.19.8 REHABILITATION AND RESETTLEMENT COMMITTEE AT
PROJECT LEVEL
Section 45 of the Act provides that “where land proposed to be acquired is equal to or
more than 100 acres, the appropriate Government shall constitute a Committee under
the chairmanship of the Collector to be called the Rehabilitation and Resettlement
Committee, to monitor and review the progress of implementation of the
Rehabilitation and Resettlement scheme and to carry out post-implementation social
audits in consultation with the Gram Sabha in rural areas and municipality in urban
areas”.
4.19.9 PROVISIONS RELATING TO R&R TO APPLY IN CASE OF

CERTAIN PERSONS OTHER THAN SPECIFIED PERSONS
Section 46(1) of the Act provides that “where any person other than a specified person
is purchasing land through private negotiations for an area equal to or more than such
limits, as may be notified by the appropriate Government, he shall file an application
with the District Collector notifying him of-
(a) intent to purchase;
(b) purpose for which such purchase is being made;
(c) particulars of lands to be purchased”.
Explanation (b) to section 46 defines "specified persons" as under :-
(b) "specified persons" includes any person other than-
(i) appropriate Government;
(ii) Government company;
(iii) association of persons or trust or society as registered under the Societies

Registration Act, 1860, wholly or partially aided by the appropriate
Government or controlled by the appropriate Government.”
It can be seen that the above definition makes no sense. The words "any person other
than" need to be omitted. “It shall be the duty of the Collector to refer the matter to
189
the Commissioner R&R for the satisfaction of all relevant provisions under this Act
related to rehabilitation and resettlement”.
“Based upon the Rehabilitation and Resettlement Scheme approved by the

Commissioner as per the provisions of this Act, the Collector shall pass individual
awards covering Rehabilitation and Resettlement entitlements as per the provisions of
this Act and no land use change shall be permitted if rehabilitation and settlement is
not complied with in full”.
“Any purchase of land by a person other than specified persons without complying
with the provisions of Rehabilitation and Resettlement Scheme shall be void ab initio.
The appropriate Government may provide for rehabilitation and resettlement
provisions on sale or purchase of land in its State and shall also fix the limits or
ceiling for the said purpose. If any land has been purchased through private
negotiations by a person on or after the 5th day of September, 2011, which is more
than such limits referred to in sub-section (1) and, if the same land is acquired within
three years from the date of commencement of this Act, then, 4096 of the
compensation paid for such land acquired shall be shared with the original land
owners. The expression "original land owner" refers to the owner of the land as on the
5th day of September, 2011”.
“Where the Collector is of the view that the obligations of the Requiring Body with
regard to rehabilitation and resettlement can be quantified into monetary amount, he
shall allow the payment of such amount into an account in complete satisfaction of
such obligations, which shall be administered by the Administrator appointed under
section 43, under the supervision of the Collector”.
4.19.10 EXEMPTION FROM INCOME-TAX, STAMP DUTY AND FEES48
Section 96 of the Act provides as under:-
 “No income-tax or stamp duty shall be levied on any award or agreement

made under this Act, except under section 46”, and
48
“Sec. 96 of 2013 Act”
190
 “No person claiming under any such award or agreement shall be liable to pay
any fee for a copy of the same”.
4.19.11 IMPACT OF THE ACT ON PRIVATE SECTORS COMPANIES
TYPES OF LAND ACQUISITIONS FOR PRIVATE COMPANIES
Land Acquisitions for Private Sector Companies may be categorized as under:
(a) “when the appropriate Government acquires land for public private
partnership projects for public purpose where the ownership of the land
continues to vest with the Government”,
(b) “when the appropriate Government acquires land for private companies for
public purpose, as defined in sub-section (1) of section 2”,
(c) “a private company purchases land, equal to or more than such limits in rural
areas or urban areas, as may be prescribed by the appropriate Government,
through private negotiations with the owner of the land”,
(d) “a private company requests the appropriate Government for acquisition of a
part of an area so prescribed for a public purpose”.
4.19.12 IMPLICATIONS ON PROJECT TIMELINES AND COST
In cases (c) and (d) above provisions relating to R&R shall apply entailing additional
financial burden and pushing up cost of acquisition.
In cases (a) and (b) above in addition, the provisions relating to LA, consent and
compensation provisions shall also apply. This means pushing up the timelines in land
acquisition and entailing time-overruns and cost overruns in PPP/public purpose
projects involving private sector players. The typical time-lines in compulsory
acquisition of land through appropriate Govt. for PPP/public purpose projects
involving private sector players will be as under:
191
Sr. Activity Time allowed by Act Time Allowed in
No. 1894 Act
1. Completion of SIA Study 6 months NA
culminating in SIA report
2. Constitution of SIA Group to No time-limit NA
appraise SIA study report specified
3. Submission of appraisal of 2 months form the NA
SIA report and Constitution of
recommendations by Expert Expert Group
Group
4. Preliminary Notification Within 12 months NA
under section 11 of the Act from the date of
submission of
appraisal report on
SIA u/s 7 by Expert
Group
5. Declaration that land is Within 1 2 months 1 year from the date
required for public purpose from the date of of publication of
u/s 19 Preliminary preliminary
Notification notification
6. Award by Collector Within 12 months 2 years from the date
from the date of of declaration
publication of
declaration u/s 19
7. Payment of full amount of Within 3 months -
Compensation
192
8. Payment of monetary part of Within 6 months -
R&R
9. Taking possession of land After payments of After making award
acquired Compensation and
monetary part of
R&R package have
been completed
10. Infrastructural components Within 18 months NA
of R&R package to be
provided
11. Displacement of affected Only after NA
families completion of R&R
12. Total Time- Line 62 months 3 Years (max)
(Considering longest of (Minimum) – If one
times in 7 (3 months) 8 goes by the time
(monetary R&R) (6 months) allowed by the Act
and 9 (Infrastructural R&R)
In the matter of 4, 5 and 6, maximum 12 months extension can be granted Assuming
that such maximum extensions are granted, the time taken for land acquisition may go
up to 98 months. All this is assuming that there is no delay in setting up Expert Group
in (2) above.
193
4.20 “LARR AUTHORITY”
4.20.1 ESTABLISHMENT OF LARR AUTHORITY49:-
Section 51(1) of the Act provides that “the appropriate Government shall, for the
purpose of providing speedy disposal of disputes relating to land acquisition,
compensation, rehabilitation and resettlement, establish, by notification, one or more
Authorities to be known as the Land Acquisition, Rehabilitation and Resettlement
Authority (LARR Authority)”. Section 51(2) provides that “the appropriate
Government shall also specify in the notification the areas within which the Authority
may exercise jurisdiction for entertaining and deciding the references made to it under
section 64 or applications made by the applicant under second proviso to sub-section
(1) of section 64”.
4.20.2 REFERENCE TO AUTHORITY 50
Section 64(1) of the Act provides that “any person interested who has not accepted the
award may, by written application to the Collector, require that the matter be referred
by the Collector for the determination of the Authority. No person who has received
the amount otherwise than under protest shall be entitled to make any application for
reference to the Authority under section 64(1)” [Second proviso to sec Hon 77(2)].
4.20.3 Time limit for making application for reference:-
Application for reference shall be made to the Collector within 6 weeks from the date
of the Collector's award if the person making it was present or represented before the
Collector at the time when he made his award.
 “If the person making the application was not so present or so represented,
application shall be made within 6 weeks of the receipt of the notice from the
Collector under section 21, or within six months from the date of the
Collector's award, whichever period shall first expire”.
49
“Sec. 51 of 2013 Act”
50
“Sec. 64 of 2013 Act”
194
 “The Collector may entertain an application after the expiry of the period of 6
weeks as above within a further period of 1 year if he is satisfied that there
was sufficient cause for not filing it within 6 weeks”.
4.20.4 (Grounds on which objection to the award is taken)
“The application shall state the grounds on which objection to the award is taken. The
grounds on which objection can be taken are measurement of the land, the amount of
the compensation, the person to whom it is payable, the rights of Rehabilitation and
Resettlement under Chapters V and VI, or the apportionment of the compensation
among the persons interested”.
4.20.5 Reference by Collector to the Authority within 30 days of receipt of

application.
 The Collector shall make a reference to the Authority within 30 days from the
receipt of the application.
 If the Collector fails to make such reference within the period so specified, the
applicant may apply to the Authority requesting it to direct the Collector to
make the reference to it within a period of 30 days.
4.20.6 POWERS OF AUTHORITY51 :-
Section 60(1) of the Act provides that the Authority shall, for the purposes of its
functions under this Act, have the same powers as are vested in a civil court under the
Code of Civil Procedure, 1908 in respect of the following matters, namely:
(a) summoning and enforcing the attendance of any person and examining him on
oath;
(b) discovery and production of any document or other material object producible
as evidence;
(c) receiving evidence on affidavits;
(d) requisitioning of any public record;
51
“Sec. 60 of 2013 Act”
195
(e) issuing commission for the examination of witnesses; (h reviewing its
decisions, directions and orders; (g) any other matter which may be
prescribed.
4.20.7 PROCEDURE BEFORE THE AUTHORITY
The procedure is set out in sections 60, 66 to 73 of the Act as under :
4.20.8 Original Jurisdiction on reference u/s 64
The Authority shall have original jurisdiction to adjudicate upon every reference
made to it under section 64.
4.20.9 Natural Justice
The Authority shall not be bound by the procedure laid down in the “Code of Civil
Procedure, 1908”. The Authority shall be guided by the principles of natural justice.
Subject to the other provisions of this Act and of any rules made thereunder, the
Authority shall have the power to regulate its own procedure.
Notice, Hearing, disposal of reference within 6 months Section 60(4) of the Act
provides that “the Authority shall after receiving reference under section 64 after
giving notice of such reference to all the parties concerned after affording opportunity
of hearing to all parties, and dispose of such reference within a period of 6 months
from the date of receipt of such reference and make an award accordingly shall
arrange to deliver copies of award to parties concerned within a period of 15 days and
make an award accordingly”.
Section 66 of the Act provides that the Authority shall upon receiving reference from
the Collector cause a notice to be served on the following persons, namely: -
(a) the applicant;
(b) all persons interested in the objection, except such (if any) of them as have
consented without protest to receive payment of the compensation awarded;
and
(c) if the objection is in regard to the area of the land or to the amount of the
compensation, the Collector.
196
The notice shall specify the day on which the Authority will proceed to determine the
objection and direct the appearance of above parties before the Authority on that day.
4.20.10 Scope of proceedings before Authority
Section 67 of the Act provides that the "scope of the enquiry in every such proceeding
shall be restricted to a consideration of the interest of the persons affected by the
objection".
4.20.11 Proceedings in public52 :-
Section 68 provides that “every such proceeding shall take place in public. All
persons entitled to practice in any Civil Court in the State shall be entitled to appear,
plead and act (as the case may be) in such proceeding”.
4.20.12 Award
4.20.12.1 Compensation (market value)53
Section 69(1) provides that in determining the amount of compensation to be awarded

for land acquired including the R&R entitlements, the Authority shall take into
consideration whether the Collector has followed the parameters set out under section
26 to section 30 and the provisions under Chapter V of this Act.
4.20.12.2 Interest @ 12% p.a. :-
Section 69(2) provides that “in addition to the market value of the land, as above
provided, the Authority shall in every case award an amount calculated at the rate of
12% p.a. on such market value”.
The interest period will be as follows:-
 on and from the date of the publication of the preliminary notification under
section 11 in respect of such land,
 to the date of the award of the Collector or the date of taking possession of the
land, whichever is earlier.
52
“Sec. 68 of 2013 Act”
53
“Sec. 69 of 2013 Act”
197
“In computing the above period, any period or periods during which the proceedings
for the acquisition of the land were held up on account of any stay or injunction by the
order of any Court shall be excluded”.
4.20.12.3 Solatium @ 100% of total compensation:-
Section 69(3) - In addition to the market value of the land as above provided, the
Authority shall in every case award a solatium of 100% over the total compensation
amount.
4.20.12.4 Collector may be directed to pay interest on excess compensation54.
Section 72 provides that—
 “if the sum, which in the opinion of the Authority, the Collector ought to have
awarded as compensation is in excess of the sum which the Collector did
award as compensation”,
 “the award of the Authority concerned may direct that the Collector shall pay
interest on such excess at the rate of 9% p.a. from the date on which he took
possession of the land to the date of payment of such excess into Authority”.
4.20.13 Form of award55
Section 70(1) of the Act provides that “every award under this Chapter shall be in
writing signed by the Presiding Officer of the Authority”. The award shall specify:
 the amount awarded under different clauses of section 23,
 together with the grounds of awarding each of the said amounts.
4.20.14 Award - A decree; every round of award - A judgment
 “Every such award shall be deemed to be a decree within the meaning of

clause (2) of section 2 of the Code of Civil Procedure, 1908 and the statement
of the grounds of every such award a judgment within the meaning of clause
(9) of respectively of section 2 of the Code of Civil Procedure, 1908.
54
“Sec. 72 of 2013 Act”
55
“Sec. 70 of 2013 Act”
198
4.20.15 Provision of Costs56 :-
Section 71(1) provides that “every such award shall also state the amount of costs
incurred in the proceeding under this Chapter, and by what persons and in what
proportions they are to be paid”.
4.20.16 Costs where Collector's award not upheld:-
Section 71(2) provides that “when the award of the Collector is not upheld the cost
hall ordinarily be paid 11, the Collector, unless the Authority is of the opinion that the
claim of the applicant was so extravagant or that he was so negligent in putting his
case before the Collector that some deduction from his costs should be made or that
he should pay a part of the Collector's costs”.
4.20.17 Copies of award to parties concerned
The Authority shall arrange to deliver copies of the award to the parties concerned
within a period of 15 days from the date of such award.
4.20.18 RE-DETERMINATION OF AMOUNT OF COMPENSATION ON THE

BASIS OF THE AWARD OF THE AUTHORITY57
Section 73 of the Act provides that “in an award under this Chapter, suppose the
Authority allows to the applicant any amount of compensation in excess of the
amount awarded by the Collector under section 23. It may be that other persons
interested in all the other land covered by the same preliminary notification under
section 11, and who are also aggrieved by the award of the Collector may not have
made an application to the Collector to make a reference to the Authority and such
persons may by written application to the Collector within 3 months from the date of
the award of the Authority require that the amount of compensation payable to them
may be re-determined on the basis of the amount of compensation awarded by the
Authority. In computing the period of 3 months, the day on which the award was
pronounced and the time requisite for obtaining a copy of the award shall be
excluded”.
56
“Sec. 71 of 2013 Act”
57
“Sec. 73 of 2013 Act”
199
“The Collector shall, on receipt of an application as above, conduct an inquiry after
giving notice to all the persons interested and giving them a reasonable opportunity of
being heard, and make an award determining the amount of compensation payable to
the applicants. Any person who has not accepted the award of Collector may, by
written application to the Collector, require that the matter be referred by the
Collector for the determination of the Authority concerned”.
4.20.19 JURISDICTION OF CIVIL COURTS BARRED58:-
Section 63 of The Act Provides that Jurisdiction of Civil Courts is barred.
 “No civil court (other than High Court under article 226 or article 227 of the
Constitution or the Supreme Court) shall have jurisdiction to entertain any
dispute relating to land acquisition in respect of which the Collector or the
Authority is empowered by or under this Act”, and
 “No injunction shall be granted by any court in respect of any such matter”.
4.20.20 APPEAL TO HIGH COURT 59
Section 74 of the Act provides that “the Requiring Body or any person aggrieved by
the Award passed by an Authority under section 69 may file an appeal to the High
Court within 60 days from the date of Award. The High Court may, if it is satisfied
that the appellant was prevented by sufficient cause from filing the appeal within the
said period, allow it to be filed within a further period not exceeding 60 days”.
Every appeal shall be heard as expeditiously as possible. Endeavor shall be made to

dispose of such appeal within six months from the date on which the appeal is
presented to the High Court.
4.20.21 PARTICULARS OF APPORTIONMENT TO BE SPECIFIED60
Section 75 of the Act provides that “when there are several persons interested, if such
persons agree in the apportionment of the compensation, the particulars of such
58
“Sec. 63 of 2013 Act”
59
“Sec. 74 of 2013 Act”
60
“Sec. 75 of 2013 Act”
200
apportionment shall be specified in the award, as between such persons the award
shall be conclusive evidence of the correctness of the apportionment”.
4.20.22 DISPUTE AS TO APPORTIONMENT OF COMPENSATION61
Section 76 provides that “when the amount of compensation has been settled, if any
dispute arises as to the apportionment of the same or any part thereof, or as to the
persons to whom the same or any part thereof is payable, the Collector may refer such
disputes to the Authority”.
4.20.23 PAYMENT OF COMPENSATION OR DEPOSIT OF SAME IN

AUTHORITY62:-
Section 77 of the Act provides that “on making an award, the Collector shall tender
payment of the compensation awarded by him to the persons interested entitled
thereto according to the award. The Collector shall pay it to them by depositing the
amount in their bank accounts unless prevented by one or more of the following
contingencies if the person entitled to compensation has not consented to receive it, or
if there be no person competent to alienate the land, or if there be any dispute as to the
title to receive the compensation or as to the apportionment of it”.
Therefore, “in the above contingencies, the Collector shall deposit the amount of the
compensation in the Authority (LARR Authority to which reference would be made
u/s 64) and any person admitted to be interested may receive such payment under
protest as to the sufficiency of the amount”.
4.20.24 “No person who has received the amount otherwise than under protest
shall be entitled to make any application for reference to the Authority under
section 64(1)” [Second proviso to section 77( 2)]
Nothing contained shall affect the liability of any person, who may receive the whole
or any part of any compensation awarded under this Act, to pay the same to the
person lawfully entitled thereto.
61
“Sec. 76 of 2013 Act”
62
“Sec. 77 of 2013 Act”
201
4.20.25 Provisions of Interest63 :-
Section 80 of the Act provides provisions for interest as follows:-
 “when the amount of such compensation is not paid or deposited on or before

taking possession of the land, the Collector shall pay the amount awarded
with interest thereon at the rate of 996 per annum from the time of so taking
possession until it shall have been so paid or deposited”.
If such compensation or any part thereof is not paid or deposited within a period of
one year from the date on which possession is taken, interest at the rate of 1596 per
annum shall be payable from the date or expiry of the said period of one year on the
amount of compensation or part thereof which has not been paid or deposited before
the date of such expiry.
4.20.26 INVESTMENT OF MONEY DEPOSITED IN THE AUTHORITY64
Section 78 provides provisions for investment also :
“if any money is deposited in the Authority and it appears that the land in respect
whereof the same was awarded belonged to any person who had no power to alienate
the same, the Authority concerned shall order the money to be invested in the
purchase of other lands to be held under the like title and conditions of ownership as
the land in respect of which such money shall have been deposited was held; or if
such purchase cannot be effected forthwith, then in such Government or other
approved securities as the Authority concerned shall think fit, and direct the payment
of the interest or other proceeds arising from such investment to the person or persons
who would for the time being have been entitled to the possession of the said land.
Such moneys shall remain so deposited and invested until the same be applied -
(i) in the purchase of such other lands as aforesaid; or
(ii) in payment to any person or persons becoming absolutely entitled thereto”.
63
“Sec. 80 of 2013 Act”
64
“Sec. 78 of 2013 Act”
202
“In all cases of money deposited to which this section applies the Authority shall
order the costs of the following matters, including therein all reasonable charge and
expenses incident thereon, to be paid by the Collector, namely :-
(a) the costs of such investments as aforesaid;
(b) the costs of the orders for the payment of the interest or other proceeds of the
securities upon which such moneys are for the time being invested, and for the
payment out of the Authority concerned of the principal of such moneys, and
of all proceedings relating thereto, except such as may be occasioned by
litigation between adverse claimants”.
“Section 79 provides that when any money shall have been deposited in the Authority
for any cause other than the causes mentioned in section 78, the Authority may,
(i) on the application of any party interested or claiming an interest in such

money,
(ii) order the same to be
(a) invested in such Government or other approved securities as it may

think proper, and
(b) paid in such manner as it may consider will give the parties interested
therein the same benefit from it as they might have had from the land
in respect whereof such money shall have been deposited or as near
thereto as may be”.
4.21 TEMPORARY OCCUPATION OF LAND65 :-
Section 81 of the Act provides that “whenever it appears to the appropriate

Government that the temporary occupation and use of any waste or arable land are
needed for any public purpose, the appropriate Government may direct the Collector
to procure the occupation and use of the same for such terms as it shall think fit,
temporary occupation/use shall be for not exceeding 3 years from the commencement
of such occupation”.
65
“Sec. 81 of 2013 Act”
203
The Collector shall thereupon:
 “give notice in writing to the person interested in such land of the purpose for
which the same is needed, and
 shall, for the occupation and use thereof for such term as aforesaid, and for the
materials (if any) to be taken there from, pay to them such compensation,
either in a gross sum of money, or by monthly or other periodical payments, as
shall be agreed upon in writing between him and such persons respectively
and in case the Collector and the persons interested differ as to the sufficiency
of the compensation or apportionment thereof, the Collector shall refer such
difference to the decision of the Authority”.
4.21.1 POWER TO ENTER AND TAKE POSSESSION AND

COMPENSATION ON RESTORATION66
Section 82 of the Act provides that “on payment of such compensation, or on

executing such agreement, or on making a reference, the Collector may enter upon
and take possession of the land, and use or permit the use thereof in accordance with
the terms of the said notice”.
“However on the expiration of the term, the Collector shall make or tender to the
persons interested compensation for the damage (if any) done to the land and not
provided for by the agreement, and shall restore the land to the persons interested
therein”.
“The appropriate Government shall proceed under this Act to acquire the land as if it
was needed permanently for a public purpose if the land has become permanently
unfit to be used for the purpose for which it was used immediately before the
commencement of such term; and If the persons interested shall so require”.
4.21.2 DIFFERENCE AS TO CONDITION OF LAND
Section 83 provides that in case the Collector and persons interested differ :
66
“Sec. 82 of 2013 Act”
204
 as to the condition of the land at the expiration of the term, or
 as to any matter connected with the said agreement,
 the Collector shall refer such difference to the decision of the Authority
concerned.
4.22 INOME TAX EXEMPTION67:-
Section 96 of the Act provides provisions for exemption from income-tax, stamp
duty and fees as under:
 No income-tax or stamp duty shall be levied on any award or agreement made
under this Act (LARR Act).
 No person claiming under any such award or agreement shall be liable to pay
any fee for a copy of the same.
 However, no such exemption from income-tax or stamp duty will be
applicable to agreement made through private negotiations under section 46 of
the Act.
Thus, for exemption from income-tax, the following conditions need to be satisfied-
(i) the amount should be received under any award or agreement.
(ii) such award or agreement should have been made under the LARR Act.
(iii) agreement should not be one made through private negotiations under section
46 of the Act.
4.23 AWARD
There is no definition of "award" in LARR Act. But one thing is definite. The award
should have been made under the LARR Act. Amounts received under awards made
under the 1894 Act shall not qualify for income-tax exemption under section 96 of the
67
“Sec. 96 of 2013 Act”
205
LARR Act. It would be instructive to examine provisions of the Act relating to
"award".
4.23.1 Collectors award of compensation for land owners
Section 30(2) of the Act provides that the Collector shall issue individual awards
detailing the particulars of compensation payable and the details of payment of the
compensation as specified in the First Schedule.
Item 6 of the First Schedule to the LARR Act says that the "Final award in rural
areas" shall be:
“Market value of land as determined under section 26 multiplied by factor of one Plus
value of assets attached to land or building as determined under section 29”.
4.23.2 Plus solatium:-
Item 7 of the First Schedule to the LARR Act says that the "Final award in urban
areas" shall be:
“Market value of land as determined under section 26 multiplied by factor of one
(1.00) to two (2.00) as notified by the appropriate Government Plus value of assets
attached to land or building as determined under section 29”.
4.23.3 Plus solatium:-
Section 30(1) of the Act says that the Collector having determined the total
compensation to be paid shall to arrive at the final award impose a solatium of amount
equivalent to 100% of the compensation amount.
Section 30(3) provides that the Collector shall award interest at an amount calculated
at the rate of 12% p.a. on market value of land. Interest shall be awarded for the
period on and from the date of publication of the notification of the SIA study in
206
respect of such land till the date of the award of the Collector or the date of taking
possession of the land, whichever is earlier
Thus, it appears that market value of land multiplied by specified factor, value of
assets attached to land or building and solatium will be clearly regarded as amounts
covered by the award and shall be exempt from income-tax. Doubts arise whether
12% p.a. interest awarded shall enjoy tax-free status in view of the words 'final award'
used in the First Schedule as well as section 30(1). However CBDT needs to clarify
this.
4.23.4 Collector's award of R&R entitlements :-
Section 31(1) of the Act provides that the Collector shall pass R&R awards for each
affected family in terms of the entitlements pro-vided in the Second Schedule. R&R
entitlements received as per the Second Schedule shall be exempt from income-tax as
it is clearly under an award of Collector.
4.23.5 Award by LARR Authority on Reference:-
4.23.5.1 Compensation68 (market value)
Section 69(1) provides that in determining the amount of compensation to be awarded
for land acquired including the R&R entitlements, the Authority shall take into
consideration:
 whether the Collector has followed the parameters set out under section 26 to
section 30 and the provisions under Chapter V of this Act.
4.23.5.2 Interest @ 12% p.a.
68
“Sec. 69 of 2013 Act”
207
Section 69(2) provides that “in addition to the market value of the land, as above
provided, the Authority shall in every case award an amount calculated at the rate of
12% p.a. on such market value”.
“Further the interest will be for the period on and from the date of the publication of
the preliminary notification under section 11 in respect of such land to the date of the
award of the Collector or the date of taking possession of the land, whichever is
earlier and in computing the above period, any period or periods during which the
proceedings for the acquisition of the land were held up on ac-count of any stay or
injunction by the order of any Court shall be excluded”.
4.23.5.3 Solatium @100% of total compensation
Section 69(3) - In addition to the market value of the land as above provided, the
Authority shall in every case award a solatium of 100% over the total compensation
amount.
4.23.5.4 Collector may be directed to pay interest on excess compensation.
Section 72 provides that
 if the sum, which in the opinion of the Authority, the Collector ought to have
awarded as compensation is in excess of the sum which the Collector did
award as compensation,
 the award of the Authority concerned may direct that the Collector shall pay
interest on such excess at the rate of 9% p.a. from the date on which he took
possession of the land to the date of payment of such excess into Authority.
4.23.6 Form of award
208
 Section 70(1) of the Act provides that every award under this Chapter shall be
in writing signed by the Presiding Officer of the Authority. The award shall
specify:
 the amount awarded under clause first (sic) of sub-section (1) (sic) of section
23, and also,
 he amounts (if any) respectively awarded under each of the other clauses of
the same sub-section,
 together with the grounds of awarding each of the said amounts.
4.23.7 AGREEMENT69
Section 81 of the Act provides that:
“whenever it appears to the appropriate Government that the temporary occupation
and use of any waste or arable land are needed for any public purpose, or for a
company, the appropriate Government may direct the Collector to procure the
occupation and use of the same for such terms as it shall think fit, temporary
occupation/use shall be for not exceeding 3 years from the commencement of such
occupation”. “The Collector shall thereupon:
 give notice in writing to the person interested in such land of the purpose for
which the same is needed, and
 shall, for the occupation and use thereof for such term as aforesaid, and for the
materials (if any) to be taken therefrom, pay to them such compensation, either
in a gross sum of money, or by monthly or other periodical payments, as shall
be agreed upon in writing between him and such persons respectively”.
69
“Sec. 81 of 2013 Act”
209
In case “the Collector and the persons interested differ as to the sufficiency of the
compensation or apportionment thereof, the Collector shall refer such difference to
the decision of the Authority”. Thus, any amount received as compensation for
temporary occupation of waste or arable land under agreement with Collector shall be
exempt from income-tax under section 96 of the Act
4.23.8 INTEREST
Section 80 of the Act provides that “when the amount of such compensation is not
paid or deposited on or before taking possession of the land, the Collector shall pay
the amount awarded with interest thereon at the rate of 996 per annum from the time
of so taking possession until it shall have been so paid or deposited. If such
compensation or any part thereof is not paid or deposited within a period of one year
from the date on which possession is taken, interest at the rate of 15% per annum shall
be payable from the date or expiry of the said period of one year on the amount of
compensation or part thereof which has not been paid or deposited before the date of
such expiry”.
This amount shall not be tax-free under section 96 as it is not part of award. The
liability to pay this interest arises on non-payment of compensation on or before
taking possession which comes after award is made.
4.23.9 COMPENSATION PAID FOR URGENT LAND ACQUISITIONS
UNDER SECTION 40.
There is no mention in section 40 of making an award to pay compensation for urgent
acquisitions. Therefore question arises as to tax-free status of amount of compensation
as well as 7596 additional compensation paid under section 40. The 40%
appreciation to be paid to original owners for transfer or sale of acquired land
without development and the 4096 of appreciation received by original owners under
210
section 102 shall not enjoy tax-free status under section 96 as it is not received under
any award or agreement.
4.24 SERVICE OF NOTICE70
Section 92 of the Act provides as under “save as otherwise provided in section 66, the
service of any notice under this Act shall be made by delivering or tendering a copy
thereof signed, in the case of a notice 71, by the officer therein mentioned, and, in the
case of any other notice, by order of the Collector”.
 “Further whenever it may be practicable, the service of the notice shall be
made on the person therein named and when such person cannot be found, the
service maybe made on any adult member of his family residing with him”.
 “Further if no such adult member can be found, the notice may be served by
fixing the copy on the outer door of the house in which the person therein
named ordinarily dwells or carries on business, or by fixing a copy thereof in
some conspicuous place in the office of the officer aforesaid or of the
Collector or in the court-house, and also in some conspicuous part of the land
to be acquired”.
 And “If the Collector or Judge shall so direct, a notice may be sent by post, in
a letter addressed to the person named therein at his last known residence,
address or place of business and also publish the same in at least two national
daily newspapers and also on his website”.
70
“Sec. 92 of 2013 Act”
71
“Sec. 12 of 2013 Act”
211

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CHAPTER-4

LAND ACQUISITION ACT, 2013: ISSUES AND

I. “To ensure, in consultation with institutions of local self-government and

4.2.1 NEED FOR NEW LAND ACQUISITION LAW

♦ Very wide definition of 'Public Purpose' – “The definition of the expression

♦ State intervention for acquiring private lands for companies –“The

♦ Acquisition of multi-cropped land- “There has been heightened public

♦ No option to acquire land on lease instead of outright acquisition – “A

4.3 TERRITORIAL EXTENT OF THE LARR ACT, 2013

4.4 EFFECTIVE DATE FOR ENFORCEMENT OF LARR ACT, 2013

a) “Where no award u/s 11 of the 1894 Act has been made –

4.6 PROVISIONS FOR LAND ACQUISITIONS UNDER SPECIAL ACTS

“The Fourth Schedule to the Act specifies the following enactments”:

I. “The Ancient Monuments and Archaeological Sites and Remains Act,

4.6.2 ACT APPLICABLE TO LAND ACQUISITIONS UNDER

4.6.3 ACT APPLICABLE TO LAND ACQUISITIONS UNDER WORKS OF

4.7 ANALYSIS OF NEW PROVISIONS OF 2013 ACT:

4.7.1 LAND BANK6

"Land Bank" means “a governmental entity that focuses on the conversion of

4.7.2 OPTION OF THE APPROPRIATE GOVT. TO TAKE THE LAND ON

1.7.2 REHABILITATION AND RESETTLEMENT (R&R) PROVISIONS

4.7.4 MANDATORY SOCIAL IMPACT ASSESSMENT STUDY

4.7.6 40% OF APPRECIATION TO BE SHARED WITH ORIGINAL LAND

Section 102 of the Act provides as under:

(i) “Acquired land is transferred for consideration”.

4.7.7 “OPTION TO AFFECTED FAMILIES TO AVAIL BETTER

4.8 ANALYSIS OF IMPORTANT DEFINITIONS GIVEN IN 2013 ACT10

4.8.1 "AFFECTED FAMILY"

4.8.2 Family, connotation of

4.8.3 AGRICULTURAL LAND

(i) “agriculture or horticulture”;

(ii) “dairy farming, poultry farming, pisciculture, sericulture, seed farming,

(iv) “land used for the grazing of cattle”.

4.8.4 COST OF ACQUISITION

(i) “amount of compensation which includes solatium, any enhanced

(iii) “cost of acquisition of land and building for settlement of displaced or

(iv) “cost of development of infrastructure and amenities at the resettlement

(v) “cost of rehabilitation and resettlement as determined in accordance with the

(vi) “administrative cost”,

(vii) “cost of undertaking 'Social Impact Assessment study”.

According to section 3(e) of the Act defines "appropriate Government" to mean,-

"appropriate Government" means in "appropriate Government" means in

"appropriate Government" means,— "appropriate Government" means “in

in relation to acquisition of land notification) shall be the State

(iii) “in relation to acquisition of land

(iv) “in relation to acquisition of land

4.8.6 DISPLACED FAMILY

4.8.10 “ENTITLED TO ACT”

4.8.15 LAND OWNER

4.8.16 LOCAL AUTHORITY

4.8.20 “PUBLIC PURPOSE”

4.8.22 SMALL FARMER

4.8.23 SCHEDULED AREAS

4.9 APPLICATION OF 2013 ACT:-

Sr. Land Acquisition Provisions of the Act applicable

(i) “Appropriate Government The provisions of the Act relating

(ii) Appropriate Government acquires The provisions of the Act relating

(iii) Purchases by private companies The provisions of the Act relating

4.10 ACQUISITION FOR PUBLIC PURPOSE:-