Rehabilitation and

Resettlement under
RFCTLAR&R Act, 2013

PRESENTED BY

Sanjukta Swain,
Assistant Collector ,
Hindol, Dhenkanal.
ORS Induction Training,
18th Batch(26.07.18-17.08.18)
CONTENTS

INTRODUCTION 1

BACKGROUND OF THE ACT 1

FACTORS FOR NEW LEGISLATION 2

SHORTCOMINGS OF THE LAND ACQUISITION Act, 1894 3

PURPOSE OF RFCTLAR&R ACT, 2013 3

PROCESS FLOW OF LAND ACQUISITION AND 4

REHABILITATION & RESETTLEMENT UNDER THE NEW
ACT.

PROVISIONS OF REHABILITATION AND RESETTLEMENT 5-6

UNDER RFCTLAR&R ACT, 2013

BENEFITS UNDER REHABILITATION AND RESETTLEMENT 7-10

SHORTCOMINGS OF THE RFCTLAR&R Act 10

CONCLUSION 10

REFERENCES

 The Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act, 2013
 Ghatak, Maitreesh& Ghosh, Pratikshit. (2011), The Land Acquisition Bill: A Critique
and A Proposal, Centre for Development Economics.
 The Centre for Excellence in Management of Land Acquisition, Resettlement and
Rehabilitation (CMLARR), ASCI
 Sociology of Displacement: Policies and Practice : Sakarama Somayaji, Susmita
Dasgupta
 Training Materials of ROTI
INTRODUCTION

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 is an Indian Parliament act that regulates land acquisition and laid
down rules for granting compensation, rehabilitation and resettlement to the people
affected in regions. The Act also has provisions to provide fair compensation to those whose
lands are taken away, bring transparency to the acquisition of land or buildings,
infrastructural projects under Public or Private Entities and ensures rehabilitation to those
affected. The Act has established regulations for land acquisition to attract India's massive
industrialization sector under the public private partnership. This Act is a replacement of
1894 Land Acquisition Act, a law established under the British Rule.

BACKGROUND OF THE ACT

The Central Government believed that public concern on land acquisition was growing and
inadequate knowledge of land acquisition in the public was heating the issue. Despite
formation of the bill, many concerns were of its amendments, as the bill was formed under
the British Raj in 1894, hence mentioning of fair compensation for acquiring private land
and fair rehabilitation of land owners and those affected by the acquisition of the land was
important. The Central government believed that a combined was necessary, one that
legally explains clauses of rehabilitation and resettlement and assist the government in
acquiring the lands for public purposes.

Provision of public facilities or infrastructure often requires the exercise of legal powers by
the state under the principle of eminent domain for acquisition of private property, leading
to involuntary displacement of people, depriving them of their land, livelihood and shelter;
restricting their access to traditional resource base, and uprooting them from their socio-
cultural environment. These have traumatic, psychological and socio-cultural consequences
on the affected population which call for protecting their rights, in particular of the weaker
sections of the society including members of the Scheduled Castes, Scheduled Tribes,
marginal farmers and women. Involuntary displacement of people may be caused by other
factors also.

There is imperative need to recognise rehabilitation and resettlement issues as intrinsic to

the development, process formulated with the active participation of the affected persons,
rather than as externally-imposed requirements. Additional benefits beyond monetary
compensation have to be provided to the families affected adversely by involuntary
displacement. The plight of those who do not have legal or recognised rights over the land
on which they are critically dependent for their subsistence is even worse. This calls for a
broader concerted effort on the part of the planners to include in the displacement,
rehabilitation and resettlement process framework not only those who directly lose land
and other assets but also those who are affected by such acquisition of assets. The
displacement process often poses problems that make it difficult for the affected persons to
continue their earlier livelihood activities after resettlement. This requires a careful
assessment of the economic disadvantages and social impact of displacement. There must
also be a holistic effort aimed at improving the all round living standards of the affected
people.
The Supreme Court emphasized on the need to enact a new land acquisition law. In
November 2011, a joint bench of Justice Lodha and Justice Khehar in their Judgement
vehemently remarked ‘’ It has been felt that Land Acquisition Act 1894(L.A.A 1894) does not
adequately protect the interest of owners / persons interested in the land. For years, the
acquired land remains unused. To say the least, the Act has become outdated and needs to
be replaced at the earliest with fair, reasonable and rational enactment in tune with the
constitutional provisions, particularly Act 300A.’’
Undoubtedly land acquisition has remained a controversial issue in India resulting in
conflicts between social, economic and political structures.
Accordingly, U.P.A(United Progressive Alliance) government brought in the new legislation,
Right to fair compensation and Transparency in land acquisition, Rehabilitation and
Resettlement Act 2013, with a view to provide for a fair deal to the land owners who had
suffered due to weak framework of the Land Acquisition Act 1894.
The R.F.C.T.L.A.R.R was passed by the Parliament on 5th September 2013 and came into
force on January 2014. The Act overrode the Colonial Land Acquisition Act (L.A.A.) 1894. The
2013 Act for the first time, integrated Land Acquisition with Rehabilitation and Resettlement
(R&R) and Social Impact Assessment (S.I.A.).

FACTORS FOR NEW LEGISLATION

In India, the Land Acquisition Act (L.A.A) 1894 had served as the basis for all government
acquisition of land for public purposes. The Government of India adopted the L.A.A 1894.
The Constitution of India placed “Acquisition and Requisitioning of Property” as entry 42 is
the concurrent list. This meant that both the Centre and State could make laws governing
land acquisition. However, in case of conflict between the Central and State Law the Central
Legislation would prevail.
However, the law failed to address some important issues associated with land acquisition
particularly forcible acquisitions, the definition of “Public purpose, widespread misuse of the
“Urgency” clause, compensation, and lack of transparency in the acquisition process,
participation of communities whose land was being acquired and lack of R & R package.The
Supreme Court Judgments on various occasions spelt out divergent views in “Public
Purpose”. In the State of Bombay v. R.S. Nanji, 1956, the Supreme Court of India observed
“it is impossible to precisely define the expression “Public Purpose”. In each case, all the
facts and circumstances will require to be closely examined in order to determine whether a
public purpose has been established. Prima facie, the government is the best judge as to
whether public purpose is served by using a requisition order, but is not the sole judge. The
courts have the jurisdiction and it is their duty to determine this matter whenever a
question is raised whether a requisition order is or is not for a public purpose.
In Coffee Board v. Commissioner of Commercial Taxes, 1988, The Supreme Court of India
again stated “Eminent domain is an essential attribute of sovereignty of every state and
authorities are universal in support of the definition of eminent domain as the power of the
sovereign to take property for public use without the owner’s consent upon making just
compensation.
SHORTCOMINGS OF THE LAND ACQUISITION Act, 1894
The shortcomings of the Act are dealt below to have first-hand information about the
developments that lead to amend the Land Acquisition Act 1894.
(a) Threat to the land owners: - The Land Acquisition Act 1894 encouraged, forced land
acquisitions. As per the Land Acquisition Act 1894 once the acquiring authority decided to
acquire land, the act provides for carrying out the acquisition without thinking for a moment
about the problems, difficulties and hardships encountered by Land owners. In a way the
land losers were bulldozed forcefully, mercilessly.
(b) No Protection: - Lack of proper forum or mechanism by the Government to stall the
forced land acquisition, excepting a hearing U/s 5A where there is no scope for a discussion
or negotiations to redress the sufferers and the views expressed are not taken seriously by
the officers conducting the hearing.
(c) Rehabilitation & Resettlement: - The Land Acquisition Act 1894 is absolutely silent
regarding the efforts for Rehabilitation and Resettlement of those displaced by the
acquisition.
(d) Urgent Need: - This clause has become very controversial and faced stiff criticism by all
sections of the society. This clause is silent as to the true and correct definitions of urgent
need and such that the authority exercised discretionary powers without any proper and
justified grounds. This resulted in spree of land acquisitions under the guise of urgency
clause in utter disregard to the principles of natural justice and law of equity.
(e) Disparity in Compensation: - Even while fixing the rates of compensation for the land
acquired no justification was made as the rates never matched the prevailing rates which
should have been more appropriate, logically correct and acceptable in the normal course
without giving any scope for arbitrariness.

PURPOSE OFRFCTLAR&R ACT, 2013

The primary objective of the Act was to fair compensation, through R & R of those affected,
adequate safeguards for their well being and completes transparency in the process of land
acquisition.
The most important features of the Act were:
1. The Consent of 80% land owners concerned was needed for acquiring land for private
projects and 70% land owners for public private projects (P.P.P).
2. The term “Public Purpose” which was left vague in the Land Acquisition Act (L.A.A) 1894
was restricted to land for strategic purposes, infrastructural projects, planned development
or improvement of village or urban sites or residential purpose for weaker section and
persons residing in areas affected by natural calamities or displaced.
3. The compensation was increased to four times the market value in rural areas and twice
the market value in urban areas.
4. R & R package for the affected families with additional benefits to the Scheduled Castes
and Scheduled Tribes families.
PROCESS FLOW OFLAND ACQUISITION AND REHABILITATION
&RESETTLEMENT UNDER THE NEW ACT.

 Application for Acquisition by Requiring Body

 Notification for preparation of SIA study (Section 4)
( SIA study to be completed within 6 months of notification)
 Evaluation of SIA report by Expert group within 2 months of its Constitution
(Section7)
Negative recommendation of Expert group
 Abandon Project (Section 7(4))
If Positive, Recommendation (Section 7 (5))
Government to Recommend Land Acquisition (Section 8 (2))
 Preliminary Notification (PN) to be issued within 12 months of Section 7
 Recommendation for Land Acquisition (Section 11) or SIA report will lapse
(Section14)
 Collector to update Land Records (Section 12(5))
 Preliminary survey of land to be carried out (Section 12)
 Filing of Objections (Section 15) within 16 days of Preliminary Notification.
 Preparation of Rehabilitation and Resettlement Scheme by ARR (Section 16)
 Publication of Draft Rehabilitation and Resettlement Scheme.
 Hearing of objections (Section 15(2))
 Collector to make a report and submit to Government along with his
recommendation
 Public hearing on R&R Scheme
 ARR to submit Draft R&R scheme to Collector (Section 16(6))
 After Review, Collector submits Draft R&R scheme along with his suggestions to
Commissioner R&R (Section 17 (2))
 Publication of approved R&R Scheme (Section 19(2))
 Declaration by Government along with summary of R&R scheme after deposit of
Land Acquisition Cost by the Requiring Body (Section 19) within 12 months from
Preliminary Notification or Preliminary Notification Rescinded.
 Land to be marked out, measured and planned if not already done under Section 12
(Section 20)
 Notice to Persons Interested (Section 21)
 Land Acquisition Award within 12 months of the Declaration or else Land Acquisition
Proceedings Lapses (Section 23)
 Compensation and Final Award to Land Owners ( Section 27 and Section 30)
 Rehabilitation and Resettlement Award (Section 31)
 Taking Possession of Acquired Land (Section 38)
PROVISIONS OF REHABILITATION AND RESETTLEMENT UNDER RFCTLAR&R
ACT, 2013
Under Section 31, the Collector shall pass Rehabilitation and Resettlement Awards for each
affected family in terms of the entitlements provided in the Second Schedule.

 The 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;
(j) Particulars of annuity and other entitlements to be provided;
(k)Particulars of special provisions for the Scheduled Castes and the Scheduled Tribes
to be provided.

Under Section 32,in every resettlement area, the Collector shall ensure the provision of all
infrastructural facilities and basic minimum amenities specified in the Third Schedule.

Under Section 35, the Collector shall have powers to summon and enforce the attendance
of witnesses and to compel the production of documents by the same means, and in the
same manner as is provided in the case of a Civil Court under the Code of Civil Procedure,
1908 (5 of 1908).

Under Section 36, the appropriate Government may at any time before the award is made
by the Collector under section 30 call for any record of any proceedings 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 proceedings and may pass such order or issue such direction in relation
thereto as it may think fit

(Provided that 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)
Under Section 37, the Collector declares the final award

(1) The Awards shall be filed in the Collector‘s office and 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.

(2) 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.

(3) The Collector 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.

Under Section 38, the Collector has the power to take possession of land to be acquired.–

(1) 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 within a period of three months for the
compensation and a period of six months for the monetary part of rehabilitation and
resettlement entitlements listed in the Second Schedule commencing from the date of
the award made under section 30.

(2) The Collector shall be responsible for ensuring that the rehabilitation and
resettlement process is completed in all its aspects before displacing the affected
families.

Under Section 39, the Collector shall not displace any family which has already been
displaced by the appropriate Government for the purpose of acquisition under the
provisions of this Act, and if so displaced, shall pay an additional compensation equivalent
to that of the compensation determined under this Act for the second or successive
displacements.

Under Section 40 there are Special powers in case of urgency to acquire land in certain
cases.–

(1) In cases of urgency, whenever the appropriate Government so directs, the

Collector, though no such award has been made, may, on the expiration of thirty days
from the publication of the notice, take possession of any land needed for a public
purpose and such land shall thereupon vest absolutely in the Government, free from
all encumbrances.
 (2) The powers of the appropriate Government under sub-section (1) 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 or any other emergency with
the approval of Parliament.

Under Section 42, Reservation and other 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 are relocated outside those areas, than, all the statutory safeguards,
entitlements and benefits being enjoyed by them shall be extended to the area to
which they are resettled regardless of whether the resettlement area is a Scheduled
Area 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
(2 of 2007), 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.

There are various Institutional mechanisms for Rehabilitation &Resettlement:-

• Sec. 43—Administrator for Rehabilitation and Resettlement Formulation,

ExecutionandmonitoringofR&R Plan.

• Sec. 44—Commissioner for Rehabilitation and Resettlement -Supervision of formulation,

implementation of R&R Plan and post implementation social audit in consultation with
Gram Sabha.

•Sec.45—Rehabilitation and Resettlement Committee at project level (more than 100 acres)
- monitor and review R&R.

•Sec. 48—50 -National Monitoring Committee at central

level&StateMonitoringCommitteeatStatelevel.

BENEFITS UNDER REHABILITATION AND RESETTLEMENT

Various provisions have been made for the affected families towards their displacement on
account of land acquisitions by the governments.
The following are the details:

 Houses: - All affected families are entitled to a house provided they have been
residing in an area for five years or more and have been displaced. In case of
refusal to accept the house, the affected families are offered a one-time
financial grant in lieu of the same.
 Employment or Annuity: - All the affected families are given a choice of annuity
or employment.
1. If employment is not forthcoming, they are entitled to a one time grant of
Rs 5, 00,000/- (Rupees Five Lakhs Only) per family.
2. Alternatively, they will be provided with an annuity payment of Rs 2,000/-
(Rupees Two Thousand Only) per month per family for 20 years, subject to
inflation.
3. Subsistence Allowance: All affected families which are displaced from the
land acquired shall be given a monthly subsistence allowance, equivalent to
Rs 3,000/- (Rupees Three Thousand Only) per month for a period of one year
from the date of the award.
4. All the affected families are also given training and skill development along
with providing employment.
5. All the affected families are given multiple monetary benefits such as
transport allowance of Rs 50,000/- (Rupees Fifty Thousand Only) and
Resettlement allowance of Rs 50,000/- (Rupees Fifty Thousand Only)
6. One-time financial assistance: - Each affected family of an artisan, small
trader or self-employed person 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/-(Rupees Twenty Five Thousand Only).

 In case of acquisition of land for irrigation or hydroelectric project the

Rehabilitation & Resettlement shall be completed six months prior to
submergence of the lands proposed to be acquired.

 Possession: - The Collector shall take possession of land only ensuring that full
payment of compensation as well as rehabilitation and resettlement
entitlements are paid or tendered to the entitled persons within a period of
three months for the compensation and a period of six months for the monetary
part of rehabilitation and resettlement entitlements commencing from the date
of the award. However, families will not be displaced from this land till their
alternative Rehabilitation & Resettlement sites are ready for occupation.

 Time-Limits: - The components of the Rehabilitation & 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.

 Schedule Two of the Act enlists R&R benefits for the affected families. In case of
irrigation projects, as far as possible, each affected family is proposed to be
given one acre of land in the commandarea.PersonsbelongingtoSCor
STandlosingtheir landwillbeprovidedtwo and aone-halfacresoftheland. If the
land is acquired for urbanization purpose, twenty percent of the developed land
will be reserved and offered to the land losers. Mandatory employment to at
least one member per affected family. If it is not possible, then onetime
payment of rupees five lakhs per affected family or annuity policy that pays
 rupeestwothousandpermonthperfamilyfortwentyyears. Onetime financial
assistances like transportation cost, cattle shed/pettyshopcostsetc.

 Resettlement and Rehabilitation benefits to all affected families (in addition to

compensation)
R & R Package- Choice of employment or Rs 5 lakhs or Rs 2000 per month for 20
years.
One-time Resettlement Allowance:Rs. 50,000/ Cattle shed/petty shops-Rs.
25,000/ One time grant to artisan/traders/self employed-Rs. 25,000/ – Fishing
rights in reservoir – Land for land–Irrigation projects (as far as possible) 1 acre of
land (2.5 acres for SCs/STs in command area Displaced FamiliesHousing in case
of displacement–Rural Areas (IAY specifications); Urban areas (constructed
house not less than 50 sq.mts in plinth area/min Rs. 1,50,000) Subsistence grant
for all displaced families–Rs. 3000 per month for one year (additional Rs. 50,000/
for SCs/STs).Transportation grant for all displaced families-Rs. 50,000/ – All
monetary rehabilitation grants and benefits are adjusted based on the
Consumer Price Index. – Stamp duty/registration to be paid by the requiring
body Important R & R Benefits Important R& R Benefits

 Infrastructure Facilities in Resettlement Areas

Third Schedule lists amenities/facilities to be developedintheruralareas. These
include roads, drainage, sources of safe drinking water for affected families,
drinking water for cattle, grazing land, fair price shops, Panchayat Ghars, village
level post office, Burial or Crimination Ground, Anganwadi, community
centres,healthcentres,playgroundetc.
  LA Act, 1894 empowers the appropriate Government to acquire land under
urgency provision for any public purpose U/s 17.
However, in new RFCTLAR&R Act, the urgency provision is restricted to:
(a) Acquisition of land for defence of India; or
(b) National security
(c) For any emergency arising out of natural calamities.
An additional 75 percent of total compensation shallbe paid which was not a provision in
Old act

 If private purchase is beyond certain limits as specified by the appropriate

Governments then the R&R benefits has to be extended to the affected families.
The R&R scheme has to be approved by the Commissionerfor the R&R and No land
use is change permitted if R&R is notcomplied as per the award passed by the
collector. Application to Collector has to include the purpose,particular of land to
be purchased.

SHORTCOMINGS OF THE RFCTLAR&R Act

The Act has a few shortcomings.

First, the meaning of “Public Purpose” which had been progressively enlarged in the existing
Act to include land for private companies remains as it is.
Second, those who are the tillers of the land are often tenants of absentee landlords who
usually pocket the compensation. The same in the case with landless cultivators in
occupation of government lands, who may not get any compensation.
Third, many private companies are circumventing the mandatory “Prior Consent” clause by
deploying brokers to purchase lands in advance.

CONCLUSION

With rapid modernisation and industrialisation it is inevitable for the government to dial
down on new Land Acquisition projects which requires rehabilitation and resettlement of
the displaced. While resettling the displaced families in acolony or cluster, care must be
taken to restore theirlivelihood, socio-cultural identity, cultural practices and social customs.
Efforts must also be made to preserve archaeological sites/ monuments at their new place
of relocation. Special attention must be paid to develop good host and guestrelationship.
Besides, civic amenities should be provided for a decent community living. To ensure proper
resettlement,a socio-cultural survey must be meticulously done in all the ongoing Projects.
The infrastructure survey ensures that the lost community infrastructures are replaced in
the newplace of relocation. To improve the quality of lives, better infrastructural facilities in
the shape of roads,electricity, drinking water, and deep bore well, ponds, schools,
panchayatghar, anganwadi centre etc. must be providedafter thorough discussion and
active participation of the displaced families. This helps to maintain cordial relationship
between the displaced and the government as well as the project proponent.