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

Resettlement Act (LARR Act), 2013:

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

and Resettlement Act (LARR Act), 2013 is an Indian legislation enacted to regulate the process of
land acquisition for public and private purposes. The key features of the LARR Act, 2013 include:

1. Consent of Affected Parties:

o For private projects, the consent of at least 80% of affected families is required, and
for public-private partnership projects, the consent threshold is 70%.
2. Social Impact Assessment (SIA):
o A Social Impact Assessment is mandatory for land acquisition, assessing the
potential social impacts of the acquisition on affected families and communities.
3. Compensation and Rehabilitation:
o The Act emphasizes fair compensation, providing affected families with
compensation up to four times the market value in rural areas and two times in
urban areas.
o Additionally, provisions for rehabilitation and resettlement are included to ensure
the overall well-being of affected families.
4. Exclusivity of Public Purpose:
o Land acquisition can only be done for public purposes, such as infrastructure
projects, and not for private companies unless they are involved in public-private
partnerships.
5. Time Limits:
o The Act imposes time limits on various stages of the land acquisition process to
expedite decision-making and reduce delays.
6. No Urgency Clause:
o The Act eliminates the "urgency" clause that was present in the earlier land
acquisition laws, which often led to hasty acquisitions without proper assessment.
7. Compensation in Case of Abandonment:
o If land acquired under the Act remains unutilized for five years, it must be returned
to the original landowners or the state government must provide compensation.
8. Review by Gram Sabha:
o The Act gives a role to the Gram Sabha (village council) in determining the social
impact of the proposed acquisition.

The LARR Act, 2013 seeks to strike a balance between the need for land for development
projects and the protection of the rights and interests of those whose land is being acquired. It aims
to ensure transparency, fair compensation, and rehabilitation in the land acquisition process.
COMPENSATION:

In the context of land acquisition in rural villages under the Right to Fair Compensation
and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act (LARR Act), 2013 in
India, compensation refers to the monetary amount provided to landowners or those directly
affected by the acquisition of their land. The Act outlines specific provisions for determining and
disbursing compensation in rural areas. Here are key points related to compensation in rural
villages:

1. Market Value:

o Compensation is based on the market value of the land as determined by the higher
of the following:

 The average of the sale transactions for similar land in the vicinity over the
preceding three years.

 The highest sale price for similar land in the area, in the course of the
preceding three years.

2. Multiplier Factor:

o In rural areas, the compensation amount is typically calculated by applying a

multiplier factor, which is set at least two times the market value of the land.

o The Act allows for higher multipliers depending on various factors, including the
distance of the land from the urban area.

3. Additional Amounts:

o In addition to the basic compensation, the Act provides for an additional amount,
which is a percentage of the total compensation.

o This additional amount aims to address factors such as disturbance of livelihood,

involuntary displacement, and the impact on the standard of living.

4. Solatium:

o The Act includes a solatium, which is a compensation amount provided to the

landowner as a form of solace or consolation. It is a percentage of the total
compensation amount.

5. Rehabilitation and Resettlement Provisions:

 o Apart from compensation, the Act includes provisions for rehabilitation and
resettlement of affected families. This may include providing alternative
agricultural land, houses, and other necessary amenities.

6. Consent and Social Impact Assessment:

o The Act mandates obtaining the consent of a specified percentage of affected

families for land acquisition in rural areas. It also requires the conduct of a Social
Impact Assessment (SIA) to assess the potential social impacts on the affected
community.

It's important to note that the LARR Act, 2013 emphasizes a fair and just compensation
mechanism, taking into consideration the well-being and interests of those affected by land
acquisition. The compensation is aimed at ensuring that affected individuals or communities are
adequately compensated for the loss of their land and livelihoods.

CONSENT:

Under the Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation, and Resettlement Act (LARR Act), 2013 in India, the consent of a specified
percentage of affected families is required for land acquisition, depending on the purpose of
acquisition. If a majority agrees but a single person does not consent, it can have implications for
the land acquisition process. Here's how the situation might unfold:

1. For Private Projects:

o For private projects, the consent of at least 80% of the affected families is typically
required. If the majority agrees, but a single person does not consent, the
acquisition may face challenges.
2. For Public-Private Partnership (PPP) Projects:
o In the case of public-private partnership projects, the consent threshold is 70% of
the affected families. If the majority agrees, but a single person does not consent, it
may still pose a challenge to the acquisition process.
3. Resolution Process:
o The LARR Act does not specifically outline a resolution process for such situations
where there is disagreement within the affected families.
o Disputes or lack of consent may lead to delays in the acquisition process, and it
may require further negotiation or mediation.
4. Potential Legal Challenges:
o The individual who does not consent may explore legal avenues to challenge the
acquisition, arguing that their rights and interests are being adversely affected.
5. Alternative Solutions:
o Authorities and project developers may need to explore alternative solutions, such
as modifying the project layout or addressing specific concerns raised by the
dissenting individual.
o
 6. Social Impact Assessment (SIA):
o The Social Impact Assessment (SIA) process may provide insights into the
concerns raised by the dissenting individual, and efforts may be made to address
those concerns to secure broader consent.

It's important to note that the LARR Act emphasizes the importance of obtaining the
consent of the affected families, and efforts are generally made to address concerns and grievances
through dialogue and negotiation. However, if consensus cannot be reached, the legal and
procedural aspects may need to be carefully considered to ensure that the land acquisition process
aligns with the provisions of the Act while respecting the rights and concerns of all stakeholders.

THE SOCIAL IMPACT ASSESSMENT (SIA):

The Social Impact Assessment (SIA) is a crucial component of the land acquisition process
under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and
Resettlement Act (LARR Act), 2013 in India. SIA is conducted to assess the potential social
impacts of a proposed acquisition on the affected communities, especially those whose lands and
livelihoods are being affected. Here are the key aspects of SIA:

1. Objective of SIA:
o The primary objective of SIA is to understand and evaluate the social consequences
of land acquisition, rehabilitation, and resettlement on the affected people and
communities.
2. Applicability:
o SIA is mandatory for all land acquisitions, whether for public or private purposes,
where the number of affected families exceeds a specified threshold, as per the
provisions of the LARR Act.
3. Conducting SIA:
o The SIA process is carried out by independent experts or agencies appointed by the
appropriate government.
o It involves a comprehensive study of the potential impacts on the social, economic,
and cultural aspects of the affected population.
4. Key Components of SIA:
o Identification of affected families and communities.
o Assessment of the social and cultural practices of the affected communities.
o Evaluation of the existing livelihood patterns and the potential disruption due to the
acquisition.
o Analysis of the potential changes in the standard of living and quality of life.
o Identification of vulnerable groups and marginalized sections and assessing their
specific needs.
o Assessment of the likely displacement and resettlement scenarios.
5. Public Consultation:
o Public consultation is a vital part of the SIA process. It involves engaging with the
affected families and communities to gather their perspectives, concerns, and
aspirations.
 o Information related to the proposed acquisition and its impacts is shared with the
public, and their feedback is considered in the SIA report.
6. SIA Report:
o The findings of the SIA are compiled into a comprehensive report. This report
includes an analysis of the potential social impacts, details of public consultations,
and recommendations for mitigating adverse impacts.
7. Decision-Making:
o The SIA report becomes an integral part of the decision-making process for land
acquisition. The appropriate government reviews the report before making a
decision on the acquisition.
8. Mitigation Measures:
o Based on the SIA findings, appropriate mitigation measures are recommended to
address any adverse social impacts. These may include measures for rehabilitation,
resettlement, and overall improvement of the affected communities' well-being.

The SIA process is designed to ensure that the social consequences of land acquisition are
thoroughly understood and considered during the decision-making process. It emphasizes
transparency, public participation, and the protection of the rights and interests of the affected
communities. The information gathered through the SIA helps in formulating strategies for
minimizing negative impacts and enhancing the overall social well-being of the affected
population.

THE MULTIPLIER FACTOR AND SOLATIUM:

In the context of land acquisition under the Right to Fair Compensation and Transparency
in Land Acquisition, Rehabilitation, and Resettlement Act (LARR Act), 2013 in India, the
multiplier factor and solatium are components used to determine compensation for affected
landowners. Here's an explanation of both concepts with examples:

1. Multiplier Factor:
o The multiplier factor is applied to the market value of the land to calculate the final
compensation amount. It takes into consideration various factors such as the
location of the land, its proximity to urban areas, and other relevant considerations.
o The LARR Act, 2013 specifies that the compensation amount shall be determined
by multiplying the market value of the land by a factor, which shall not be less than
two for rural areas and not less than one for urban areas.
o The Act allows for a higher multiplier in certain cases, considering factors like the
distance of the land from the urban area.

Example:

o If the market value of a piece of rural land is determined to be Rs. 10,00,000, and
the multiplier factor set by the government is 2, the compensation amount would be
2 * Rs. 10,00,000 = Rs. 20,00,000.
 2. Solatium:
o Solatium is an additional compensation amount provided to the landowner as a
form of solace or consolation. It is a percentage of the total compensation amount.
o The solatium amount is intended to address the fact that the process of land
acquisition can cause distress and loss to the landowner beyond the actual value of
the land.

Example:

o Let's say the total compensation determined for a piece of land is Rs. 20,00,000,
and the solatium percentage specified by the Act is 100%. The solatium amount
would be 100% of Rs. 20,00,000, i.e., Rs. 20,00,000.
o Therefore, the total compensation, including solatium, would be Rs. 20,00,000
(compensation) + Rs. 20,00,000 (solatium) = Rs. 40,00,000.

It's important to note that the LARR Act, 2013 outlines these compensation mechanisms to
ensure that landowners receive fair and just compensation for the acquisition of their land. The use
of the multiplier factor and solatium aims to take into account various aspects of the impact of land
acquisition on the landowners, beyond just the market value of the land.

THE MARKET VALUE OF LAND:

Determining the market value of land is a complex process that involves evaluating various
factors related to the specific location, characteristics, and potential uses of the land. In the context
of land acquisition under the Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation, and Resettlement Act (LARR Act), 2013 in India, the Act provides guidelines for
assessing the market value. Here are key considerations:

1. Guidelines in the LARR Act:

o The LARR Act, 2013 outlines specific guidelines for determining the market value
of the land. It suggests considering the higher of the following:
 The average sale price of similar types of land in the vicinity over the
preceding three years.
 The highest sale price of similar land in the area, in the course of the
preceding three years.
2. Comparable Sales Approach:
o The market value is often determined using the comparable sales approach, where
the prices of recently sold similar properties in the same locality are considered.
o Factors such as the size of the land, location, accessibility, and potential land uses
are crucial in identifying comparable sales.
3. Professional Appraisal:
o In many cases, professional appraisers or valuers are engaged to assess the market
value of the land. They use established appraisal methods and standards to provide
an unbiased and accurate valuation.
4. Land Characteristics:
 o The physical characteristics of the land, such as its size, shape, topography, soil
quality, and natural features, can influence its market value.
5. Zoning and Land Use Regulations:
o Zoning regulations and land use restrictions in the area play a significant role in
determining land value. Different zones have different permitted uses, and this
affects the market value.
6. Location and Accessibility:
o Proximity to urban areas, transportation facilities, amenities, and infrastructure can
significantly impact land value. Well-located land with good accessibility tends to
have a higher market value.
7. Market Trends:
o Current market trends and economic conditions also influence land values. Factors
such as demand and supply dynamics, economic development, and investment
trends can affect the market value of land.
8. Local Real Estate Market Conditions:
o The overall conditions of the local real estate market, including recent transactions
and the prevailing economic climate, are considered when determining market
value.

It's important to note that the market value determination is a detailed process, and various
factors are taken into account to arrive at a fair and just compensation amount for landowners.
Professional expertise and adherence to established guidelines are crucial to ensure an accurate
valuation that reflects the true market value of the land.

THE ROLE AND POWERS OF THE GRAM SABHA (VILLAGE ASSEMBLY):

1. Consent for Land Acquisition:

o The Gram Sabha plays a crucial role in the process of obtaining the consent of
affected families for land acquisition. For certain categories of projects, including
those related to public-private partnerships and private projects, the consent of at
least 80% of the affected families is required. The Gram Sabha is involved in this
consent process.
2. Social Impact Assessment (SIA):
o The Gram Sabha is actively involved in the Social Impact Assessment (SIA)
process. The SIA is conducted to assess the potential social impacts of the proposed
acquisition on the affected community. The Gram Sabha provides inputs, and its
members participate in discussions during the SIA.
3. Public Hearing:
o The Gram Sabha is involved in the public hearing process, which is part of the SIA.
The views and concerns of the affected families are considered during the public
hearing, and the Gram Sabha facilitates this participatory process.
4. Approval of Rehabilitation and Resettlement Plans:
o The Gram Sabha has a role in the approval of Rehabilitation and Resettlement
(R&R) plans. The R&R plans outline measures for the rehabilitation and
resettlement of affected families. The Gram Sabha provides feedback and approval
on these plans.
 5. Monitoring Implementation:
o The Gram Sabha monitors the implementation of R&R measures to ensure that the
benefits promised to affected families are delivered. This includes overseeing the
provision of alternative livelihoods, housing, and other amenities.
6. Land Use Planning and Zoning:
o The Gram Sabha may be involved in decisions related to land use planning and
zoning. It contributes to discussions on the potential impact of land acquisition on
the community's livelihood and natural resources.
7. Social Audit:
o The Gram Sabha has the authority to conduct social audits to assess the
effectiveness of rehabilitation and resettlement measures. This involves the
community in evaluating the impact and implementation of development projects.
8. Dispute Resolution:
o The Gram Sabha may play a role in resolving disputes related to land acquisition
and rehabilitation. It provides a platform for affected families to voice their
grievances and seek resolution.

CAN AUTHORITIES ACQUIRE LAND WITHOUT THE CONSENT OF THE LAND OWNER

Under the Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation, and Resettlement Act (LARR Act), 2013 in India, land acquisition authorities are
generally required to obtain the consent of the affected families for specific types of projects. The
consent process is particularly emphasized for private projects and public-private partnership
(PPP) projects.

Key points regarding consent under the LARR Act:

1. Consent for Private Projects:

o For private projects, the consent of at least 80% of the affected families is typically
required before land acquisition can proceed. This ensures that the majority of the
affected families agree to the acquisition.
2. Consent for PPP Projects:
o In the case of PPP projects, the consent threshold is set at 70% of the affected
families. This still requires a significant majority agreement before land acquisition
can move forward.
3. Public Purpose Projects:
o For projects deemed to be for public purposes (such as infrastructure projects), the
requirement for obtaining consent is not as stringent. However, the Social Impact
Assessment (SIA) process and other provisions still apply.

It's important to note that the LARR Act, 2013 places a strong emphasis on the consent of
affected families, and authorities are generally expected to adhere to these provisions. However,
there are situations where the government may invoke the urgency clause to expedite the
acquisition process without full consent. The urgency clause was, however, significantly restricted
under the LARR Act compared to earlier land acquisition laws.
 In instances where the urgency clause is invoked, there are stringent conditions to be met,
and the urgency must be justified. The urgency clause cannot be used for private projects.

It's also crucial to check for any subsequent amendments or changes to land acquisition
laws, as legal frameworks can evolve. If there are concerns about land acquisition without consent,
affected landowners may seek legal advice and explore avenues for redressal within the legal
framework. Legal remedies and the role of consent may vary based on specific circumstances and
the nature of the project.