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Larr Act, 2013

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) replaces the 1894 Act, aiming to ensure fair compensation and transparency in land acquisition in India. Key changes include requiring consent from 70%-80% of affected families, higher compensation rates based on market values, and comprehensive rehabilitation measures. Despite challenges in implementation and state variations, the Act seeks to address historical shortcomings and balance developmental needs with landowners' rights.

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37 views3 pages

Larr Act, 2013

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) replaces the 1894 Act, aiming to ensure fair compensation and transparency in land acquisition in India. Key changes include requiring consent from 70%-80% of affected families, higher compensation rates based on market values, and comprehensive rehabilitation measures. Despite challenges in implementation and state variations, the Act seeks to address historical shortcomings and balance developmental needs with landowners' rights.

Uploaded by

Nikita
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Sunday, April 13, y

Land Acquisition Act

The Right to Fair Compensation and Transparency in Land


Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR
Act) is the current legislation that regulated land acquisition
in India. The Act, in force since 2014 serves as a replace-
ment for the Land Acquisition Act of 1894. This new Act aims
to ensure fair compensation, transparency and rehabilitation
measures for those who have been affected in land acquisi-
tion issues.
Some of the major changes of the Act involve a mandate for
higher compensation, consent from a minimum of 70%-80%
of the families, social impact assessments before any deci-
sion is made, and a more comprehensive resettlement pack-
age as a remedy, which takes into account all factors related
to the employability of the land before the acquisition. It
aims to balance the developmental needs and the rights of
the landowners and those who have been displaced.

The Act aims to address the shortcomings of the 1894 Act.


The Land Acquisition Act of 1894, enacted during the British
era lacked the echo of a united national law that addressed
fair compensation, especially in the case of private land be-
ing acquired for government purposes.
There was no clearly defined rules for the fair rehabilitation
of landowners and those directly affected by the loss of

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livelihoods for that particular land, in the cases of rent, com-
mercial buildings and agricultural land.
Besides this, the rates paid for the lands acquired were as
per government rates and not market rates, which would
eventually result in a loss for the landowners. The process
was also devoid of transparency. There was no minimum re-
quirement of consent mandated by the act, along with terms
like ‘public purpose’ bearing broad interpretation, which
would often lead to land acquisitions for private projects un-
der the guise of public interest.

Owing to these issues, the need for the formation of a new


act was simple. The Land Acquisition, Rehabilitation and Re-
settlement Bill, 2011 was introduced in the Lok Sabha in
September 2011, and passed in August, 2013. The main
aims and objectives of the Act included -
Ensuring a more simple process for land acquisition, applied
for industrialisation, development of infrastructural facilities,
and urbanisation without causing any problems to the own-
ers of the land and other affected families.
Providing fair and appreciable compensation based on the
existing market rates. As per the Act, the compensation
should be four times the market rate in rural areas and twice
the market rate in urban areas, as opposed to only calculat-
ing based on government rates.
To provide for adequate rehabilitation and resettlement for
the landowners and families who are gravely by the loss of
their land, and in most cases, their livelihood and source of
income due to acquisition.

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The major changes of the Act include the consent of 80% of
families involved in the acquisition made by private compa-
nies. For public-private partnerships (PPPs), the consent of
70% of the families is required as a mandate.
The Act also includes the feature of ‘solatium’, or extra com-
pensation of 100% amount that is due to be paid to the af-
fected families. There are now multiple checks placed on the
acquisition process itself, including social impact assess-
ments and expert group clearances, bearing in mind impor-
tant factors like livelihood, environmental factors, and the
essentiality of the plan itself.

However, the implementation of this Act across states have


been slightly varies, with some states adopting their own
versions of the Act. There have also been delays in the pay-
ment of compensation, inadequate rehabilitation to landown-
ers and bureaucratic hurdles remain as challenges to this
day, which was aimed to be addressed in the 2015 amend-
ment of the Act, but this did not fully translate in practicality.
Inspite of this, the implementation of this Act has widened
the scope of land acquisitions and aims to fully redress all
related issues in the time to come.

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