LAND ACQUISITION & COMPENSATION UNDER RFCTLARR

ACT, 2013 – RULES & PROCEDURES

AUTHOR :ANDREW MATHEWS

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The rules and procedures regarding Land Acquisition and Compensation awarded as per The Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
(RFCTLARR Act, 2013).

This is a paper on the rules and procedures regarding Land Acquisition and Compensation awarded as per The
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act,
2013.

THE ACT

The purpose of this Act is to provide transparent rehabilitation and resettlement processes and equitable
compensation in the event of land acquisition. It is an Act to ensure a humane participative ie. informed and
transparent process for land acquisition for industrialisation, development of essential infrastructural facilities
and urbanisation. It aims to cause the least disturbance to the owners of the land and other affected families and
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 and make adequate provisions for such affected persons for their
rehabilitation and resettlement.

The provisions of this Act relating to Land acquisitions, compensation, rehabilitation and resettlement will apply
when the appropriate government acquires land for public sector undertakings and public purpose. This is
discussed in S.2 of the Act.

THE RULES

As per S.109 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act 2013, the appropriate governments can make rules to carry out the provisions of the above Act.
As per S.112 of the Act this power of the government will be subject to the previous publications made. The
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Kerala)
Rules, 2015 are the rules published by the Government of Kerala as per S.109 and S.112 of the Act.

LAND ACQUISATIONS

Land acquisition is the power of the union or a state government in India to take private land for public, and to
compensate the original owners and other persons affected due to such acquisition. The Act defines and directs a
land acquisition process that involves consultation with local self-government and the Gram Sabha and is
transparent, educational, and participatory. This land acquisition process’s goal is the development of vital
infrastructure.
The process of land acquisition with the relevant sections of the Act are as follows:

S. No. RELEVANT PROVISIONS REMARKS

Preparation of Social Impact Assessment study

(4) The Social Impact Assessment study referred to in sub-

section (1) shall, amongst other matters, include all the
following, namely: —

(a) assessment as to whether the proposed acquisition serves When the Government intends to acquire lan
public purpose. consult with the concerned local self-gove
will carry out a Social Impact Assessment s
(b) estimation of affected families and the number of families
will be notified in the local language and pu
among them likely to be displaced.
While conducting the Social Impact Ass
(c) extent of lands, public and private, houses, settlements and
components such as livelihood of affected
other common properties likely to be affected by the proposed
properties, assets and infrastructure partic
acquisition.
S.4 drainage, sanitation, sources of drinking w
(d) whether the extent of land proposed for acquisition is the community ponds, grazing land, plantation
absolute bare- minimum extent needed for the project. offices, fair price shops, food storage god
care facilities, schools and educational or
(e) whether land acquisition at an alternate place has been children parks, places of worship, land for
considered and found not feasible. burial and cremation grounds etc. must be co

(f) study of social impacts of the project, and the nature and cost A Social Impact Assessment plan should als
of addressing them and the impact of these costs on the overall
costs of the project vis-a-vis the benefits of the project:

Provided that Environmental Impact Assessment study, if any,

shall be carried out simultaneously and shall not be contingent
upon the completion of the Social Impact Assessment study.

Government shall ensure that a public hear

after giving adequate publicity about the da
Public hearing for Social Impact Assessment hearing, to ascertain the views of the affec
included in the Social Impact Assessment R
S.5 Publication of Social Impact Assessment study
The Social Impact Assessment study r
S.6 Management Plan are to be prepared an
language to the Local self-government a
Collector, the Sub-Divisional Magistrate
published in the affected areas and upl
appropriate Government
 The social impact assessment report m
disciplinary Expert group constituted as pe
Appraisal of Social Impact Assessment report by an Expert expert group opines that the project will
Group. potential benefits outweighs the socia
recommendations within two months as per
(2) The Expert Group constituted under sub-section (1) shall
include the following, namely: —

(a) two non-official social scientists.

S.7
(b) two representatives of Panchayat, Gram Sabha, Municipality
S.8 or Municipal Corporation, as the case may be.

(c) two experts on rehabilitation; and

(d) a technical expert in the subject relating to the project.

Examination of proposals for land acquisition and Social

Impact Assessment report by appropriate Government. The government must ensure that there is
potential benefits outweigh the social costs
purpose is acquired and ensure that there is n

Publication of preliminary notification

(1) (a) in the Official Gazette;

(b) in two daily newspapers circulating in the locality of such

The government must publish notifications
area of which one shall be in the regional language;
meeting must be arranged to inform abo
(c) in the local language in the Panchayat, Municipality or authorities.
S.11
Municipal Corporation, as the case may be and in the offices of
No transaction regarding the land specifies
the District Collector, the Sub-divisional Magistrate and the
after publication of the notification except th
Tehsil;

(d) uploaded on the website of the appropriate Government;

(e) in the affected areas, in such manner as may be prescribed.

 Preliminary survey of land and power of officers to carry
out survey.

(1) (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; The authorised officer can exercise his po
presence of the owner or person appointed b
(d) to set out the boundaries of the land proposed to be taken and
enter any building or upon any enclosed
the intended line of the work (if any) proposed to be made
S.12 dwelling-house without prior permission.
thereon; and
S.15 Any objections [S.15(1)] by the interested
(e) to mark such levels, boundaries and line by placing marks
collector in writing and such person shall
and cutting trenches and where otherwise the survey cannot be
heard following to which a report is prepa
completed and the levels taken and the boundaries and line
appropriate government authorities.
marked, to cut down and clear away any part of any standing
crop, fence or jungle:

Hearing of objections

(1) (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.

 Preparation of Rehabilitation and Resettlement Scheme by
the Administrator

(1)(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;

(d) details of the amenities and infrastructural facilities which

are affected or likely to be affected, where resettlement of
affected families is involved; and

(e) details of any common property resources being acquired.

(2) (i) a list of Government buildings to be provided in the

Resettlement Area;

(ii) details of the public amenities and infrastructural facilities Administrator for Rehabilitation and Rese
which are to be provided in the Resettlement Area. and undertake a census of the affected fami
draft Rehabilitation and Resettlement Schem
Review of the Rehabilitation and Resettlement Scheme
The scheme must include a time limit fo
S.16 Approved Rehabilitation and Resettlement Scheme to be publicised in the concerned local governmen
made public. hearing must be made after notifying it with
S.17
Publication of declaration and summary of Rehabilitation The collector shall review the scheme and
S.18
and Resettlement Rehabilitation and Resettlement along with
S.19
(4) Every declaration referred to in sub-section (1) shall be The approved scheme must be made pu
published in the following manner, namely: — websites of the concerned local self-governm

(a) in the Official Gazette. The collector shall publish a summary

declaration with the details mentioned in S.1
(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.

(5) Every declaration referred to in sub-section (1) shall indicate,

—

(a) the district or other territorial division in which the land is

situated; 18
 Land to be marked out, measured and planned to include
S.20
marking of specific areas
The collector shall publish a notice statin
acquiring the land and the compensation,
offered to the interested persons.

The notice must include the particulars of

S.21 Notice to persons interested.
the interested persons to meet the collecto
S.23 Enquiry and land acquisition award by Collector days and 6 months after the publication of th

The collector shall ensure that all the interes

On a day fixed by the collector, an enquiry

notice under S.21 of the Act.

The collector shall take possession of the lan

S.38 Powers to take possession of land to be acquired compensation as well as rehabilitation and r
or tendered to the entitled persons, as well a
In a nutshell, the process of land acquisition include: –

1. Preparation of Social Impact Assessment study, a public hearing on the assessment made and
publication of the study.

2. Appointment of an expert group to assess the Social Impact Assessment and further the government’s
examination of proposals for land acquisition.

3. Publication of preliminary notification and appointment of officers.

4. Preliminary survey of land

5. Hearing of objections

6. Preparation of Rehabilitation and Resettlement Scheme by the Administrator and its review thereafter.

7. Approval and publication of the above scheme

8. Intimating the interested parties through notification.

9. A meeting of the interested parties with the collector at a time, date and place fixed by the collector.

10. Enquiry to objections of the interested parties by the collector.

11. Land Acquisition.

COMPENSATION

In Black’s Law Dictionary, the word ‘compensation’ has been defined as “money given to compensate loss or
injury”.

This Act guarantees that the landowners whose property is being acquired will receive equitable and fair
compensation while considering all the economic and social factors. It also guarantees appropriate procedures
and rules for the same.

The process of awarding compensations with the relevant sections of the Act are as follows:

S. No. PROVISION REMARKS

 Determination of market value of Land by collector

(1) (a) the market value, if any, specified in the Indian Stamp
Act, 1899 (2 of 1899) for the registration of sale deeds or
agreements to sell, as the case may be, in the area, where the The collector shall assess and determine the
land is situated; or per S.26(1).

(b) the average sale price for similar type of land situated in In case the market value cannot be determ
S.26
the nearest village or nearest vicinity area; or shall specify the floor price or minimum pri
the collector shall take steps to revise and up
(c) consented amount of compensation as agreed upon under land on the prevalent market rate in that area
sub-section (2) of section 2 in case of acquisition of lands for
private companies or for public private partnership projects,

whichever is higher:

After assessing the market value of land, the

total amount of compensation by includin
land.

The market value of the land, damages

parties at the time of acquisition(standing
from other land), damages to the interested
the expense incurred in the change of resid
the case may be, the damage caused due to
Determination of amount of compensation. of the land due to the notification any oth
S.27 equity, justice and beneficial to the affected
Parameters to be considered by Collector in determination
in determining the amount of compensation.
of award.
S.28
The collector shall use the assistance of expe
Determination of value of things attached to land or
S.29 determining the value of the properties suc
building.
etc.
S.38
Additional compensation in case of multiple
The Collector shall, as far as possible, not di
S.69 displacements.
already been displaced by the appropriate G
Determination of award by authority of acquisition under the provisions of this A
S.75 pay an additional compensation equivalent
Particulars of apportionment to be specified determined under this Act for the second or

The concerned authority shall in every case

at the rate of twelve per cent. per annum o
period commencing on and from the dat
preliminary notification under S.11.

When several persons are interested and the

of the compensation. The particulars of s
specified in the award.
 Award of solatium

(2) 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.

(3) In addition to the market value of the land provided under After determining the total compensation to
S.30 section 26, the Collector shall, in every case, award an amount at the final award, ‘solatium’ adhering to S.3
calculated at the rate of twelve per cent. per annum on such
market value for the period commencing on and from the date
of the publication of the notification of the Social Impact
Assessment study under sub-section (2) of section 4, 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.

The collector can exercise his powers und

after having the final and conclusive docum
S.37 Awards of Collector when to be final the interested parties and file the awards and

These records will be summarised and be m

If the concerned Authority the applicant any

excess of the amount awarded by the Colle
interested in all the other land covered
notification under S.11, and who are also ag
Collector may, notwithstanding that they ha
Re-determination of amount of compensation on the basis
S.73 the Collector, by written application to
of the award of the Authority
months from the date of the award of the
S.74 that the amount of compensation payable to
Appeal to High Court
on the basis of the amount of compensation

The aggrieved party could file an appeal to

passed by the authority under S.69 is not
from the date of the award.

On making the award under S.30, the colle

S.77 Payment of compensation or deposit of same in Authority the entitled persons and shall pay it to them
their bank accounts
REHABILITATION AND RESETTLEMENT

Rehabilitation and Resettlement of the affected landowners and other families that depend on the property either
directly or indirectly are also discussed in the Act. Some of the relevant sections of the Act on the rehabilitation
and resettlement of the interested parties are: –

Rehabilitation and Resettlement Award for affected families by Collector.–

(1) The Collector shall pass Rehabilitation and Resettlement Awards for each affected family in terms of th
in the Second Schedule.

(2) 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 tr

(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;
S. 31
(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:

Provided that in case any of the matters specified under clauses (a) to (k) are not applicable to any affected
indicated as ?not applicable:
 Appointment of Administrator- The government shall appoint an administrator subject to the superint
control of the appropriate Government and the Commissioner for Rehabilitation and Resettlement reg
execution and monitoring of the Rehabilitation and Resettlement Scheme
S.43
Commissioner for rehabilitation and resettlement – The state government shall appoint an officer of th
S.44 or Secretary of that Government for rehabilitation and resettlement of affected families. Commissioner
formulation of schemes and the post implementation of social audits
S.45
Rehabilitation and resettlement committee at project level – The State government shall constitute a c
S.48
land acquisitions equal to or over 100 acres.

National Monitoring Committee for rehabilitation and resettlement- The Central government may co
the implementation or Nation or inter-state schemes.
RELEVANT JUDGEMENTS

In G. Padmanabhan and Others v. Tamil Nadu State and Others (W.P.No.11275 of 2014) before the High
Court of Judicature at Madras, the lands were bought by the government for the Tamil Nadu Housing Board’s
Krishnagiri Scheme. On May 9 1991, a Notification under Section 4(1) of the Land Acquisition Act was issued,
and on July 31, 1992, a declaration under Section 6 of the Act was made. The petitioners filed a writ petition
before this Court in 1994, and while hearing the writ petition, this Court granted a stay of the dispossession order
on May 18, 1994. The petitioners are said to be in their possession to this day. The award was made on August 3
1994, and it is the petitioners’ specific argument that the award sum has yet to be deposited with the Civil Court.
Finally, on July 10, 2001, this Court rejected the Writ Petition filed in 1994. As a result, the interim order of
dispossession was vacated. However, the petitioners claim that even after the stay was lifted, they are still not
being evicted. Thereafter the petitioners have filed a petition seeking a determination that land acquisition
procedures commenced under the Act of 1984 with respect to the properties in issue have lapsed with respect to
Section 24(2) of the Act of 2013. The issue before the court was whether land acquisition proceedings were
deemed to have lapsed as per Section 24(2) of Act, 2013.

The court held that since the petitioners were still in control of the land; they were not evicted, and the
compensation payment was not made through the civil court, acquisition procedures were deemed to have ceased
in accordance with Section 24(2) of the Act of 2013.

In Guru Nanak Vidya Bhandar Trust vs Union Of India & Ors (W.P.(C) 8273/2014) before the High Court of
Delhi, Respondent No. 1 is the property’s lessor. The land was first leased to Sardar Ram Singh Kabli, and
afterwards, ownership of the property was transferred to the petitioner. It is also undisputed that the petitioner’s
land was encroached upon by the NDMC (New Delhi Municipal Council), and that possession was obtained
illegally. In accordance with that provision, the petitioner filed a petition for possession in 1979, which was
decreed by a learned single judge of this Court in a decision and decree dated March 8, 2006. The NDMC’s
appeal to the Division Bench and then to the Supreme Court likewise failed. Following that, the NDMC asked
that the Land Acquisition Authority acquire land, and the current acquisition processes were launched. The issue
raised before the court was whether Section 24 of the 2013 Act can be applied to the facts of the present case.

A review of the facts reveals that the compensation was deposited in the court unilaterally and without being
offered to the persons interested, and no facts have been brought to the court’s attention to suggest that the same
was offered to the petitioner. As a result, compensation for a “majority” of land holdings has not been put in the
accounts of the “beneficiaries.” The court held that the petitioner would be eligible for compensation under the
2013 Act.

In Indore Development Authority v. Manohar Lal and Ors. (S.L.P. (C) NOS.9036-9038 OF 2016) before the
Supreme Court of India, the landowners contended that acquisitions made under the Land Acquisition Act of
1894 had lapsed and that new processes under the Land Acquisition Act of 2013 were required.

The Supreme Court declared in this significant decision that outstanding cases under the 2013 Act will expire
under two conditions, and the acquisition procedure will have to be restarted. The Supreme Court declared that
new procedures under the Land Acquisition Act of 2013 will be required only if the following conditions are
met:

Possession of land has not happened.

Landowners have not received compensation. According to the court, payment of compensation includes
not only money given to landowners or put in court, but also money deposited in a government treasury.
This implies that, even if the compensation payment was deposited with the government, the 2013 law will
not apply to new acquisitions.
The 5-judge bench also ruled that landowners cannot seek compensation under Section 24(2) of the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013, if they
declined the supplied compensation or requested for greater compensation. However, if compensation is not
made under the provisions of Section 24(1)(a) of the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation, and Resettlement Act, 2013, as of the date of the 2013 Act’s commencement, the
proceedings will not be deemed to have lapsed, and compensation must be awarded in accordance with the
provisions of the Act of 2013.

The Court issued the following rulings and interpretations:

1. “If the award was made within the five-year window period, except the period covered by an interim
order of the court, then proceedings shall continue as provided in Section 24(1)(b) of the Act of 2013
under the Act of 1894 as if it had not been repealed.”

2. In Section 24(2), the term ‘or’ between possession and compensation must be interpreted as ‘nor’ or
‘and.’ The assumed lapse of land acquisition procedures occurs under Section 24(2) of the Act of 2013,
where possession of land has not been obtained or compensation has not been paid owing to the inaction
of authorities for five years or more before the beginning of the said Act.

3. The term ‘paid’ does not include a deposit of compensation in court in the main section of Section 24(2)
of the Act of 2013.

4. If a person is offered compensation under Section 31(1) of the Act of 1894, he cannot argue that the
acquisition has expired under Section 24(2) owing to non-payment or non-deposit of compensation in
court. By presenting the sum specified in Section 31(1), the obligation to pay is fulfilled.

5. The proviso to Section 24(2) of the Act of 2013 is to be considered part of Section 24(2), not Section
24(1)(b).

6. Under the Act of 1894 and as envisioned by Section 24(2), the way of obtaining possession is by
drawing an inquest report/memorandum. Once an award is made on taking possession under Section 16 of
the Act of 1894, the land vests in the State; there is no divesting provided under Section 24(2) of the Act
of 2013, as there is no lapse under Section 24(2).

7. Section 24(2) provides for a considered lapse of proceedings in cases where authorities failed to take
possession and pay compensation for five years or more before the Act of 2013 came into force, in a land
acquisition procedure continuing with the responsible authority as of 1.1.2014. The period of court-issued
interim orders must be excluded from the five-year computation.

8. Section 24(2) of the Act of 2013 does not provide a new cause of action to challenge the legitimacy of
completed land 319 acquisition actions. Section 24 applies to any case that is continuing the date of the
Act of 2013, 1.1.2014. It does not reopen finished processes or allow landowners to contest the legality of
the way of taking possession to reopen proceedings or mode of depositing compensation in the treasury
instead of the court to invalidate acquisition.

In Pune Municipal Corporation v. Harakchand Misirimal Solanki (civil appeal no. 877 of 2014) before the
Supreme Court of India, a three-judge bench held that acquisition proceedings initiated under the 1894 Act,
which were initiated five years before the 2013 law was enacted (in 2014), would lapse if the land in question
was not taken control of or if compensation was not paid to displaced farmers.
RELATED CASES

In Balakrishnan v. UOI (civil appeal no(s). 344/2017) before the Supreme Court of India, the Kerala State
Government acquired around 27 acres of agricultural land for the expansion of a Technopark in South Kerala.
The landowner was dissatisfied with the compensation provided, so he negotiated with the concerned party for
more compensation; nonetheless, in order to avoid litigation, he decided to sell the land at the price offered by
the state. Following payment of the compensation, the state revenue agency assessed capital gains tax on the sum
received from the landowner, claiming that the transaction was a “voluntary sale” and so did not qualify for
exemption under Section 10 of the Income-Tax Act as a compelled acquisition. The landowner then challenged
this judgment in the High Court, which dismissed the appeal. The case was then heard by the Supreme Court,
which decided that the owner “succumbed to the measures taken by the government” in order to avoid litigation.
Since the transaction was not a “voluntary sale,” but rather a “compulsory acquisition,” the court held that it
should be excluded from capital gains tax.