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 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.
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 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
In a nutshell, the process of land acquisition include:
|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 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.
(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-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.
|When the Government intends to acquire land for a
public purpose, they will consult with the concerned local self-government
in the affected area and will carry out a Social Impact Assessment study
with respect to S.4(4). This will be notified in the local language and
published in the affected areas.
While conducting the Social Impact Assessment Study, the on various
components such as livelihood of affected families, public and community
properties, assets and infrastructure particularly roads, public transport,
drainage, sanitation, sources of drinking water, sources of water for
cattle, community ponds, grazing land, plantations, 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 etc. must be considered.
A Social Impact Assessment plan should also be prepared.
|Public hearing for Social Impact Assessment
Publication of Social Impact Assessment study
|Government shall ensure that a public hearing is
held at the affected area, after giving adequate publicity about the date,
time and venue for the public hearing, to ascertain the views of the
affected families to be recorded and included in the Social Impact
The Social Impact Assessment study report and the Social Impact Management
Plan are to be prepared and made available in the local language to the
Local self-government and the offices of the District Collector, the
Sub-Divisional Magistrate and the Tehsil. It shall be published in the
affected areas and uploaded on the website of the appropriate Government.
|Appraisal of Social Impact Assessment report by
an Expert Group.
(2) The Expert Group constituted under sub-section (1) shall include the
(a) two non-official social scientists.
(b) two representatives of Panchayat, Gram Sabha, Municipality 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 social impact assessment report must be
evaluated by a multi-disciplinary Expert group constituted as per S.7(2),
S.7(3) & S.7(4). This expert group opines that the project will serve a
public purpose and the potential benefits outweighs the social cost, it
shall publish its recommendations within two months as per S.7(5) & S.7(6)
The government must ensure that there is a legitimate public purpose, the
potential benefits outweigh the social costs, only the minimum area for the
purpose is acquired and ensure that there is no unutilised acquired land.
|Publication of preliminary notification
(1) (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.
|The government must publish notifications
regarding the acquisitions and a meeting must be arranged to inform about
the notification to the local authorities.
No transaction regarding the land specifies in the notification may be made
after publication of the notification except the permission of the
|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
(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:
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.
|The authorised officer can exercise his powers
under S.12(1) but in the presence of the owner or person appointed by the
owner of the land nor shall enter any building or upon any enclosed court or
garden attached to a dwelling-house without prior permission.
Any objections [S.15(1)] by the interested person must be made to the
collector in writing and such person shall be a given an opportunity to be
heard following to which a report is prepared. The decision is left to the
appropriate government authorities.
|Preparation of Rehabilitation and Resettlement
Scheme by the Administrator
(1)(a) particulars of lands and immovable properties being acquired of each
(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
(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
(ii) details of the public amenities and infrastructural facilities which
are to be provided in the Resettlement Area.
Review of the Rehabilitation and Resettlement Scheme
Approved Rehabilitation and Resettlement Scheme to be made public.
Publication of declaration and summary of Rehabilitation and Resettlement
(4) Every declaration referred to in sub-section (1) 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.
(5) Every declaration referred to in sub-section (1) shall indicate, �
(a) the district or other territorial division in which the land is
(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.
|Administrator for Rehabilitation and Resettlement
shall conduct a survey and undertake a census of the affected families as
per S.16(1) and prepare a draft Rehabilitation and Resettlement Scheme as
The scheme must include a time limit for implementation and must be
publicised in the concerned local government bodies and a meeting & public
hearing must be made after notifying it with the relevant details.
The collector shall review the scheme and submit it to the Commissioner
Rehabilitation and Resettlement along with suggestions.
The approved scheme must be made public through publications and websites of
the concerned local self-governments.
The collector shall publish a summary of the scheme along with a declaration
with the details mentioned in S.19(4) & S.19(5).
|Land to be marked out, measured and planned to include
marking of specific areas
|Notice to persons interested.
Enquiry and land acquisition award by Collector
|The collector shall publish a notice stating the
government's interest in acquiring the land and the compensation,
rehabilitations and resettlement offered to the interested persons.
The notice must include the particulars of land and a time and date for all
the interested persons to meet the collector at the same time (between 30
days and 6 months after the publication of the notice).
The collector shall ensure that all the interested persons are notified.
On a day fixed by the collector, an enquiry on to the objections raised to
the notice under S.21 of the Act.
|Powers to take possession of land to be acquired
|The collector shall take possession of the land after
ensuring full payment of compensation as well as rehabilitation and
resettlement entitlements are paid or tendered to the entitled persons, as
well as be responsible for his actions.
- Preparation of Social Impact Assessment study, a public hearing on the assessment made and publication of the study.
- Appointment of an expert group to assess the Social Impact Assessment and further the government's examination of proposals for land acquisition.
- Publication of preliminary notification and appointment of officers.
- Preliminary survey of land.
- Hearing of objections.
- Preparation of Rehabilitation and Resettlement Scheme by the Administrator and its review thereafter.
- Approval and publication of the above scheme.
- Intimating the interested parties through notification.
- A meeting of the interested parties with the collector at a time, date and place fixed by the collector.
- Enquiry to objections of the interested parties by the collector.
- Land Acquisition.
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
The process of awarding compensations with the relevant sections of the Act are
Rehabilitation And Resettlement
|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 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,
whichever is higher:
|The collector shall assess and
determine the market value of the land as per S.26(1).
In case the market value cannot be determined, the State government shall
specify the floor price or minimum price per unit area. In this case, the
collector shall take steps to revise and update the market value of the land
on the prevalent market rate in that area.
|Determination of amount of
Parameters to be considered by Collector in determination of award.
Determination of value of things attached to land or building.
Additional compensation in case of multiple displacements.
Determination of award by authority
Particulars of apportionment to be specified
|After assessing the market value of
land, the collector shall calculate the total amount of compensation by
including all assets attached to the land.
The market value of the land, damages sustained by the interested parties at
the time of acquisition(standing crops and trees, severance from other
land), damages to the interested party's property on the land, the expense
incurred in the change of residence or place of business as the case may be,
the damage caused due to the diminution of the profits of the land due to
the notification any other ground in the interest of equity, justice and
beneficial to the affected parties must be considered in determining the
amount of compensation.
The collector shall use the assistance of experienced and professionals in
determining the value of the properties such as buildings, crops, trees etc.
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, 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.
The concerned authority shall in every case award an amount 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 preliminary
notification under S.11.
When several persons are interested and they agree in the apportionment of
the compensation. The particulars of such apportionment must be specified in
|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 section 26,
the Collector shall, in every case, award an amount 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.
|After determining the total
compensation to be paid, the collector arrives at the final award,
'solatium' adhering to S.30(2) and S.30(3) of the Act.
|Awards of Collector when to be
|The collector can exercise his
powers under S.33, S.35 and S.36 and after having the final and conclusive
documents and agreement between the interested parties and file the awards
and issue notice.
These records will be summarised and be made open to the public.
|Re-determination of amount of
compensation on the basis of the award of the Authority
Appeal to High Court
|If the concerned Authority the
applicant any amount of compensation in excess of the amount awarded by the
Collector under S.23, the persons interested in all the other land covered
by the same preliminary notification under S.11, and who are also aggrieved
by the award of the Collector may, notwithstanding that they had not made an
application to the Collector, by written application to the Collector within
three months from the date of the award of the Authority concerned 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.
The aggrieved party could file an appeal to the High Court if the award
passed by the authority under S.69 is not satisfactory within 60 days from
the date of the award.
|Payment of compensation or
deposit of same in Authority
|On making the award under S.30, the
collector shall tender payment to the entitled persons and shall pay it to
them by depositing the amount in their bank accounts
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 the entitlements provided in the Second
(2) The Rehabilitation and Resettlement Award shall include all of the
(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
(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
(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 family the same shall be indicated as not
|Appointment of Administrator:
The government shall appoint an administrator subject to the
superintendence, directions and control of the appropriate Government and
the Commissioner for Rehabilitation and Resettlement regarding the
formulation, execution and monitoring of the Rehabilitation and Resettlement
|Commissioner for rehabilitation and
The state government shall appoint an officer of the rank of Commissioner or
Secretary of that Government for rehabilitation and resettlement of affected
families. Commissioner shall be responsible for formulation of schemes and
the post implementation of social audits
|Rehabilitation and resettlement committee at
The State government shall constitute a committee in the case of land
acquisitions equal to or over 100 acres.
|National Monitoring Committee for
rehabilitation and resettlement:
The Central government may constitute a committee in the implementation or
Nation or inter-state schemes.
In G. Padmanabhan and Others v. Tamil Nadu State and Others
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.
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
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
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:
- 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.
- 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
- 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.
- 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.
- 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).
- 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).
- 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
- 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
In Pune Municipal Corporation v. Harakchand Misirimal Solanki
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
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