By Theresa Jose

Executive Summary

Land acquisition in India refers to the process by which the Union or state government acquires private land for development and they are supposed to offer compensation to the impacted individuals and provide rehabilitation and resettlement (Mahawar, 2022). The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 regulates land acquisition and provides rules for granting compensation, rehabilitation and resettlement to the people who are affected by this activity in India (Law Insider IN, 2021). This Act was enacted to replace the outdated Land Acquisition Act of 1894, which was a nearly 120-year-old law enacted during British rule which largely ignored the rights of those affected.

The LARR Act of 2013 aims to provide fair compensation to the affected, transparency in the process of acquisition of land for any development projects and provide for rehabilitation for those affected. The act tries to encourage development with consideration given to the rights of those impacted, this will enable a more equitable approach to land acquisition in India.

Background

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013 (LARR), which came into effect on January 1, 2014, governs land acquisition in India. It replaced the Land Acquisition Act of 1894 which was a colonial law that gave the right to the government to take private land for public use and this was done often not taking into consideration the rights of those affected by the acquisition. This law gave priority to the needs of the state by focusing on the common good over individual rights. This resulted in many individuals under this law getting displaced without being consulted nor given fair compensation. They faced many difficulties due to this government action like losing of livelihood, homes etc (Mahawar, 2022).

In response to these issues, the LARR Act 2013 was implemented to balance development needs with fair treatment for landowners. This was passed to provide a transparent rehabilitation and resettlement process to the affected and equitable compensation for land acquisition.

Key Features

• Purpose of land acquisition: Land can be acquired by the government for its use, public sector undertakings, and public purposes like infrastructure, urbanisation, or housing projects. The act is also made for public-private partnership (PPP) projects. 
• Consent requirement: there is a strict need for consent from the landowners before acquiring the land for any purpose by the government or on behalf of private companies and PPP.
• Enhancement of compensation: the act mandates increased compensation to the landowners who are affected by the land acquisition.
• Social Impact Assessment (SIA): there is a requirement for SIA of the project before any land acquisition. It studies all aspects of the project and its impact on the livelihood, the facilities and resources enjoyed by the affected individuals.
• Public Hearing and Publication: the act mandates public hearings and the involvement of the local body to ensure that there is a strong involvement of the community. There is also a need to check the transparency of the SIA process. Publication of SIA findings is to be done in local languages and to be made accessible to the public.
• Protection of agricultural land: the act restricts land acquisition of multi-crop irrigated land as it is important for food security. These lands can only be acquired under exceptional circumstances, in place of that there is a need for an equivalent area of wasteland to be provided for agriculture.
• Rehabilitation and Resettlement: through the act for the first time there included provisions to protect not only the landowners’ rights but also the other families who are affected by the land acquisition. The act ensures that they also get support through rehabilitation and resettlement measures. 
• Urgency clause: there can be exemptions for some projects from the SIA if they come under the urgency clause, whereby immediate land acquisition can be done even before the compensation award is made (Belakud, 2024).

Key Issues

• Broad definition of “public purpose”: the act defines the term “public purpose” to include a wide range of activities that could lead to potential misuse of the act. This broader scope could lead to undermining the act’s objective of providing development for the public benefit with unjust acquisition of land.
• Public interest over private rights: the act allows the government to acquire private land for public use which could result in limiting the rights of the individual’s right over the property as the public interest is always prioritized over private rights. This highlights the need to ensure fairness while the act is applied as the government always has more power than the individual landowners.
• Lack of bargaining power: the landowners lack bargaining power over their land and even if the act promises compensation there is a lack of involvement of the owners in the decision of the amount of compensation awarded. So there is a need to strictly follow the procedures that include the checks and balances to protect the owner’s rights. 
• Emergency land acquisition (Section 40): this section of the act allows for the acquisition of land by the government in emergencies without notice, which contradicts the objectives of the act.
• Lack of consideration of non-economic losses: the act focuses more on compensation for the economic aspects and does not consider the other aspects which get affected such as social, psychological and loss of status which are important things to be considered when rewarding compensation for the displaced families.

Recommendations

• Better compensation: there is a need for higher compensation for the displaced people, the act should ensure that landowners and those who are dependent on that land should be given fair compensation so that they are displaced. There is also a need to ensure that after displacement there is a need to provide them with rehabilitation and resettlement.
• Inclusion of Dependent Workers: there is a need to include in the compensation that is given under the act to the people who are dependent on the land that is to be acquired like the landowners. As their livelihoods also face challenges with the acquisition of land so they also have the right to be compensated
• Use of non-agricultural land for urban expansion: rapid urban expansion across India, highlights the need to prioritize using barren uncultivable land for development instead of using agricultural land for cultivation that can help in enhancing food security.
• Increase awareness and community engagement: there is a need for the people who gets affected by these projects to be aware of the rights under this act. Involving the community throughout the land acquisition and compensation process promotes transparency and builds trust.

References

Law Insider IN. (2021, October 27). Analysis of land acquisition in India. LAW INSIDER INDIA- INSIGHT OF LAW (SUPREME COURT, HIGH COURT AND JUDICIARY. https://www.lawinsider.in/columns/analysis-of-land-acquisition-in-india

Mahawar, S. (2022, November 26). The Land Acquisition Act, 2013 – IPLeaders. iPleaders. https://blog.ipleaders.in/the-land-acquisition-act-2013/

Belakud, R. (2024, September 3). Scope and salient features of the Land Acquisition Rehabilitation and Resettlement Act, 2013 – the Legal QNA. The Legal QnA. https://thelegalqna.com/scope-and-salient-features-of-the-land-acquisition-rehabilitation-and-resettlement-act-2013/#Salient_Features_of_the_Land_Acquisition_Rehabilitation_and_Resettlement_Act_2013