Land Acquisition, Rehabilitation and Resettlement Act

Land Acquisition, Rehabilitation and Resettlement Act

The Government of India (GoI) introduced the Land Acquisition, Rehabilitation and Resettlement (LARR) Act to create a transparent process for procuring the land and provide a resettlement area for the affected people. The procured land shall be utilised for industrial development, urbanisation and infrastructural developments. The Act aims to provide fair compensations to the landowners. It shall be allotted for those who are affected during the re-settlement process. The act also aims at ensuring rehabilitation and resettlement for a productive outcome in industrial development. The act shall be termed as Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act. The Act does not apply to the state of Jammu and Kashmir. The following are the provisions where the State or Central Government shall procure the land:

  • For the use of Government to hold and control related to projects of public Sector undertakings or public purpose
  • For safety projects related to:
    • Naval, Military, Airforce, Armed Forces that includes central paramilitary forces
    • Projects related to National Security, Defence, State Police or safety of the people
  • Infrastructure projects such as:
    • Items listed in the Department of Economic Affairs (Infrastructure Section) number 13/6/2009-INF notification
    • Projects related to agro-processing
    • Supply of products to Agriculture
    • Warehousing
    • Cold Storage facilities
    • Dairy, Fisheries, and meat processing
    • Institutions for farmers’ cooperative
    • Industrial corridors
    • Mining activities
    • National investment and manufacturing zones as per the National Manufacturing Policy
    • For water harvesting and water conservation structures
    • Sanitation
    • Government institutions related to administration, government-aided educational and research schemes or institutions
    • For affected families
    • Sports, health care, transportation, space program or tourism
    • Developmental projects related to improving the infrastructure for villages, urban areas or for residential purposes for the weaker sections
    • Public-private partnership projects

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Social Impact Assessment Study

When the concerned government procures the land for any of the purposes mentioned above, it should consult with Panchayat, Municipality or Municipal Corporation. A Study shall be carried out to the people as specified by the notification. The notification related to Sub-section (1) should be made available to the Panchayat, Municipality or Municipal Corporation and made available on the Government website. The government will complete the study in six months as per Sub-section (1) under Section 6. The result of the impact study shall be sent to the Central Government for further verifications. If in case the project is related to the irrigation, the Social Impact Assessment Study may not be applicable. The Social Impact Assessment Study will have the following details:

  • Whether the procurement of land serves for the public
  • Total number of families that would be displaced
  • Geographical areas, houses, lands, settlements and details of other common properties that will be affected by the act
  • Details about the road, sanitation, public transport, sources of drinking, community ponds, water for cattle, electricity supply, educational and training facilities etc
  • A public hearing shall be set up by the government as per Section 4. The views and hearing shall be recorded in the report
  • The result shall be published in the offices of Panchayat, Municipality or Municipal Corporation as per Sub-section (6)

Payment for Damage

As per Section 12 for any payment related to the damage caused shall be referred to the Collector or any other chief revenue officer.

Preparation of Rehabilitation and Resettlement

As per the Sub-section (1) of Section 11, the Collector shall conduct a survey and collect the following details:

  • Details of lands and immovable properties of each individual
  • Livelihoods lost due to the implementation of the act
  • List of public and government buildings affected
  • Details of resettlement of families

After the survey, the details of Rehabilitation and Resettlement will be made public and published in the affected areas. After approval from the government as per Sub-section (2) of Section 15, the resettlement area would be published for the affected families by the Collector. The Collector should award the resettlement land to the affected people within 12 months. Failing to award the land within the period will make the status of the procurement of land, cancelled.

Allotting the Value for the Land

The value of the land shall be decided by the collector as per market value mentioned in the Indian Stamps Act 1899. The average sale price will be provided to a similar type of land in the nearby village or panchayat. The following are the parameters the Collector would consider before awarding the compensation:

  • Determining the market value as per Section 26
  • Collecting the details of crops, trees and land damaged due to the implementation of the act
  • Calculating the damages caused when procuring the land or loss occurred while procuring the land

Rural Lands: The value of the lands in the rural areas shall be calculated as per serial no.2. The value shall also add the land and buildings attached

Urban Lands: The value of the lands in the rural areas shall be calculated as per serial nos.2 and 3. The value shall also add the land and buildings attached

Interest for Non-payment

If the money is not awarded to the affected families after the possession of the land, the Collector shall be liable to pay the compensation amount with 9 per cent interest. If the compensation amount is not paid within one year, 15 per cent interest rate shall be applicable.

Details of Funds Provided

Grant for displaced families: The affected family shall be provided with a sum of Rs.3000 per month for one year from the date of the award. If the families belong to the ST, they shall receive an added amount of Rs.50000.

Transportation Costs: All the displaced families shall receive Rs.50000 as transportation cost for shifting the materials and cattle.

One time grant for Artisans: Any artisan family affected because of the act shall receive a one time grant of Rs.25000.

Resettlement Allowance: Any affected family due to re-allocation shall receive Rs.5000.

Post by Peter

Peter is a Senior Content Writer and Copy Editor in Finance specializing in GST and Import & Export. He has also written articles on Medical, Philosophy, and Literature and published research papers in international journals.