Right to Fair Compensation and Transparency in LARR Act 2013

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, commonly known as the LARR Act, was created to bring fairness and openness to land acquisition across India. In 2015, an Amendment Bill was presented in the Lok Sabha on 24 February by the then Minister for Rural Development, Mr. Birender Singh. The purpose of this Bill was to make important changes to the original 2013 Act so that those whose land is acquired are treated more justly. It focuses on ensuring that people losing land not only receive fair financial compensation but also proper rehabilitation and resettlement support.

History of the Land Acquisition Act, 2013

The Land Acquisition Act, 2013, officially called the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, was brought in to replace the outdated 1894 law. Its aim was to create a fair, humane, and transparent process for acquiring land for development while protecting the rights of landowners and affected families. The Act stresses proper consultation, rehabilitation, and fair compensation. It was passed after long discussions in Parliament and became effective from January 1, 2014. Later, in 2015, certain amendments were introduced to change or relax some provisions of the 2013 Act.

Timeline of the Land Acquisition Act

• 7 September 2011: Bill introduced in Lok Sabha.

• 29 August 2013: Approved in Lok Sabha.

• 4 September 2013: Passed in Rajya Sabha.

• 27 September 2013: Received President’s approval.

• 1 January 2014: Act came into effect.

• 30 May 2015: Amendment Ordinance promulgated by the President.

What is the LARR Act 2013 (Land Acquisition, Rehabilitation and Resettlement)?

The Right to Fair Compensation and Transparency in LARR Act 2013 is a law enacted by the Indian parliament to regulate the process of land acquisition for public purposes. The act was introduced as a response to concerns about the forcible acquisition of land from farmers and rural communities without adequate compensation and rehabilitation measures. The LARR Act aims to balance the interests of the government, landowners, and commercial users by providing a transparent and fair process of acquisition.

The LARR Act, 2013, stands out because it ensures that landowners and families affected by acquisition are given much more than the usual market price for their land. In addition to financial compensation, the law provides structured rehabilitation and resettlement measures to reduce the hardship of displacement.

One of the core requirements of the Act is the Social Impact Assessment (SIA), which carefully studies how the acquisition will affect local people and communities. This process also involves consultation and participation from the public, making decision-making more transparent. Another important safeguard built into the Act is the protection of agricultural land, recognising its value for food security.

By including these measures, the law aims to make the process humane, consultative, and inclusive. It changes the idea of acquisition from one-sided loss to shared development, helping affected individuals become partners in growth rather than victims of progress.

Objectives and scope of the LARR Act 2013

The objectives of the LARR Act are to ensure that the process of land acquisition is done in a just and transparent manner, and that the landowners receive fair compensation and rehabilitation and resettlement measures. The act covers the acquisition of land for public purposes, which includes the construction of government buildings, roads, railways, airports, and other infrastructure projects.

Key provisions of the LARR Act 2013

The LARR Act contains several key provisions that aim to protect the interests of landowners and ensure a fair process of land acquisition. Some of the most important provisions are as follows:

1. Consent of landowners: The act requires that the consent of at least 70% of landowners be obtained before the acquisition of land for public purposes. In the case of public-private partnerships, the consent of at least 80% of the landowners is required.
2. Compensation and rehabilitation: The act provides for fair compensation to landowners, which is at least twice the market value of rural land and at least four times the market value of urban land. The act also provides for adequate rehabilitation and resettlement measures to be taken before the acquisition of land.
3. Social impact assessment: The act requires that a social impact assessment be conducted before the acquisition of land. The assessment evaluates the potential impact of the acquisition on the local community and recommends measures to minimise the adverse impacts.
4. Return of unutilised land: The act provides that any land acquired but not utilised for five years should be returned to the original landowners or the state government.

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Key changes proposed in the 2015 Bill compared with provisions of the 2013 Act