The Standing Committee on Rural Development and Panchayati Raj released a report on the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act, 2013).
The Report evaluated the implementation and effectiveness of the RFCTLARR Act, 2013.
RFCTLARR Act aims to provide fair compensation to those whose land is taken away, bring transparency to process of acquisition of land to setup factories, infrastructural projects & ensures rehabilitation of affected.
RFCTLARR Act replaced the Land Acquisition Act, 1894.
Key Provisions of the RFCTLARR Act, 2013:
|
Prevents arbitrary acquisitions |
Defines “public purpose” to prevent
arbitrary land acquisitions, which includes infrastructure projects,
urbanisation, and industrial corridors. |
|
Fair Compensation |
Provided for compensation up to four
times the market value in rural areas and twice the market value of land in
urban areas. |
|
Consent requirement |
80% consent of affected families for
private company projects and 70% consent in the case of PPP projects. |
|
Return of unutilized land |
If land is not used for its intended
purpose within five years, it must be returned to the original owners or
placed in a land bank. |
|
Protection of Farmers’ Land |
Special safeguards for multi-cropped and
agricultural land; acquisition only as a last resort. |
|
Protection for Scheduled Areas |
No acquisition in Scheduled Areas
violates laws protecting indigenous land rights. |
|
Social Impact Assessment (SIA) |
Before any land acquisition, the
government must undertake an SIA study. The consent process must be conducted
alongside the SIA. |
|
Rehabilitation and Resettlement |
Rehabilitation and Resettlement, which
includes entitlements for affected families e.g. house, Financial assistance
for livelihood loss, employment etc. |
|
Institutional Setup |
Provides for the establishment of
|
|
Exemption |
Notably, certain projects, such as those
related to defence, railways, and atomic energy, are exempt from the Act;
however, compensation and R&R provisions still apply. |
Key Issues in the Implementation of the Act:
- Superficial SIA/EIA: Social and Environmental Impact Assessments (EIA) are sometimes carried out as formalities with reports pre-designed to favour acquisition.
- Failure of National Monitoring Committee (NMC): The NMC has failed to quell discontent in large projects like the Ken-Betwa Link Project and Polavaram Irrigation Project.
- Faulty Implementation in Scheduled Areas: Violations occur despite statutory safeguards, including land undervaluation, superficial Gram Sabha consultations, and exclusion of vulnerable groups.
- Non-Compliance with PESA Rules: Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) regarding consultation are not being followed strictly in Scheduled Areas.
- Violation of the Forest Rights Act (FRA), 2006: Forest land is acquired without settling rights.
- Land Classification Manipulation: Converting Greenfield land into Brownfield and reclassifying rural land into urban areas, particularly within infrastructure projects such as Bharat Mala.
- Faulty Rehabilitation: Cash is disbursed before a demarcated and service-ready relocation site exists; land for land is offered only on paper or of inferior quality; etc.
- Structural Failures: More than a decade after the Act's enactment, many States have yet to establish the mandated LARRAs which delays justice for affected families.
- Strengthening Role of Gram Sabha: Make Gram Sabha consent mandatory for all land acquisitions and empower it to veto proposals which are contrary to local development plans or community interests.
- Adopting a "Livelihood Value" Approach: Compensation should transition from a simple cash land value to a "livelihood value" that accounts for the loss of access to forests, water bodies, and community assets.
- Integration of LARR and FRA: Loss of customary and community forest use rights should be explicitly treated as economic displacement, requiring full rehabilitation.
- Central Monitoring of Classification: Establish a dedicated Central Monitoring and Grievance Redressal Mechanism to oversee land classification processes.
- Innovative Benefit sharing models: In addition to existing compensation and R&R entitlements, mechanism should guarantee either a share of project equity (held through a statutory trust at the Gram Sabha) or a percentage of gross project revenues, whichever is higher.
- Strengthening Rehabilitation and Resettlement for Displaced Tribal Families: No displacement until the replacement site or agricultural land is surveyed, pegged, and soil-tested, core services are functional, etc.
- Digital Transparency: All acquisition-related documents—including SIA reports, compensation details, and R&R status—should be published on an official transparency portal
- Other: Urgent establishment of LARRAs in all States and UTs. The Department of Land Resources must ensure both EIA and SIA are strictly followed to effectively mitigate adverse environmental and social impacts.



