Overview of LARR Act 2013 Provisions
Overview of LARR Act 2013 Provisions
To protect the interest of those persons, among others who are affected by the acquisition.
Acquisition of land with least disturbance to the land owners and other affected families.
To provide just and fair compensation to affected families whose land has been acquired.
To make adequate provisions for such affected persons for their rehabilitation and resettlement.
The LARR Act, 2013 is to benefit farmers.
[To make Land Acquisition Process – Participative, Informed, Transparent]
The LARR Act, 2013 aims to establish the law on land acquisition as well as the rehabilitation and
resettlement of those directly affected by the land acquisition in India.
The scope of the Act includes all land acquisition whether it is done by the central government or state
government.
The Act establishes regulations for land acquisition as a part of India’s massive industrialization drive
driven by public-private partnership.
The power of compulsory land acquisition is described by the term ‘eminent domain’. This term seems
to have originated in 1625 by Hugo Gratius who wrote of this power in his work ‘De Jure Belli et
Pacis’.
Eminent Domain: The power of the sovereign to take property for public use without the owner’s
consent.
Public purpose is an essential ingredient of eminent domain even though obligation to pay
compensation is not a content of the definition but has been added to it by judicial interpretation.
The Land Acquisition provisions relating to land acquisition, compensation, rehabilitation and
resettlement under the Act apply when: -
There are 16 Acts with provisions for acquisition of land in specific sectors such as Railways, Special
economic zones (SEZs), National highways, etc.
S. 2 (1) When the appropriate government acquires land for its own use, hold and control, including
for Public Sector Undertakings and for public purpose.
(a) Strategic (b) Infrastructure (c) Project (d) Project for (e) Project for (f) Project for
Purposes Projects for housing or planned residential
o Naval o Listed in the affected such development purposes for
o Military notification of families income or the o Poor
o Air Force the groups as improvement o Landless
o Armed Government of may be of the o Persons
Forces of the India. specified village’s sites residing in
Union o Excluding from time or any site in areas affected
o Centra private to time the urban by natural
Paramilitary hospitals, areas or calamities
Forces private provision of o Person
o Any other educational land for displaced by
Work vital to institutions residential implementation
National o Agro- purposes for of any scheme
Security processing the weaker
o Defence of o Warehousing sections in
India o Cold Storage the rural and
o State Police Facilities urban areas
o Safety of the o Marketing
people infrastructure
for agriculture
and allied
activities like
dairy, fisheries
o Mining
activities
o Water
Harvesting
o Water
conservation
o Sanitation
o Government
educational
schemes
o Project for
sports, health
care, tourism,
transportation
of space
programmes
S. 2 (2) When the appropriate government acquires land for public private partnership projects for
public purposes as defined in sub section (1) where the ownership of the land continues to vest with
the government.
Provided that in case of acquisition for private companies the prior consent of at least 80 % of affected
families.
In public private partnership projects, the prior consent of at least 70 % of those affected families shall
be obtained. No land shall be transferred by way of acquisition in the Scheduled Areas in contravention
of any law.
S. 2 (3) The provisions relating to rehabilitation and resettlement under this Act shall apply when the
appropriate government acquires land through private negotiations for private companies for public
purpose.
DEFINATIONS (S. 3)
The LARR Act, 2013 has brought about a paradigm shift in land acquisition process in India.
Development projects though important in the long run, create significant changes in the daily lives
of local population.
Land acquisition for such projects displaces many and causes loss of livelihoods in the short run,
which also creates resistance.
Social Impact means the consequences to human population of any public and private actions that alter
the ways in which people live, work, play, relate to one another, organize to meet their needs and
generally cope as members of society.
Possible impacts of SIA are: loss of all land, commercial premises, housing structures, house,
livelihood, income generating activities.
The LARR Act 2013 proposes for Social Impact Assessment (SIA) study to map and estimate costs
and benefits to the people affected through the acquisition.
SIA seeks to assess, in advance, the social repercussions that are likely to follow from projects
undertaken to promote development, such as dams, mines, industries, highways, ports, airports,
urban development and power projects.
Process of SIA: According to S. 4 of the RFCTLARR Act, 2013
i. Whenever the appropriate Government intends to acquire land for a public purpose, it shall
consult the concerned Panchayat, Municipality or Municipal Corporation, as the case may be, at
village level or ward level, in the affected area and carry out a Social Impact Assessment study in
consultation with them, in such manner and from such date as may be specified by such Government
by notification.
ii. The notification issued by the appropriate Government for commencement of consultation and of
the Social Impact Assessment study under sub-section (1) of section 4 of the RFCTLARR Act, 2013
shall be made available in the local language to 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, and shall be published in the affected areas, in such manner as may be
prescribed, and uploaded on the website of the appropriate Government:
Provided that the appropriate Government shall ensure that adequate representation has been given
to the representatives of Panchayat, Gram Sabha, Municipality or Municipal Corporation, as the case
may be, at the stage of carrying out the Social Impact Assessment study:
Provided further that the appropriate Government shall ensure the completion of the Social Impact
Assessment study within a period of six months from the date of its commencement.
iii. The Social Impact Assessment study report referred to in sub-section (1) of section 4 of the
RFCTLARR Act, 2013 shall be made available to the public in the manner prescribed under section
6 of the RFCTLARR Act, 2013.
iv. The Social Impact Assessment study referred to in sub-section (1) of section 4 of the RFCTLARR
Act, 2013 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.
v. While undertaking a Social Impact Assessment study under sub-section (1) of section 4 of the
RFCTLARR Act, 2013, the appropriate Government shall, amongst other things, take into
consideration the impact that the project is likely to have 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 god owns, electricity supply, health care facilities, schools and educational or
training facilities, Anganwadi’s, children parks, places of worship, land for traditional tribal
institutions and burial and cremation grounds.
vi. The appropriate Government shall require the authority conducting the Social Impact Assessment
study to prepare a Social Impact Management Plan, listing the ameliorative measures required to
be undertaken for addressing the impact for a specific component referred to in sub-section (5) of
section 4 of the RFCTLARR Act, 2013 and such measures shall not be less than what is provided under
a scheme or programme, in operation in that area, of the Central Government or, as the case may be,
the State Government, in operation in the affected area.
Public hearing for Social Impact Assessment
According to s. 5 of the RFCTLARR Act, 2013, whenever a Social Impact Assessment is required to
be prepared under section 4 of the LARR Act, 2013, the appropriate 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 Assessment Report.
Publication of Social Impact Assessment study
According to s. 6 of the LARR Act, 2013, the appropriate Government shall ensure that the Social
Impact Assessment study report and the Social Impact Management Plan referred to in sub-section
(6) of section 4 of the LARR Act, 2013 are prepared and made available in the local language to the
Panchayat, Municipality or Municipal Corporation, as the case may be, and the offices of the
District Collector, the Sub-Divisional Magistrate and the Tehsil, and shall be published in the
affected areas, in such manner as may be prescribed, and uploaded on the website of the appropriate
Government.
Further wherever Environment Impact Assessment is carried out, a copy of the Social Impact
Assessment report shall be made available to the Impact Assessment Agency authorised by the
Central Government to carry out environmental impact assessment:
Provided that, in respect of irrigation projects where the process of Environment Impact Assessment is
required under the provisions of any other law for the time being in force, the provisions of this Act
relating to Social Impact Assessment shall not apply.
Appraisal of Social Impact Assessment report by an Expert Group
According to section 7 of the LARR Act, 2013, the appropriate Government shall ensure that the Social
Impact Assessment report is evaluated by an independent multi-disciplinary Expert Group, as
may be constituted by it.
The Expert Group constituted under sub-section (1) of section 7 of the RFCTLARR Act, 2013 shall
include the following, namely: —
(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.
Further the appropriate Government may nominate a person from amongst the members of the Expert
Group as the Chairperson of the Group.
If the Expert Group constituted under sub-section (1) of section 7 of the LARR Act, 2013, is of the
opinion that —
(a) the project does not serve any public purpose; or
(b) the social costs and adverse social impacts of the project outweigh the potential benefits; it shall
make a recommendation within two months from the date of its constitution to the effect that the
project shall be abandoned forthwith and no further steps to acquire the land will be initiated in
respect of the same:
Provided that the grounds for such recommendation shall be recorded in writing by the Expert
Group giving the details and reasons for such decision:
Provided further that where the appropriate Government, in spite of such recommendations,
proceeds with the acquisition, then, it shall ensure that its reasons for doing so are recorded in
writing.
If the Expert Group constituted under sub-section (1) of section 7 of the RFCTLARR Act, 2013, is of
the opinion that—
(a) the project will serve any public purpose; and
(b) the potential benefits outweigh the social costs and adverse social impacts, it shall make specific
recommendations within two months from the date of its constitution whether the extent of land
proposed to be acquired is the absolute bare-minimum extent needed for the project and whether there
are no other less displacing options available:
Provided that the grounds for such recommendation shall be recorded in writing by the Expert
Group giving the details and reasons for such decision. The recommendations of the Expert Group
referred to in sub-sections (4) and (5) of section 7 of the RFCTLARR Act, 2013 shall be made
available in the local language to the Panchayat, Municipality or Municipal Corporation, as the
case may be, and the offices of the District Collector, the Sub-Divisional Magistrate and the Tehsil,
and shall be published in the affected areas, in such manner as may be prescribed and uploaded on the
website of the appropriate Government.
Special provision to safeguard Food Security
Save as otherwise provided in sub-section (2), no irrigated multi-cropped land shall be acquired
under this Act.
Section 10 of the 2013 Act is all together a new provision, which provides for special provision to
safeguard food security.
Section 10 puts conditions in respect of acquisition of irrigated and multi-cropped land.
Now to ensure food security, multi crop irrigated land shall be acquired only as a last resort measure.
An equivalent area of culturable wasteland shall be developed, if multi-cropped land is acquired.
PRELIMINARY NOTIFICATIONS
Section 11 of the LARR Act, 2013 corresponds to the sec. 4 of the L. A. Act, 1894, which envisages
for the publication of preliminary notification and power of officers thereupon.
The 2013 Act envisages the preliminary notification to state the details of the land to be acquired.
However, this was not required by s. 4 of the 1894 Act.
The 2013 Act requires that the preliminary notification should contain a statement on – nature of the
public purpose involved – reasons necessitating the displacement of affected persons – summary of the
SIA report – the particulars of the Administrator appointed for the purposes of rehabilitation and
resettlement under s. 43 of 2013 Act. (This requirement was not there in the Land Acquisition Act,
1894)
“Public purpose or for a company”.
The 2013 Act requires that the preliminary notification be also published in the Official Gazette, two
daily newspaper local language in the Panchayat, Municipality or Municipal Corporation in the
government offices, websites and affected areas.
Section 11 (4) of the 2013 Act mandates that no person shall make any transaction or cause any
transaction of land specified in the preliminary notification or create any encumbrance on such land.
More so, from the date of publication of such notification till such time as the proceedings are
contemplated. There was no such prohibition in the Act of 1894.
Section 11 (5) of 2013 Act mandates after the issuance of the preliminary notification the collector
shall before the issue of a declaration under s. 19 undertake and complete the exercise of updating of
land records as prescribed. But there was no such requirement in the Act of 1894.
Preliminary Survey
S. 12 of the 2013 Act envisages to provide preliminary survey of land and power of officers to carry
out survey.
S. 12 of the 2013 Act envisages that the specified acts in respect of the land by authorized officer of
the government shall not be conducted in the absence of the owner of the land or in the absence of any
person authorized in writing by the owner.
However, s. 4 (2) of the 1894 Act did not provide such a requirement.
Section 13: Payment of Damages
Lapse of Social Impact Assessment
S. 14 of the 2013 Act, envisages for lapse of SIA report in case preliminary notification under s. 11 is
not issued within the twelve months from the date of appraisal of the SIA report as submitted by the
expert committee.
But the appropriate government shall have the power to extend the period of 12 months, if in its opinion
circumstances exist justifying the same and any such decision to extend the period shall be recorded in
writing and they shall be notified and be uploaded on the website of the authority concerned.
Hearing of Objections
Under the 1894 Act the time limit for interested persons submitting written objections in respect of
land acquisition to collector was 30 days from the date of publication of preliminary notification.
Now the 2013 Act extends the time limit to 60 days the word “or for a company” as used in s. 5 A of
1894 Act is omitted by the 2013 Act for the reason that the avowed policy of legislature under the
LARR Act, that the Government should not get involved in assisting private companies to acquire land
for commercial/private purpose as distinct from public purposes.
Notice to Interested Persons
S. 2 (x) defines person interested as – all persons claiming an interest in compensation to be made on
account of the land acquisition – ST and other traditional forest developers who have lost any forest
rights – a person interested in an easement affecting the land – persons having tenancy rights including
share croppers – any person whose primary source of livelihood to be adversely affected.
S. 21 of the LARR Act, 2013 corresponds to s. 9 of the L. A. Act, 1894 which provides for notice to
person interested.
S. 21 envisages to provide notice to persons interested in the land to appear personally or by agent or
by pleader before the Collector at a time and place mentioned in the public notice.
The 2013 Act requires the Collector to publish on the government website and also the public notice
inviting compensation and Rehabilitation and Resettlement Claims. However, such requirement was
not there in the Act of 1894.
The Act of 1894 has only provided the period of 15 days where as the Act of 2013 provides the period
of not less than 30 days and not more than 6 months’ time to file claims.
Enquiry and land acquisition award by Collector
Section 23 of the LARR Act, 2013 corresponds to s. 11 of the L. A. Act, 1894 which enacts for enquiry
and land acquisition award by the collector.
S. 23 envisages to provide enquiry into the objection, if any, and the land acquisition award by the
collector.
The LARR Act, 2013 dispenses with requirements of making of award by the collector with previous
approval of Appropriate Government.
The collector’s enquiry is to be full and complete so as to enable him to make a final award. The collector
has to enquire into the objections to the measurement made under s. 8 – into the value of the land – into
the respective interests of the persons claiming the compensation.
The award of the Land Acquisition Officer, is only an offer and is an administrative act. (Given within
12 months s. 25)
LAPSE OF PROCEEDINGS
S. 24 OF 2013 Act is all together new provision which provides for the land acquisition process under
the 1894 Act shall be deemed to lapse in certain cases.
This section is the mostly used in the frivolous litigations by the litigants to claim the compensation
under the 2013 Act intentionally filing petitions to delay the acquisition process and to that they would
be able to claim compensation under the new Act.
In any case of land acquisition proceedings initiated under the Land Acquisition Act, 1894 where no
award under s. 11 of the 1894 Act then the provisions of the 2013 Act will be applicable. [S. 24 (a)]
And where award has been u/s 11 then such proceedings shall continue under the provisions of the Act
of 1894. (Means retrospective application)
Indore Development Authority v. Shailendra (Dead) Through Lrs., AIR 2018 SC “the court held that
fraudulent and stale claims are not at all to be raised under the guise of s. 24. Misuse of provisions of s.
24 (2) cannot be permitted. Protection by courts in cases of such blatant misuse of the provisions of law
could never have been the intention behind enacting the provisions, of s. 24 (2) of the 2013 Act. The
Apex Court is inclined to entertain such a stale claim after 105 years of acquisition”.
Indore Development Authority v. Manoharlal, AIR 2020 SC “the SC in a landmark ruling the 5 judges’
bench unanimously held that the land owners who had refused to accept compensation or who has sought
reference for higher compensation, cannot claim that the acquisition proceedings have lapsed under the
section 24 (2) of the RFCTLARR Act, 2013. The bench also held that under the provisions of s. 24 (1)
(a) of the LARR Act, 2013 in case the award is not made as on 01.01.2014, the date of commencement
of the Act of 2013, there is no lapse of proceedings, compensation is to be determined under the
provisions of the 2013 Act.”
In case the award has not been passed within the window period of five years excluding the period
covered by an interim order of the courts, then proceedings shall continue as provided under section 24
(1) (b) of the 2013 Act under the Act of 1894 as if it has not been repealed.
The word ‘or’ used in s. 24 (2) between possession and compensation has to be read as ‘nor’ or as ‘end’.
The deemed lapse of land acquisition proceedings under section 24 (2) of the Act of 2013 takes place
where due to inaction of authorities for five years or more prior to commencement of the said Act, the
possession of has nor been taken nor compensation has been paid.
In case possession has been taken, compensation has not been paid then there is no lapse. Similarly, if
compensation has been paid, possession has not been taken then there is no lapse.
There cannot be any lapse of acquisition under section 24 (2) of the Act, 2013 on the ground of
possession could not be taken over by the authority and or the compensation could not be
deposited/tendered due to the pending litigation. [IDA v. MANOHARLAL, 2020]
Subsequent purchaser has no right to claim lapse of acquisition proceedings. [Delhi Development
Authority v. Godfrey Philips Ltd. 2022 Live Law SC]; [Shiv Kumar & Anr. vs. UOI, 2019 10 SCC]
The Supreme Court reiterated that a subsequent purchaser has no right to claim lapse of acquisition
proceedings. [Delhi Development Authority v. Damini Wadhwa, 2022 Live Law SC 913]
For a deemed lapse of acquisition under s. 24 (2) of the Act, 2013 there shall be a lapse by the Acquiring
Body/beneficiary in not taking possession as well as not paying the compensation. Twin conditions must
satisfy.
State of Gujarat v. Jayantibhai Ishwarbhai Patel, 2023 Live Law (SC) 247, “the court held that once
the land owner refuses to accept the amount of compensation offered by the Acquiring Body, thereafter
it will not be open for the original land owner to pray for lapse of acquisition on the ground that the
compensation has not been paid”.
If the acquiring body/beneficiary was not able to take the possession due to pending litigation in a
proceeding initiated by the land owner, thereafter the land owner cannot be permitted to take the
benefit/advantage of the same and thereafter to contend that as the possession is not taken over may be
due to litigation still, they are entitled to lapse. Under s. 24 (2) subsequent purchaser has no locus to
challenge the acquisition and or lapsing of the acquisition. [Govt. of NCT of Delhi v. Sunil Jain, 2023
Live law (SC) 36]
Supreme Court – No lapse of proceedings under the old Act if compensation is deposited in Treasury.
Refer to s. 24 of the 2013 Act.