The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013 represents a major paradigm shift in Indian land acquisition jurisprudence.
1. Core Departures from the 1894 Act
- Social Impact Assessment (SIA): Under the 2013 Act, an SIA study is mandatory before any acquisition. The SIA must determine whether the acquisition serves a public purpose and assess the social impact on affected families.
- Consent Requirements: For acquisitions by private companies, the consent of 80% of affected families is required. For Public-Private Partnerships (PPP), 70% consent is mandatory. (No consent is required for purely governmental public works).
2. Defining Public Purpose
Public Purpose includes land acquired for: (1) Strategic purposes relating to the armed forces; (2) Infrastructure projects; (3) Project-affected families; (4) Housing for poor/landless groups; (5) Development of planned industrial areas.
3. Fair Compensation & Solatium
- Compensation Calculation: The Act mandates payment of four times the market value of land in rural areas, and two times the market value in urban areas.
- Solatium: A mandatory additional payment of 100% of the total compensation amount is paid for the involuntary nature of the acquisition (damage/disturbance).
- Rehabilitation & Resettlement (R&R): Incorporates mandatory provisions for employment, monthly pension, and alternative housing for affected families, including landless agricultural laborers.