🏛️ Land Acquisition Act, 2013 – Indian Economy UPSC Notes

🏛️ Land Acquisition Act, 2013

(Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013)

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🧭 Background & Need for the New Act

• Land is a State subject, but land acquisition falls under the Concurrent List (both Centre and States can legislate).

• Old Act (1894) was a colonial law focused on forced land acquisitions with:

  • No proper compensation

  • No rehabilitation for displaced people

  • Below-market rates for acquired land

  • Increased resistance (e.g., Singur Tata Nano project failed)

• Article 300A of the Constitution: “No person shall be deprived of property except by authority of law”

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⚖️ What is Eminent Domain?

• It’s the government’s legal power to acquire private land for public use.

• Property owners get compensation, but consent is not always mandatory.

• After the 44th Amendment (1978), Right to Property became a legal/statutory right, not a fundamental right.

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🆕 Introduction to the 2013 Act

• Came into effect: 1st January 2014

• Replaced the outdated Land Acquisition Act, 1894

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🏗️ Public Purpose Projects (Where the Act Applies)

Includes land acquisition for:

• Strategic projects (defence, national security, paramilitary)

• Infrastructure (roads, railways, ports, power, mining)

• Govt.-aided educational and research institutions (not private schools/hospitals)

• Welfare of displaced families

• Housing for the poor and landless

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📜 When Does the Act Apply?

Situation	Consent Required
Govt. acquiring land for itself or PSUs	❌ No
PPP Projects (Govt + Private)	✅ 70% of affected families
Private companies (for public use)	✅ 80% of affected families

Salient Features of the Land Acquisition Act, 2013

1. Fair Compensation:

   • People whose land is taken will get compensation equal to the market value.

   • If it’s urban land, the compensation = 2 times market value (includes 100% solatium).

   • If it’s rural land, the compensation = 4 times market value.

   • “Solatium” is extra money for emotional attachment to the land.

2. Protection of Multi-Cropped Land:

   • Government cannot easily acquire fertile, irrigated land, especially land used for multiple crops.

   • Exception: Only in special cases or for linear projects (like roads, railways, canals, power lines).

   • Even in exceptions, the state can put limits on how much land can be taken.

3. Social Impact Assessment (SIA):

   • Before acquiring land, the government must do a Social Impact Study.

   • Local bodies like Panchayats and Municipalities must be consulted.

   • The study checks:

     • Is the project really needed for public good?

     • How many people will be affected?

     • Can the project be done somewhere else?

     • Is the land needed the minimum required?

   • The public must have access to this report.

4. Rehabilitation and Resettlement (R&R):

   • In addition to compensation, affected families will get:

     • A job (if available), or

     • ₹5 lakh one-time payment, or

     • ₹2000/month for 20 years (adjusted for inflation)

     • ₹50,000 Resettlement Allowance

     • ₹3000/month for one year for basic living expenses

     • If they lose a house, a new house will be given

This Act tries to protect the rights of landowners, ensure fair compensation, and bring transparency in land acquisition. However, getting the consent of 70–80% of affected people is tough—especially in areas with high population.

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📝 Conclusion / Comment

The LA Act 2013 is a progressive law that:

• Protects the rights of landowners

• Ensures transparency, fair compensation, and rehabilitation

• Balances the needs of development and justice

📌 However, obtaining consent from 70–80% of affected families can be challenging, especially in densely populated areas.