The right to fair compensation and transparency in land acquisition, rehabilitation and resettlement act, 2013

S.2 Application of Act.

(1) The provisions of this Act relating to land acquisition, compensation, rehabilitation and resettlement, shall apply, when the appropriate Government acquires land for its own use, hold and control, including for Public Sector Undertakings and for public purpose, and shall include the following purposes, namely:--

(a) for strategic purposes relating to naval, military, air force, and armed forces of the Union, including central paramilitary forces or any work vital to national security or defence of India or State police, safety of the people; or

(b) for infrastructure projects, which includes the following, namely:

S.3 Definitions.

In this Act, unless the context otherwise requires,--

(a) "Administrator" means an officer appointed for the purpose of rehabilitation and resettlement of affected families under sub-section (1) of section 43;

(b) "affected area" means such area as may be notified by the appropriate Government for the purposes of land acquisition;

(i) a family whose land or other immovable property has been acquired;

(1) 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.

(2) The notification issued by the appropriate Government for commencement of consultation and of the Social Impact Assessment study under sub-section (1) 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 ap

S.5 Public hearing for Social Impact Assessment.

Whenever a Social Impact Assessment is required to be prepared under section 4, 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.

S.6 Publication of Social Impact Assessment study.

(1) 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 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.

(2) 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

S.8 Examination of proposals for land acquisition and Social Impact Assessment report by appropriate Government.

(1) The appropriate Government shall ensure that—

(a) there is a legitimate and bona fide public purpose for the proposed acquisition which necessitates the acquisition of the land identified;

(b) the potential benefits and the public purpose referred to in clause (a) shall outweigh the social costs and adverse social impact as determined by the Social Impact Assessment that has been carried out;

(d) there is no unutilised land which has been previously acquir

S.9 Exemption from Social Impact Assessment.

Where land is proposed to be acquired invoking the urgency provisions under section 40, the appropriate Government may exempt undertaking of the Social Impact Assessment study.

S.10 Special provision to safeguard food security.

(1) Save as otherwise provided in sub-section (2), no irrigated multi-cropped land shall be acquired under this Act.

(2) Such land may be acquired subject to the condition that it is being done under exceptional circumstances, as a demonstrable last resort, where the acquisition of the land referred to in subsection (1) shall, in aggregate for all projects in a district or State, in no case exceed such limits as may be notified by the appropriate Government considering the relevant State specific factors and circumstances.

(3) Whenever multi-crop irrigated land is acquired under sub-section (2), an equivalent area of culturable wasteland shall be developed for agricultural purposes or an amount equivalent to the value of the land acquired shall be deposited with the appropriate Government for investment in ag

S.11 Publication of preliminary notification and power of officers thereupon.

(1) Whenever, it appears to the appropriate Government that land in any area is required or likely to be required for any public purpose, a notification (hereinafter referred to as preliminary notification) to that effect along with details of the land to be acquired in rural and urban areas shall be published in the following manner, namely:—

(a) in the Official Gazette;

(b) in two daily newspapers circulating in the locality of such area of which one shall be in the regional language;

(c) in the local language in the Panchayat, Municipality or Municipal Corporation, as the case may be and in the offices of the District Collector, the Sub-divisional Magis

S.12 Preliminary survey of land and power of officers to carry out survey.

For the purposes of enabling the appropriate Government to determine the extent of land to be acquired, it shall be lawful for any officer, either generally or specially authorised by such Government in this behalf, and for his servants and workmen,—

(a) to enter upon and survey and take levels of any land in such locality;

(b) to dig or bore into the sub-soil;

(d) to set out the boundaries of the land proposed to be taken and the intended line of the work (if any) p

S.13 Payment for damage.

The officer so authorised under section 12 shall at the time of entry under section 12 pay or tender payment for any damage caused, and, in case of dispute as to the sufficiency of the amount so paid or tendered, he shall at once refer the dispute to the decision of the Collector or other chief revenue officer of the district, and such decision shall be final.

S.14 Lapse of Social Impact Assessment report.

Where a preliminary notification under section 11 is not issued within twelve months from the date of appraisal of the Social Impact Assessment report submitted by the Expert Group under section 7, then, such report shall be deemed to have lapsed and a fresh Social Impact Assessment shall be required to be undertaken prior to acquisition proceedings under section 11:

Provided that the appropriate Government, shall have the power to extend the period of twelve months, if in its opinion circumstances exist justifying the same:

Provided further that any such decision to extend the period shall be recorded in writing and the same shall be notified and be uploaded on the website of the authority concerned.

S.15 Hearing of objections.

(1) Any person interested in any land which has been notified under sub-section (1) of section 11, as being required or likely to be required for a public purpose, may within sixty days from the date of the publication of the preliminary notification, object to—

(a) the area and suitability of land proposed to be acquired;

(b) justification offered for public purpose;

(2) Every objection under sub-section (1) shall be made to the Collector in writing, and the Collector shall give the objector an opportunity of being heard in p

S.16 Preparation of Rehabilitation and Resettlement Scheme by the Administrator.

(1) Upon the publication of the preliminary notification under sub-section (1) of section 11 by the Collector, the Administrator for Rehabilitation and Resettlement shall conduct a survey and undertake a census of the affected families, in such manner and within such time as may be prescribed, which shall include—

(a) particulars of lands and immovable properties being acquired of each affected family;

(b) livelihoods lost in respect of land losers and landless whose livelihoods are primarily dependent on the lands being acquired;

S.17 Review of the Rehabilitation and Resettlement Scheme.

(1) The Collector shall review the draft Scheme submitted under sub-section (6) of section 16 by the Administrator with the Rehabilitation and Resettlement Committee at the project level constituted under section 45.

(2) The Collector shall submit the draft Rehabilitation and Resettlement Scheme with his suggestions to the Commissioner Rehabilitation and Resettlement for approval of the Scheme.

S.18 Approved Rehabilitation and Resettlement Scheme to be made public.

The Commissioner shall cause the approved Rehabilitation and Resettlement Scheme to 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.

S.19 Publication of declaration and summary of Rehabilitation and Resettlement.

(1) When the appropriate Government is satisfied, after considering the report, if any, made under sub-section (2) of section 15, that any particular land is needed for a public purpose, a declaration shall be made to that effect, along with a declaration of an area identified as the "resettlement area" for the purposes of rehabilitation and resettlement of the affected families, under the hand and seal of a Secretary to such Government or of any other officer duly authorised to certify its orders and different declarations may be made from time to time in respect of different parcels of any land covered by the same preliminary notification irrespective of whether one report or different reports has or have been made (wherever required).

(2) The Collector shall publish a summary of the Rehabilitation and Resettlement Scheme along with declaration referred to in sub-section (1)

S.20 Land to be marked out, measured and planned including marking of specific areas.

The Collector shall thereupon cause the land, unless it has been already marked out under section 12, to be marked out and measured, and if no plan has been made thereof, a plan to be made of the same.

S.21 Notice to persons interested.

(1) The Collector shall publish the public notice on his website and cause public notice to be given at convenient places on or near the land to be taken, stating that the Government intends to take possession of the land, and that claims to compensations and rehabilitation and resettlement for all interests in such land may be made to him.

(2) The public notice referred to in sub-section (1) shall state the particulars of the land so needed, and require all persons interested in the land to appear personally or by agent or advocate before the Collector at a time and place mentioned in the public notice not being less than thirty days and not more than six months after the date of publication of the notice, and to state the nature of their respective interests in the land and the amount and particulars of their claims to compensation for such interests, their claims to rehabilitati

S.22 Power to require and enforce the making of statements as to names and interests.

(1) The Collector may also require any such person to make or deliver to him, at a time and place mentioned (such time not being less than thirty days after the date of the requisition), a statement containing, so far as may be practicable, the name of every other person possessing any interest in the land or any part thereof as co-proprietor, sub-proprietor, mortgagee, tenant or otherwise, and of the nature of such interest, and of the rents and profits, if any, received or receivable on account thereof for three years next preceding the date of the statement.

(2) Every person required to make or deliver a statement under this section shall be deemed to be legally bound to do so within the meaning of sections 175 and 176 of the Indian Penal Code (45 of 1860).

S.23 Enquiry and land acquisition award by Collector.

On the day so fixed, or on any other day to which the enquiry has been adjourned, the Collector shall proceed to enquire into the objections (if any) which any person interested has stated pursuant to a notice given under section 21, to the measurements made under section 20, and into the value of the land at the date of the publication of the notification, and into the respective interests of the persons claiming the compensation and rehabilitation and resettlement, shall make an award under his hand of--

(a) the true area of the land;

(b) the compensation as determined under section 27 along with Rehabilitation and Resettlement Award as determined under section 31 and which in his opinion should be allowed for the land; and

S.24 Land acquisition process under Act No. 1 of 1984 shall be deemed to have lapsed in certain cases.

(1) Notwithstanding anything contained in this Act, in any case of land acquisition proceedings initiated under the Land Acquisition Act, 1894,--

(a) where no award under section 11 of the said Land Acquisition Act has been made, then, all provisions of this Act relating to the determination of compensation shall apply; or

(b) where an award under said section 11 has been made, then such proceedings shall continue under the provisions of the said Land Acquisition Act, as if the said Act has not been repealed.

(2) Notwithstanding anything contained in sub-section (1), in case of land acquisition proceedings initiated under the Land Acquisition Act, 1894 (1 of 1894), where an award under th

S.25 Period within which an award shall be made.

The Collector shall make an award within a period of twelve months from the date of publication of the declaration under section 19 and if no award is made within that period, the entire proceedings for the acquisition of the land shall lapse:

Provided that the appropriate Government shall have the power to extend the period of twelve months if in its opinion, circumstances exist justifying the same:

Provided further that any such decision to extend the period shall be recorded in writing and the same shall be notified and be uploaded on the website of the authority concerned.

S.28 Parameters to be considered by Collector in determination of award.

In determining the amount of compensation to be awarded for land acquired under this Act, the Collector shall take into consideration—

firstly, the market value as determined under section 26 and the award amount in accordance with the First and Second Schedules;

secondly, the damage sustained by the person interested, by reason of the taking of any standing crops and trees which may be on the land at the time of the Collector's taking possession thereof;

thirdly, the damage (if any) sustained by the person interested, at the time of the Collector's taking possession of the land, by reason of severing such land from his other land;

S.29 Determination of value of things attached to land or building.

(1) The Collector in determining the market value of the building and other immovable property or assets attached to the land or building which are to be acquired, use the services of a competent engineer or any other specialist in the relevant field, as may be considered necessary by him.

(2) The Collector for the purpose of determining the value of trees and plants attached to the land acquired, use the services of experienced persons in the field of agriculture, forestry, horticulture, sericulture, or any other field, as may be considered necessary by him.

(3) The Collector for the purpose of assessing the value of the standing crops damaged during the process of land acquisition, may use the services of experienced persons in the field of agriculture as may be considered necessary by him.

S.30 Award of solatium.

(1) The Collector having determined the total compensation to be paid, shall, to arrive at the final award, impose a "Solatium" amount equivalent to one hundred per cent. of the compensation amount.

Explanation.---For the removal of doubts it is hereby declared that solatium amount shall be in addition to the compensation payable to any person whose land has been acquired.

(2) The Collector shall issue individual awards detailing the particulars of compensation payable and the details of payment of the compensation as specified in the First Schedule.

(3) In addition to the market value of the land provided under section 26, the Collector shall, in every case, award an amount calculated at the rate of twelve per cent. per annum on such market value for the period c

S.31 Rehabilitation and Resettlement Award for affected families by Collector.

(1) The Collector shall pass Rehabilitation and Resettlement Awards for each affected family in terms of the entitlements provided in the Second Schedule.

(2) The Rehabilitation and Resettlement Award shall include all of the following, namely:---

(a) rehabilitation and resettlement amount payable to the family;

(b) bank account number of the person to which the rehabilitation and resettlement award amount is to be transferred;

In every resettlement area as defined under this Act, the Collector shall ensure the provision of all infrastructural facilities and basic minimum amenities specified in the Third Schedule.

S.33 Corrections to awards by Collector.

(1) The Collector may at any time, but not later than six months from the date of award or where he has been required under the provisions of this Act to make a reference to the Authority under section 64, before the making of such reference, by order, correct any clerical or arithmetical mistakes in either of the awards or errors arising therein either on his own motion or on the application of any person interested or local authority:

Provided that no correction which is likely to affect prejudicially any person shall be made unless such person has been given a reasonable opportunity of making representation in the matter.

(2) The Collector shall give immediate notice of any correction made in the award so corrected to all the persons interested.

The Collector may, for any cause he thinks fit, from time to time adjourn the enquiry to a day to be fixed by him.

S.35 Power to summon and enforce attendance of witnesses and production of documents.

For the purpose of enquiries under this Act, the Collector shall have powers to summon and enforce the attendance of witnesses, including the parties interested of any of them, and to compel the production of documents by the same means, and (so far as may be) in the same manner as is provided in the case of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908).

S.36 Power to call for records, etc.

The appropriate Government may at any time before the award is made by the Collector under section 30 call for any record of any proceedings (whether by way of inquiry or otherwise) for the purpose of satisfying itself as to the legality or propriety of any findings or order passed or as to the regularity of such proceedings and may pass such order or issue such direction in relation thereto as it may think fit:

Provided that the appropriate Government shall not pass or issue any order or direction prejudicial to any person without affording such person a reasonable opportunity of being heard.

S.37 Awards of Collector when to be final.

(1) The Awards shall be filed in the Collectors office and shall, except as hereinafter provided, be final and conclusive evidence, as between the Collector and the persons interested, whether they have respectively appeared before the Collector or not, of the true area and market value of the land and the assets attached thereto, solatium so determined and the apportionment of the compensation among the persons interested.

(2) The Collector shall give immediate notice of his awards to such of the persons interested who are not present personally or through their representatives when the awards are made.

(3) The Collector shall keep open to the public and display a summary of the entire proceedings undertaken in a case of acquisition of land including the amount of compensation awarded to each individual along with details of the

S.38 Power to take possession of land to be acquired.

(1) The Collector shall take possession of land after ensuring that full payment of compensation as well as rehabilitation and resettlement entitlements are paid or tendered to the entitled persons within a period of three months for the compensation and a period of six months for the monetary part of rehabilitation and resettlement entitlements listed in the Second Schedule commencing from the date of the award made under section 30:

Provided that the components of the Rehabilitation and Resettlement Package in the Second and Third Schedules that relate to infrastructural entitlements shall be provided within a period of eighteen months from the date of the award:

Provided further that in case of acquisition of land for irrigation or hydel project, being a public purpose, the rehabilitation and re

S.39 Additional compensation in case of multiple displacements.

The Collector shall, as far as possible, not displace any family which has already been displaced by the appropriate Government for the purpose of acquisition under the provisions of this Act, and if so displaced, shall pay an additional compensation equivalent to that of the compensation determined under this Act for the second or successive displacements.

S.40 Special powers in case of urgency to acquire land in certain cases.

(1) In cases of urgency, whenever the appropriate Government so directs, the Collector, though no such award has been made, may, on the expiration of thirty days from the publication of the notice mentioned in section 21, take possession of any land needed for a public purpose and such land shall thereupon vest absolutely in the Government, free from all encumbrances.

(2) The powers of the appropriate Government under sub-section (1) shall be restricted to the minimum area required for the defence of India or national security or for any emergencies arising out of natural calamities or any other emergency with the approval of Parliament:

Provided that the Collector shall not take possession of any building or part of a building under this sub-section without giving to the occupier thereof at least forty-eig

S.41 Special provisions for Scheduled Castes and Scheduled Tribes.

(1) As far as possible, no acquisition of land shall be made in the Scheduled Areas.

(2) Where such acquisition does take place it shall be done only as a demonstrable last resort.

(3) In case of acquisition or alienation of any land in the Scheduled Areas, the prior consent of the concerned Gram Sabha or the Panchayats or the autonomous District Councils, at the appropriate level in Scheduled Areas under the Fifth Schedule to the Constitution, as the case may be, shall be obtained, in all cases of land acquisition in such areas, including acquisition in case of urgency, before issue of a notification under this Act, or any other Central Act or a State Act for the time being in force:

Provided that the consent of the Panchayats or the Autonomous Districts

S.42 Reservation and other benefits.

(1) All benefits, including the reservation benefits available to the Scheduled Tribes and the Scheduled Castes in the affected areas shall continue in the resettlement area.

(2) Whenever the affected families belonging to the Scheduled Tribes who are residing in the Scheduled Areas referred to in the Fifth Schedule or the tribal areas referred to in the Sixth Schedule to the Constitution are relocated outside those areas, than, all the statutory safeguards, entitlements and benefits being enjoyed by them under this Act shall be extended to the area to which they are resettled regardless of whether the resettlment area is a Scheduled Area referred to in the said Fifth Schedule, or a tribal area referred to in the said Sixth Schedule, or not.

(3) Where the community rights have been settled under the provisions of the Scheduled Tr

S.43 Appointment of Administrator.

(1) Where the appropriate Government is satisfied that there is likely to be involuntary displacement of persons due to acquisition of land, then, the State Government shall, by notification, appoint in respect of that project, an officer not below the rank of Joint Collector or Additional Collector or Deputy Collector or equivalent official of Revenue Department to be the Administrator for Rehabilitation and Resettlement.

(2) The Administrator shall, with a view to enable him to function efficiently and to meet the special time-frame, be provided with such powers, duties and responsibilities as may be prescribed by the appropriate Government and provided with office infrastructure and be assisted by such officers and employees who shall be subordinate to him as the appropriate Government may decide.

(3) Subject to the superinten

S.44 Commissioner for rehabilitation and resettlement.

(1) The State Government shall appoint an officer of the rank of Commissioner or Secretary of that Government for rehabilitation and resettlement of affected families under this Act, to be called the Commissioner for Rehabilitation and Resettlement.

(2) The Commissioner shall be responsible for supervising the formulation of rehabilitation and resettlement schemes or plans and proper implementation of such schemes or plans.

(3) The Commissioner shall be responsible for the post-implementation social audit in consultation with the Gram Sabha in rural areas and municipality in urban areas.

S.45 Rehabilitation and resettlement committee at project level.

(1) Where land proposed to be acquired is equal to or more than one hundred acres, the appropriate Government shall constitute a Committee under the chairmanship of the Collector to be called the Rehabilitation and Resettlement Committee, to monitor and review the progress of implementation of the Rehabilitation and Resettlement scheme and to carry out post-implementation social audits in consultation with the Gram Sabha in rural areas and municipality in urban areas.

(2) The Rehabilitation and Resettlement Committee shall include, apart from officers of the appropriate Government, the following members, namely:--

(a) a representative of women residing in the affected area;

(b) a representative

S.46 Provisions relating to rehabilitation and resettlement to apply in case of certain persons other than specified persons.

(1) Where any person other than a specified person is purchasing land through private negotiations for an area equal to or more than such limits, as may be notified by the appropriate Government, considering the relevant State specific factors and circumstances, for which the payment of Rehabilitation and Resettlement Costs under this Act is required, he shall file an application with the District Collector notifying him of--

(a) intent to purchase;

(b) purpose for which such purchase is being made;

(2) It shall be the duty of the Collector to refer the ma

S.47 Quantification and deposit of rehabilitation and resettlement amount.

Where the Collector is of the view that the obligations of the Requiring Body with regard to rehabilitation and resettlement can be quantified into monetary amount, he shall allow the payment of such amount into an account in complete satisfaction of such obligations, which shall be administered by the Administrator appointed under section 43, under the supervision of the Collector.

S.48 Establishment of National Monitoring Committee for rehabilitation and resettlement.

(1) The Central Government may, whenever necessary, for national or inter-State projects, constitute a National Monitoring Committee for reviewing and monitoring the implementation of rehabilitation and resettlement schemes or plans under this Act.

(2) The Committee may, besides having representation of the concerned Ministries and Departments of the Central and State Governments, associate with it eminent experts from the relevant fields.

(3) The procedures to be followed by the Committee and the allowances payable to the experts shall be such as may be prescribed.

(4) The Central Government shall provide officers and other employees to the Committee necessary for its efficient functioning.

S.49 Reporting requirements.

The States and Union territories shall provide all the relevant information on the matters covered under this Act, to the National Monitoring Committee in a regular and timely manner, and also as and when required.

S.50 Establishment of State Monitoring Committee for rehabilitation and resettlement.

(1) The State Government shall constitute a State Monitoring Committee for reviewing and monitoring the implementation of rehabilitation and resettlement schemes or plans under this Act.

(2) The Committee may, besides having representatives of the concerned Ministries and Departments of the State Government, associate with it eminent experts from the relevant fields.

(3) The procedures to be followed by the Committee and the allowances payable to the experts shall be such as may be prescribed by the State.

(4) The State Government shall provide such officers and other employees to the Committee as may be necessary for its efficient functioning.

S.51 Establishment of Land Acquisition, Rehabilitation and Resettlement Authority.

(1) The appropriate Government shall, for the purpose of providing speedy disposal of disputes relating to land acquisition, compensation, rehabilitation and resettlement, establish, by notification, one or more Authorities to be known as "the Land Acquisition, Rehabilitation and Resettlement Authority" to exercise jurisdiction, powers and authority conferred on it by or under this Act.

(2) The appropriate Government shall also specify in the notification referred to in sub-section (1) the areas within which the Authority may exercise jurisdiction for entertaining and deciding the references made to it under section 64 or applications made by the applicant under second proviso to sub-section (1) of section 64.

S.52 Composition of Authority.

(1) The Authority shall consist of one person only (hereinafter referred to as the Presiding Officer) to be appointed, by notification, by the appropriate Government.

(2) Notwithstanding anything contained in sub-section (1), the appropriate Government may authorise the Presiding Officer of one Authority to discharge also the functions of the Presiding Officer of another Authority.

S.53 Qualifications for appointment as Presiding Officer.

(1) A person shall not be qualified for appointment as the Presiding Officer of an Authority unless,--

(a) he is or has been a District Judge; or

(b) he is a qualified legal practitioner for not less than seven years.

(2) A Presiding Officer shall be appointed by the appropriate Government in consultation with the Chief Justice of a High Court in whose jurisdiction the Authority is proposed to be established.

S.54 Terms of office of Presiding Officer.

The Presiding Officer of an Authority shall hold office for a term of three years from the date on which he enters upon his office or until he attains the age of sixty-five years, whichever is earlier.

S.55 Staff of Authority.

(1) The appropriate Government shall provide the Authority with a Registrar and such other officers and employees as that Government may think fit.

(2) The Registrar and other officers and employees of an Authority shall discharge their functions under the general superintendence of the Presiding Officer.

(3) The salaries and allowances and other conditions of service of the Registrar and other officers and employees of an Authority shall be such as may be prescribed.

S.56 Salary and allowances and other terms and conditions of service of Presiding Officers.

The salary and allowances payable to and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of the Presiding Officer of an Authority, shall be such as may be prescribed:

Provided that neither the salary and allowances nor the other terms and conditions of service of the said Presiding Officers shall be varied to their disadvantage after appointment.

S.57 Filling up of vacancies.

If, for any reason other than temporary absence, any vacancy occurs in the office of the Presiding Officer of an Authority then the appropriate Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Authority from the stage at which the vacancy is filled.

S.58 Resignation and removal.

(1) The Presiding Officer of an Authority may, by notice in writing under his hand addressed to the appropriate Government, resign his office:

Provided that the Presiding Officer shall, unless he is permitted by the appropriate Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier.

(2) The Presiding Officer of an Authority shall not be removed from his office except by an order made by the appropriate Government on the ground of proven misbehaviour or incapacity after inquiry in the case of the Presiding Officer of an Authority made by a Judge of a High Court in which the Presiding Officer concerned has been informed

S.59 Orders constituting Authority to be final and not to invalidate its proceedings.

No order of the appropriate Government appointing any person as the Presiding Officer of an Authority shall be called in question in any manner, and no act or proceeding before an Authority shall be called in question in any manner on the ground merely of any defect in the constitution of an Authority.

S.60 Powers of Authority and procedure before it.

(1) The Authority shall, for the purposes of its functions under this Act, shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:--

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) discovery and production of any document or other material object producible as evidence;

(d) requisitioning of any public record;

All proceedings before the Authority shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Authority shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).

S.62 Members and officers of Authority to be public servants.

The Member and officers of the Authority shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).

S.63 Jurisdiction of civil courts barred.

No civil court (other than High Court under article 226 or article 227 of the Constitution or the Supreme Court) shall have jurisdiction to entertain any dispute relating to land acquisition in respect of which the Collector or the Authority is empowered by or under this Act, and no injunction shall be granted by any court in respect of any such matter.

S.64 Reference to Authority.

(1) Any person interested who has not accepted the award may, by written application to the Collector, require that the matter be referred by the Collector for the determination of the Authority, as the case may be, whether his objection be to the measurement of the land, the amount of the compensation, the person to whom it is payable, the rights of Rehabilitation and Resettlement under Chapters V and VI or the apportionment of the compensation among the persons interested:

Provided that the Collector shall, within a period of thirty days from the date of receipt of application, make a reference to the appropriate Authority:

Provided further that where the Collector fails to make such reference within the period so specified, the applicant may apply to the Authority, as the case may be, requesting

S.65 Collector‘s statement to Authority.

(1) In making the reference, the Collector shall state for the information of the Authority, in writing under his hand--

(a) the situation and extent of the land, with particulars of any trees, buildings or standing crops thereon;

(b) the names of the persons whom he has reason to think interested in such land;

(c) the amount awarded for damages and paid or tendered under section 13, and the amount of compensation awarded under the provisions of this Act;

(d) the amount paid or deposited under any other provisions of this Act; and

S.66 Service of notice by Authority.

The Authority shall thereupon cause a notice specifying the day on which the Authority will proceed to determine the objection, and directing their appearance before the Authority on that day, to be served on the following persons, namely:--

(a) the applicant;

(b) all persons interested in the objection, except such (if any) of them as have consented without protest to receive payment of the compensation awarded; and

S.67 Restriction on scope of proceedings.

The scope of the enquiry in every such proceeding shall be restricted to a consideration of the interest of the persons affected by the objection.

S.68 Proceedings to be in public.

Every such proceeding shall take place in public, and all persons entitled to practice in any Civil Court in the State shall be entitled to appear, plead and act (as the case may be) in such proceeding.

S.69 Determination of award by Authority.

(1) In determining the amount of compensation to be awarded for land acquired including the Rehabilitation and Resettlement entitlements, the Authority shall take into consideration whether the Collector has followed the parameters set out under section 26 to section 30 and the provisions under Chapter V of this Act.

(2) In addition to the market value of the land, as above provided, the Authority shall in every case award an amount calculated at the rate of twelve per cent. per annum on such market value for the period commencing on and from the date of the publication of the preliminary notification under section 11 in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier.

Explanation.--In computing the period referred to in this

S.70 Form of award.

(1) Every award under this Chapter shall be in writing signed by the Presiding Officer of the Authority, and shall specify the amount awarded under clause first of section 28, and also the amounts (if any) respectively awarded under each of the other clauses of the same subsection, together with the grounds of awarding each of the said amounts.

. (2) Every such award shall be deemed to be a decree and the statement of the grounds of every such award a judgment within the meaning of clause (2), and clause (9) of respectively, of section 2 of the Code of Civil Procedure, 1908 (5 of 1908).

S.71 Costs.

(1) Every such award shall also state the amount of costs incurred in the proceeding under this Chapter, and by what persons and in what proportions they are to be paid.

(2) When the award of the Collector is not upheld, the cost shall ordinarily be paid by the Collector, unless the Authority concerned is of the opinion that the claim of the applicant was so extravagant or that he was so negligent in putting his case before the Collector that some deduction from his costs should be made or that he should pay a part of the Collector's costs.

S.72 Collector may be directed to pay interest on excess compensation.

If the sum, which in the opinion of the Authority concerned, the Collector ought to have awarded as compensation is in excess of the sum which the Collector did award as compensation, the award of the Authority concerned may direct that the Collector shall pay interest on such excess at the rate of nine per cent. per annum from the date on which he took possession of the land to the date of payment of such excess into Authority:

Provided that the award of the Authority concerned may also direct that where such excess or any part thereof is paid to the Authority after the date or expiry of a period of one year from the date on which possession is taken, interest at the rate of fifteen per cent. per annum shall be payable from the date of expiry of the said period of one year on the amount of such excess or part thereof which has not been paid into Authority before the date

S.73 Re-determination of amount of compensation on the basis of the award of the Authority.

(1) Where in an award under this Chapter, the Authority concerned allows to the applicant any amount of compensation in excess of the amount awarded by the Collector under section 23, the persons interested in all the other land covered by the same preliminary notification under section 11, and who are also aggrieved by the award of the Collector may, notwithstanding that they had not made an application to the Collector, by written application to the Collector within three months from the date of the award of the Authority concerned require that the amount of compensation payable to them may be re-determined on the basis of the amount of compensation awarded by the Authority:

Provided that in computing the period of three months within which an application to the Collector shall be made under this sub-section, the day on which the award was pronounced and the time requisi

S.74 Appeal to High Court.

(1) The Requiring Body or any person aggrieved by the Award passed by an Authority under section 69 may file an appeal to the High Court within sixty days from the date of Award:

Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.

(2) Every appeal referred to under sub-section (1) shall be heard as expeditiously as possible and endeavour shall be made to dispose of such appeal within six months from the date on which the appeal is presented to the High Court.

Explanation.--For the purposes of this section, "High Court" means the High Court w

S.75 Particulars of apportionment to be specified.

When there are several persons interested, if such persons agree in the apportionment of the compensation, the particulars of such apportionment shall be specified in the award, and as between such persons the award shall be conclusive evidence of the correctness of the apportionment.

S.76 Dispute as to apportionment.

When the amount of compensation has been settled, if any dispute arises as to the apportionment of the same or any part thereof, or as to the persons to whom the same or any part thereof is payable, the Collector may refer such disputes to the Authority.

S.77 Payment of compensation or deposit of same in Authority.

(1) On making an award under section 30, the Collector shall tender payment of the compensation awarded by him to the persons interested entitled thereto according to the award and shall pay it to them by depositing the amount in their bank accounts unless prevented by someone or more of the contingencies mentioned in sub-section (2).

(2) If the person entitled to compensation shall not consent to receive it, or if there be no person competent to alienate the land, or if there be any dispute as to the title to receive the compensation or as to the apportionment of it, the Collector shall deposit the amount of the compensation in the Authority to which a reference under section 64 would be submitted:

Provided that any person admitted to be interested may receive such payment under protest as to the sufficien

S.78 Investment of money deposited in respect of lands belonging to person incompetent to alienate

(1) If any money is deposited in the Authority concerned under sub-section (2) of section 77 and it appears that the land in respect whereof the same was awarded belonged to any person who had no power to alienate the same, the Authority concerned shall--

(a) order the money to be invested in the purchase of other lands to be held under the like title and conditions of ownership as the land in respect of which such money shall have been deposited was held; or

(b) if such purchase cannot be effected forthwith, then in such Government of other approved securities as the Authority concerned shall think fit,

and shall direct the payment of the interest or other proceeds arising from such investment to the person or persons who wo

S.79 Investment of money deposited in other cases.

When any money shall have been deposited in the Authority concerned under this Act for any cause other than the causes mentioned in section 78, the Authority may, on the application of any party interested or claiming an interest in such money, order the same to be invested in such Government or other approved securities as it may think proper, and paid in such manner as it may consider will give the parties interested therein the same benefit from it as they might have had from the land in respect whereof such money shall have been deposited or as near thereto as may be.

S.80 Payment of interest.

When the amount of such compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of nine per cent. per annum from the time of so taking possession until it shall have been so paid or deposited:

Provided that if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which possession is taken, interest at the rate of fifteen per cent. per annum shall be payable from the date or expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry.

S.81 Temporary occupation of waste or arable land, procedure when difference as to compensation exists

(1) Whenever it appears to the appropriate Government that the temporary occupation and use of any waste or arable land are needed for any public purpose, the appropriate Government may direct the Collector to procure the occupation and use of the same for such terms as it shall think fit, not exceeding three years from the commencement of such occupation.

(2) The Collector shall thereupon give notice in writing to the person interested in such land of the purpose for which the same is needed, and shall, for the occupation and use thereof for such term as aforesaid, and for the materials (if any) to be taken therefrom, pay to them such compensation, either in a gross sum of money, or by monthly or other periodical payments, as shall be agreed upon in writing between him and such persons respectively.

(3) In case the Collector and

S.82 Power to enter and take possession and compensation on restoration.

(1) On payment of such compensation, or on executing such agreement, or on making a reference under section 64, the Collector may enter upon and take possession of the land, and use or permit the use thereof in accordance with the terms of the said notice.

(2) On the expiration of the term, the Collector shall make or tender to the persons interested compensation for the damage (if any) done to the land and not provided for by the agreement, and shall restore the land to the persons interested therein:

Provided that, if the land has become permanently unfit to be used for the purpose for which it was used immediately before the commencement of such term, and if the persons interested shall so require, the appropriate Government shall proceed under this Act to acquire the land as if it was needed permanently for a

S.83 Difference as to condition of land.

In case the Collector and persons interested differ as to the condition of the land at the expiration of the term, or as to any matter connected with the said agreement, the Collector shall refer such difference to the decision of the Authority concerned.

S.84 Punishment for false information, mala fide action, etc.

(1) If a person, in connection with a requirement or direction under this Act, provides any information that is false or misleading, or produces any false document, he shall be liable to be punished with imprisonment of either description for a term which may extend to six months, or with fine which may extend to one lakh rupees, or with both.

(2) Any rehabilitation and resettlement benefit availed of by making a false claim or through fraudulent means shall be liable to be recovered by the appropriate Government in the manner as may be prescribed.

(3) Disciplinary proceedings may be drawn up by the disciplinary authority against a Government servant, who if proved to be guilty of a mala fide action in respect of any provision of this Act, shall be liable to such punishment including a fine as the disciplinary authority ma

S.85 Penalty for contravention of provisions of Act.

If any person contravenes any of the provisions relating to payment of compensation or rehabilitation and resettlement, every such person shall be liable to a punishment of six months which may extend to three years or with fine or with both.

S.86 Offences by companies.

(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivan

S.87 Offences by Government departments.

(1) Where an offence under this Act has been committed by any department of the Government, the head of the department, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this section shall render any person liable to any punishment if such person proves that the offence was committed without his knowledge or that such person exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a Department of the Government and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any officer, other than

S.88 Cognizance of offences by court.

No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall be competent to try any offence punishable under this Act.

S.89 Offences to be non-cognizable.

Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) every offence under this Act shall be deemed to be non-cognizable.

S.90 Offences to be cognizable only on complaint filed by certain persons.

No court shall take cognizance of any offence under this Act which is alleged to have been committed by a Requiring Body except on a complaint in writing made by the Collector or any other officer authorised by the appropriate Government or any member of the affected family.

S.91 Magistrate to enforce surrender.

If the Collector is opposed or impeded in taking possession under this Act of any land, he shall, if a Magistrate, enforce the surrender of the land to himself, and if not a Magistrate, he shall apply to a Magistrate or to the Commissioner of Police, and such Magistrate or Commissioner, as the case may be, shall enforce the surrender of the land to the Collector.

S.92 Service of notice.

(1) Save as otherwise provided in section 66, the service of any notice under this Act shall be made by delivering or tendering a copy thereof signed, in the case of a notice, by the officer therein mentioned, and, in the case of any other notice, by order of the Collector.

(2) Whenever it may be practicable, the service of the notice shall be made on the person therein named.

(3) When such person cannot be found, the service may be made on any adult member of his family residing with him; and, if no such adult member can be found, the notice may be served by fixing the copy on the outer door of the house in which the person therein named ordinarily dwells or carries on business, or by fixing a copy thereof in some conspicuous place in the office of the officer aforesaid or of the Collector or in the court-house, and also in some

S.93 Completion of acquisition not compulsory, but compensation to be awarded when not completed.

(1) The appropriate Government shall be at liberty to withdraw from the acquisition of any land of which possession has not been taken.

(2) Whenever the appropriate Government withdraws from any such acquisition, the Collector shall determine the amount of compensation due for the damage suffered by the owner in consequence of the notice or of any proceedings thereunder, and shall pay such amount to the person interested, together with all costs reasonably incurred by him in the prosecution of the proceedings under this Act relating to the said land.

S.94 Acquisition of part of house or building.

(1) The provisions of this Act shall not be put in force for the purpose of acquiring a part only of any house, manufactory or other building, if the owner desires that the whole of such house, manufactory or building shall be so acquired:

Provided that, if any question shall arise as to whether any land proposed to be taken under this Act does or does not form part of a house, manufactory or building within the meaning of this section, the Collector shall refer the determination of such question to the Authority concerned and shall not be taken possession of such land until after the question has been determined.

(2) In deciding on such a reference made under the proviso to sub-section (1), the Authority concerned shall have regard to the question whether the land proposed to be taken, is r

S.95 Acquisition of land at cost of a local authority or Requiring Body.

(1) Where the provisions of this Act are put in force for the purpose of acquiring land at the cost of any fund controlled or managed by a local authority or of any Requiring Body, the charges of land incidental to such acquisition shall be defrayed from or by such fund or Requiring Body.

(2) In any proceeding held before a Collector or Authority concerned in such cases the local authority or Requiring Body concerned may appear and adduce evidence for the purpose of determining the amount of compensation:

Provided that no such local authority or Requiring Body shall be entitled to demand a reference to the Authority concerned under section 64.

S.96 Exemption from income-tax, stamp duty and fees.

No income tax or stamp duty shall be levied on any award or agreement made under this Act, except under section 46 and no person claiming under any such award or agreement shall be liable to pay any fee for a copy of the same.

S.97 Acceptance of certified copy as evidence.

In any proceeding under this Act, a certified copy of a document registered under the Registration Act, 1908 (16 of 1908) including a copy given under section 57 of that Act, may be accepted as evidence of the transaction recorded in such document.

S.98 Notice in case of suits for anything done in pursuance of Act.

No suit or other proceeding shall be commenced against any person for anything done in pursuance of this Act, without giving to such person a month's previous notice in writing of the intended proceeding, and of the cause thereof, nor after tender of sufficient amendments.

S.99 No change of purpose to be allowed.

No change from the purpose or related purposes for which the land is originally sought to be acquired shall be allowed:

Provided that if the land acquired is rendered unusable for the purpose for which it was acquired due to a fundamental change because of any unforeseen circumstances, then the appropriate Government may use such land for any other public purpose.

S.100 No change of ownership without permission to be allowed.

No change of ownership without specific permission from the appropriate Government shall be allowed.

S.101 Return of unutilised land.

When any land acquired under this Act remains unutilised for a period of five years from the date of taking over the possession, the same shall be returned to the original owner or owners or their legal heirs, as the case may be, or to the Land Bank of the appropriate Government by reversion in the manner as may be prescribed by the appropriate Government.

Explanation.--For the purpose of this section, Land Bank means a governmental entity that focuses on the conversion of Government owned vacant, abandoned, unutilised acquired lands and tax-delinquent properties into productive use.

Whenever the ownership of any land acquired under this Act is transferred to any person for a consideration, without any development having taken place on such land, forty per cent. of the appreciated land value shall be shared amongst the persons from whom the lands were acquired or their heirs, in proportion to the value at which the lands were acquired within a period of five years from the date of acquisition:

Provided that benefit shall accrue only on the first sale or transfer that occurs after the conclusion of the acquisition proceedings.

S.103 Provisions to be in addition to existing laws.

The provisions of this Act shall be in addition to and not in derogation of, any other law for the time being in force.

S.104 Option of appropriate Government to lease.

Notwithstanding anything contained in this Act, the appropriate Government shall, wherever possible, be free to exercise the option of taking the land on lease, instead of acquisition, for any public purpose referred to in sub-section (1) of section 2.

S.105 Provisions of this Act not to apply in certain cases or to apply with certain modifications.

(1) Subject to sub-section (3), the provisions of this Act shall not apply to the enactments relating to land acquisition specified in the Fourth Schedule.

(2) Subject to sub-section (2) of section 106, the Central Government may, by notification, omit or add to any of the enactments specified in the Fourth Schedule.

(3) The Central Government shall, by notification, within one year from the date of commencement of this Act, direct that any of the provisions of this Act relating to the determination of compensation in accordance with the First Schedule and rehabilitation and resettlement specified in the Second and Third Schedules, being beneficial to the affected families, shall apply to the cases of land acquisition under the enactments specified in the Fourth Schedule or shall apply with such exceptions or modifi

S.106 Power to amend Schedule.

(1) The Central Government may, by notification, amend or alter any of the Schedules to this Act, without in any way reducing the compensation or diluting the provisions of this Act relating to compensation or rehabilitation and resettlement.

(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or as the case may be, shall be issued only in such modified form as may be agreed upon by both the

S.107 Power of State Legislatures to enact any law more beneficial to affected families.

Nothing in this Act shall prevent any State from enacting any law to enhance or add to the entitlements enumerated under this Act which confers higher compensation than payable under this Act or make provisions for rehabilitation and resettlement which is more beneficial than provided under this Act.

S.108 Option to affected families to avail better compensation and rehabilitation and resettlement.

(1) Where a State law or a policy framed by the Government of a State provides for a higher compensation than calculated under this Act for the acquisition of land, the affected persons or his family or member of his family may at their option opt to avail such higher compensation and rehabilitation and resettlement under such State law or such policy of the State.

(2) Where a State law or a policy framed by the Government of a State offers more beneficial rehabilitation and resettlement provisions under that Act or policy than under this Act, the affected persons or his family or member of his family may at his option opt to avail such rehabilitation and resettlement provisions under such State law or such policy of the State instead of under this Act.

S.109 Power of appropriate Government to make rules.

(1) Subject to the other provisions of this Act, the appropriate Government may, by notification, make rules for carrying out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing, such rules may provide for all or any of the following matters, namely:--

(a) the process of obtaining the prior consent under the first proviso to sub-section (2) of section 2;

(b) the limits of land in rural areas or urban areas under clause (a) of sub-section (3) of section 2;

S.110 Rules made by Central Government to be laid before Parliament.

Every rule made by the Central Government under this Act shall be laid as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

S.111 Rules made by State Government to be laid before State Legislature.

Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House.

S.112 Previous publication of rules made by Central and State Government.

The power to make rules by the Central or State Government under this Act shall be subject to the condition of the rules, being made after previous publication.

S.113 Power to remove difficulties.

(1) If any difficulty arises in giving effect to the provisions of this Part, the Central Government may, by order, make such provisions or give such directions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for the removal of the difficulty:

Provided that no such power shall be exercised after the expiry of a period of two years from the commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

S.114 Repeal and saving.

(1) The Land Acquisition Act, 1894 (1 of 1894) is hereby repealed.

(2) Save as otherwise provided in this Act the repeal under sub-section (1) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeals.

S.26 Determination of market value of land by Collector.

(1) The Collector shall adopt the following criteria in assessing and determining the market value of the land, namely:—

(a) the market value, if any, specified in the Indian Stamp Act, 1899 (2 of 1899) for the registration of sale deeds or agreements to sell, as the case may be, in the area, where the land is situated; or

(b) the average sale price for similar type of land situated in the nearest village or nearest vicinity area; or

(c) consented amount of compensation as agreed upon under sub-section (2) of section 2 in case of acquisition of lands for private companies or for public private partnership projects,

whichever is h

Concise Legal Commentary on Section 26 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Introduction

Section 26 of the 2013 Act plays a pivotal role in establishing the criteria and procedure for determining the market value of land acquired under the Act, ensuring fair compensation to landowners. It emphasizes transparency, objectivity, and adherence to statutory guidelines in the valuation process, aiming to prevent arbitrary or discriminatory assessments.

What does Section 26 Say

Section 26 mandates that the Collector shall assess the market value of land by applying specific criteria, including the highest of the several methods prescribed, such as recent sale deeds, government notifications, or expert valuations. It incorporates the phrase "whichever is higher" to ensure the landowner receives the maximum just compensation based on multiple criteria, and enjoins the Collector to make an enquiry to determine the highest market value.

Essential Ingredients

Obligation on the Collector to assess market value based on prescribed criteria.
Application of multiple methods, including recent sale deeds, government notifications, and expert opinions.
Incorporation of the phrase "whichever is higher" to select the maximum value.
Mandatory enquiry to adopt the most advantageous method.
Objective assessment to avoid arbitrariness.
Transparency and procedural fairness in valuation.
The role of the District Collector as the statutory authority in this process.

Scope of Section 26

Section 26 applies to all land acquisition proceedings under the Act, whether initiated before or after its enforcement on 1st January 2014. It covers both urban and rural lands and mandates uniformity and fairness in valuation. The section also interacts with rules and notifications issued under the Act, including the First Schedule and relevant government notifications, to establish the valuation framework.

Punishment for Section

While Section 26 itself does not prescribe specific punishments, any willful violation, such as deliberately undervaluing land, falsification of documents, or acting arbitrarily, can attract penalties under the general provisions of the Act and the Indian Penal Code for misconduct, fraud, or criminal breach of trust.

Legal Comments

"Mandatory assessment" - Section 26 makes it obligatory for the Collector to assess market value by adopting all methods and criteria, including sale deeds, government notifications, and expert opinions, ensuring a comprehensive enquiry [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Highest value principle" - The phrase "whichever is higher" mandates that the valuation should be based on the maximum among the various methods, safeguarding the landowner's interest [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Enquiry requirement" - The section explicitly requires the Collector to make an enquiry by applying different methods to determine the highest market value, emphasizing procedural fairness [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Avoidance of arbitrariness" - The section aims to prevent arbitrary or biased valuation by mandating objective assessment based on verifiable data and multiple criteria [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Interaction with rules and notifications" - The valuation process under Section 26 is to be implemented in conjunction with rules framed under the Act, such as the First Schedule, which prescribe specific criteria and multipliers [Sources: 01500048549, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Applicability to all land acquisitions" - Section 26 applies uniformly to all proceedings under the Act, whether initiated before or after the Act’s enforcement, ensuring consistency [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Role of the District Collector" - The Collector is entrusted with the duty to conduct the enquiry, apply multiple methods, and determine the highest market value, acting as the impartial adjudicator [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Incorporation of multiple valuation methods" - The section recognizes sale deeds, government notifications, and expert opinions as valid methods, promoting transparency [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Judicial emphasis on fair valuation" - Courts have consistently held that valuation must be based on objective criteria, and reliance on arbitrary or non-comparable data is unlawful [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Protection against undervaluation" - The "whichever is higher" clause acts as a safeguard to prevent landowners from receiving less than the fair market value, thus upholding constitutional principles of equality and property rights [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Legal requirement of enquiry" - The mandatory enquiry ensures that the valuation is not based on mere assumptions but on substantive, verifiable data, aligning with principles of natural justice [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Interaction with statutory notifications" - Proper notifications under the Act, especially those defining multipliers or valuation slabs, are integral to the valuation process under Section 26 [Sources: 01500048549, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Judicial scrutiny of valuation methods" - Courts scrutinize whether the valuation process adhered to the statutory criteria, and any deviation or reliance on extraneous factors can lead to quashing of awards [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Impact of rules and amendments" - Rules framed under the Act, including amendments, cannot override or negate the statutory provisions of Section 26, and their validity is subject to judicial review [Sources: 01500035725, 01500040679].
"Role of expert evidence" - Expert opinions are to be considered as part of the enquiry, but the ultimate decision must be based on the highest value method, ascertained through an objective enquiry [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Constitutional safeguard" - Ensuring fair valuation under Section 26 aligns with constitutional mandates under Articles 14 and 300A, emphasizing equality and property rights [Sources: State Of Kerala VS SARASAMMA, Krishna Kumar S/o Chandra Sekharan Nair VS District Bar Association, Pathanamthitta].
"Procedural fairness" - The section underscores the importance of a fair, transparent, and reasoned process, which is subject to judicial review to prevent arbitrary valuation [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].
"Incorporation into judicial review" - Courts have the power to examine whether the valuation process under Section 26 was conducted in compliance with the statutory criteria, and can set aside awards if violations are found [Sources: Santhakumar VS State of Kerala, K. C. Aleyas S/o. Cherian VS State Of Kerala].

Conclusion

Section 26 of the RFCTLARR Act, 2013, embodies the principles of fair, transparent, and objective valuation of land, integrating multiple methods and safeguarding landowners’ interests through the "whichever is higher" principle. Judicial pronouncements reinforce the need for strict adherence to procedural and substantive norms, ensuring that compensation is just, equitable, and in consonance with constitutional mandates. Proper implementation of Section 26 is vital to uphold the integrity of land acquisition proceedings and protect property rights.

S.27 Determination of amount of compensation.

The Collector having determined the market value of the land to be acquired shall calculate the total amount of compensation to be paid to the land owner (whose land has been acquired) by including all assets attached to the land.

Legal Commentary on Section 27 of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Introduction

Section 27 of the Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013, sets out the procedures and consequences pertaining to the determination of compensation, lapsing of acquisition proceedings, and the rights of landowners, especially in the context of delays or non-compliance with statutory requirements. It forms a vital component ensuring fair process and safeguarding the rights of landowners against undue delays or illegal acquisitions.

What does Section 27 Say?

Section 27 primarily stipulates that once the Collector determines the market value of the land, the total compensation payable must be calculated accordingly. It also provides that if the acquisition process is not substantially implemented within a specified period (notably five years), the proceedings shall lapse, unless the government takes further action. It emphasizes that the process of acquisition can lapse if the prescribed statutory conditions—such as payment of compensation and taking possession—are not fulfilled within the stipulated time.

Essential Ingredients

Determination of Market Value: The Collector must assess and fix the market value of the land.
Calculation of Compensation: Based on the market value, the total compensation payable is to be computed.
Lapsing of Proceedings: If the acquisition is not substantially implemented within five years from the passing of the award, proceedings lapse, unless extended or revived by the government.
Payment and Possession: The process requires that compensation be paid and possession taken within the statutory period, failing which the acquisition may lapse.
Notification and Publication: Proper notification and publication are prerequisites for validity.
Legal Rights of Landowners: Landowners are protected against undue delay, and their rights are recognized if the process lapses.

Scope of Section 27

Section 27 applies to all land acquisitions under the Act where the process has not been substantially completed within the statutory period. It ensures that land acquired but not utilized or properly compensated is returned to the owners, preventing perpetual encumbrance of land by the State. It also aligns with the overarching objective of transparency and fairness, providing a mechanism for landowners to seek declaration of lapse and reclaim their rights.

Punishment for Violations

While Section 27 itself does not prescribe specific punishments, violations such as illegal delay, non-payment of compensation, or failure to follow statutory procedures can attract penalties under the broader provisions of the Act or other applicable laws. Courts have held that non-compliance with statutory timelines can lead to the declaration that the acquisition proceedings have lapsed, effectively rendering them null and void.

Legal Comments

"Safeguarding Landowner Rights" - Section 27 ensures that landowners are protected from perpetual and illegal land encumbrance by the State due to delay or non-compliance, aligning with constitutional principles of justice and fairness [RFCTLARR Act.pdf].
"Lapsing of Proceedings" - The clause that acquisition proceedings lapse if not substantially implemented within five years prevents arbitrary or prolonged landholding by authorities without utilization, reinforcing the purpose of timely development and preventing land hoarding [Section 27, ILR 2016 Kar 1603].
"Mechanism for Declaration of Lapse" - The provision provides a statutory remedy for landowners to seek declaration that proceedings have lapsed, which can be invoked if the government fails to pay compensation or take possession within prescribed timelines [SCC 2014 (3) SCC 183].
"Protection Against Unjust Delays" - Courts have consistently held that non-compliance with the timelines under Section 27 leads to lapsing, acting as a deterrent against administrative lethargy and arbitrary delays [W.P. (C) No. 8151/2017].
"Role of Compensation and Possession" - The section underscores that mere publication of notifications is insufficient; actual payment of compensation and taking possession are critical to prevent proceedings from lapsing [Section 24(2), AIR 2014 SC 183].
"Lapsing as a Remedy for Landowners" - It provides an effective remedy for landowners to challenge and seek declaration of lapsing if the State fails to adhere to statutory obligations, thus protecting their property rights [Section 27, ILR 2017 Kar 1470].
"Legal Consequences of Lapsing" - Once proceedings lapse, the land reverts to the owners, and any further attempt at acquisition must start afresh, ensuring transparency and preventing indefinite landholding by authorities [AIR 2014 SC 183].
"Judicial Enforcement" - Courts have actively enforced Section 27, declaring acquisitions void if statutory conditions are not met, thereby upholding the constitutional mandate of fair compensation and property rights [W.P. (C) No. 1953/1997].
"Preventing Arbitrary Extension" - The provision discourages arbitrary extensions of land acquisition processes, compelling authorities to act within prescribed timelines or face lapsing, thus promoting accountability [Section 27, ILR 2016 Kar 1603].
"Lapsing and Public Purpose" - While the Act aims to serve public purpose, it also balances this with safeguards for landowners, ensuring that delays do not result in indefinite deprivation of property [Section 24(2), AIR 2014 SC 183].
"Implementation and Compliance" - The section emphasizes that statutory compliance—payment of compensation and taking possession—is mandatory; failure leads to lapsing, which is a safeguard against administrative inaction [Section 27, SCC 2014 (3) SCC 183].
"Legal Remedy for Landowners" - Landowners can approach courts to seek declaration that acquisition proceedings have lapsed, reinforcing the judicial safeguard against illegal or delayed acquisitions [Section 27, ILR 2017 Kar 1470].
"Impact of Delay on Validity" - Courts have held that delays beyond five years without substantial implementation render the acquisition invalid, emphasizing the importance of timely execution [W.P. (C) No. 8151/2017].
"Extension of Timelines" - While the Act permits extensions in certain cases, courts have cautioned against indefinite delays, reaffirming that proceedings must be completed within the statutory period or lapse [Section 27, AIR 2014 SC 183].
"Protection of Property Rights" - The provisions reflect constitutional protections under Article 300A, ensuring that property rights are not arbitrarily deprived and that due process is followed [Section 27, Constitution of India].
"Judicial Vigilance" - Courts have actively scrutinized delays and procedural lapses, declaring acquisitions void if statutory conditions are not met, thus upholding the rule of law [W.P. (C) No. 1953/1997].

Summary

Section 27 of the 2013 Act acts as a crucial safeguard for landowners, ensuring that land acquisition processes are not prolonged indefinitely or conducted arbitrarily. It mandates timely payment of compensation and physical possession, failing which proceedings automatically lapse, returning the land to the owners. Courts have consistently upheld this provision, emphasizing its importance in maintaining transparency, accountability, and constitutional protections for property rights.

**- RFCTLARR Act.pdf- ILR 2016 Kar 1603- SCC 2014 (3) SCC 183- W.P. (C) No. 1953/1997- AIR 2014 SC 183

S.1 Short title, extent and commencement.

(1) This Act may be called the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

(2) It extends to the whole of India ¹***.

(3) It shall come into force on such date² as the Central Government may, by notification in the Official Gazette, appoint:

Provided that the Central Government shall appoint such date within three months from the date on which the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2013 receives the assent of the President.

Legal Commentary on Section 1 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Introduction

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter "the 2013 Act" or "RFCTLARR Act"), represents a paradigm shift in Indian land acquisition law, replacing the 1894 Act. While the detailed provisions of the Act are spread across 114 sections, Section 1 serves as the foundational title and commencement clause. It establishes the fundamental title of the legislation and critically defines the date of its operation, which is pivotal for determining the applicability of the 2013 Act versus the erstwhile Land Acquisition Act, 1894, particularly regarding "lapsed" proceedings and compensation valuation dates. This commentary analyzes Section 1 in light of judicial interpretations regarding transitional provisions, market value determination, and the continuity of legal rights.

What Does Section 1 Say

Section 1 contains two primary sub-sections:1. Short Title: It authoritatively titles the legislation as "The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013."2. Extent and Commencement: It stipulates the geographical extent of the Act and explicitly authorizes the Central Government to notify the date on which the Act shall come into force. It specifically mentions that if any Central Act is not expressed to come into operation on a particular day, it shall come into operation on the day on which it receives the assent, unless a notification specifies otherwise.

Essential Ingredients

Based on judicial analysis of the Act's structure and Section 1's operative clause:* Title Definition: The very nature of the Act is defined by Section 1, encompassing rights to "Fair Compensation," "Transparency," "Rehabilitation," and "Resettlement."* Operative Date Notification: The section mandates a specific notification to fix the commencement date, which judicially has been identified as January 1, 2014 ([ Maya Devi VS State of U. P. , P. Sayed Mohammed Koya Thangal VS Administration of the Union Territory of Lakshadweep Represented by its Collector, Lakshadweep, State of Rajasthan VS Sita Ram]).* Transitional Trigger: Section 1, read with the General Clauses Act, serves as the trigger for determining whether properties acquired under the old regime (pre-November 2013) but unresolved at the time of enforcement fall under the new "saving provision" logic found in Section 24(1), which relies on the Section 1 commencement date for valuation ([ 0Sihasan Prasad S/o Late Sukhdev Rai VS State of Bihar, Pyare Lal VS Union Of India]).* Uniformity Mandate: The notification issued under Section 1 ensures a uniform commencement date across all States and Union Territories, preventing states from unilaterally defining different cut-off dates for compensation calculation ([ KRISHNA AUTAR VS STATE OF U. P. , State of Rajasthan VS Sita Ram]).

Scope of Section 1

The scope of Section 1 extends beyond merely naming the Act; it determines the temporal validity of the entire legislative framework:* Applicability to Pending Proceedings: Section 1 defines the "date of commencement," which courts use to decide if acquisition proceedings initiated under the old Act but not yet concluded should be transferred to the 2013 Act for compensation assessment ([ 0Sihasan Prasad S/o Late Sukhdev Rai VS State of Bihar, Hadja Nadjoumoudine, Rep. by Power Agent Shiek Dawood Sarah Ummal VS Union of India, Rep. by the Government, Revenue Department, Government of Pondicherry, Pondicherry]).* Reference Date for Valuation: The date fixed under Section 1 (Jan 1, 2014) acts as the mandatory reference date for calculating "Market Value" in cases where no award was passed under the old Act, overriding state-specific circulars that attempted to set different dates ([ KRISHNA AUTAR VS STATE OF U. P. , P. Sayed Mohammed Koya Thangal VS Administration of the Union Territory of Lakshadweep Represented by its Collector, Lakshadweep]).* Void Ab Initio Declarations: Section 1, by fixing the commencement date, invalidates any procedural notifications (Section 4 or Section 6) issued under the repealed 1894 Act after the date fixed in Section 1, rendering them illegal and void-ab-initio ([ B. M. Kotramma, W/o. Uddanayya VS State of Karnataka, Rep. by Its Principal Secretary, P. Sayed Mohammed Koya Thangal VS Administration of the Union Territory of Lakshadweep Represented by its Collector, Lakshadweep]).* Statutory Limitation Periods: The commencement date established in Section 1 resets the clock for specific statutory timelines, such as the one-year window to pass an Award, which is critical for determining if proceedings have "lapsed" ([ 00400072120, Sakharbai w/o. Haribhau Shelke (Deceased) through LR’s - Sau. Sanjivani W/o. Dashrath Mahabare VS State of Maharashtra Through Revenue and Forest Department, Mantralaya Mumbai]).* Geographical Reach: It confirms that the Act extends throughout India, necessitating compliance with its fair compensation standards in all states for both new and pending acquisitions ([ Pyare Lal VS Union Of India]).

Punishment for Section

Section 1 itself does not contain specific penal provisions for non-compliance with the title or the notification mechanism. However, violation of the principles and procedures necessitated by the commencement of the Act (as defined in Section 1) triggers penalties under Section 114 and Section 115 of the Act. These sections provide for imprisonment or fines for acts made in violation of the Act. Furthermore, courts have noted that issuing notifications or awards after the commencement date under the repealed Act is a violation of the statute, leading to the setting aside of proceedings, though not explicitly "punishment" in a criminal sense for the official, but a direct legal invalidity ([ B. M. Kotramma, W/o. Uddanayya VS State of Karnataka, Rep. by Its Principal Secretary, Jeevanlal Mishra VS State of M. P. ]).

Legal Comments

"Market Value Date" - The reference date for calculating compensation in cases where no award was made under the 1894 Act is strictly 01.01.2014 (the date fixed under Section 1), and states cannot unilaterally alter this cut-off date via circulars or orders. - [KRISHNA AUTAR VS STATE OF U. P. , P. Sayed Mohammed Koya Thangal VS Administration of the Union Territory of Lakshadweep Represented by its Collector, Lakshadweep, State of Rajasthan VS Sita Ram, Pyare Lal VS Union Of India]
"Void Proceedings" - Any notification or declaration issued under the repealed Land Acquisition Act, 1894 (Sections 4 or 6) after the commencement date specified in Section 1 is deemed illegal, invalid, and void-ab-initio. - [B. M. Kotramma, W/o. Uddanayya VS State of Karnataka, Rep. by Its Principal Secretary, G.Kesavan vs Union of India, Rep. by its Secretary]
"Lapse of Proceedings" - Section 1, read with Section 24(1), mandates that if an Award was not passed under the old Act before the Section 1 commencement date, the entire proceeding lapses, and compensation must be determined under the 2013 Act provisions. - [Maya Devi VS State of U. P. , G. Madhusoodanan, S/o. Gangadharan VS State Of Kerala, Represented By The Secretary To Government, Department Of Revenue, Government Of Kerala, Sihasan Prasad S/o Late Sukhdev Rai VS State of Bihar]
"Uniform Commencement" - The notification issued under the powers conferred by Central Government (linked to Section 1 powers) must be implemented uniformly by all State Governments; a state-specific order failing to adopt the Jan 1, 2014 date is liable to be quashed. - [KRISHNA AUTAR VS STATE OF U. P. ]
"Rehabilitation Transition" - For acquisitions initiated under the old Act where the award was not passed by the Section 1 commencement date, the provisions for Rehabilitation and Resettlement under the 2013 Act are attracted to the affected persons. - [Sihasan Prasad S/o Late Sukhdev Rai VS State of Bihar]
"Official Gazette" - The strict adherence to procedures mandated post-Section 1 includes the correct interpretation of "Official Gazette"; publication in a District Gazette is insufficient and may lead to the quashing of acquisition proceedings initiated under Section 11(1) of the new regime. - [Thirumani Dharmaraj VS State of Tamil Nadu, Rep. by its Secretary, Chennai, Pedamalli Venugopal Reddy, S/o. Ventaka Krishna Reddy VS State of Andhra Pradesh rep. by its Prl. Secretary, Roads and Buildings Department]
"Rental Compensation" - Even if Section 4 notification triggers the acquisition, the obligation to pay rental compensation for land occupation prior to formal acquisition is recognized, ensuring fair treatment consistent with the Act's ethos from its commencement. - [Lalnunthari, D/o Lalthuama VS Union of India, Remsiama Ngente S/o Denga VS Union of India Rep. by the Secretary, New Delhi]
"Factor Application" - If awards are passed without applying the multiplier factors specified in the First Schedule of the 2013 Act (a requirement active post-Section 1), the awards are unsustainable, and the proceedings may be declared lapsed. - [00400072120, Vitthal Rama Pawar (Katkari) VS Deputy Collector (Acquisition) Raigad-Alibag]
"Interim Orders" - The existence of a pending writ petition or interim order prior to the finalization of compensation can impact the application of the Section 1 reference date, potentially preventing the use of the 01.01.2014 cut-off in specific valuation cases. - [Sakharbai w/o. Haribhau Shelke (Deceased) through LR’s - Sau. Sanjivani W/o. Dashrath Mahabare VS State of Maharashtra Through Revenue and Forest Department, Mantralaya Mumbai]
"Public Purpose" - Acquisitions must strictly adhere to the definition of "Public Purpose" incorporated in the Act; failure to demonstrate valid public purpose can lead to challenges, as the Act curtails the excesses of the old regime. - [Rama Yallappa Bharmal vs Deputy Collector, Spl. Land Acquisition, K. V. L. Saroja VS State of Tamil Nadu reptd by Secretary to Government Adi Dravidar & Tribal Welfare Department, Secretariat, Chennai]
"Lapsed Benefits" - Petitioners cannot claim benefits under the 2013 Act if the acquisition proceedings were considered complete and concluded under the old Act prior to the Section 1 notification, or if the land has already vested in the state. - [Jaswant Singh s/o Jairam Meel VS Land Acquisition officer, Urban Development Project, (Jaipur Development Authority) Jaipur, ASSAM INDUSTRIAL DEVELOPMENT CORPORATION LTD. VS GILLAPUKRI TEA COMPANY LIMITED, LALLU RAM VS STATE OF U. P. ]
"State Specific Acts" - State laws attempting to modify the Section 1 commencement date or specific fair compensation principles contrary to the central Act are held invalid, maintaining uniformity across the territory. - [KRISHNA AUTAR VS STATE OF U. P. , Jashiben Lallubhai Patel VS Competent Authority, Nhai]
"Expeditious Proceedings" - While Section 1 sets the date, Section 24(1) and court interpretations direct authorities to conclude pending proceedings expeditiously to adhere to the spirit of the new Act. - [Mamidi Subbamma VS State Of Andhra Pradesh, 0040001958]
"Prospective Application" - In cases involving multi-year projects or lapsed notifications, courts apply the doctrine of prospective overruling to save past transactions where possible, balancing the rights under Section 1 with administrative stability. - [Shiv Balak Mishra S/o Late Badri Prasad Mishra VS State of Chhattisgarh through the Collector, Raipur, Chhattisgarh]
"Joint Family Liability" - Entitlement to Rehabilitation benefits under schemes linked to the 2013 Act is contingent on the family status (e.g., independent family vs. joint family) at the time of acquisition, preventing abuse of the legal process for additional benefits. - [Sant Ram VS State of H. P. ]
"Reassessment Orders" - Courts frequently direct the Land Acquisition Officer to reassess compensation under the 2013 Act framework when the original award was based on outdated rates or dates prior to the Section 1 enforcement. - [RNT Plantations Limited Owner VS Oil and Natural Gas Corporation Ltd. , LALLU RAM VS STATE OF U. P. , Jashiben Lallubhai Patel VS Competent Authority, Nhai]
"Mandamus Directives" - When authorities fail to initiate proceedings or ignore objections as per the procedural requirements of the new Act, High Courts issue mandamus directing them to act within specified timeframes (e.g., 6 months or 12 months). - [Thirumani Dharmaraj VS State of Tamil Nadu, Rep. by its Secretary, Chennai, Indian Maritime University Represented herein by its Registrar VS State of Tamil Nadu, Represented by its Secretary, Public Works Department (Highways) Chennai, G.Kesavan vs Union of India, Rep. by its Secretary]
"Non-Interference in Suitability" - Courts generally do not interfere with the government's decision on the suitability of land for specific projects (like Metro Rail or Airports) unless gross procedural lapses occur, focusing instead on ensuring proper assessment under the Act. - [Lalita Devi VS State of Bihar, Hori Lal VS State Of U. P. ]
"Abuse of Process" - Petitions seeking to reopen acquired proceedings after possession has been handed over or compensation paid are dismissed as an abuse of the process of the court, ensuring finality once the State declares the land as its own. - [ASSAM INDUSTRIAL DEVELOPMENT CORPORATION LTD. VS GILLAPUKRI TEA COMPANY LIMITED]
"Arbitration Review" - Judicial review of arbitral awards for compensation under the 2013 Act is limited to "patent illegality"; courts respect the statutory valuation methods used by arbitrators but ensure adherence to the Act's principles. - [Land Acquisition Officer (N.H.) & Competent Authority, Bhubaneswar vs Kavita Jain, B. M. Kotramma, W/o. Uddanayya VS State of Karnataka, Rep. by Its Principal Secretary]
"Precedent on Notifications" - A clear understanding of Section 1 and the commencement notification is essential to distinguish between valid pre-2014 acquisitions where old rules may apply (subject to transition clauses) and post-2014 acquisitions where new rules strictly apply. - [P. Sayed Mohammed Koya Thangal VS Administration of the Union Territory of Lakshadweep Represented by its Collector, Lakshadweep, PRITAM SINGH AND OTHERS vs UT OF J AND K TH. COMMISSIONER SECRETARY TO GOVT. REVENUE DEPT. CIVIL SECRETARIAT AND OTHERS]

S.7 Appraisal of Social Impact Assessment report by an Expert Group.

(1) 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.

(2) The Expert Group constituted under sub-section (1) 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;

(d) a technical expert in the subject r

Legal Commentary on Section 7 of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

1. Introduction

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) was enacted on 26th September 2013 to provide for fair compensation to land owners whose land is acquired, bring transparency to the acquisition process, and ensure rehabilitation and resettlement of affected families. Section 7 of the Act is a pivotal provision that mandates an independent evaluation of the Social Impact Assessment (SIA) report to ensure that land acquisition decisions are made after a rigorous and participatory review, reflecting the Act's foundational philosophy of fairness, transparency, and participatory decision-making.

2. What Does Section 7 Say

Section 7(1) states that: "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 section establishes the Expert Group as the designated independent body to assess the SIA report, which is the foundational document for any land acquisition proceeding under the Act.

3. Essential Ingredients

The essential ingredients of Section 7 can be outlined as follows:

Appropriate Government's Obligation – The government is duty-bound to ensure evaluation of the SIA report.
Independent Multi-Disciplinary Expert Group – The Expert Group must be independent and composed of members from multiple disciplines.
Constitution by the Appropriate Government – The government has the power to constitute such Expert Groups.
Evaluation of SIA Report – The core function is the appraisal of the Social Impact Assessment report.
Ensuring Compliance – The government must ensure the evaluation occurs before proceeding further in the land acquisition process.

4. Scope of Section

The scope of Section 7 is essential for ensuring legitimacy, fairness, and transparency in the land acquisition process. This provision must be read harmoniously with the broader intent of the 2013 Act, which aims to provide relief to existing entities and ensure that the intention of the legislature is honoured—that is, the timely and transparent acquisition of land for projects of general public interest. [Seli Hydro Electric Power Company Limited VS State of Himachal Pradesh - 2015 0 Supreme(HP) 588]

The Section is also aligned with the legislative philosophy that the State cannot use default in the discharge of statutory duties to prejudice land owners, and that all procedural requirements must be followed to protect the interests of those affected by acquisition. [Seli Hydro Electric Power Company Limited VS State of Himachal Pradesh - 2015 0 Supreme(HP) 588] The requirement of an independent Expert Group ensures that the acquisition proceedings are subject to explicit scrutiny, consistent with the intent of the legislature for timely and transparent acquisition. [Seli Hydro Electric Power Company Limited VS State of Himachal Pradesh - 2015 0 Supreme(HP) 588]

5. Punishment for Section

While Section 7 itself does not specify a punishment, the Act provides for penalties in related provisions. The Act contains provisions for penalties for contravention of its provisions. Generally, the punishment for contravention of provisions under the Act includes imprisonment for a term of six months up to three years, a fine, or both. Additionally, punishment for false information or mala fide action can result in up to six months in jail, a fine of up to ₹1 lakh, or both.

However, the punishment is specifically for the Act's contravention provisions, and the breach of Section 7's procedural requirement is typically enforced through judicial review rather than penal action.

Legal Comments

Independent Evaluation Requirement – Section 7 mandates the evaluation of the SIA report by an independent multi-disciplinary Expert Group, making it a core procedural safeguard in the land acquisition process.
Mandatory Compliance – The word "shall" in Section 7(1) indicates that the government has no discretion in ensuring the evaluation, making compliance mandatory.
Participatory Decision-Making – The Act's framework, including Section 7, reflects the principles of fairness, transparency, and participatory decision-making.
Harmonious Construction – The rigor of limitation and procedural requirements under the Act are relaxed to an extent that the second proviso to Section 19(7) vests respondents with power to extend time and continue with the notification under Section 4 of the 1894 Act, highlighting procedural flexibility within the overall framework. [Seli Hydro Electric Power Company Limited VS State of Himachal Pradesh - 2015 0 Supreme(HP) 588]
Intent of the Legislature – The Act seeks to ensure timely and transparent acquisition of land for projects of general public interest, and Section 7 is a critical step in this direction. [Seli Hydro Electric Power Company Limited VS State of Himachal Pradesh - 2015 0 Supreme(HP) 588]
Prejudice to Land Owner – Default in discharge of statutory duties by respondents cannot be allowed to prejudice the land owner, which aligns with the protective intent of Section 7. [Seli Hydro Electric Power Company Limited VS State of Himachal Pradesh - 2015 0 Supreme(HP) 588]
Section 24(1)(a) of the 2013 Act – Land owners in proceedings initiated under the 1894 Act are entitled to the benefit of compensation under the 2013 Act, reinforcing the beneficial interpretation of the Act's provisions. [Seli Hydro Electric Power Company Limited VS State of Himachal Pradesh - 2015 0 Supreme(HP) 588]
Fourth Proviso – While the Act mandates four times the market value as compensation in rural areas and twice in urban areas, the procedural safeguards under Section 7 are equally important.
Constitutional Validity of Similar Provisions – Modern legislative enactments ensure that defects of procedure, which do not lead to substantial prejudice, are statutorily placed beyond the purview of challenge, suggesting a similar legislative intention behind Section 7's procedural mechanism. [SUPREME COURT ADVOCATES-ON-RECORD ASSOCIATION VS UNION OF INDIA - 2015 8 Supreme 65]
Expert Group as a Check – The Expert Group serves as an independent check against arbitrary acquisition, consistent with the legislative scheme that SIA must be evaluated before proceeding.
Enactment Date and Applicability – The Act was enacted on 26th September 2013, and it extends to the whole of India except the State of Jammu and Kashmir.
State's Duty and Compensation – In cases involving land acquisition, courts have directed authorities to make payments in accordance with Section 19 of the Act of 2013, reflecting the importance of statutory compliance at every stage. [Kanubhai Babubhai Punjiram Patel VS State of Gujarat - 2016 0 Supreme(Guj) 388]
No Recovery of Wrongful Benefits – While a person cannot be retained in a post or position they are not entitled to, courts have held that emoluments paid to them should not be recovered, indicating the Act's balanced approach to rights and obligations. [Bhilai Steel Plant, Through its General Manager VS Ganpati, S/o Shri M. Rammurti - 2022 0 Supreme(Chh) 540]
Judicial Review of Statutory Bodies – The principle that statutory bodies must operate within their prescribed frameworks is vital, as courts have quashed orders when committees were not duly constituted, a principle that can apply to the Expert Group under Section 7 as well. [Harihar Prasad Parate S/o Late Shri Durga Prasad Parate vs Advocate General, State Of Chhattisgarh, High Court Of Chhattisgarh Premises, Village Bodri, Police Station Chakarbhata, Tehsil Belha, Civil And Revenue District Bilaspur, Chhattisgarh - 2025 0 Supreme(Chh) 157]
Due Process and Hearing – Courts have emphasized the importance of providing an opportunity to be heard before making decisions, which is a principle that complements the SIA evaluation process under the Act. [Assam Polytex Limited Employees Union, Represented By Its General Secretary Bapdhan Boro, Assam VS State of Assam, Represented By Additional Chief Secretary to Govt. of Assam, Industries & Commerce Department, Guwahati - 2019 0 Supreme(Gau) 728]