Land Acquisition Act 2013 — Set 1

Correct Answer: B. Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

The full name of the 2013 Act is the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. This comprehensive title reflects its three core objectives: fair compensation, transparency in process, and rehabilitation of displaced persons. It is commonly referred to as LARR Act 2013 or RFCTLARR Act 2013.

Correct Answer: B. Land Acquisition Act, 1894

The LARR Act 2013 replaced the Land Acquisition Act of 1894, which was a colonial-era legislation enacted by the British government. The 1894 Act was criticized for being one-sided in favor of the government with no adequate provisions for compensation or rehabilitation. The 2013 Act introduced progressive reforms addressing the shortcomings of the century-old colonial law.

Correct Answer: C. 70% consent of affected families

The LARR Act 2013 mandates obtaining consent of at least 70% of affected families before acquiring land for Public-Private Partnership (PPP) projects. This consent clause was a major reform distinguishing the 2013 Act from the colonial 1894 Act. The consent requirement ensures community participation and protects people from arbitrary displacement.

Correct Answer: D. 80%

Under the LARR Act 2013, land acquisition for private companies requires consent of at least 80% of the affected families. This higher threshold for private projects (compared to 70% for PPP) reflects the fact that private entities should face stricter scrutiny when displacing communities. The consent must be obtained before the Social Impact Assessment is conducted.

Correct Answer: B. 2 times the market value

Under the LARR Act 2013, the compensation for acquired land in urban areas is 2 times (double) the market value of the land. The market value is determined by the collector based on the registered sale deed price or the consented amount. This multiplier ensures that urban landowners receive a fair premium above market rates for compulsory acquisition.

Correct Answer: C. 4 times the market value

Under the LARR Act 2013, compensation for acquired land in rural areas is 4 times (quadruple) the market value. The higher rural multiplier accounts for the fact that rural land prices are typically undervalued in official records compared to actual market values. This provision corrects historical undervaluation and provides meaningful compensation to rural landowners.

Correct Answer: B. 30% additional amount added to compensation as acknowledgment of compulsory nature of acquisition

Solatium is an additional payment of 30% added to the total compensation awarded for compulsorily acquired land. It is paid over and above the calculated compensation as recognition that the owner did not voluntarily sell the land. This solatium was also present in the 1894 Act but the 2013 Act enhanced overall compensation through higher multipliers.

Correct Answer: B. Social Impact Assessment

SIA stands for Social Impact Assessment, which is a mandatory process under the LARR Act 2013 before any land acquisition. The SIA evaluates the social impact, including number of affected families, nature of their land use, and livelihood disruption. It must be conducted by a multi-disciplinary expert group and the report must be placed before a Social Impact Assessment Authority.

Correct Answer: B. 5 years

Under the retrospective application provision of the LARR Act 2013, if any land acquisition is not completed (compensation not paid and possession not taken) within 5 years, the acquisition proceedings lapse. This provision also applies retrospectively to old acquisitions where compensation was not paid and possession not taken. The lapsed land can be reclaimed by the original owner.

Correct Answer: B. Land Acquisition Rehabilitation and Resettlement Authority

LARRA stands for Land Acquisition, Rehabilitation and Resettlement Authority, which is a quasi-judicial body established under the LARR Act 2013 to handle disputes related to land acquisition and compensation. It functions like a court for hearing objections about the acquisition process, compensation amount, and R&R entitlements. Appeals from LARRA lie with the High Court.