Land Acquisition Act 2013 — Set 7

Correct Answer: B. For Section 24 lapse, 'or' in the clause should be read as 'and' — both non-payment of compensation AND non-possession required for lapse

In Pune Municipal Corporation v. Harakchand Misirimal Solanki (2014), the Supreme Court interpreted Section 24(2) of the LARR Act 2013 regarding lapse of old acquisitions. The court held that the conjunction 'or' in the section should be read as 'and' — meaning that for an acquisition to lapse, both conditions must be met: compensation must not have been paid AND physical possession must not have been taken. This interpretation reduced the number of acquisitions that lapsed under the section.

Correct Answer: B. A Constitution Bench overruled Pune Municipal Corporation case and held 'or' in Section 24(2) means 'or', allowing single condition to trigger lapse

In Indore Development Authority v. Manohar Lal (2020), a 5-judge Constitution Bench of the Supreme Court overruled the Pune Municipal Corporation case and held that the word 'or' in Section 24(2) of the LARR Act 2013 must be given its plain meaning. Thus, either non-payment of compensation OR non-taking of possession for 5 years would trigger the lapse of old acquisitions. This judgment expanded the scope of Section 24(2) significantly.

Correct Answer: B. It established that acquisition of land without adequate compensation violates fundamental rights

Various Supreme Court and High Court judgments have consistently held that acquisition of land without adequate and fair compensation violates the right to property under Article 300A of the Constitution. The right to property, though no longer a fundamental right (removed by 44th Amendment), is a constitutional right and cannot be taken away without paying just compensation and following due process. These judgments reinforced the importance of the LARR Act 2013's compensation provisions.

Correct Answer: B. Exempted activities; R&R infrastructure at resettlement; R&R entitlements; and modifications for urgency cases

The First Schedule of the LARR Act 2013 lists projects exempted from SIA and consent requirements. The Second Schedule specifies infrastructure and amenities to be provided at resettlement sites. The Third Schedule details R&R entitlements for affected families including housing, employment, annuity, and grants. The Fourth Schedule contains provisions applicable to acquisitions by railway and other infrastructure projects. These schedules together form the operational framework of the Act.

Correct Answer: B. Strategic defense, infrastructure, industrial development, affordable housing, government institutions, and projects for poor and marginalized

Section 2(1) of the LARR Act 2013 defines public purpose to include: strategic defense and national security; infrastructure for rail, road, ports, waterways; industries essential to the nation; housing for poor and landless; social infrastructure like schools and hospitals; and projects for the poor and marginalized sections. This definition, while broad, is meant to be exhaustive rather than illustrative to prevent arbitrary acquisition for private benefit.

Correct Answer: C. 30 days

Under Section 21 of the LARR Act 2013, before making an award, the Collector must give a notice of 30 days to all interested persons to file their claims for compensation. The notice must be published in local newspapers and put up at the collectorate, tehsil, and affected villages. This 30-day period ensures that all persons with interest in the land have adequate opportunity to present their claims.

Correct Answer: B. It is the preliminary notification that initiates the formal acquisition process and freezes the area

The Section 11 Notification (preliminary notification) published in the official gazette formally initiates the land acquisition process under the LARR Act 2013. Upon its publication, the area is frozen (no new transactions permitted), the SIA commences, and the 12-month clock for further steps begins. The notification must specify the details of the land, the purpose of acquisition, and invite objections from affected persons.

Correct Answer: B. The Central Government for Union Government projects and State Government for state projects

Under the LARR Act 2013, the 'appropriate government' is the Central Government when the acquisition is for central government purposes, defense, national security, railways, etc. The State Government is the appropriate government for state-level projects, industrial development, and other state purposes. Where land is being acquired for a public sector undertaking of the central government, the Central Government is the appropriate government.

Correct Answer: B. Simple interest at 9% per annum from the date of award if compensation is not paid within 1 year

The LARR Act 2013 provides that if compensation is not deposited within the time prescribed, the land owner is entitled to interest at 9% per annum for the first year after the award and 15% per annum thereafter. This progressive interest rate incentivizes the government to make timely payment and compensates landowners for the time value of money during delayed payments.

Correct Answer: B. Compensation is for land value; R&R entitlements are for livelihood, housing, and social security

Under the LARR Act 2013, compensation (paid by the Collector as an award) relates to the monetary value of land and assets acquired, calculated using the market value multiplier formula. Rehabilitation and Resettlement (R&R) entitlements, on the other hand, are additional benefits focused on restoring the livelihood, housing, and social security of displaced families. Both compensation and R&R are mandatory and independent entitlements — receiving compensation does not reduce R&R benefits.