The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (also Land Acquisition Act, 2013) is an Act of Indian Parliament that regulates land acquisition and lays down the procedure and rules for granting compensation, rehabilitation and resettlement to the affected persons in India. The Act has provisions to provide fair compensation to those whose land is taken away, brings transparency to the process of acquisition of land to set up factories or buildings, infrastructural projects and assures rehabilitation of those affected. The Act replaced the Land Acquisition Act, 1894, a nearly 120-year-old law enacted during British rule.


Of particular concern was that despite many amendments, over the years, to India's Land Acquisition Act of 1894, there was an absence of a cohesive national law that addressed fair compensation when private land is acquired for public use, and fair rehabilitation of land owners and those directly affected from loss of livelihoods. The Government of India believed that a combined law was necessary, one that legally requires rehabilitation and resettlement necessarily and simultaneously follow government acquisition of land for public purposes.


The aims and objectives of the Act include:

  • Provide just and fair compensation to the affected families whose land has been acquired or proposed to be acquired or are affected by such acquisition ;

  • Make adequate provisions for such affected persons for their rehabilitation and resettlement.

The Act is applicable when:

  • Government acquires land for its own use, hold and control, including land for Public sector undertakings.

  • Government acquires land with the ultimate purpose to transfer it for the use of private companies for stated public purpose.

  • Government acquires land for immediate and declared use by private companies for public purpose.


Section 26 of the Act defines the method by which market value of the land shall be computed under the proposed law. Schedule I outlines the proposed minimum compensation based on a multiple of market value. Schedule II through VI outline the resettlement and rehabilitation entitlements to land owners and livelihood losers, which shall be in addition to the minimum compensation per Schedule I.

Market value

The market value of the proposed land to be acquired, shall be set as the higher of :

  • The minimum land value, if any, specified in the Indian Stamp Act, 1899 for the registration of sale deeds in the area, where the land is situated; or

  • The average of the sale price for similar type of land being acquired, ascertained from the highest fifty per cent of the sale deeds registered during the preceding three years in the nearest village or nearest vicinity of the land being acquired.; or

  • The consented amount in case the land is acquired for private companies or public-private partnership projects.

Rehabilitation and resettlement

For land owners, the Act provides:

  • an additional subsistence allowance of 38,000 for the first year - may be

  • an additional entitlement of a job to the family member, or a payment of ₹5,00,000 up front, or a monthly annuity totalling ₹24,000 per year for 20 years with adjustment for inflation – the option from these three choices shall be the legal right of the affected land owner family, not the land acquirer

  • an additional upfront compensation of ₹50,000 for transportation

  • an additional upfront resettlement allowance of ₹50,000.

  • if the land owner loses a home in a rural area, then an additional entitlement of a house with no less than 50 square meters in plinth area

  • if the land is acquired for urbanization, 20% of the developed land will be reserved and offered to land owning families, in proportion to their land acquired and at a price equal to cost of acquisition plus cost of subsequent development

  • if acquired land is resold without development, 20% of the appreciated land value shall be mandatorily shared with the original owner whose land was acquired.

- Lavish

Fairfield Institute Of Management & Technology,

GGSIPU, Kapashera, New Delhi

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