A BRIEF NOTE ON THAT PROVIDES OVERVIEW OF THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013 (RFCTLARR), (CENTRAL ACT) AND THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT (TELANGANA AMENDMENT) ACT, 2016 (NOTIFIED AS ACT 21 OF 2017) DESIGNED FOR LEGAL PRACTITIONERS

 A BRIEF NOTE ON THAT PROVIDES OVERVIEW OF THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013 (RFCTLARR), (CENTRAL ACT) AND THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT (TELANGANA AMENDMENT) ACT, 2016 (NOTIFIED AS ACT 21 OF 2017) DESIGNED FOR LEGAL PRACTITIONERS

CENTRAL ACT:

1. Statutory Objective and Scope

The Act replaced the colonial-era Land Acquisition Act of 1894 to ensure a humane, participative, and transparent process. It mandates that land acquisition for industrialization or infrastructure projects must be paired with just compensation and mandatory rehabilitation and resettlement (R&R).

2. Preliminary Steps: SIA and Public Purpose

Before acquisition, the "appropriate Government" must conduct a Social Impact Assessment (SIA).

• Consultation: Must involve local bodies (Panchayats/Municipalities).
• Mandatory Factors: The SIA must determine if the project serves a "public purpose," estimate the number of affected families, and confirm the land is the "absolute bare-minimum" required.
• Expert Group Appraisal: An independent multi-disciplinary Expert Group must evaluate the SIA report. If they find the social costs outweigh the benefits, they can recommend abandoning the project.

3. The Consent Requirement

For specific types of acquisitions, the Act requires prior consent from affected families:

• Private Companies: At least 80% consent.
• Public-Private Partnership (PPP) Projects: At least 70% consent.

4. Compensation Framework (First Schedule)

Compensation is no longer based merely on the "market value" but follows a tiered calculation:

• Market Value: Determined via registered sale deeds or average price of similar land in the vicinity.
• Multiplier Factor: The market value is multiplied by a factor of 1.0 to 2.0 in rural areas (based on distance from urban centers) and 1.0 in urban areas.
• Solatium: A mandatory "Solatium" of 100% of the total compensation amount must be added to the final award.
• Interest: 12% per annum interest is payable from the date of the SIA notification to the date of the award.

5. Rehabilitation and Resettlement (Second & Third Schedules)

R&R is a statutory right, not a discretionary benefit.

• Entitlements: Includes housing units (for displaced families), land-for-land (in irrigation projects), a one-time resettlement allowance (₹50,000), and monthly subsistence grants.
• Infrastructure: The Third Schedule lists 25 mandatory amenities for resettlement areas, including roads, drainage, safe drinking water, and schools.
• Possession: The Collector can only take possession after full payment of compensation and R&R entitlements (within 3–6 months of the award).

6. Judicial and Administrative Authorities

LARR Authority (Land Acquisition, Rehabilitation and Resettlement Authority): Established for "speedy disposal of disputes" related to compensation and R&R. The LARR Authority in Telangana is a specialized judicial body established under Section 51 of the RFCTLARR Act, 2013. It is designed to adjudicate disputes referred by the Collector under Section 64 concerning:

·         Objections to the measurement of the land.

·         The amount of compensation awarded.

·         The person to whom it is payable.

·         The apportionment of the compensation among the persons interested.

Location and Jurisdiction

Central Seat: The LARR Authority for the state of Telangana is situated in Hyderabad.

Office Address: Office of the Registrar, LARR Authority (State of Telangana), CCLA Building (Chief Commissioner of Land Administration), Nampally Station Road, Abids, Hyderabad – 500001.

Composition and Leadership

·         Presiding Officer: The Authority consists of a single Presiding Officer.

·         Qualifications: To be eligible for appointment, the Presiding Officer must be a retired District Judge or a legal practitioner with at least seven years of experience.

·         Appointment: The state government is mandated by the High Court to ensure this position is filled for the timely disposal of cases.

·         Speedy Disposal: The Authority is designed for the "speedy disposal of disputes" to avoid the lengthy delays associated with traditional civil courts.

·         Original Jurisdiction: It adjudicates on references made under Section 64 of the Act regarding objections to the area of land, the amount of compensation, or the apportionment of the award.

·         Judicial Status: All proceedings before the Authority are deemed judicial proceedings, and the Authority has the powers of a Civil Court for summoning witnesses and enforcing the production of documents.

• Reference: Any "person interested" who has not accepted the award may move the Collector to refer the matter to the Authority.References must be made to the Collector within six weeks (if the person was present at the time of the award) or six months (in other cases) from the date of the Collector's award.
• High Court Appeal: Appeals against Authority awards must be filed in the High Court within 60 days.
• Civil Court Bar- Section 63 of Act. : Civil courts have no jurisdiction to entertain disputes relating to land acquisition under this Act.

7. Key Procedural Safeguards

• Lapse of Proceedings: If no award is made within 12 months of the declaration under Section 19, the acquisition proceedings lapse.
• Urgency Clause: Section 40 allows the Government to bypass SIA in cases of national security or emergencies, but requires an additional 75% compensation.
• Return of Land: Land remaining unutilized for 5 years must be returned to the original owners or the Government Land Bank.

 TELANGANA  AMENDMENT  ACT

THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT (TELANGANA AMENDMENT) ACT, 2016 (NOTIFIED AS ACT 21 OF 2017) OF TELANGANA, INTRODUCED SIGNIFICANT DEPARTURES FROM THE CENTRAL ACT 30 OF 2013.

BELOW IS A BRIEF SUMMARY

1. Statutory Framework

·         Primary Legislation: Central Act 30 of 2013.

·         State Amendment: Telangana Act 21 of 2017 (effective retrospectively from January 1, 2014).

·         State Rules: Telangana State RFCTLARR Rules, 2014, and the specialized Consent Award/Voluntary Acquisition Rules, 2017.

2. Key Exemptions (Section 10A)

The State Government has the power to exempt specific "public interest" projects from the mandatory Social Impact Assessment (SIA) and provisions safeguarding Food Security (Chapters II and III of the Central Act). These categories include:

·         Projects vital to national security or defense.

·         Infrastructure projects, including electrification and irrigation.

·         Affordable housing for the poor.

·         Industrial corridors set up by the State Government (up to a specified distance from rail/road lines).

3. Alternative Compensation & R&R (Section 31A)

For projects exempted under Section 10A, the State may pay a lump-sum amount in lieu of the detailed Rehabilitation and Resettlement (R&R) entitlements specified in the Central Act.

·         Safeguard: This lump-sum must not be "abnormally at variance" to the disadvantage of affected families.

·         Current Practice: In some projects, oustees have been offered options between the standard 2013 Act package and the 2016 Telangana Amendment lump-sum package.

4. Voluntary Acquisition and Consent Awards (Section 23A & 30A)

·         Consent Awards: If all interested persons agree in writing, the Collector can pass an award without a formal inquiry.

·         Voluntary Agreements: The State can acquire land through a direct sale agreement with willing owners. Title vests with the State upon notification in the Gazette.

·         Registration Exemption: Such agreements are not liable for registration under the Registration Act, 1908.

5. Procedural Differences

·         Section 24 (Lapsing): Telangana amended the proviso to clarify that the five-year period for determining if an award has lapsed must be computed from the date of the Central Act's commencement.

·         Return of Unutilized Land: Unutilized land must be returned after five years or the "period specified for setting up of any project," whichever is later.

·         Prosecution of Officials: Cognizance of offences committed by government officials requires following the procedure under Section 197 of the CrPC (prior sanction).

Comparison: RFCTLARR Central Act vs. Telangana Amendment

Provision	Central Act (30 of 2013)	Telangana Amendment (Act 21 of 2017)
SIA & Food Security	Chapters II & III mandate Social Impact Assessment (SIA) for all acquisitions.	Section 10A: Exempts projects for national security, infrastructure, affordable housing, and industrial corridors from Chapters II & III.
Consent (PPP/Private)	Requires 70% consent for PPP and 80% for private projects.	Exempted Projects: Consent requirements of the first proviso to Section 2(2) are removed for projects notified under Section 10A.
Lapse of SIA Report	SIA report lapses if preliminary notification isn't issued within 12 months.	Follows the Central Act but state rules allow for expedited procedures for specific projects.
Consent Award	Not explicitly simplified; requires standard enquiry under Section 23.	Section 23A: Allows the Collector to pass an award without formal enquiry if all parties agree in writing.
R&R Entitlements	Detailed benefits under Second and Third Schedules (housing, land-for-land, etc.).	Section 31A: Allows the State to pay a lump-sum amount in lieu of standard R&R for projects notified under Section 10A.
Voluntary Acquisition	Land generally acquired through formal compulsory process.	Section 30A: Formalizes "Voluntary Acquisition" where the State buys land via direct agreement with willing owners.
Unutilized Land	Return of land if unutilized for 5 years.	Section 101: Land return period is 5 years or the period specified for the project, whichever is later.
Offences by Officials	Head of department held guilty unless due diligence is proven.	Section 87: No court shall take cognizance without prior government sanction under Section 197 CrPC.

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·         Retrospective Effect: The Telangana Amendment Act is deemed to have come into effect on January 1, 2014.

·         Exemption Challenges: While the state has wide powers to exempt projects from SIA under Section 10A, these are often subject to judicial review regarding whether they truly serve a "public interest".

NOTE: 1. Retrospective applicability under Section 24 Under Section 24(1), if an award had already been passed under the Land Acquisition Act, 1894, before 1st January 2014, the acquisition proceedings would continue to be governed by the old law. However, Section 24(2) provides that if an award was made five years or more before the commencement of the 2013 Act but either physical possession of the land was not taken or compensation was not paid, the entire acquisition would be deemed to have lapsed, and fresh proceedings would have to be initiated under the new Act. Furthermore, the proviso to Section 24(2) stipulates that if the compensation in respect of the majority of landholdings was not deposited in the accounts of the beneficiaries, then all landowners would be entitled to have their compensation determined in accordance with the provisions of the 2013 Act, thereby ensuring uniformity and fairness in the compensation process. Union of India v. Shiv Raj (2014) 6 SCC 564 the Court ruled that the litigation period (time spent in challenging acquisition) cannot be excluded while calculating the five-year limit. Hence, if possession or payment was delayed due to litigation, the acquisition still lapses