Land Acquisition में compensation को निर्धारित करने का क्या फार्मूला बताया Supreme Court ने?

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In India, the determination of compensation for land acquisition is primarily governed by The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act, 2013). This Act replaced the older Land Acquisition Act of 1894, aiming to provide a more humane, transparent, and fair process.

Here's a simplified explanation of how compensation is determined:

Market Value as the Base: The core of the compensation is the market value of the acquired land. This is determined by the Collector based on the higher of:

The minimum land value specified under the Indian Stamp Act, 1899, for registration of sale deeds in the area.

The average sale price of similar land in the nearest village or vicinity area over the preceding three years, based on registered sale deeds.

Multiplication Factor: This market value is then multiplied by a factor to arrive at the compensation. This factor varies depending on the location of the land:

Rural areas: The market value is multiplied by a factor of 1 to 2, which effectively makes the compensation up to four times the market value when combined with solatium (see next point).

Urban areas: The market value is multiplied by a factor, often resulting in compensation of twice the market value when combined with solatium.

Additional Benefits (Solatium & R&R): On top of the multiplied market value, landowners are entitled to:

Solatium: An additional amount equal to 100% of the calculated compensation for the involuntary displacement and hardship caused.

Rehabilitation and Resettlement (R&R) benefits: This includes provisions for alternative land, housing, employment, or a one-time resettlement allowance, especially for those whose livelihoods are affected. Compensation is also provided for damages to standing crops, trees, and structures on the acquired land.

It's important to note that the "4 times compensation rule" for rural areas is a potential outcome due to the multiplication factor and solatium, not a fixed rule for all cases. The final compensation depends on various factors, and in cases of delays, interest is also payable.

Legal Reporter's editor Viplava Awasthi had a special conversation with Supreme Court senior advocate Mr. R P Mehrotra regarding the determination of compensation in land acquisition. Watch full video