RFCTLARR Act, 2013

Why in the News? 

The Standing Committee on Rural Development and Panchayati Raj released a report on the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act, 2013).

More on the News 

• The Report evaluated the implementation and effectiveness of the RFCTLARR Act, 2013.
• RFCTLARR Act aims to provide fair compensation to those whose land is taken away, bring transparency to process of acquisition of land to setup factories, infrastructural projects & ensures rehabilitation of affected.
• RFCTLARR Act replaced the Land Acquisition Act, 1894.

Key Provisions of the RFCTLARR Act, 2013 

Key Issues in the Implementation of the Act 

• Superficial SIA/EIA: Social and Environmental Impact Assessments (EIA) are sometimes carried out as formalities with reports pre-designed to favour acquisition.
• Failure of National Monitoring Committee (NMC): The NMC has failed to quell discontent in large projects like the Ken-Betwa Link Project and Polavaram Irrigation Project.
• Faulty Implementation in Scheduled Areas: Violations occur despite statutory safeguards, including land undervaluation, superficial Gram Sabha consultations, and exclusion of vulnerable groups.
• Non-Compliance with PESA Rules: Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) regarding consultation are not being followed strictly in Scheduled Areas.
• Violation of the Forest Rights Act (FRA), 2006: Forest land is acquired without settling rights.
• Land Classification Manipulation: Converting Greenfield land into Brownfield and reclassifying rural land into urban areas, particularly within infrastructure projects such as Bharat Mala.
• Faulty Rehabilitation: Cash is disbursed before a demarcated and service‑ready relocation site exists; land for land is offered only on paper or of inferior quality; etc. 
• Structural Failures: More than a decade after the Act's enactment, many States have yet to establish the mandated LARRAs which delays justice for affected families.

Key Recommendations

• Strengthening Role of Gram Sabha: Make Gram Sabha consent mandatory for all land acquisitions and empower it to veto proposals which are contrary to local development plans or community interests.
• Adopting a "Livelihood Value" Approach: Compensation should transition from a simple cash land value to a "livelihood value" that accounts for the loss of access to forests, water bodies, and community assets.
• Integration of LARR and FRA: Loss of customary and community forest use rights should be explicitly treated as economic displacement, requiring full rehabilitation.
• Central Monitoring of Classification: Establish a dedicated Central Monitoring and Grievance Redressal Mechanism to oversee land classification processes.
• Innovative Benefit sharing models: In addition to existing compensation and R&R entitlements, mechanism should guarantee either a share of project equity (held through a statutory trust at the Gram Sabha) or a percentage of gross project revenues, whichever is higher. 
• Strengthening Rehabilitation and Resettlement for Displaced Tribal Families: No displacement until the replacement site or agricultural land is surveyed, pegged, and soil‑tested, core services are functional, etc.
• Digital Transparency: All acquisition-related documents—including SIA reports, compensation details, and R&R status—should be published on an official transparency portal 
• Other: 
  • Urgent establishment of LARRAs in all States and UTs.
  • The Department of Land Resources must ensure both EIA and SIA are strictly followed to effectively mitigate adverse environmental and social impacts.

Conclusion 

The RFCTLARR Act, 2013, is a progressive law, but poor implementation, weak monitoring, and dilution of community safeguards have limited its effectiveness. The Committee emphasises empowering Gram Sabhas, ensuring strict compliance with PESA and FRA, and strengthening rehabilitation and oversight mechanisms to make land acquisition fair and people-centric.