First Schedule of the RFCTLARR Act, 2013: Compensation for Land Owners
The First Schedule to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 prescribes the components of the minimum compensation package for land acquired under the Act.
Statutory reference: The First Schedule is linked to Section 30(2), not Section 31(2). Section 30 deals with the award of solatium and requires the Collector to issue individual awards detailing compensation and payment particulars specified in the First Schedule.
Commencement: The Central Act is Act No. 30 of 2013, enacted on 26 September 2013 and brought into force on 1 January 2014.
Official India Code - RFCTLARR Act, 2013What the First Schedule provides
The First Schedule states that the listed components constitute the minimum compensation package for persons whose land is acquired and for tenants referred to in clause (c) of Section 3, in the proportion decided by the appropriate Government. The Schedule therefore operates with the compensation provisions in Sections 26 to 30 of the Act.
The Schedule distinguishes rural and urban land for application of the statutory multiplication factor. In rural areas, the market value factor is from 1.00 to 2.00 depending on the distance of the project from an urban area, as notified by the appropriate Government. For urban areas, the factor stated in the First Schedule is 1.00.
Important sections and legal provisions
Section 3(c) - Affected family
Section 3(c) defines an "affected family" and includes specified categories affected by land acquisition. The First Schedule expressly refers to tenants falling within clause (c) of Section 3 for the minimum compensation package, subject to the proportion determined by the appropriate Government.
Section 3(u) - Market value
"Market value" means the value of land determined in accordance with Section 26. This definition connects the statutory meaning of market value directly to the valuation method prescribed by the Act.
Section 26 - Determination of market value of land by Collector
Section 26 provides the statutory method for determining the market value of acquired land. Broadly, the Collector considers the applicable stamp-law market value, the average sale price for similar land in the nearest village or vicinity, or the consented compensation amount in acquisitions covered by Section 2(2), as applicable, and adopts the higher amount under Section 26(1). The value is then multiplied by the factor specified in the First Schedule.
Section 27 - Determination of amount of compensation
After determining the market value, the Collector calculates the total compensation payable to the land owner by including the assets attached to the land.
Section 28 - Parameters considered in the award
Section 28 requires the Collector to consider the market value determined under Section 26, the award amount in accordance with the First and Second Schedules, and other statutory heads of damage and loss specified in that section.
Section 29 - Value of things attached to land or building
Section 29 governs valuation of buildings, other immovable property, assets, trees, plants and standing crops attached to the acquired land or building. The Collector may use competent engineers, specialists or experienced persons in the relevant field when determining those values.
Section 30 - Solatium and individual award
Section 30(1) provides for solatium equivalent to one hundred per cent of the compensation amount. Section 30(2) requires individual awards setting out compensation and payment details specified in the First Schedule. Section 30(3) also provides an additional amount calculated at twelve per cent per annum on the market value for the statutory period stated in that provision.
The First Schedule - Compensation for Land Owners
The following table reproduces the substantive compensation components while correcting the cross-reference for valuation of assets attached to land or building to Section 29.
| S. No. | Component of compensation package | Manner of determination of value | Date of determination |
|---|---|---|---|
| 1. | Market value of land | To be determined as provided under Section 26. | To be recorded in the award. |
| 2. | Factor by which the market value is to be multiplied in rural areas | 1.00 (One) to 2.00 (Two), based on the distance of the project from an urban area, as may be notified by the appropriate Government. | To be recorded in the award. |
| 3. | Factor by which the market value is to be multiplied in urban areas | 1.00 (One). | To be recorded in the award. |
| 4. | Value of assets attached to land or building | To be determined as provided under Section 29. | To be recorded in the award. |
| 5. | Solatium | Equivalent to one hundred per cent of the market value of land at serial number 1 multiplied by the applicable factor at serial number 2 for rural areas or serial number 3 for urban areas, plus the value of assets at serial number 4. | To be recorded in the award. |
| 6. | Final award in rural areas | Market value at serial number 1 multiplied by the rural factor at serial number 2, plus the value of assets at serial number 4, plus solatium at serial number 5. | To be recorded in the award. |
| 7. | Final award in urban areas | Market value at serial number 1 multiplied by the urban factor at serial number 3, plus the value of assets at serial number 4, plus solatium at serial number 5. | To be recorded in the award. |
| 8. | Other component, if any, to be included | As applicable under the Act and the relevant award. | To be recorded in the award. |
Statutory note: The date on which the values in the compensation table are determined should be indicated in the date column against each serial number.
How the First Schedule compensation calculation works
The First Schedule should be read with Sections 26 to 30. First, the market value is determined under Section 26. The applicable rural or urban factor is then applied. The value of assets attached to the land or building is determined under Section 29. Solatium is added under Section 30.
These formulas summarize the components expressly shown in the First Schedule. Other amounts or statutory entitlements that arise under the Act, including the additional amount under Section 30(3), must be considered separately where applicable.
Official text and current legal reference
For the authoritative Central Act, amendments, sections and schedules, refer to the official India Code record. State rules and notifications may affect procedural requirements and the rural multiplication factor in a particular State or acquisition, so the applicable State notification should also be checked for a case-specific calculation.