Land Acquisition Act 2013 - Second Schedule

Second Schedule of the RFCTLARR Act, 2013: Rehabilitation and Resettlement Entitlements

The Second Schedule specifies rehabilitation and resettlement entitlements for affected families, including land owners and families whose livelihood is primarily dependent on the land acquired, in addition to compensation and benefits under the First Schedule.

Statutory reference: The Second Schedule is linked to Sections 31(1), 38(1) and 105(3) of the RFCTLARR Act, 2013.

Official text: The Central Act came into force on 1 January 2014. The entitlement amounts stated below reproduce the Central Second Schedule. Applicable State amendments, rules and notifications should also be checked for a particular acquisition.

Official India Code - RFCTLARR Act, 2013

Purpose of the Second Schedule

The Second Schedule provides statutory rehabilitation and resettlement benefits for affected families. These benefits are additional to the compensation package under the First Schedule. The Schedule addresses displacement, loss of agricultural land or livelihood, relocation expenses, employment or annuity options, subsistence support and other rehabilitation measures.

The exact entitlement depends on the facts of the acquisition and the category of the affected family. Some benefits apply only where there is displacement, an irrigation project, loss of a house, loss of agricultural land, or another condition expressly stated in the Schedule.

Sections Connected With the Second Schedule

Section 31(1) - Rehabilitation and Resettlement Award

Section 31 requires the Collector to pass a Rehabilitation and Resettlement Award for each affected family in accordance with the entitlements provided in the Second Schedule. The award records the rehabilitation and resettlement benefits for which the affected family is eligible.

Section 38(1) - Possession After Compensation and R and R Compliance

Section 38 regulates the taking of possession of acquired land. It requires payment or tender of compensation and compliance with the monetary components of rehabilitation and resettlement entitlements within the statutory framework before possession is taken, subject to the provisions of the Act.

Section 105(3) - Fourth Schedule Enactments

Section 105 concerns acquisition under enactments specified in the Fourth Schedule. The Central Government subsequently extended the RFCTLARR provisions relating to determination of compensation and rehabilitation and resettlement to acquisitions under the Fourth Schedule enactments through the 2015 Removal of Difficulties Order.

Second Schedule - Rehabilitation and Resettlement Entitlements

Elements of Rehabilitation and Resettlement Entitlements for affected families
S. No. Element Entitlement or provision Whether provided
1. Housing units in case of displacement If a house is lost in a rural area, a constructed house is to be provided as per the specifications stated in the Schedule. If a house is lost in an urban area, a constructed house of not less than 50 sq. metres plinth area is to be provided. The benefit also extends to an affected family without homestead land that has continuously resided in the affected area for at least three years before notification and is involuntarily displaced. An eligible urban family opting not to take the offered house is entitled to one-time financial assistance for house construction of not less than Rs. 1,50,000. An eligible rural family may opt for the equivalent cost of the house instead of the constructed house. No affected family may receive more than one house under the Act. Urban houses may, where necessary, be provided in multi-storied building complexes. Details to be recorded in the R and R Award.
2. Land for land In an irrigation project, as far as possible and in lieu of compensation to be paid for land acquired, each affected family owning agricultural land whose land is acquired or lost, or which is reduced to the status of a marginal farmer or landless as a consequence, is to be allotted a minimum of one acre in the command area of the project in the manner stated in the Schedule. Persons losing land who belong to Scheduled Castes or Scheduled Tribes are to be provided land equivalent to the land acquired or two and one-half acres, whichever is lower. Details to be recorded where applicable.
2A. Offer for developed land Where land is acquired for urbanisation purposes, twenty per cent of the developed land is to be reserved and offered to land-owning project affected families in proportion to the area acquired and at a price equal to the cost of acquisition and development. Where a family accepts the offer, an equivalent amount is deducted from its land acquisition compensation package. Details to be recorded where applicable.
3. Choice of annuity or employment The appropriate Government is to ensure the options specified in the Schedule: where jobs are created through the project, employment after suitable training and skill development for at least one member per affected family at not less than the applicable minimum wage, or arrangement of a job in another project as required; or a one-time payment of Rs. 5,00,000 per affected family; or an annuity paying not less than Rs. 2,000 per month per family for twenty years with appropriate indexation to the Consumer Price Index for Agricultural Labourers. Chosen option and details to be recorded.
4. Subsistence grant for displaced families Each affected family displaced from acquired land is entitled to a monthly subsistence allowance equivalent to Rs. 3,000 per month for one year from the date of award. Scheduled Caste and Scheduled Tribe families displaced from Scheduled Areas are additionally entitled to Rs. 50,000. In displacement from Scheduled Areas, affected families should, as far as possible, be relocated in a similar ecological zone to preserve economic opportunities, language, culture and community life. Details to be recorded where applicable.
5. Transportation cost Each displaced affected family is entitled to one-time financial assistance of Rs. 50,000 as transportation cost for shifting the family, building materials, belongings and cattle. Details to be recorded where applicable.
6. Cattle shed or petty shop cost Each affected family having cattle or a petty shop is entitled to one-time financial assistance in an amount specified by notification of the appropriate Government, subject to a minimum of Rs. 25,000, for construction of a cattle shed or petty shop, as applicable. Details to be recorded where applicable.
7. Grant to artisan, small trader and certain others An affected family of an artisan, small trader or self-employed person, or an affected family owning non-agricultural land or a commercial, industrial or institutional structure in the affected area and involuntarily displaced due to acquisition, is entitled to one-time financial assistance specified by the appropriate Government, subject to a minimum of Rs. 25,000. Details to be recorded where applicable.
8. Fishing rights In irrigation or hydel projects, affected families may be allowed fishing rights in reservoirs in the manner prescribed by the appropriate Government. Details to be recorded where applicable.
9. One-time resettlement allowance Each affected family is entitled to a one-time resettlement allowance of Rs. 50,000. Details to be recorded.
10. Stamp duty and registration fee The stamp duty and other fees payable for registration of land or a house allotted to affected families are to be borne by the Requiring Body. Land allotted for a house is to be free from encumbrances. The allotted land or house may be in the joint names of wife and husband of the affected family. Details to be recorded where applicable.

Important: The monetary amounts above are the amounts stated in the Central Second Schedule. Section 31 and other provisions of the Act should be read with applicable Central or State rules, State amendments and notifications when determining the entitlement in an individual case.

Key Definitions Under the RFCTLARR Act

Affected family - Section 3(c)

The Act defines "affected family" through specified categories of families affected by acquisition, including land owners and certain agricultural labourers, tenants, share-croppers, artisans and others whose livelihood or rights are affected in the circumstances stated in Section 3(c).

Land owner - Section 3(r)

"Land owner" includes persons whose names are recorded as owners of land or building or part thereof in the records of the authority concerned and other persons falling within the categories specified in Section 3(r).

Requiring Body - Section 3(zb)

"Requiring Body" means the company, body corporate, institution or other organisation or person for whom land is to be acquired by the appropriate Government, and includes the appropriate Government where land is acquired for its own use or for subsequent transfer for a public purpose.

Rehabilitation and Resettlement Award

The Rehabilitation and Resettlement Award under Section 31 is the Collector's award specifying the rehabilitation and resettlement entitlements of each affected family in accordance with the Act and the Second Schedule.

Official Act and Rules

For the authoritative Central Act, schedules, subordinate legislation and current official materials, refer to India Code and the Department of Land Resources. The Department also publishes the RFCTLARR (Compensation, Rehabilitation and Resettlement and Development Plan) Rules, 2015.

India Code - RFCTLARR Act, 2013

Department of Land Resources - RFCTLARR Rules, 2015