Section 27 Land Acquisition Act 2013: Determination of Amount of Compensation
Section 27 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 explains how the Collector calculates the total compensation payable to a landowner after determining the market value of the acquired land.
Meaning and scope of Section 27
Section 27 operates after the Collector has determined the market value of the land under the applicable provisions of the 2013 Act. It requires the Collector to calculate the total compensation payable to the owner whose land has been acquired and to include the value of assets attached to that land.
Section 27 - Determination of amount of compensation
The Collector, after determining the market value of the land to be acquired, must calculate the total amount of compensation payable to the landowner by including all assets attached to the land.
How Section 27 fits into the compensation framework
Section 27 should not be read in isolation. The market value forming the basis of compensation is determined under Section 26. The Collector then applies the statutory compensation framework, including the matters specified in Section 28, valuation of things attached to land or buildings under Section 29, and solatium under Section 30.
Market value of land
Section 26 provides the statutory method for determining market value, including relevant valuation benchmarks and the applicable multiplier framework.
Assets attached to the land
Section 27 expressly requires inclusion of assets attached to the acquired land when calculating the total amount payable. Section 29 separately addresses determination of the value of buildings and other immovable property or assets attached to the land that are required to be acquired.
Other statutory components
The final compensation award may involve additional statutory components under the Act. Accordingly, Section 27 provides an important link between determination of market value and calculation of the total compensation payable in the acquisition proceedings.
Practical effect of Section 27
The compensation calculation is not confined to the bare market value of the land. Once that value has been determined, the Collector must proceed to calculate the total amount payable in accordance with the Act and account for assets attached to the acquired land. The adjoining provisions governing the award should therefore be examined together when reviewing a compensation calculation.
Related provisions
For the surrounding statutory scheme, see Section 25 - period for making the award, Section 26 - determination of market value, Section 28 - parameters considered by the Collector, Section 29 - valuation of things attached to land or building, and Section 30 - solatium.
The applicable Central Act should be read together with relevant State rules, notifications, amendments and acquisition-specific orders.