Section 30 Land Acquisition Act 2013: Award of Solatium
Section 30 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 provides for solatium of 100 percent of the compensation amount, individual awards and an additional amount calculated at 12 percent per annum on the market value for the statutory period.
What is solatium under Section 30?
Solatium is an additional statutory amount payable over and above the compensation determined for compulsory acquisition. Under Section 30(1), after determining the total compensation, the Collector must add solatium equal to 100 percent of the compensation amount to arrive at the final award.
Section 30 - Award of solatium
Section 30 provides three principal components: 100 percent solatium in addition to compensation, an individual award setting out compensation and payment particulars, and an additional amount at 12 percent per annum on the market value for the period specified in Section 30(3).
Section 30(1): 100 percent solatium
The Collector, after determining the total compensation payable, must impose a solatium amount equivalent to 100 percent of the compensation amount. The statutory explanation clarifies that this solatium is in addition to the compensation payable to the person whose land has been acquired.
Section 30(2): Individual compensation award
The Collector must issue individual awards detailing the particulars of compensation payable and the details of payment in accordance with the First Schedule.
Section 30(3): Additional 12 percent annual amount
In addition to the market value provided under Section 26, the Collector must award an amount calculated at 12 percent per annum on that market value. The statutory period begins from publication of the notification of the Social Impact Assessment study under Section 4(2) and ends on the date of the Collector's award or the date possession is taken, whichever is earlier.
First Schedule and minimum compensation package
The First Schedule sets out the compensation package for landowners and relevant tenants. It operates with Sections 26 to 30 and includes components such as market value, the applicable multiplier, value of assets attached to land or building and solatium. Section 30(2) specifically requires individual awards to detail compensation and payment particulars as specified in the First Schedule.
Relationship with Sections 26 to 29
Section 26 governs determination of market value. Section 27 requires calculation of total compensation including assets attached to the land. Section 28 identifies the parameters to be considered in determining the award, while Section 29 addresses valuation of things attached to land or buildings. Section 30 then adds the statutory solatium and additional amount required by its terms.
Social Impact Assessment under Section 4
Section 4 concerns preparation of the Social Impact Assessment study where the appropriate Government intends to acquire land for a public purpose. Section 30(3) uses publication of the notification of that study under Section 4(2) as the starting point for calculating the additional 12 percent annual amount.
Key points
- Solatium under Section 30(1) is equal to 100 percent of the compensation amount.
- Solatium is payable in addition to compensation.
- The Collector must issue an individual award containing compensation and payment particulars.
- Section 30(3) provides an additional amount at 12 percent per annum on market value for the statutory period.
- The First Schedule forms an important part of the compensation framework.
The Central Act should be read with applicable State rules, notifications, amendments and acquisition-specific orders where relevant.