Land Acquisition Act 2013 — Set 8

Correct Answer: B. Affected artisans, traders, and small businesses receive a one-time resettlement allowance

The Third Schedule of the LARR Act 2013 provides that artisans, small traders, and others who depend on non-agricultural activities in the acquired area are entitled to a one-time resettlement allowance. This recognizes that land acquisition disrupts not just farming but entire rural economies including blacksmiths, potters, weavers, and traders who operate in the affected village. The allowance provides them with capital to restart their livelihoods elsewhere.

Correct Answer: C. The Act specifically covers SEZ land acquisition with enhanced protections

The LARR Act 2013 applies to Special Economic Zones and provides that affected persons in SEZ acquisitions receive the full benefit of its provisions including the consent requirement, SIA, and comprehensive R&R package. This was a significant change from earlier practices where SEZ land acquisition under state-level SEZ Acts had limited protections. The 2013 Act brought SEZ acquisitions within the ambit of national minimum standards.

Correct Answer: C. Private hospitals that serve the poor are included in public purpose

The LARR Act 2013 allows land acquisition for private hospitals and educational institutions only if they primarily serve weaker sections and the poor, not for commercial private healthcare or education. Section 2(1)(c) permits acquisition for institutions that are established as non-profit public trusts or cooperatives for providing healthcare and education services to weaker sections. Commercial private hospitals and schools cannot invoke the land acquisition law.

Correct Answer: B. The 1894 Act provided only 1x market value with 30% solatium; 2013 Act provides 2x-4x plus 30% solatium

The Land Acquisition Act 1894 provided compensation at market value plus 30% solatium and 12% annual interest on the market value from the date of section 4 notification. The LARR Act 2013 dramatically increased this by providing 2x market value in urban areas and 4x in rural areas before adding the 30% solatium. This represents a 3-6 fold increase in effective compensation compared to the colonial era Act.

Correct Answer: B. If land is acquired and later resold to private parties, original owner gets 20% of appreciated value

Section 101(3) of the LARR Act 2013 provides that when land acquired under the Act is subsequently transferred to any other person or entity (including private parties), the original land owner or their heirs are entitled to 20% of the appreciated land value at the time of such transfer. This provision prevents the government from acquiring land cheaply and profiting by reselling it to private parties, ensuring that some capital gains are shared with the original displaced families.

Correct Answer: B. 60 days

Under the LARR Act 2013, any aggrieved person who is dissatisfied with the Collector's award for compensation or R&R entitlements can approach the LARRA (Land Acquisition Rehabilitation and Resettlement Authority) within 60 days of the award. The LARRA functions as a specialized court and can enhance compensation, modify R&R entitlements, and provide other relief. Its proceedings are summary in nature for expeditious resolution.

Correct Answer: B. Possession before compensation payment allowed only for urgency/defense cases with 80% compensation deposit

Advance possession (possession before award) under the LARR Act 2013 is only permitted in cases where the urgency clause (Section 40) is invoked for defense or national security. Even then, 80% of the estimated compensation must be deposited with the Collector before advance possession is taken. This is a significant restriction compared to the 1894 Act under which advance possession was widely used for any project, creating years of litigation.

Correct Answer: B. DM oversees resettlement, ensures amenities are provided, and monitors R&R implementation in the district

The District Magistrate (often the same person as the District Collector) plays a coordinating role in resettlement operations under the LARR Act 2013. The DM ensures that the R&R scheme is properly implemented, infrastructure is provided in resettlement colonies, displaced persons actually receive their entitlements, and grievances are addressed. The DM serves as the principal district authority for both land acquisition and resettlement activities.

Correct Answer: B. After Section 11 notification, no sale or transfer of land is permitted without prior sanction of the Collector

Under Section 11(4) of the LARR Act 2013, after publication of the preliminary notification, any transaction of the acquired land including sale, lease, mortgage, or gift requires prior sanction from the Collector. This anti-speculation provision prevents landowners from selling at inflated prices after knowing about acquisition or from creating new claims to boost compensation. Transactions without Collector's sanction after notification are void.

Correct Answer: B. Registered tenants and those with recognized rights of occupation get R&R benefits

The LARR Act 2013 includes persons with recognized rights of tenancy as 'affected families' entitled to R&R benefits. Registered tenants and persons with legal cultivation or occupancy rights receive R&R entitlements including a house (if displaced), preference in employment, and resettlement assistance. This provision recognizes the vulnerability of tenant farmers who often lack land ownership but have equally strong livelihood ties to the acquired land.