Land Acquisition Act 2013 — Set 9

Correct Answer: B. Urban acquisitions follow the Act with 2x market value compensation

The LARR Act 2013 applies fully to urban areas and provides that compensation in urban areas is 2 times the market value. Urban acquisitions must also follow the SIA, consent (if for PPP or private), and R&R requirements. The fact that urban land prices are generally higher means that even the lower urban multiplier (2x vs 4x rural) typically results in substantial compensation for displaced urban families.

Correct Answer: B. NAC recommended including comprehensive livelihood restoration package instead of one-time payment

The National Advisory Council chaired by Sonia Gandhi played a significant role in shaping the LARR Act 2013 by recommending a comprehensive livelihood restoration approach rather than mere one-time monetary compensation. The NAC pushed for the annuity model, preference in employment, comprehensive R&R infrastructure, and the consent requirements that distinguish the 2013 Act from the 1894 Act. The NAC's recommendations were largely incorporated into the final legislation.

Correct Answer: B. Small and marginal farmers get the same compensation plus additional R&R benefits

The LARR Act 2013 does not discriminate in compensation based on farm size — small and marginal farmers receive the same compensation formula (4x in rural areas) as larger landowners. Additionally, the Act ensures that the R&R package specifically addresses the vulnerability of small and marginal farmers through employment preference, housing, and subsistence support. The Act recognizes that small farmers are disproportionately impacted by even small acquisitions.

Correct Answer: B. The Collector deposits the compensation into court and proceeds with possession

When there is a dispute about who is entitled to receive the compensation (ownership dispute, family succession dispute, etc.), Section 33 of the LARR Act 2013 allows the Collector to deposit the disputed compensation amount into a court of competent jurisdiction. The deposit enables the government to proceed with acquisition and take possession while the ownership dispute is settled by the civil court. Interest continues to accrue on the deposited amount.

Correct Answer: B. Certificate from sub-registrar's office showing all charges and mortgages on the land — examined during compensation determination

During land acquisition proceedings, the Collector examines the encumbrance certificate from the Sub-Registrar's office which shows all registered mortgages, charges, leases, and other encumbrances on the acquired land. This is necessary to determine the net compensation payable to the owner after accounting for outstanding mortgages or charges. Encumbered compensation is distributed by deducting the mortgage amount and paying it to the creditor (bank or money-lender).

Correct Answer: B. Full compensation plus subsistence allowance and employment for entire family

When a person's entire land holding is acquired (as opposed to partial acquisition), the LARR Act 2013 recognizes the particularly severe impact by providing the full compensation package plus the complete R&R entitlements. For persons with only a small plot, the entire family's livelihood is at stake, making comprehensive R&R critical. The Act's definition of 'affected family' ensures that all members of the household are considered in calculating entitlements.

Correct Answer: B. LARR Act incorporates PESA principles — Gram Sabha consent mandatory in Fifth Schedule areas

The LARR Act 2013 is consistent with and reinforces the PESA (Panchayats Extension to Scheduled Areas) Act 1996 by requiring mandatory Gram Sabha consultation before acquiring land in Fifth Schedule areas. PESA empowers Gram Sabhas to protect tribal land and natural resources, and the LARR Act honors this by making Gram Sabha consent a precondition for acquisition in scheduled tribal areas. Both laws together provide a framework for protecting tribal land rights.

Correct Answer: B. R&R package includes provision for skill training for displaced persons to enable alternative livelihoods

The Third Schedule of the LARR Act 2013 includes skill training as part of the R&R package. Displaced persons — particularly those whose livelihoods are disrupted — are entitled to training for alternative employment. This forward-looking provision acknowledges that monetary compensation alone cannot restore livelihoods and that displaced communities need capacity-building support to thrive in their new circumstances.

Correct Answer: B. Preferably in the same district; if not possible, same state; if not, as close as feasible

The LARR Act 2013 and its R&R framework provide that displaced persons should be resettled as close as possible to their original habitation — preferably in the same district and certainly in the same state. Uprooting communities to distant locations disrupts social networks, access to markets, and cultural practices. The proximity requirement ensures that cultural and social continuity is maintained to the extent possible during resettlement.

Correct Answer: B. Under 2013 Act, urgency clause requires Governor/President approval and can only be used for defense, national security, and natural calamities

Section 40 of the LARR Act 2013 severely restricts the urgency clause compared to the 1894 Act. Under the 1894 Act, the urgency clause could be invoked by the Collector for virtually any 'urgent' project. Under the 2013 Act, only the appropriate government (through the Governor/President) can invoke urgency, and it is limited to defence works, national security, natural calamities, and other exceptional circumstances. This restriction prevents the widespread misuse that occurred under the old Act.