Punjab farmers have been camping at the Khanauri and Shambhu borders of Punjab and Haryana since February, demanding legal status for the Minimum Support Price (MSP) of crops along with a dozen other demands from the central government. One of the prominent demands is the implementation of the Land Acquisition Act, 2013. Why are farmers demanding the implementation of this Act? We explain. What is the Land Acquisition Act, 2013? The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013 (commonly referred to as the Land Acquisition Act, 2013) was enacted by the Centre to replace the outdated Land Acquisition Act of 1894. The 2013 Act provides a modern framework for land acquisition, ensuring fair compensation and rehabilitation for affected families. The Act came into force on January 1, 2014. Some amendments were made in 2015. What are the key features of this Act? Fair compensation and consent requirements are the foremost features of the Act. Landowners are entitled to compensation that is twice the market value in urban areas and four times the market value in rural areas. Additionally, consent is required from 70% of the affected families for Public-Private Partnership (PPP) projects, and 80% consent is needed for land acquisition by private companies. For irrigated multi-cropped land, acquisition is restricted beyond limits specified by the state governments. If such fertile land is acquired, the government must develop an equal size of wasteland for agricultural purposes. If an individual is dissatisfied with an award under the Act, they can approach the Land Acquisition, Rehabilitation, and Resettlement (LARR) Authority for redressal. The Act also mandates a Social Impact Assessment (SIA) to evaluate the social, environmental, and economic impacts of land acquisition. Furthermore, the Act includes provisions for Rehabilitation and Resettlement (R&R), offering entitlements for affected families such as: A house for displaced families. Financial assistance for livelihood loss. Employment or annuity-based income for dependent families. Infrastructure development, such as roads, schools, and healthcare facilities, in resettlement areas. What are the other features of this Act? The Act narrows the definition of "public purpose" to prevent arbitrary acquisitions. Public purposes include infrastructure projects, urbanisation, and industrial corridors. If the acquired land is not utilised for its stated purpose within five years, it must be returned to the original owners or a land bank. Certain projects, such as those related to defence, railways, and atomic energy, are exempt from the Act; however, compensation and R&R provisions still apply. Transparency is ensured through public hearings and access to SIA reports. Additionally, the Act mandates extra benefits and consultation processes for Scheduled Castes (SCs) and Scheduled Tribes (STs). When the Act is already in force, why are farmers demanding its implementation? The Act is not being implemented in its letter and spirit, the farmers claim. “Both the central and state governments are responsible for not implementing the Act in its original form,” said Bharti Kisan Union General Secretary Jagmohan Singh. He cited the ongoing situation in Noida, where around 160 farmers were recently arrested for protesting against the lack of “fair” compensation for land acquired by the state, for projects including the Yamuna Expressway. Jagmohan also highlighted that several states have implemented the Act with amendments, leading to controversies and court cases. “Changes were proposed, such as relaxing certain provisions, including the removal of the consent clause for several categories, including PPP initiatives,” he said. “The Land Acquisition Act, 2013 is a progressive law that ensures fair compensation, providing financial security to farmers. Its consent clause gives farmers a say in whether their land can be acquired, empowering them against forced acquisitions. The Act’s rehabilitation provisions support displaced families by providing livelihood assistance and essential infrastructure in resettlement areas. It also prevents misuse of arbitrary acquisitions for private gains, safeguarding farmers' dignity, especially as land remains their primary source of income and identity,” Jagmohan said. What challenges does the Act face in its implementation? Experts point out that the procedural requirements often delay land acquisition for development projects, and the compensation costs can strain public and private project budgets. Balancing development needs with social justice remains a contentious issue, making the Act's full implementation challenging, experts say.
