LARR Act 2013 — Key Provisions
| Provision | Rural Land | Urban Land |
|---|---|---|
| Market value multiple | 2× market value | 1× market value |
| Solatium | 100% of (market value × 2) | 100% of market value |
| Total compensation | 4× market value | 2× market value |
| Annuity (some cases) | ₹2,000/year inflation-adjusted for 20 years | Varies |
| Consent required | 70–80% for non-government projects | Same |
| SIA mandatory | Yes | Yes (some exemptions for urgency) |
Protecting Yourself from Acquisition Risk When Buying
Pre-Purchase Acquisition Risk Checks
- Master plan check: Verify the plot is not in a road widening corridor, metro alignment, or infrastructure reservation zone
- Section 4 notification: Check if any Section 4 (preliminary notification) or Section 6 (final notification) has been issued under LARR Act for the area
- Revenue records: Older acquisition notifications may appear in revenue records — check with local tahsildar
- Newspaper search: Acquisition notifications are published in local newspapers — search for area-specific notices
- Local lawyer inquiry: A local property lawyer can check for any pending or threatened acquisition in the area
- TDR issued: If the seller holds TDR for the plot, it indicates prior road widening acquisition — understand the remaining land extent
Related Terms
Frequently Asked Questions
Land acquisition is the government's compulsory takeover of private land for public purposes — roads, metro rail, hospitals, power projects. Landowners receive compensation mandated by the LARR Act 2013. Compensation for urban land is 2× market value; for rural land it is 4× market value (including 100% solatium). Government cannot acquire land without following LARR Act procedures.
LARR Act (Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013) replaced the colonial-era Land Acquisition Act, 1894. Key provisions: mandatory Social Impact Assessment, enhanced compensation (2× for urban, 4× for rural), 80% landowner consent for private projects, rehabilitation and resettlement for displaced families, and transparency in the process.
Urban land compensation = Market Value × 1 + 100% solatium = 2× market value. Rural land compensation = Market Value × 2 + 100% solatium = 4× market value. Market value is determined by the higher of the registered sale deed prices of comparable land in the area or the guideline/circle rate. Landowners can challenge the compensation amount in court.
Check: (1) Master plan — plot in road widening or infrastructure reservation zone, (2) Section 4 preliminary notification in Official Gazette, (3) Revenue records for any acquisition-related annotations, (4) Local newspaper notices — LARR requires public notices, (5) Consult local property lawyer — they know of pending acquisitions in the area. Always do these checks before buying any plot or land parcel.
For government-purpose acquisitions (roads, schools, government buildings), individual refusal is generally not possible — it is compulsory acquisition. However, for private/PPP projects, 80% and 70% landowner consent is required respectively — individual owners can withhold consent as part of this threshold. Landowners can always challenge the compensation amount in court and negotiate for a better assessment.