Question:

The Land Acquisition Act, 2013

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The Land Acquisition Act, 2013 introduces strict consent clauses: 0% consent is needed for purely government projects, but 70% consent is mandatory for Public-Private Partnerships (PPP), and 80% consent is required for acquisitions intended for purely private companies.
Updated On: Jun 23, 2026
  • Applies only to Central and State Governments
  • Applies to various Governments and to private companies for private-public partnership projects and for public purpose
  • Applies to rural land exclusively by various Governments
  • Applies to urban land exclusively by various Governments
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The Correct Option is B

Solution and Explanation

Concept: The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (also known simply as the Land Acquisition Act, 2013) replaced the colonial-era Land Acquisition Act of 1894. Its core objective is to ensure a humane, participatory, informed, and transparent process for land acquisition in India, accompanied by just and fair compensation, rehabilitation, and resettlement.

Step 1: Scope and Applicability of the Act

Unlike the old 1894 framework which gave unrestricted power of eminent domain to the state, the 2013 legislation explicitly defines and expands the scope of whose acquisitions are regulated under the law. It applies when the appropriate Government (Central or State) acquires land for:
• Government's own use, hold, and control, including public sector undertakings (PSUs).
• Public-Private Partnership (PPP) projects for public purpose, where ownership of the land continues to vest with the Government.
• Private companies for designated public purposes.

Step 2: Analysis of Options

Let us analyze why the selected option is correct based on statutory provisions:
Option (A) is incorrect: The Act does not restrict its provisions only to direct acquisitions by Central and State government departments for internal use; it explicitly includes rules governing land acquisition for private players and PPP models.
Option (B) is correct: Sections 2(1) and 2(2) of the Act state that its provisions apply to land acquisition for public purposes, including Public-Private Partnerships (PPP) and private companies, provided specific consent thresholds (70% for PPP and 80% for private projects) are met from the affected landowners.
Option (C) and (D) are incorrect: The Act is uniform across geographic boundaries. It governs land acquisition in both rural and urban areas, though it applies different multi-tier compensation multipliers (typically 1 to 2 times market value in urban areas, and up to 2 to 4 times in rural areas). It is not exclusive to either domain.
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