CLAT-2027 Blog

MP Cabinet 4x Land Acquisition Compensation: LARR Act 2013, Art 300A | CLAT 2027

Farmland acquisition and compensation — CLAT 2027

CURRENT AFFAIRS | 23 APRIL 2026

On 22 April 2026, the Madhya Pradesh Cabinet led by Chief Minister Mohan Yadav approved a landmark decision to quadruple the compensation multiplication factor for rural land acquisition under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 (LARR Act). Farmers whose agricultural land is acquired will now receive up to 4x the registered market value, a politically high-visibility move benchmarked against displacement patterns of the Ken-Betwa River Linking Project.

Alongside, the Cabinet cleared a Rs 33,985 crore infrastructure package (irrigation, roads, health, education) and a Rs 969 crore Chhindwara irrigation project. For CLAT 2027, the decision is a perfect vehicle to revise land-acquisition jurisprudence, the constitutional status of property rights, and landmark case law.

Constitutional & Statutory Framework

  • Article 300A — “No person shall be deprived of his property save by authority of law.” Property is a constitutional right, not a Fundamental Right.
  • Article 19(1)(f) and Article 31 — Omitted by the 44th Constitutional Amendment Act, 1978, ending property’s Fundamental Right status.
  • LARR Act 2013 — Replaced the colonial Land Acquisition Act 1894. Key provisions:
    • Sections 26-28 — compensation formula (market value + factor multiplier + solatium)
    • Section 2(1)(c) + First Schedule — factor multiplier (1x urban to up to 2x rural; states may enhance)
    • Section 3(za) — definition of “public purpose”
    • Schedules II and III — rehabilitation and resettlement entitlements
  • Concurrent List Entry 42 — “acquisition and requisitioning of property” (both Union and State legislate).

CLAT Angle: Why This Matters

Expect a Legal Reasoning passage on land-acquisition: principle “state may acquire land for public purpose on just compensation” applied to a scenario where a farmer challenges a 2x vs 4x dispute. Also testable as:

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  • GK/Current Affairs — Which CM headed the 22 Apr 2026 Cabinet? (Mohan Yadav)
  • Polity — 44th Amendment’s effect on right to property
  • Legal Maxims“Salus populi suprema lex” (welfare of people is supreme law)

Key Facts & Landmark Cases

Case / Fact Significance
Kedar Nath Yadav v State of WB (2016) SC quashed Singur Tata Nano acquisition — “public purpose” not established for private industry
Indore Development Authority v Manohar Lal (2020) Constitution Bench clarified Section 24 LARR — compensation deposit rule
Vidya Devi v State of HP (2020) Art 300A includes right to just compensation; unlawful dispossession is a human rights violation
Ken-Betwa River Link First interlinking project; submerges part of Panna Tiger Reserve

Mnemonic: “LARR pays a SCRAP bonus”

Solatium (100%) · Compensation (market value) · Rehabilitation · Assessment factor (multiplier 1x-4x) · Public purpose test

Remember: 44 → No FR (44th Amendment ended Fundamental Right to property). 300A → Still protected (constitutional right endures).

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