Valuation MCQ with answer and solution

Concept

Land acquisition compensation criteria under Indian laws.

Step-by-step solution

1. Understand the parameters for land acquisition compensation as per the LARR Act, 2013. 2. Factor in the market value of the land, value of assets/buildings attached, and the social impact assessment (SIA) including rehabilitation and resettlement. 3. Identify that the geographic distance to public infrastructure like a railway station is not a direct factor in computing statutory land compensation.

Explanation

Under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act), compensation is determined based on market value, assets attached to the land (like buildings), and social impact/displacement. Distance from the nearest railway station is not a direct statutory factor for determining the baseline solatium or market value compensation under the Act.

Why the other options are wrong

A: Market value is the primary basis for land compensation. B: Buildings and structures on the land are accounted for and compensated. C: Social impact assessment and displacement rehabilitation costs are mandatory components under the LARR Act.

Shortcut

Remember that compensation relies on economic value and social impact, not local proximity to general transit like a railway station unless it directly affects the market value multiplier (factor).

Common mistake

Assuming all geographic or infrastructural parameters affect land compensation directly.