Land Acquisition

Land is a scarce resource in India. The gravity of the situation can be understood from the fact that though India has only 2.4% of total land area of the world, it houses around 17% of the total population. Additionally, India primarily being an agricultural country, depends on land to much larger extent.

Land Use in India

Out of total 329 lakh hectares of land, 43% land is used for agricultural purposes.

Land Acquisition 

Land is required for undertaking various developmental activities such as setting up school, constructing roads or railway lines etc. Govt. can undertake this measure against the will of the land owner by the help of Land Acquisition Act, 1894.

What are the problems with the old law ? 

Why a new one required now?


So, Union minister for Rural Development introduced the Land Acquisition, Rehabilitation and Resettlement Bill, 2011 in LS (then got referred to Parliamentary Standing committee on Rural Development), which will replace Land Acquisition Act, 1894, when passed.

[Land is a subject in state list but acquisition and requisition of property is in concurrent list]

Features -

• Applicable to acquisition of land by Govt. for its own use or to transfer to private sector
• Applicable to purchase or acquisition of land by private companies (100 acres or more in case of rural areas and 50 acres or more in case of urban areas)
• Compensation should be 4 times the market value in case of rural areas and 2 times of market value in case of urban areas.
• In case of land being acquired by govt for use by private companies or for use n PPPs, conset of at lease 80% of the displaced people is mandatory.
• This law will not be applicable to land acquisition under 16 existing laws (SEZ Act, 2005, Atomic Energy Act, 1962, Railway Act,1989 etc). and also to scheduled areas and state of J&K.
• Process for acquisition : Social Impact Assessment Survey -> Preliminary notification of the intent -> Notice for acquisition -> Compensation

Key Issues -

• It is not clear whether Parliament has jurisdiction to impose resettlement and rehabilitation requirements when Private companies are purchasing land.  
• No 'consent by 80% of people' clause for PSUs.
• As per the clauses of this bill, Govt can temporarily hold land fr 3 years period without providing for the compensation.
• Possibility of inaccurate assessment of market price of land.

2015 

24th Feb : NDA govt. introduced the refurbished bill in Lok Sabha. Uproar in the house.