2. Land Acquisition
Land acquisition in India refers to the process by which the union or a
state government in India acquires private land for the purpose of
industrialization, development of infrastructural facilities or urbanization of the
private land, and provides compensation to the affected land owners and their
rehabilitation and resettlement.
❖ Eminent Domain (US)
❖ Compulsory Purchase (United Kingdom, New Zealand, Ireland)
❖ Resumption (Hong Kong)
❖ Compulsory Acquisition (Australia)
❖ Expropriation (South Africa, Canada)
3. Timeline
1894
• Land Acquisition Act, 1894 created by the British.
1947
• Independent India choose to continue this Act even after independence
2013
• The Right to Fair Compensation & Transparency in Land Acquisition,
Rehabilitation & Resettlement Act .
2015
• Further amendments to the Bill.
5. DRAWBACKS OF 1894 ACT
❑ The term “public purpose” was ambiguous and open to Government’s discretion
❑ Land could be acquired forcibly.
❑ They were given no voice in decision making.
❑ Government was free to decide how much money to pay while acquiring private
land.
❑ No such restrictions on fertile land
❑ If project did not start, then acquired land was secretly sold/leased to private
players at sky-high prices.
8. SALIENT FEATURES OF LARR - 2013
❑ Social impact assessment (SIA) even need to obtain consent of the affected
people, labourers, share-croppers, tenant farmers, fishermen, small traders, etc.
whose (sustainable) livelihood will be affected because of the given project.
❑ Compensation proportion to market rates. 4 times the market rate in rural area. 2
times in urban area.
❑ Affected artisans, small traders, fishermen etc. will be given one-time payment,
even if they don’t own any land.
❑ If project doesn’t start in 5 years, land has to be returned to the original owner.
9. SALIENT FEATURES OF LARR - 2013
❑ To ensure food security:
1. Fertile, irrigated, multi-cropped farmland can be acquired only in last resort.
2. If such fertile land is acquired, then Government will have to develop equal size
of wasteland for agriculture purpose.
❑ Clearly defines various types of “public purpose” projects for which, Government
can acquire private land.
❑ Land Acquire only when
o For private project, 80% affected families must agree.
o For PPP project, 70% affected families must agree.
10. Govt.
Acquires For
Own Use
Ultimate Aim
To Transfer
To
Private/PPP –
Public
Purpose
Immediate
Use Of Private
– Public
Purpose
80% Projects Affected Families Give
Prior Consent
ACQUISITION
12. Acquired By Govt
For Itself For
Other Purpose
Public Sector
Companies
PPP / Private
Projects For
Public Services
CONSENT
13. PROCESS OF REQUISITION
Social Impact Assessment
Evaluation Of SIA
Preliminary Notification
Survey And Analysis
Objection To Collector
Hearing And Report
Preparation Of Draft R&R
Approval From Collector
Declaration Of Requirement
Acquisition Of Award
R &R
AwardPossession
15. Comparison b/w 1894 & 2013 Act
ISSUE 1894 ACT 2013 ACT
Public Purpose
Includes Infra Structure
Development, Housing Projects
& Use By Companies under
certain Conditions
Includes
▪ Strategic project
▪Infra Projects
▪Projects for affected families
▪Project from planned
development
▪Residential project for the poor.
Consent of land Owners. No Requirements.
Govt acquiring land for Private
companies(80%) & for PPP
(70%)
Social Impact Assessment No Provision Mandatory.
16. Comparison b/w 1894 & 2013 Act
ISSUE 1894 ACT 2013 ACT
Compensation Same as market Value
Market rate in Urban area &
double the rate in Rural area.
Market Value Determined as per circle rates.
Estimated from
▪ Circle rate.
▪Sale instances.
Solatium (Compensation for
emotional loss)
30% 100%
Unused Land No provision.
To be returned to land owners if
unused for 5 yrs from the date of
possession.
17. Comparison b/w 1894 & 2013 Act
ISSUE 1894 ACT 2013 ACT
R&R No provision Compulsory.
Lease. No Provision.
Govt can take the land on lease
instead of acquiring it.
Urgency clause.
Acquisition of land without
giving prior notice or token
compensation.
Only in emergency situations
▪ National Defence
▪National Security.
▪National Calamities.
Sharing of profit. No provision.
If the acquired land is unused
and is transferred with in 5yr of
acquisition, 40% of the
appreciated land value will have
to be shared.