Land Acquisition Bill India

Aim: To ensure those displaced by purchases of their land are resettled, rehabilitated and, in addition, compensated at between two and four times the market value of land in rural areas, and up to twice the land’s market value in urban areas. In cases where private companies acquire the land, the consent of 80% of those living there will be required. In cases where land is purchased for public-private partnerships, consent of 70% of residents will be required.
Why it’s important: The Land Acquisition Act 1894, which this bill aims to replace, makes no provision for the resettlement and rehabilitation of those displaced by land acquisition by the government. The process of resettlement is governed by the National Rehabilitation and Resettlement Policy, 2007.
Purchasing land for factories and other commercial development has long been a major stumbling block for investors looking to set up or expand operations in India, with scores of multimillion-dollar projects held up in recent years as farmers opposed land-purchase plans, sometimes resorting to violence.
Who it affects: Developers wishing to purchase land in India, land-owning farmers and those owning land in areas which are to be developed for government projects or commercial purposes.
How it works: Before land is acquired, a report assessing the social impact of the land purchase on those living in the area must be prepared must be prepared in consultation with the village council in rural areas and local residents associations in urban areas. The report must be evaluated by an expert panel consisting of two independent social scientists, two experts on rehabilitation and a technical expert on the subject relating to the project for which the land is being acquired. The intention to acquire the land must be registered within 12 months of the submission of the report. Any objections would need to be raised with the area’s administrative head. The government then publishes a declaration to acquire the land and goes ahead to take hold of it.
In cases of emergency, which are for defense, national security, in the event of a national calamity, or for acquisitions sanctioned by Parliament, this process is not mandatory. In such cases, land owners receive 80% of the price of the land as compensation.
The government can temporarily purchase land for up to three years, but in this case, rehabilitation and resettlement is not mandatory. Companies can negotiate with land owners on the amount of compensation, but it must be between two and four times the market value in rural areas and up to twice the market value in urban land purchases.
Criticism: Some say the land may be undervalued and not necessarily account for recent appreciation in prices. Therefore, the compensation, they argue, may not reflect true market rates. However, others say that land prices in India are already high and the bill will make purchases in some areas impossibly expensive. The fear is, this will deter investment, stunting growth and delaying the much needed development of infrastructure.
Others argue that the time taken to prepare assessment reports may delay government projects, such as community toilets or bus stops. Having to wait for a social impact report may also tie the process of purchasing land in red tape for private companies wanting to invest in the country.