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Challenges and Solutions in Land Acquisition in India

Learn about the complexities of land acquisition in India, including the legal framework, public purpose definitions, transaction costs, Non-agricultural use clearance, and issues related to fair market value assessment. Explore the processes, discretionary powers of state governments, and the national policy of resettlement and rehabilitation for project-affected families.

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Challenges and Solutions in Land Acquisition in India

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  1. Land Acquisition in India 10-June-2010

  2. Background on land acquisition in India •  Very limited unused land in India. •  Most of India's population is dependent on land for their livelihood and do not have skills to work in other areas of the economy. (72% of Indians live in rural areas). • Land acquisition act,1894 •  Was initially brought about to acquire land for public purpose. • Includes entire India, except for Jammu and Kashmir  • Both central and state governments can legislate on matter relating to land acquisition.  • 1962 amendment allows the government to acquire land for commercial purpose. State may acquire and deliver land to private industries for industrial & infrastructural projects.

  3. Land acquisition in India (continued)         Definition of public purpose is too vague. • Sufficient for state to declare that the land is being acquired for "public purpose". • Acquisition for public purpose - Companies are not required to use market route to acquire land. •  Land Records - • Governed by registration act of 1908. • Act serves as a public record of transactions. • Registrar's office is not required to check authenticity of title. Registrar does not have access to land records or maps to do so. •  As a result, outdated and inaccurate records leads to litigation.

  4. Land acquisition in India (continued) • Transaction costs • Stamp duty (tax 9 -10% of land value). • Results in under reporting on transaction values. • Results in problems with determining land value. •  Non agricultural use clearance (NAC) • Used to reclassify agricultural land as non-agricultural land. • Purpose of act was to benefit farmer who wished to use his land for non-agricultural purpose, such as building a home etc. • What happens (sometimes): State acquires land for industrial projects. Farmer is compensated for value of agricultural land. NAC is issued and the land value increases substantially.  

  5. Land acquisition in India (Continued) • It is possible that entrepreneur is motivated to bid for project to acquire land rather than to see the infrastructure project through. • Discuss: How should NAC work? How to access fair market value of land? • Process related to land acquisition • Discretionary powers available to state governments -Scope for delay in land acquisition. • Procedure for acquisition of land for private sector is more cumbersome than that for public sector. • National policy of resettlement and rehabilitation for project affected families - 2003 • Problems - Not enough community participation in projects • Does not provide equitable benefit sharing between

  6. Land acquisition in India (Continued)     displaced community and project owners. • recognizes only land ownership rights and not land • usage rights.  • livelihood dependent on land that they do not own -grazing, gathering grass.  • Rights of land squatters ???

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