The Land Acquisition (Amendment) Bill, 2007

Highlights of the Bill

• The Land Acquisition (Amendment) Bill, 2007 amends The Land Acquisition Act, 1894.

• For acquisition resulting in large-scale displacement, a social impact assessment study must be conducted. Tribals, forest dwellers, and those with tenancy rights are also eligible for compensation.

• Acquisition costs will include payment for loss or damages to land, and costs related to resettlement of displaced residents.

• While determining compensation, the intended use of land and value of such land in the current market is to be considered.

• The Bill establishes the Land Acquisition Compensation Disputes Settlement Authority at the state and central levels to adjudicate disputes resulting from land acquisition proceedings.

Key Issues and Analysis

• The Bill bars the jurisdiction of civil courts on all matters related to land acquisition. It is unclear whether there is a mechanism by which a person may challenge the qualification of a project as ‘public purpose.’

• The Settlement Authority is a judicial body but could be entirely staffed by members without judicial qualifications or experience.

• When acquired land is resold, the original acquirer is to distribute 80% of the capital gains to the original owners or their heirs. This implies that every acquirer must track the original owners and their heirs in perpetuity. Also, the resale price of land may be difficult to compute when it is part of a larger deal in which a company is taken over.

• Companies have to offer part of compensation as shares or debentures. Unlike shares, debentures do not provide the land owner with a share of the profits of the project.

• The Bill makes special provisions for compensation if land is acquired under ‘urgency’. The term ‘urgency’ is not defined.