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Towards Reform of Land Acquisition Framework in India

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  • Morris, Sebastian
  • Pandey, Ajay

Abstract

We bring out the fundamental and more important problems with the current framework of land acquisition in India, regulations on land and the functioning of land markets. We argue that reform is overdue and the current framework would be unsustainable in a democracy that is India. Current land prices are highly distorted owing largely to regulatory constraints and the process of takings. Land acquisition more than any other factor is the most important constraint on development and especially in infrastructure development. We bring out the core elements of the reform – the need to define “public purpose” ex-ante for compulsory acquisition of land, the measures that would allow the market price of land to play its correct role, and the approach to valuation. We also argue for an independent valuer when compulsory taking is involved and methods of valuation to ensure that the land owner including the farmer gets the correct value for this land in both compulsory acquisition and in voluntary sale. We also argue the need for a parallel non-compulsory framework for acquisition and develop the key elements of the same. We also bring out alternatives to physical acquisition of land especially in the context of infrastructure development in central places.

Suggested Citation

  • Morris, Sebastian & Pandey, Ajay, 2007. "Towards Reform of Land Acquisition Framework in India," IIMA Working Papers WP2007-05-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
  • Handle: RePEc:iim:iimawp:wp02025
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    File URL: https://www.iima.ac.in/sites/default/files/rnpfiles/2007-05-04_Morris.pdf
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    Citations

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    Cited by:

    1. Blakeslee,David & Chaurey,Ritam & Fishman,Ram & Malik,Samreen, 2021. "Land Rezoning and Structural Transformation in Rural India : Evidence from the Industrial Areas Program," Policy Research Working Paper Series 9541, The World Bank.
    2. Ram Singh, 2012. "Inefficiency And Abuse Of Compulsory Land Acquisition--An Enquiry Into The Way Forward," Working papers 209, Centre for Development Economics, Delhi School of Economics.
    3. Blakeslee, David & Chaurey, Ritam & Fishman, Ram & Malik, Samreen, 2018. "Structural Transformation and Spillovers from Industrial Areas," IZA Discussion Papers 11886, Institute of Labor Economics (IZA).
    4. Sebastian Morris & Ajay Pandey, 2010. "The Question of Land and Infrastructure Development in India: Urgently Required Reforms for Fairness and Infrastructural Development," Working Papers id:2619, eSocialSciences.
    5. Sinha, Meenakshi, 2021. "Harnessing land value capture: Perspectives from India’s urban rail corridors," Land Use Policy, Elsevier, vol. 108(C).
    6. Usha Sridhar & Sridhar Mandyam, 2009. "On structured buyer-seller negotiation for agricultural land acquisition - simulation experiments with rule-based models and utility fucntions," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 16(2), pages 1-30, December.
    7. Morris, Sebastian & Jain, Palakh, 2013. "Empirical study on inter-country OFDI," MPRA Paper 56194, University Library of Munich, Germany.
    8. Lingling Li & Yansong He & Changjian Li, 2022. "How Can the Risk of Misconduct in Land Expropriation for Tract Development Be Prevented and Mitigated: A Study of “Good Land Governance” Inspection in China," Land, MDPI, vol. 11(11), pages 1-23, November.
    9. Anindo Sarkar & Udayan Dhavalikar & Vikram Agrawal & Sebastian Morris, 2016. "Examination of Affordable Housing Policies in India," Business and Management Horizons, Macrothink Institute, vol. 4(1), pages 39-69, June.

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