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The Land Acquisition Bill-- A Critique and a Proposal

Author

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  • MAITREESH GHATAK

    (London School of Economics)

  • PARIKSHIT GHOSH

    (Department of Economics, Delhi School of Economics, Delhi, India)

Abstract

The new Bill on land acquisition recently tabled in Parliament is well intentioned but seriously flawed. Its principal defect is that it attaches an arbitrary mark-up to the historical market price to determine compensation amounts. This will guarantee neither social justice nor the efficient use of resources. The Bill also places unnecessary and severe conditions on land acquisition, such as restrictions on the use of multi-cropped land and insistence on public purpose, all of which are going to stifle the pace of development without promoting the interests of farmers. We present an alternative approach that will allow farmers to choose compensation in either land or cash, determine their own price instead of leaving it to the government’s discretion, and also reallocate the remaining farmland in the most efficient manner. Our proposed method involves a land auction covering not only the project site but also the surrounding agricultural land.

Suggested Citation

  • Maitreesh Ghatak & Parikshit Ghosh, 2011. "The Land Acquisition Bill-- A Critique and a Proposal," Working papers 204, Centre for Development Economics, Delhi School of Economics.
  • Handle: RePEc:cde:cdewps:204
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    References listed on IDEAS

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    1. Milgrom,Paul, 2004. "Putting Auction Theory to Work," Cambridge Books, Cambridge University Press, number 9780521536721.
    2. Deininger, Klaus & Jin, Songqing & Nagarajan, Hari K., 2009. "Determinants and Consequences of Land Sales Market Participation: Panel Evidence from India," World Development, Elsevier, vol. 37(2), pages 410-421, February.
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    Cited by:

    1. Dinda, Soumyananda, 2015. "Development and Land Acquisition in the View of Law and Economics," MPRA Paper 72848, University Library of Munich, Germany.
    2. Ghatak, Maitreesh & Mitra, Sandip & Mookherjee, Dilip & Nath, Anusha, 2013. "Land Acquisition and Compensation in Singur: What Really Happened?," CAGE Online Working Paper Series 121, Competitive Advantage in the Global Economy (CAGE).
    3. Chowdhury, Prabal Roy, 2013. "Land acquisition: Political intervention, fragmentation and voice," Journal of Economic Behavior & Organization, Elsevier, vol. 85(C), pages 63-78.
    4. Niranjan Sahoo, 2015. "In Search of a Model Land Legislation the New Land Acquisition Bill and its Challenges," Working Papers id:6924, eSocialSciences.
    5. Bhattacharya, Sourav & Kundu, Tapas, 2014. "Resistance, redistribution and investor-friendliness," Journal of Development Economics, Elsevier, vol. 109(C), pages 124-142.
    6. Craig Johnson & Arpana Chakravarty, 2013. "Re-Thinking the Role of Compensation in Urban Land Acquisition: Empirical Evidence from South Asia," Land, MDPI, Open Access Journal, vol. 2(2), pages 1-26, June.
    7. Paul, Saumik & Sarma, Vengadeshvaran, 2013. "The livelihood effects of industrialization on displaced households: Evidence from falta special economic zone, West Bengal," ZEW Discussion Papers 13-083, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. 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.
    9. Ashok K. Lahiri, 2016. "The vexed land issue: a triple jeopardy," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(3), pages 301-309, September.
    10. Ghatak, Maitreesh & Mookherjee, Dilip, 2014. "Land acquisition for industrialization and compensation of displaced farmers," Journal of Development Economics, Elsevier, vol. 110(C), pages 303-312.
    11. repec:spr:jogath:v:46:y:2017:i:3:d:10.1007_s00182-016-0556-4 is not listed on IDEAS
    12. Dinda, Soumyananda, 2015. "Land Acquisition and Compensation Policy for Development Activity," MPRA Paper 72849, University Library of Munich, Germany, revised 18 Sep 2015.
    13. Sarkar, Shubhro, 2016. "Bargaining order and delays in multilateral bargaining with heterogeneous sellers," Mathematical Social Sciences, Elsevier, vol. 80(C), pages 1-20.
    14. Saumik Paul & Vengadeshvaran Sarma, "undated". "The Livelihood Effects of Industrialization on Displaced Households: Evidence from Falta Special Economic Zone," Discussion Papers 13/09, University of Nottingham, CREDIT.

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