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The Land Acquisition Bill-- A Critique and a Proposal

  • MAITREESH GHATAK

    (London School of Economics)

  • PARIKSHIT GHOSH

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

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.

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Paper provided by Centre for Development Economics, Delhi School of Economics in its series Working papers with number 204.

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Length: 20 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:cde:cdewps:204
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  1. repec:cup:cbooks:9780521551847 is not listed on IDEAS
  2. repec:cup:cbooks:9780521536721 is not listed on IDEAS
  3. 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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