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Amendments Proposed in Land Acquisition Act
Dec 31, 2014

The Union Cabinet gave clearance to ordinance that allowed changes in Land Acquisition Act. Several states have asked the government to overhaul the land acquisition law, which were blamed for stalling land deals and stifling industrial expansion. The Act came into effect from 1.1.2014 but it has been reported that many difficulties are being faced in its implementation.  In order to remove them, certain amendments have been made in the Act to further strengthen the provisions to protect the interests of the ‘affected families’.  In addition, procedural difficulties in the acquisition of lands required for important national projects required to be mitigated.

  • Government exempt land acquisition for denefnce purpose

  • Return of land not used to extended from 5 to 10 years

  • Private company to be replaced with private entity

  • Procedures relaxed for 5 specific land acquisitions


The ordinance will ease restrictions including a consent clause which was seen as obstacle for power, highways, housing, defence and infrastructure projects and holding up the economy's growth potential. The ordinance seeks to waive the ‘consent clause’–the requirement to secure specific consent of owners of 70% -80% of land owners if acquisitions are meant for defence and defence production, rural infrastructure including electrification, housing for poor and affordable housing, industrial corridors and infrastructure projects including projects under Public-Private Partnership mode where ownership the land continues to be vested with the government. Multi-crop land can also be acquired for such purposes.

There has been a clamour for changes in the land acquisition rule that came into force on January 1, 2014 because it has led to a complete halt in development. No land has been acquired for public purposes under the new law because of some of its harsh provisions, stalling industrial development. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 was enacted by the UPA Government.

The government favours expansion of the list of exempted sectors under the land law to include defence, education and healthcare and infrastructure while leaving compensation unchanged.

The reason for bringing in an ordinance is Section 105 of the Act which provides for excluding 13 central legislation, including Land Acquisition (Mines) Act 1885, Atomic Energy Act, 1962, Railway Act 1989, National Highways Act 1956 and Metro Railways (Construction of Works) Act, 1978 from its purview.

The Act came into force on January 1, 2014 but if an ordinance was not issued before January 1, 2015, these 13 legislation will come under the purview of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013


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