Land Acquisition Act,1894

1. AAKRITI SINGHAI
AKANKSHA SINGH
ARYAN
LAND ACQUISITION ACT,
1894

2. INTRODUCTION
▪ Land is a bundle of Rights
▪ In India, about 50% of the people continue to derive their livelihood from the
agricultural sector. Beyond the assured source of employment, land serves as a
source of collateral, provides cushion against inflation and is a source of social
prestige. On the other hand, land is a crucial resource required for development
activities
▪ The executive is the custodian of government land.
▪ Laws give different kinds of rights to people.
▪ These rights are of ownership, possession, enjoyment, right to transfer, right to inherit,
right to mortgage, lease, etc. In other words, nobody has any absolute or supreme
power/authority/right to land and whatever rights exist are those given by law.
(except for Customary Rights)
▪ Just as rights on land are given by law, so also laws can curtail, regulate or even
abolish rights.
▪ Land acquisition through eminent domain is the primary method used by
government to acquire land -State has a power to take over citizen’s private
property with due monetary compensation, but without property owner's consent.
▪ Through Land Acquisition Act, it was restricted that the land acquired will be used
for Public Purpose ,to accommodate urban expansion and cater to growing need of
the population through development with due monetary compensation

3. INTRODUCTION
Property guarantees freedom to individuals, when it is land, it embodies a bundle of
rights. Land is one of the scarce natural resource in the world.
It is to be ensured that land is managed judiciously and in a suitable manner to the common
good of people that can be ensured in a long run.
This right to property of the individual conflicts with the right of the State to acquire
property under the doctrine of eminent domain.
The Land Acquisition Act, 1894 forms the parent Act in India and it is the basis of all control
and State laws relating to compulsory acquisition and compensation.
Land acquisition is the process by which the government acquires
private property for public purpose.
The Land Acquisition Act 1894 was passed in order to remove certain anomalies in the
existing system of land acquisition as laid down by the previous legislation Act X of 1870.
Till 2013, land acquisition in India was governed by Land Acquisition Act of 1894 (for about
120 years).
Immovable property
Shall Include
1- Land
2- Benefits to arise out of Land
3- Things attached to earth
Shall NOT Include
1- Standing Timber
2- Growing Crops
3- Growing Grass
As perTransfer
of PropertyAct

4. An Act to amend the law for the acquisition of land for public purposes and for
companies.Whereas it is expedient to amend the law for the acquisition of land
needed for public purposes and for companiesand for determining the amount of
compensation to be made on account of such acquisition
Land Acquisition Act- 1894
Date of effect – March 1st 1894
Applicable to all states of India (except in the State of J&K after 1948)
Preamble
Contents
1 PRELIMINARY
2 ACQUISITION
3 REFERENCE TO COURT AND PROCEDURE THEREON
4 APPORTIONMENT OF COMPENSATION
5 PAYMENT
6 TEMPORARY OCCUPATION OF LAND
7 ACQUISITION OF LAND FOR COMPANIES
8 MISCELLANEOUS
Notes
Act’s Restriction- Acquisition for PUBLIC
PURPOSE only, and COMPANIES (meaning
East India Company and Indian Railways when
the law as made in 1894)
However, post independence, all companies
could come under the ambit of this Act along
with Public Purpose.
Interpretation – Companies to be considered
may be Govt Companies/PSUs or Private
Companies Also ?
It is stated in the preamble to the Act that
individualswhose property is taken over has a
right to receiveADEQUATE compensation.
Preamble focusses on 2 parts- To Define 1-
Public Purpose , 2- Compensation
LA is a process duly established by Law
Adjective Acts-Which detail out how the
process will be followed-It is a complete Code
in itself

5. LAND - includes benefits to arise out of land, and things attached to the earth or permanently
fastened to anything attached to the earth
PERSON INTERESTED - includes all persons claiming an interest in compensation to be
made on account of the acquisition of land under this Act; and a person shall be deemed to be
interested in land if he is interested in an easement affecting the land;
COMPANY means
• (i) a company as defined in section 3 of the Companies Act, 1956 (1 of 1956), other than a
Government company ;
• (ii) a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any
corresponding law for the time being in force in a State, other than a society;
• (iii) a co-operative society within the meaning of any law relating to co-operative societies
for the time being in force in any State, other than a co-operative society.
Important Definitions in LAA 1894
Notes
LAA 1894 – Considers Interested Person- OWNER/Legal Heir of the property- Onus of proof of INTEREST lies
with the owner
However, LARR 2013 uses the term- Affected Person (Owner, Possessor, Occupier, Livelihood survivor) in place of
interested person

6. (i) The provision of village-sites, or the extension, planned development or
improvement of existing village-sites;
(ii) the provision of land for town or rural planning;
(iii) the provision of land for planned development of land from public funds in
pursuance of any scheme or policy of Government and subsequent disposal thereof in whole or in
part by lease, assignment or outright sale with the object of securing further development as planned;
(iv) the provision of land for a corporation owned or controlled by the State;
(v) the provision of land for residential purposes to the poor or landless or to
persons residing in areas affected by natural calamities, or to persons displaced or affected by
reason of the implementation of any scheme undertaken by Government, any local authority or a
corporation owned or controlled by the State;
(vi) the provision of land for carrying out any educational, housing, health or slum
clearance scheme sponsored by Government or by any authority established by Government for
carrying out any such scheme, or with the prior approval of the appropriate Government, by a local
authority, or a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any
corresponding law for the time being in force in a state, or a co-operative society within the meaning
of any law relating to co-operative societies for the time being in force in any State;
(vii) the provision of land for any other scheme of development sponsored by
Government or with the prior approval of the appropriate Government, by a local authority;
(viii) the provision of any premises or building for locating a public office, but does not
include acquisition of land for companies;
“Public Purpose”
Public Purpose has been defined in the Act.

7. PROCESS OF LAND ACQUISITION
•First Step-
Investigation of land
by the authority who
is need of land &
application has to be
filed
• Preliminary notice
must be published in
official gazette & 2
National daily
newspapers
• After notification,
the land owner is
prohibited to sell
his land
•Objections from the
people within 30 days
subject to conditions.
•Collector to hear the
objections and submit
the report to the
Government
•After notification, the
collector proceeds
with the claim.
•The collector offers
a fair price to the
owner.
•The market value
of the land is
determined at the
date of notification
•Award has to be
given within a period
of 2 years from the
date of Notification
•Any person to whom
the award is not
satisfactory can submit
a written application
to the court
•Application should be
made within 6 weeks
from the date of
declaration of the
award
• Each of the the of
the claimants are
entitled to the value
of his interest, which
he has lost by
compulsory
acquisition
•Thus it is required to
value a variety of
interests, rights and
claims in the land in
terms of money
No provision to take Consent from affected people
No provision for Social Impact Assessment
• Notification is important- Audi Alterum Partum
• Suggestions and objections on suitability of the land
for the purpose it is being acquired-Locals
• Acquisition cannot be Objected-Eminent Domain

8. 1. Notification (Section 4)
Audi Alterum Partum – Notification Likelihood of land being acquired
“Whenever the land in any locality is needed or is likely to be needed for any
public purpose or for a company, a notification to that effect is issued.”
The notification has to be essentially published in the Official Gazette and in two daily
Newspapers circulating in the locality in which the land is situated of which at least one shall be in
the regional language, and the Collector shall cause public notice of the substance of such
declaration to be given at convenient places in the said locality
Power to enter upon and survey the land
“It is lawful for the Government and its officers etc. to enter upon and survey and take levels of
any land in such locality; and to do all other acts necessary to ascertain the suitability of the land
to be acquired and to set out the boundaries of the land proposed to be taken and the intended
line of the work (if any) proposed to be made thereon; as well as do all other incidental and
ancillary activities including marking levels, boundaries.”
Necessary to restrict the Owner to charge the government officials with
TRESPASSING
IMPORTANT POINTS IN LA 1894
SECTION 5 - Payment for damage. - The officer so authorized shall at the time of such entry
pay or tender payment for all necessary damaged to be done as aforesaid, and, in case of dispute
as to the sufficiency of the amount so paid or tendered, he shall at once refer the dispute to the
decision of the Collector or other chief revenue officer of the district, and such
decision shall be final.

9. Preliminary notification to be issued
“Any person interested (must have locus standi) in any land which has been notified under
section 4 (1), as being needed or likely to be needed for a public purpose or for a Company
may raise objections within 30 days to the Collector of the concerned District.”
Objections to be heard
“Collector shall give the objector an opportunity of being
heard and shall, after hearing all such objections and after
making such further inquiry, The decision of the
appropriate Government on the objections shall be final.”
Section 5(A): Filing of objections against land acquisition
Section 6 : Declaration of intentions
The declaration in respect of any particular land covered by a notification under section 4
shall be published, shall be made before the expiry of one year from the date of the
publication of the notification under section 4(1).
Declaration of Government’s intentions to acquire Land (Public Purpose)
The Concerned authority after considering the report made under section 5A, is of the view that
any particular land is needed for a public purpose, or for a Company, he shall make a declaration
to that effect.
Thereafter the land is then placed under Section 6 of the LAA which amounts to a declaration
that the Government intends to acquire the land.
After a 1Year period- the notification will lapse
Suggestions and objections on
suitability of the land for the
purpose it is being acquired-
Locals
Acquisition
cannot be
Objected-
Eminent Domain

10. Two major implications of Notification under Section 4
1- Freezing of Market Rate (for calculation of Compensation)
Market rate for the purpose of calculation of compensation is frozen according to date of
Notification under Section 4.
Market may fluctuate, but Rate as on the date of Notification will be used for calculation of
compensation ,whenever acquisition takes place
It was presumed that sale and purchase of land is Prohibited after Notification, but it is not so.
Private sale and purchase can take place as per market needs as private loss or gain is not
government’s concern
However, LARR-2013 explicitly states prohibition of sale and Purchase of Notified Land
IMPLICATIONS OF SECTION 4 NOTIFICATION IN LA 1894
2- Declaration of Government’s intentions to acquire Land (Public Purpose)
The declaration in respect of any particular land covered by a notification under section 4 shall
be published, shall be made before the expiry of one year from the date of the publication of
the notification under section 4(1).
Public Purpose/Intent cannot be changed after the acquisition has taken place

11. (Section 7 & 8) - Measurement & Marking of Land
(Section 9) Notice to person interested
Order for Acquisition and measurement and marking of Land
“The appropriate Government shall direct the Collector to take order for the acquisition of the
land.Thereafter, such notified land is marked out, measured and planned.”
Collector to invite claims for compensation
“The interested parties are to state the nature of their respective interests in the land and the
amount and particulars of their claims to compensation for such interests, and their objections (if
any) to the measurements made undersection 8.
Award for compensation for land acquisition
The Collector shall make an award stating
• the true area of the land;
• the compensation which in his opinion should be allowed for the land;and
• the apportionment of the said compensation among all the personsinterested in the land.
(Section 11) Enquiry and Award by Collector

12. (Section 11(A)) Time Limit for making Award
The Collector shall make an award under section 11 within a period of two years from the date
of the publication of the declaration (Section 6) and
if no award is made within that period, the entire proceeding for the acquisition of the land
shall lapse
(Section 11) Finality of Award
The award under Section 11 shall be final and conclusive evidence, as between the Collector and
the persons interested, whether they have respectively appeared before the Collector or not, of
the true area and value of the land,and the appointment of the compensation among the persons
interested.
(Section 16) Possession of land
After making the award under section 11, Collector may take possession of the land, which
shall thereupon vest absolutely in Government, free from all encumbrances. After passing of
the award,
The Deputy Commissioner or any other competent authority may take possession of the land
immediately, which shall thereupon vest absolutely with the government, free from all claims.
Time Limit- Entire process to be completed in 3 Year period. This does not take into account the ZERO period-
when matter is subjudiced and Court decision pending on a matter

13. (Section 17) Special powers in case of Urgency
(1) In cases of urgency whenever the [appropriate Government], so directs, the Collector,
though no such award has been made, may, on the expiration of fifteen days from the
publication of the notice mentioned in section 9, sub-section 1). take possession of any
waste or arable land needed for public purposes or for a Company. Such land shall
thereupon vest absolutely in the Government, free from all encumbrances.
(2) Collector shall not take possession of any building or part of a building under this sub-
section without giving to the occupier thereof at least forty-eight hours notice of his
intention so to do, or such longer notice as may be reasonably sufficient to enable such
occupier to remove his movable property from such building without unnecessary
inconvenience.
URGENCY
Whenever, owing to any sudden change in the channel of any navigable river or
other unforeseen emergency, it becomes necessary for any Railway
administration to acquire the immediate possession of any land for the maintenance
of their traffic or for the purpose of making thereon a river-side or ghat station, or
of providing convenient connection with or access to any such station.
[or the appropriate Government considers it necessary to acquire the immediate possession of any
land for the purpose of maintaining any structure or system pertaining to irrigation, water supply,
drainage, road communication or electricity,]
This is one of the most misused section of LAA 1894, which has prompted the creation of LARR-2013
Emergency mentioned by Britishers in the Act was to ensure proper functioning of the Railways ,due to
circumstances created by River Piracy- Restoration was railways was of utmost importance to control India

14. COMPENSATION FOR LAND ACQUISITION
• The Act requires market value to be paid for the land and any
other property on it as well as expenses for compelling the person
change place residence or business
• Compensation for land and improvements (such as houses, wells,
trees, etc.) is paid in cash by the project authorities to the State
government,which in turn compensates landowners.
• The price to be paid for the acquisition of agricultural land is based on
sale prices recorded in the District registrar's office averaged over the
three years preceding notification under Section 4.
• An additional 30 percent is added to the award as well as an
escalation of 12 percent per year from the date of notification to the
final placement under Section 9.
• For delayed payments,after placement under Section 9, an additional 9
percent per annum is paid for the first year and 15 percent for subsequent
years.

15. Reference to
court and
procedure
thereon
Appointment of
compensation
Payment
Temporary
occupation of
land
Acquisition of
Land for
Companies
Part III Part IV PartV PartVI PartVII
Any objection - to the
measurement of the
land, the amount of the
compensation, the
person to whom it is
payable, or the
apportionment of the
compensation among
the persons interested.
Determining the
amount of
compensation
When there are
several persons
interested, the
particulars of such
apportionment shall
be specified in the
award, and as
between such
persons the award
shall be conclusive
evidence of the
correctness of the
apportionment.
Disputes to be
referred to Court
Payment of award
to the person/s
interested
Submit payment to
court in case of
any dispute-
decision of court
invest the
deposited money
When temporary
occupation and use of
any waste or arable
land are needed for
any public purpose,
or for a Company,
may direct the
Collector to procure
the occupation and
use of the same for 3
years.
Restriction on transfer,
etc. - No Company for
which any land is
acquired under this
Part shall be entitled to
transfer the said land
or any part thereof by
sale, mortgage, gift,
lease or otherwise
except with the
previous sanction of
the appropriate
Government.

16. Acquisition of Land for Companies
• "company" means a company formed and registered under the Companies Act, 1956
(1 of 1956), other than a Government company
• Industrial concern to be deemed Company for certain purposes. - An industrial
concern, ordinarily employing not less than 100 workmen owned by an individual or
by an association of individuals and not being a Company, desiring to acquire land for-
1. the erection of dwelling houses for workmen employed by the Company
or for the provision of amenities directly connected therewith,
2. For the construction of some building or work for a Company which is
engaged or is taking steps for engaging itself in any industry or work which
is for a public purpose,
3. for the construction of some work, and that such work is likely to prove
useful to the public
• Previous consent of appropriate Government and execution of agreement necessary,
stating details of terms and conditions clearly , along with PUBLICATION OF THE
AGREEMENT (Section 39-42) {Not valid for land acquired for Railways}
• No Company for which any land is acquired shall be entitled to transfer the land by
sale, mortgage, gift, lease or otherwise except with the previous sanction of the
appropriate Government.

17. Impacts – Controversies & Criticisms
Development Related Displacement
• Displacement of public due to large scale
projects like dams, canals, thermal plants,
sanctuaries, industries & Mining etc.., Statistical
reports indicated 1 in 10 Indian tribals is a
displaced person
• Compensation offered was fairly low with
regard to the current prices
• The displaced people failed to get better jobs
due to low Human Capital
• Majority of the displaced people are from the weakest sections of the society & they are
unable to raise their voice

18. • Since the British days, the framework of law for compulsory acquisition of private land has been provided
mainly by the Land Acquisition Act, 1894. This Act lays down detailed process for Land Acquisition.
• In 1973, a Supreme Court judgment (Kesavanand Bharati and Others vs. State of Kerala), which
pronounced the doctrine of the basic structure of the Constitution, put in doubt the constitutionality of
the land acquisition law. The case raised the issue whether compulsory land acquisition could be
construed an infringement on the right to property, which was one of the fundamental rights
guaranteed by the Constitution. The situation was remedied after the right to property was removed
from the list of fundamental rights by the 44th Amendment to the Constitution.
• Legal challenges in individual cases have continued. In these cases, the main points of challenge have
been on the adequacy of compensation, genuineness of public purpose and the area of land proposed to
be acquired being more than necessary.
• The bulk of the Act is devoted to creating a regime relating to the manner in which an acquisition is to be
made, the compensation to be paid and the procedures are to be followed while pursuing the acquisition.
• Violated the human rights in many respects -No procedure was adopted for rehabilitation of
displaced project affected families.
• There is no provision for Social Impact Assessment of any projects, there is no any additional protection
for marginalized people like SCs and STs land losers except monetary compensation,
• As a result of which to have a unified legislation dealing with acquisition of land, just or fair compensation
and to have rehabilitation and resettlement mechanisms for the project affected persons the new LARR
Bill was drafted.
• On 1st January 2014 the Right of Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement(LAAR)Act, 2013 came into force and replaced the colonial Land Acquisition
Act,1894.
OBSERVATIONS

19. ❑Land Acquisition Act,1894:
• The LAA,1894 was first ever act for land acquisition in India imposed during the British
Rule & came into force on 01 March,1894. It was extended to whole India
❑ Land Acquisition, Rehabilitation & Resettlement Act
(LAAR), 2013:
• Since LAA,1894 overlooked the welfare of the Landowner & other affected people
related to the acquired land, this Act was replaced by LAAR,2013,brought out by the
United Progressive Alliance (UPA) Government.
❑ Land Acquisition, Rehabilitation & Resettlement Act
(LAAR) (Amendment)Bill, 2015 as passed by Lok
Sabha,pending in Rajya Sabha:
• LAAR (Amendment) Bill, 2015 was introduced by National Democratic Alliance (NDA)
government in Lok Sabha on 24 Feb,2015 & passed by Lok Sabha on 10 March,2015.The
bill is pending in the Rajya Sabha.
Comparison between LAA & LAAR
Comparison between LAA & LAAR

20. PARAMETER LAA 1894 LAAR 2013 LAAR 2015
Person
Interested/Affecte
d Person
▪ Person Interested
▪ Owner/ Legal heirs.
▪ Affected Person
▪ Beside the owner, possessor,
occupier & the person whose
livelihood is dependent on the
land acquired.
▪ Same as LAAR 2013.
Public Purpose Includes several uses:
• Infrastructure
• Development &
Housing projects.
• Use by companies
under certain
conditions.
• No change. • Excludes acquisition of Land for
private heath care & Educational
institutions.
Consent from
affected people
(Provision to
section 2(2)).
▪ No such provision
exists in the Act.
▪ Consent of 80% of Land
owners required for Private
Projects, 70% for PPP Projects
& no consent is required for
government projects.
▪ Consent for the following categories
of projects is exempted:
• Defense
• Rural infrastructure
• Affordable housing
• Industrial corridors
• Infrastructure
Including PPP projects where the
government owns the Land.
Social Impact
Assessment
(SIA)
(chapter II)
▪ No such provision
exists in the Act.
▪ SIA has to be taken in every
acquisition.
▪ Exemption of SIA on Defense, Rural
Infrastructure,Affordable Housing,
Industrial corridor & Infrastructure,
through a notification.
▪ Before issuing notification, the
government must ensure that the
extent of land being acquired is in
keeping with the minimum land
required.
Comparison between LAA & LAAR

21. PARAMETER LAA 1894 LAAR 2013 LAAR 2015
Compensation ▪ Based on the market
value
▪ Higher of
• Value specified for stamp duty.
• Average of the top 50% by recorded
price of sale of land in the vicinity.
▪ Same as that of
LAAR 2013.
Authority ▪ Civil court with an
appeal to High court.
▪ Land acquisition rehabilitation &
resettlement committee for disposal of
disputes with appeal to high court.
▪ Same as LAAR 2013.
MarketValue ▪ Based on the current
use of Land.
▪ Explicitly prohibits using
the intended use of
Land While computing
market value.
▪ Higher ofValue specified for stamp duty.
• Average of the top 50% by recorded
price sale of Land in the vicinity.
▪ Same as LARR 2013.
Solatium 30% 100% 100%
Acquisition
under
Emergency
Situation
▪ Section 17 Provides for
acquisition of notified
land in 15 days under
emergency situation but
scenario & time limit
has no fixed.
▪ Section 40, provides for acquisition of
notified land in 30 days under
emergency situation for 3 years after
which the land shall be revert back.
▪ Same as LAAR 2013.
Rehabilitation
& Resettlement
(R&R)
• No such provision
exists in the Act.
▪ R&R necessary for all affected families.
▪ Minimum R&R entitlements to be
provided to each family with
employment.
▪ R&R award for each
affected family
includes mandatory.
▪ Employment to at
least one member of
a farm labourer.
Comparison between LAA & LAAR

22. PARAMETER LAA 1894 LAAR 2013 LAAR 2015
Return of
utilization land
(Section 101)
• No such
provision exists
in the Act
▪ If land acquired under the act
remains unutilized for five years
from taking possession , it must
be returned to the original
owners or a land bank.
▪ The bill changes this to state that
the period after which unutilized
land will need to be returned to
the later of (i) five years,
(ii) any period specified
at the time of setting up
the project.
Retrospective
application
• No such
provision exists
in the Act
▪ The LA 1984 will continue to
apply in certain cases, when an
award has been made under it.
▪ The LAAR,2013 will apply in case
an award has been made five
years or more prior to the
commencement of the
LAAR,2013 but the physical
possession of the land has not
been taken or compensation has
not been paid.
▪ The Bill states that in calculating
the time period for retrospective
application, any period which the
proceedings were held up: (i) Due
to stay order of a court, (ii) for a
period specified in the award of a
Tribunal, (iii) For any period where
possession was taken but
compensation is lying deposited in
a court or any account, will not be
counted.
Irrigated multi-
cropped land
(Chapter III)
• No such
provision exists
in the Act
▪ Land cannot be acquired beyond
a limit specified by the
government.
▪ The acquisition of agricultural
land for all projects must not
exceed the total net sown area
of the district/state.
• The bill allows the government to
exempt projects falling under five
mentioned categories, through a
notification.
• Before notification, the government
must ensure that the extent land
being acquired with minimum land
required.
Comparison between LAA & LAAR

23. THANK YOU 17