The land beneath our laws: From 1894 to 2025!

Time of India

11-06-2025

Company Secretary - Aditi Maheshwari & Associates. Author- The Unblinking Eye! and Walking The Rainbow of Life!
India's land acquisition story is not just about transferring ownership; it's a reflection of shifting power equations—between the State and citizen, development and displacement, past and progress. The evolution of land acquisition laws from colonial-era expropriation to people-centric, transparent frameworks is one of the most significant transformations in India's legal and governance landscape. As of 2025, this evolution is not just legal—it is digital, environmental, and deeply social.
The British colonial government institutionalised the Land Acquisition Act of 1894 to formalise the state's authority to acquire private land for 'public purposes.' This law was engineered more for administrative efficiency than justice. Compensation was nominal, determined by government valuation, and there was no requirement for consent or rehabilitation. Landowners were essentially dispossessed by decree. Though the Act used the language of development, it served the colonial imperative—railways, plantations, administrative buildings—disregarding indigenous rights and customary land use.
Unfortunately, this paternalistic model continued long after independence, with the 1894 Act remaining in force until the 21st century.
Despite India's transition to democracy, the 1894 law lingered, largely unchanged. Attempts to amend it in the 1960s failed to address its core problems: forced acquisition, poor compensation, and complete neglect of rehabilitation. The discontent was palpable in countless agitations across the country—from Narmada Bachao Andolan to Bhatta-Parsaul—each highlighting the deep distrust between landowners and the State. By the early 2010s, the need for a comprehensive overhaul was undeniable.
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (LARR Act) was enacted in 2013 to replace the outdated 1894 Act. The new law reversed the principle of acquisition—from the State's right to the people's consent. It introduced:
Enhanced compensation (up to 4× market rate in rural areas),
Mandatory consent (70% for PPPs, 80% for private projects),
Social Impact Assessments (SIA),
Rehabilitation and Resettlement (R&R) as enforceable rights,
Return of unused land within five years,
Transparency and public accountability mechanisms.
While pathbreaking in intent, the rollout has been uneven across states. Implementation challenges, bureaucratic delays, and dilution attempts through state-specific amendments have blunted its full impact.
2014–2025: India has seen mixed outcomes post-LARR. On one hand, it has fostered a more balanced acquisition ecosystem in urban infrastructure, railways, and industrial corridors. On the other, challenges in rural and tribal areas persist—particularly with laws like the Coal Bearing Areas (Acquisition and Development) Act, 1957 which circumvent LARR protections.
Several developments post-2020 have shaped the current land acquisition climate:
a) Environmental and procedural reforms
In 2025, the Ministry of Road Transport and Highways mandated fixed timelines for land acquisition and clearances to avoid project delays, particularly for national highways. This move is aimed at de-bureaucratising acquisition while maintaining regulatory integrity.
b) Digital modernisation
Under the Digital India Land Records Modernisation Programme (DILRMP), states like Chandigarh have digitised land mapping using GIS and drones, reducing fraudulent claims and simplifying acquisition logistics. Aadhaar-enabled identification and blockchain-backed registries are also being piloted in several districts.
c) Judicial Intervention
The Supreme Court of India, in a landmark 2025 ruling, asserted that land compensation cannot be mechanical. In the Noida land acquisition case, it directed full compensation to farmers even after a 30-year delay—reaffirming the primacy of equity over technicality.
d) State-led innovations: Land pooling models
States like Punjab have introduced voluntary land pooling schemes to enable urban expansion. Though these are touted as development-friendly and consent-based, experts caution against the dilution of safeguards provided under the LARR Act.
Outlook as of mid‑2025: Progress with Caveats. As India recalibrates its development trajectory, the status of land acquisition presents a mixed yet hopeful picture. Several key trends define the present scenario:
Fast-track infrastructure projects:
Mandatory timelines for land acquisition and statutory clearances have streamlined national highway projects. The procedural predictability is attracting more bidders and reducing project delays.
Return of unused land:
Reinforcing LARR's spirit, amendments to the National Highways Act now obligate the return of acquired land if not utilised within five years, strengthening accountability.
Digital and transparent acquisition systems:
Unified digital land records, GIS-based mapping, and real-time tracking of acquisition status have made the process more transparent and less prone to manipulation.
Judicial checks on arbitrary compensation:
Courts are increasingly intervening to ensure that compensation considers location, future development potential, and equitable treatment of all affected parties.
Social and environmental justice gaps remain:
The Social Impact Assessment mechanism still lacks depth in capturing environmental and gender-specific impacts. Particularly in tribal and ecologically sensitive zones, assessments often remain perfunctory.
Land is not merely an economic asset in India—it is emotion, identity, and legacy. As development intensifies, the State must evolve from being an acquirer to an enabler. This means:
Expanding LARR's framework to include climate resilience, biodiversity valuation, and gender parity in compensation.
Investing in local capacity building, especially for panchayats and district magistrates who anchor acquisition processes.
Revisiting exemption laws like the Coal Bearing Areas Act, to align with constitutional rights and ecological mandates.
Strengthening tribal protections, especially in Scheduled Areas, under PESA and FRA laws to make consent not just procedural but meaningful.
India's land acquisition journey—from colonial extraction to constitutional empowerment—reflects its democratic maturation. The LARR Act of 2013 was a turning point, but as of 2025, it needs strengthening, not rollback. The challenge now is to build on its ethical foundations, reinforce justice, and recognise land acquisition not as a transaction—but a transformation. Only then can we say the law truly serves the people it affects most.
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Views expressed above are the author's own.