Inefficiency and Abuse of Compulsory Land Acquisition: An Enquiry into the Way Forward

This paper focuses on two issues: the problems with the compulsory acquisition of land, and the regulatory and institutional impediments that obstruct voluntary land transactions. It is argued that any compulsory acquisition based process is intrinsically inefficient and unfair, even if it is accompanied by presumably benevolent schemes such as land-for-land and the R&R packages. Moreover, it is inherently prone to litigation. How what is called the ‘regulatory hold-up’ precludes a large number of potential transactions in agriculture land, and puts a downward pressure on land prices is demonstrated. The paper offers suggestions for reforming the legal and regulatory framework governing the land and its use. Finally, the Land Acquisition and Rehabilitation & Resettlement (LARR) Bill 2011 is discussed. [CDE Working Paper No. 209]. URL:[http://www.cdedse.org/].