In yet another desperate attempt by the Congress party-led United Progressive Alliance to garner support ahead of the next general election, Lok Sabha approved the path breaking Land Acquisition Bill. The bill, which will replace a muddled law dating back to the 19th century, seeks to provide 'just and fair' compensation to families whose land as been acquired for industrial purposes and help accelerate industrial investment by making the rules clearer.
The Bill, rechristened as 'The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2012, was passed in the Lower House with 216 votes against 19. To ensure that landowners benefit from the almost lopsided increase in the value of land after the development of a large infrastructure or industrial project, the bill proposes compensation by four times the market value in rural areas and twice the market value in urban areas. It also includes provision to deal with cases where compensation has not been paid in five years, and non-development of the acquired land for five years (to prevent a real estate arbitrage play).
However, to be enacted as a law, the bill needs to pass the muster of the Rajya Sabha and then will require the President's approval. The bill, once enacted, will make it mandatory to obtain the consent of 80 per cent landowners for acquiring land for private sector projects and 70 per cent consent for public-private projects.
Further, although proposed legislation may appease farmers, industry lobbies have already given it thumbs down. Confederation of Indian Industry president S. Gopalakrishnan voiced 'serious concerns' over some provisions of the Bill. As per the CII president, passage of this bill would increase the land acquisition cost by over three folds, making industrial projects unviable and raising costs in the overall Indian economy.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: