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CONSTITUTIONAL LAW- II RESEARCH PAPER

“Constitutional Challenges in Land Acquisition: A Study of Eminent Domain,
Compensation, and Social Justice”

-KAISHORI SUNKAVALLI
SL22ULBA019

UNDER THE GUIDANCE OF

PROF. APARNA SINGH
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Acknowledgement
I would like to express my gratitude to Professor Aparna Singh for her advice and knowledge
during the course of constitutional law-II. My sincere gratitude goes out to Ms. Bangaru
Laxmi Jasti for teaching the fundamentals of research, and to the dean of Mahindra
University's school of law for giving an opportunity to learn beyond classroom teachings
through research project opportunities.
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Table of Contents

I. COVER PAGE 1
II. ACKNOWLEDGMENT 2
III. CHAPTERIZATION 3
IV. TABLE OF CONTENTS 3
V. TABLE OF STATUTES 4

Chapterization

● Chapter I: Research Proposal 5

● Chapter II: Understanding Land Acquisition 7
● Chapter III: Critical Analysis of the Issues 9
● Chapter IV: Conclusion 15

Bibliography 16
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Table of statutes

● The Land Acquisition Act, 1894

● The Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013
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Chapter I: Research Proposal

Introduction

Land acquisition was a critical process through which government and private bodies
procured land for public projects or private development. It was like a connection to socio-
economic rights and environmental sustainability. Together. in India, it evolved from the
colonial era land acquisition act of 1894 to the modern land acquisition, rehabilitation and re-
resettlement act of 2013, this shows that India has been making efforts to balance
development needs and the rights of landowners and the affected communities in a very
complex, social, economic and legal situation.

The enactment of the LARR act in 2013 was an important movement because its main aim
was to give a proper framework for land acquisition, rehabilitation, and resettlement. It was
based on the principles of equity, transparency and social justice, but when it came to the
implementation of the act. It was filled with challenges, starting from procedural restriction to
the substance of controversies.

Statement of Problem
The constitutional framework concerning land acquisition contains difficulties that relate to
the equal activity of eminent domain, equitable compensation for victims, and ensuring
social-justice in the process.

Research Objective

● To examine the constitutional principles underlying land acquisition practices.

● To assess the impact of eminent domain and compensation mechanisms on social
justice.

Research Questions

1. Whether the ineffective implementation and enforcement of land acquisition laws

contribute to challenges?
2. Whether the controversies and debates surrounding the definition and interpretation of
"public purpose" in land acquisition laws impact decision-making processes, project
outcomes, and conflict resolution, given the varying interpretations by government
agencies, courts, and affected communities?
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3. Whether challenges in ensuring equitable compensation and rehabilitation for

landowners and communities, including valuation methods, compensation delays, and
limited livelihood options hinder fair and sustainable land acquisition processes, and
what policy measures and reforms are needed to address these obstacles and prioritise
the rights and well-being of affected communities while fostering sustainable
development?

Hypothesis

Eminent domain regulations being applied in the most equitable manner, together with fair
compensation practices, help to realise social justice in land acquisition processes.

Research Methodology

This research project utilises only the Doctrinal method of research since it permits for an in-
depth investigation of case studies and other legal documents and articles.
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Chapter II: Understanding Land Acquisition

The origin of land acquisition in India can be traced back to its colonial past when the land
acquisition act of 1894 was enacted. This was implemented during the British colonial rule.
This act by nature was very causes and it had no provisions relating to compensation or
rehabilitation from their evolved today’s land acquisition, rehabilitation and resettlement act
of 2013. This had provisions of fair compensation when also maintaining transparency.

To understand the land acquisition act and the issues surrounding it, there are certain sections
that have to be understood. Section 3(za) of the act gives the definition of “public purpose” in
that it includes a variety of activities that are essential for national development. Further, the
act also categories land acquisition into three main categories. Firstly, acquisition by the
government for its own use and public purposes. Second acquisition for public private
partnership projects and third acquisition by private companies through private negotiations,
each category had its own specific provisions that were given by the act.

The main aim of the 2013 act was transparency, accountability and stakeholder consultation.
Section 4 of the act talks about “social impact assessment” which means there has to be a
proper evaluation done on the effects that particular land acquisition was going to have on
that community and livelihood. This was done so that it helps in balance decision making. In
addition to that this act says that prior consent from the affected families is an absolute
necessity. For example when it is a public private acquisition, 70 to 80% of the affected
families have to give consent, this was done so that the voices in concerns of the impacted
people are acknowledged and addressed.

One of the key points of the act is the fair compensation, rehabilitation, and resettlement of
affected families. Section 26 defines the methodology for defining the market value while
subsequence sections talk about compensation calculation, interest on market value. In
addition to that section 3 talks about rehabilitation and resettlement chances that are given to
the affected families. This shows that the act was committed to ensure that the communities
weren’t negatively impacted.

We can see that the act was always committed in making sure the rights of landowners and
affected communities were protected through judgements of cases like Pune municipal
Corporation v. Harakchand Solanki and Bharat Kumar v. State of Haryana.
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Despite all the positive objectives and provisions of the act, it still has a lot of challenges and
issues, and these issues were related to the determination of market value, the gaps and
rehabilitation policies and various other concerns about how certain sections were applied.
These challenges made the process of land acquisition complex.
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Chapter III: Critical Analysis of the Issues

Whether the ineffective implementation and enforcement of land acquisition laws contribute
to challenges ?

The ineffective implementation and the way that land acquisition laws were enforced, created
a lot of challenges in making sure that there was fair compensation, rehabilitation, and
resettlement for the communities that were affected. The issues ranged from corruption, state
in efficiency, lack of transparency and complexities in the legal framework itself. The land
acquisition act came a long way from 1894 to 2013. Because in 1894, the act was very poor
and it did not have any provisions that would protect the people that were getting affected by
the acquisition. It was in a way and act just so that the British could acquire land without the
public making an issue out of it, but in 2013, the new act of land acquisition rehabilitation
resettlement came out with the aim to solve the issues that had occurred in 1894. This had
various sections that were addressing different problems. For example, section 26 talks about
the methodology that can be used for determining market value while subsequent sections
talk about compensation calculation And interest on the market value, then section 31 talks
about rehabilitation recycle meant to be given to the affected people, but the act wasn’t
implemented how it was written in the books. corruption, state inefficiency, because of which
the compensation funds that were supposed to be given to the affected families were
misappropriated. Along with that because of the inefficiency, there was a lot of delay in
distribution of compensation and providing rehabilitation.

When it came to transparency, which was one of the key of the act, it was completely ignored
because the communities that were being affected were never given proper answers about the
status of acquisition proceedings or how, and when they would be getting their compensation
funds because of this kind of lack of transparency The trust between the stakeholders was
ruined. All this ultimately led the land acquisition process to be questioned.

Although the High Court’s decisions in cases like Pune municipal Corporation versus Harak
Chand Solanki and Bharat Kumar versus the state of Haryana showed that the act was on the
public's side.

There was a lot of complexity when it came to the legal framework of the act itself and
because of that it led to a lot of confusion and ambiguity, which ultimately led to ineffective
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implementation. For example, section 24(2) which talks about the retrospective applicability
of compensation has gone through different interpretations, which made it more complicated.

In conclusion, the ineffective implementation and enforcement of land acquisition laws in

India raised challenges in making sure there was fair compensation, rehabilitation, and
resettlement for the affected people through corruption, state in efficiency, lack of
transparency and confusion about laws.
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Whether the controversies and debates surrounding the definition and interpretation of
"public purpose" in land acquisition laws impact decision-making processes, project
outcomes, and conflict resolution, given the varying interpretations by government agencies,
courts, and affected communities?

There was a lot of controversy and debate that surrounded around the definition and the
interpretation of “public purpose” that was mentioned in the land acquisition laws and those
debates and controversies have a lot of impact on the decision making process and the way
conflicts are result the different kind of interpretations by government agencies, courts and
the different way that affected communities are interpreting. It made the word very
confusing. The definition of “public purpose” includes the variety of activities that are
considered important for the development of society, even though it was a very wide range, it
still left a lot to interpretation that gave rice to so many debates and divergent perspectives.

One of the primary sources of dispute was about the acquisition of land for infrastructure
projects, industrial development and urbanisation because while government agencies were
justifying those acquisitions while calling them interest of public welfare and economic
growth, the affected communities and civil society. Organisations were challenging that
interpretation on the grounds of, environment, degradation and loss of livelihood. It is clear
that the interpretation when it is done by government agencies is highly influenced by the aim
to develop in economical and infrastructural areas. This interpretation doesn’t really consider
the social economic dynamics or the cultural significance of the land of those affected
communities.

Land is more than an economic asset for communities because it is very involved with their
livelihood and identity. For example, traditional occupations like farming or artisanal work
cannot be easily replicable in the areas where they’re given resettlement because of which
they will lose their livelihood, get economically insecure and in a way lose their identity.
Land also often represents their cultural history and brings them a sense of belonging and
when people are displaced from their ancestral land, it has a profound psychological and
cultural effect. Large scale infrastructure projects and industrial development definitely leads
to urbanisation while providing new jobs, but it also leads to large scale deforestation, habitat
destruction, pollution.
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Courts play a very important role when it comes to resolving disputes that are related to land
acquisition, especially when it comes to interpreting “public purpose”. Because in the case of
Pune municipal Corporation v. Harsh Solanki, the court addressed the word “public purpose.”
It said that the word should be interpreted broadly to include projects and initiatives that are
going to contribute to welfare and development of society. It said that this shouldn’t be
misused to justify acquisitions that are simply serving private interest or commercial gains, in
this case, it was found that the acquisition was not genuine, so the court ruled that the
acquisition was invalid and could not proceed. This judgement makes it easier to understand
how the word should be interpreted.

The word should also include ethical and moral considerations because when something is
being termed public purpose, it must follow the principles of fairness, equity, inclusivity and
should make sure that everyone is benefiting equally and not leaving anyone vulnerable. If
the acquirers of land and the people whose land is being acquired keep interpreting it
differently, it will lead to lengthy legal battle protests, civil disobedience, so, to reduce all of
this, it is important to make sure that there is better transparency, consultation and
participation in Decision making process that is related to land acquisition and the
government agencies should start being more inclusive and start engaging with the affected
communities so that their concerns and perspectives are also included in the planning and
implementation.
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Whether challenges in ensuring equitable compensation and rehabilitation for landowners and
communities, including valuation methods, compensation delays, and limited livelihood
options hinder fair and sustainable land acquisition processes, and what policy measures and
reforms are needed to address these obstacles and prioritise the rights and well-being of
affected communities while fostering sustainable development?

Ensuring equitable compensation and rehabilitation for the affected communities is important
for making sure that the acquisition was fair and sustainable in India, but there were a lot of
challenges including fraud valuation, methods, compensation, delays and limited livelihood
options because of which the objectives of failed and sustainable development cannot be
reached.

When it comes to valuation methods, it plays a crucial role in determining the compensation
for the acquired land. The right to compensation and transparency in land acquisition,
rehabilitation and resettlement act 2013 gave guidelines for determining the market value of
the land in its section 26, however, when it came to application of these guidelines, it was
filled with challenges involving rural and agricultural land, the criteria for deciding the
market value was based on average sale price for similar type of land in the surrounding
areas. However, this calculation is flawed because it did not take into account factors like
land, fertility, agricultural productivity, and the presence of infrastructure. This led to
differences in compensation amounts. Moreover, when the government relies on market-
based evaluation, it doesn’t consider the socio-economic significance of the land. Even
though it is just a commodity for the government. It is a source of living cultural identity for
many rural people.

compensation delays make the situation of the affected communities worse section 11 of the
act talks about giving a prior notification within a specified time frame, but because of the
inefficiency and legal complexities, they got delayed. These delays will cause a lot of
uncertainty and distress and not only that it also Increases the socio-economic vulnerabilities
because without timely compensation, the land owners can struggle to meet their basic
necessities, get a proper livelihood, and essential needs. One of the aspect where legal
complexity can be seen is when the social impact assessment has to be conducted, section 4
of the act talks about SIA where the potential impact of the project has to be assisted to
conduct the study They have to consult the stakeholders, local authorities, affected
individuals, to understand the social economic effect of the project. The main issue in this is
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identifying affected families, assessing their livelihood. All of this leads to delay in the
acquisition process. In addition to that, another complex issue is obtaining consent because
the act in its sections 2(a)(b) says that consent of a significant number of affected people
should be taken before they can proceed with the acquisition. obtaining consent from people
that too in huge numbers under a certain time frame gives rise to legal difficulties, especially
in cases where people have different opinions.

Limited livelihood options version the situation of the affected people after acquisition
because land acquisition will disrupt traditional livelihood, agriculture practices and
communication which leaves the people with very few alternatives to generate an income that
is even sufficient to meet basic needs. Section 31 of the act talks about providing
rehabilitation and resettlement to the people that are affected which includes providing a
house, employment and monetary assistance. However, when it came to the implementation
of those guidelines, it was filled with adequacy which led to communities being affected
without proper support or resources to lead life. For example, firstly, even if housing was
provided, it may not meet the requirements of the people, secondly, because of delays due to
inefficiency or disputes, the family is displaced for a long period of time without proper
house or livelihood, thirdly, the employment opportunities that are being given may not be
sufficient or might not even meet the skills or aims of the population.

To address the above Problems, certain measures can be taken-

1. A land evaluation framework should be developed which includes social economic

factors and cultural values and not just market based factors
2. The acquisition process must be made more organised by reducing corruption,
increasing transparency and mainly make sure decisions are taken on time
3. Compensation mechanisms can be made better by making sure they consider the true
value of land and compensate the people that are affected by the acquisition so that
they don’t end up in losses
4. Rehabilitation and resettlement must be made more effective by giving the public
proper support services, livelihood opportunities that suit them and give them an area
of resettlement to ensure that they still feel relevant to where they are relocating.
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Chapter IV: Conclusion

In conclusion, after analysis of the land acquisition act and the problems in it, it can be
understood that it is made with the aim of improving transparency supporting the people who
are being affected and offer properly rehabilitation, but when it came to the implementation
of the act, it liked severely in all those aspects Even if it was the result of inefficient working
corruption, and other reasons.

One of the central issues revolves around the interpretation of what was public purpose and
what should be considered public purpose. Even though it is defined in the act. It is defined
very broadly because it included activities starting from infrastructure projects to relieve
development projects and because of the lack of understanding and different kinds of
interpretations by different agencies like courts, governments and the affected communities,
it has led to a lot of controversy and debate, which again impacted the way decisions were
being made.

There is an imbalance when it comes to obtaining consent during the land acquisition process
because landowners do have the power to refuse land acquisition for public private projects
or private companies. But they don’t have that right when the government itself is acquiring
the land for its own use. Hence if the does act on maleficent grounds, it doesn’t give the
public any way to redress the wrong.

Moreover, there are challenges when it comes to giving adequate compensation and proper
rehabilitation. Although section 26 does provide the guidelines for deciding the
compensation, there are still issues in the way of valuation, compensation delays and limited
livelihood options.

Along with the above, there are other challenges that show that there is a need to change the
policy and make sure there are ways to address other hurdles and put the rights and well-
being of the people that are being affected.

In conclusion, while the 2013 land acquisition act has come a long way from the 1894
version of it, it still needs to work on making sure it is fairly compensating and protecting
people.
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Bibliography

1. http://docs.manupatra.in/newsline/articles/Upload/FF6D173D-E5C5-4954-A73A-
9D77708DD9B6.pdf
2. https://iasbaba.com/2022/12/day-24-q-3-what-are-the-current-challenges-of-indias-
existing-land-acquisition-legal-framework-is-it-too-stringent-critically-examine/
3. https://articles.manupatra.com/article-details/Land-Acquisition-Act-History-The-
Need-to-Strike-Down-Right-to-Property
4. https://prsindia.org/theprsblog/land-acquisition-an-overview-of-proposed-
amendments-to-the-law
5. https://prsindia.org/theprsblog/land-acquisition-an-overview-of-proposed-
amendments-to-the-law
6. https://www.orfonline.org/research/the-land-acquisition-debate-a-review
7. https://www.centurylawfirm.in/blog/land-acquisition-laws-in-india-lawyer-for-
supreme-court/
8. https://www.brainboosterarticles.com/post/was-the-constitutional-validity-of-the-
land-acquisition-act-of-1894-ever-challenged