With growth, decline in agricultural workforce, literacy and migration, India’s urbanisation will increase and require acquisition and “conversion” of land for urban and commercial use. This acquired land will not always be barren land, forests, swamps or land under water bodies. It will more and more be “agricultural” land, and in states like Punjab it will also be irrigated land. Hence, the Land Acquisition Act of 1894 needs scrutiny, not only because it is ancient and leaves too much to administrative whims, unless the courts are roped in through appeals, but also because since 1984 land can be acquired for companies, which can now be developers. There is a system for compensation and the law does state that compensation will be based on market values on the date of notification of the acquisition.

However, determination of the market value is subject to the collector’s discretion and can only be questioned by the courts — a drawnout process that few of the aggrieved can resort to. Nor, thanks to asymmetry in information, are land-owners privy to what might be an appropriate market price. In determining a fair compensation, the law also prevents courts from considering an increase in the value of the land after acquisition, resulting from subsequent change in land use or improvements.