PRS · Ministry of Parliamentary Affairs ·

A balancing Act- The Land Acquisition Bill

Distilled Policy Brief

  • The Land Acquisition Bill, aimed at updating the 1894 Act, was scheduled for introduction in the Lok Sabha, defining public purpose, setting consent thresholds and a detailed compensation formula.
  • Compensation is calculated based on the higher of three values—circle rate, average of the top 50% of sale deeds, and any agreed amount—multiplied by a factor ranging from 1 in urban areas to up to 2 in rural areas, plus the value of fixed assets, and then doubled as solatium.

🎯 Prelims High-Yield Examination Points

Key factual points: 80% consent for private company acquisition, 70% for PPPs, and the compensation multiplier (1‑2) based on urban‑rural classification.

⚖️ Mains Analytical & Syllabus Linkages

Balancing private property rights with public purpose while ensuring a fair, transparent and time‑bound acquisition process.

🎯 UPSC Prelims Practice Drill

Economy

According to the proposed Land Acquisition Bill, compensation payable to a landowner is calculated by which of the following methods?

  • [A] The higher of circle rate, average of the top 50% of sale deeds, or any agreed amount, multiplied by a factor ranging from 1 (urban) to up to 2 (rural), added to the value of fixed assets, and then the total is doubled as solatium.
  • [B] The average of all sale deeds multiplied by a fixed factor of 1.5, plus the market value of fixed assets, without any solatium.
  • [C] The circle rate alone multiplied by a factor of 2 irrespective of urban or rural location, plus the value of fixed assets, with no solatium.
  • [D] Only the agreed amount, multiplied by a factor of 1 in urban areas and 2 in rural areas, ignoring circle rate and sale deeds, and without solatium.
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [A] The higher of circle rate, average of the top 50% of sale deeds, or any agreed amount, multiplied by a factor ranging from 1 (urban) to up to 2 (rural), added to the value of fixed assets, and then the total is doubled as solatium.

The Bill specifies that compensation is the higher of three values (circle rate, average of top 50% sale deeds, agreed amount), multiplied by a factor of 1 in urban areas up to 2 in rural areas, plus fixed‑asset value, and the sum is doubled as solatium. The other options omit or alter these components.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Land Acquisition Act, 1894: Indian Polity (Laxmikanth) – Chapter on Land Reforms and Land Acquisition