Introduction
The Land Acquisition Act, 1894 was the primary legislation in colonial and post-colonial India that governed the process by which the government could acquire private land for public purposes. This law remained in force for over a century until it was eventually repealed and replaced by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act).
However, for historical understanding, case law references, and comparative legal analysis, the Land Acquisition Act, 1894 remains significant. This essay explains the step-by-step procedure under the 1894 Act, along with its legal framework, key terms, and criticisms.
What is Land Acquisition?
Land acquisition is the process by which the government forcibly takes possession of private land for a public purpose while paying compensation to the landowners.
Under the 1894 Act:
- The government could acquire land for roads, railways, irrigation projects, industries, etc.
- The term public purpose was interpreted broadly.
- Landowners had limited rights to object.
- Compensation was based on market value, but often considered inadequate.
Objective of the Land Acquisition Act, 1894
- To confer legal powers on the government to compulsorily acquire land.
- To define the procedure and provide compensation.
- To ensure minimum delay in execution of public projects.
Key Definitions under the Act
- Public Purpose – Any work that benefits the general public such as infrastructure, housing, defense, etc.
- Collector – The officer appointed to conduct land acquisition proceedings (usually the District Collector).
- Award – The formal declaration determining compensation and apportionment.
Step-by-Step Procedure for Land Acquisition under the 1894 Act
The acquisition process can be divided into three main stages:
Stage 1: Preliminary Notification and Objection (Section 4 and Section 5A)
1. Issuance of Preliminary Notification (Section 4)
- The appropriate government issues a notification under Section 4(1) stating that certain land is required or likely to be required for a public purpose.
- The notification is published in:
- The Official Gazette
- Two daily newspapers (at least one in regional language)
- Local conspicuous places
2. Entry for Survey (Section 4(2))
- After notification, government officers are empowered to enter the land for survey or assessment.
3. Filing of Objections (Section 5A)
- Any person interested in the land can file a written objection within 30 days of the Section 4 notification.
- The Collector conducts an inquiry, hears the objections, and submits a report with recommendations to the government.
- The decision of the government is final.
Stage 2: Declaration of Intended Acquisition (Section 6)
4. Declaration under Section 6
- If the government is satisfied that the land is needed for a public purpose, it makes a formal declaration under Section 6.
- The declaration must be made:
- Within 1 year from the date of the Section 4 notification.
- Published in the same manner as the preliminary notification.
- After this, the land is legally deemed to be acquired.
Stage 3: Acquisition and Compensation (Section 7 to Section 12)
5. Direction to the Collector (Section 7)
- After the declaration, the government authorizes the Collector to take necessary steps for acquisition.
6. Notice to Landowners (Section 9)
- The Collector issues a public notice to landowners and interested parties.
- The notice mentions:
- Purpose of acquisition
- Deadline to file claims for compensation (usually 15 days)
7. Enquiry and Award (Section 11)
- The Collector conducts an enquiry regarding:
- Ownership and claims
- Value of land
- Apportionment among co-owners or claimants
- After inquiry, the Collector passes an Award containing:
- Area of land acquired
- Market value
- Compensation payable
8. Taking Possession (Section 16)
- After making the award, the Collector can take possession of the land.
- The land then vests absolutely in the government—free from encumbrances.
Urgency Clause (Section 17)
- In cases of urgency, the government can:
- Skip Section 5A (no objections allowed)
- Take possession 15 days after Section 9 notice even before the award
- Used mostly for defense, natural disasters, and emergencies
- Often misused to expedite industrial and infrastructure projects
Compensation Mechanism under the 1894 Act
- Compensation was based on:
- Market value of the land on the date of Section 4 notification
- 15% solatium (for compulsory nature of acquisition)
- Additional compensation for buildings, trees, standing crops, etc.
Issues with Compensation
- Market value was calculated based on registered sale deeds, often undervalued.
- No provision for rehabilitation or resettlement.
- Tenants, agricultural laborers, and dependents were not compensated.
Legal Remedies for Landowners
- Reference to Civil Court (Section 18)
- A person dissatisfied with the award can request the Collector to refer the matter to a court for higher compensation or apportionment disputes.
- Writ Petition under Article 226
- In cases of violation of fundamental or legal rights, a writ can be filed in the High Court.
Criticism of the Land Acquisition Act, 1894
- Colonial in nature: Prioritized government interest over individual rights.
- No consent: Landowners had no real say.
- No rehabilitation or resettlement provisions.
- Inadequate compensation: Market value underestimated.
- Misuse of urgency clause: Led to forceful evictions.
- Delayed payments: Landowners waited years for compensation.
Landmark Judgments Interpreting the 1894 Act
1. State of Bihar v. Kameshwar Singh (1952 AIR 252)
- The court upheld the constitutional validity of land acquisition for public purpose under Article 31.
2. Dev Sharan v. State of U.P. (2011 4 SCC 769)
- Supreme Court criticized the misuse of the urgency clause, stating that Section 17 should be used sparingly and with justification.
Repeal and Replacement
The Land Acquisition Act, 1894 was repealed and replaced by the:
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Key Improvements in 2013 Act
- Consent clause: 70–80% landowner consent required.
- Fair compensation: 2–4 times market value.
- Rehabilitation and Resettlement: Mandatory provisions.
- Social Impact Assessment (SIA): Compulsory before acquisition.
Mnemonic Table: Procedure under the 1894 Act
Use the code “POD-NET-ACT” to remember the steps:
| Step | Code | Description |
|---|---|---|
| 1 | P | Preliminary Notification (Section 4) |
| 2 | O | Objection (Section 5A) |
| 3 | D | Declaration of Acquisition (Section 6) |
| 4 | N | Notice to Landowners (Section 9) |
| 5 | E | Enquiry (Ownership, Valuation) (Section 11) |
| 6 | T | Taking Possession (Section 16) |
| 7 | A | Award by Collector |
| 8 | C | Compensation Determination |
| 9 | T | Transfer of Title to Government |
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