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Gujarat Government Introduces Key Reforms in Land Acquisition for Transparency and Efficiency
Introduction
Gandhinagar, Gujarat: In a significant move to streamline the land acquisition process, the Government of Gujarat has introduced Key Reforms in Land Acquisition aimed at making the procedure more systematic, transparent, and time-bound. Through a new resolution issued by the Revenue Department on August 14, 2025, the state has revised the methodology for determining the market value of land under Section 26 of “The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013” (RFCTLARR Act, 2013). This decision is expected to minimize disputes and accelerate developmental projects.
As part of this reform, the state government has rescinded two previous circulars from 2014 and 2022 and established a new “Land Acquisition Valuation Committee” (LAVC) to determine market prices.
Background: The RFCTLARR Act, 2013
Enacted by the Parliament of India in 2013, the RFCTLARR Act replaced the archaic Land Acquisition Act of 1894. The primary objectives of this legislation are to ensure fair compensation for landowners, introduce transparency into the acquisition process, and guarantee the rehabilitation and resettlement of affected families. Section 26 of the Act outlines the criteria for the Collector to determine the market value of the land, which includes considering the value specified for stamp duty, the average sale price of similar land in the vicinity, or the consented compensation amount, whichever is higher.
Key Provisions and Implications of the New Resolution
- Constitution of the Land Acquisition Valuation Committee (LAVC):
To address complexities and delays in market value determination, the state government has constituted a three-member expert committee. This committee will assist the Collector in assessing the market value of the land. The composition of the LAVC is as follows:
Chairman: The District Collector or another competent officer appointed by the State Government.
Member: Deputy Collector (Stamp Duty), Class-I.
Member: Town Planner, Class-I.
The primary role of this committee is to conduct a fair and accurate valuation of the land and provide recommendations to the Collector, ensuring that the compensation is both just and transparent. However, the final decision regarding the market value will remain with the Collector.
- Time-bound Determination of Market Value:
Previously, the lack of a clear timeline for determining market value often led to procedural delays, which in turn increased the financial burden on the government. The new resolution explicitly states that the market value must be determined after the publication of the preliminary notification under Section 11(1) of the Act, but before the publication of the final declaration under Section 19(1). This timeline is designed to prevent unnecessary delays and streamline the acquisition process.
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Streamlining the Process and Mitigating Disputes:
The repeal of the 2014 and 2022 circulars signifies the government’s commitment to simplifying and improving the land acquisition framework. The establishment of a specialized committee and the introduction of a clear timeline are expected to reduce disagreements between landowners and acquiring bodies.
Furthermore, the resolution clarifies that its provisions will also apply to cases where the determination of market value under Section 26 was pending as of the date of the resolution’s publication.
Conclusion
The latest resolution by the Gujarat Government is a pivotal and positive reforms in land acquisition process. The formation of the Land Acquisition Valuation Committee will bring expert oversight to the valuation process, enhancing transparency and fairness. By enforcing a strict timeline, the government aims to ensure that developmental projects are executed without undue delay and that landowners receive fair and prompt compensation. This measure is poised to make the land acquisition process in the state smoother, more efficient, and less contentious, thereby fostering an environment conducive to industrial and infrastructural growth.
