Defining fair market value of land in a thin land market of India to pay just compensation - a case study Online publication date: Thu, 23-Mar-2017
by Tapas Roy; R. Jayaraj; Anil Kumar
International Journal of Economics and Business Research (IJEBR), Vol. 13, No. 3, 2017
Abstract: India has a new Land Acquisition Act LARR 2013. Its contents significantly differ from its earlier version of LAA 1894. But the Act continues to consider average market value of the adjacent lands as fair market value of the acquired plot and ignores the absence of active land market in India. Land plots in India are small and ownerships fragmented. The qualitative attributes of smaller land plots vary and hence their prices. Because of thin market, sales data are scanty and cannot be directly used for averaging. The new act has increased solatium to two to four times the average market value to obviate criticism of paying less to the landowners. This paper proposes to use rational method of computing for valuation of land to pay just compensation. This includes identification of attributes which affect agricultural land price and use the attribute differentials to modify the sale prices before averaging. Modified sale values then may be averaged to get the fair market value and used as a basis to pay just compensation.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook