Can the government acquire my property for private companies?

What the Law Says

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) governs when and how the government may acquire land — including for projects involving private companies.

The RFCTLARR Act permits land acquisition for private companies only if the project qualifies as a 'public purpose' under Section 2(1)(b). This includes infrastructure, industrial corridors, or projects where the private entity contributes significantly to public goods — such as affordable housing, hospitals, or educational institutions.

Crucially, if land is acquired for a private company’s use, the law mandates prior consent: at least 80% of affected landowners must agree in writing. For projects involving public–private partnerships (PPPs), the threshold is 70% consent.

The Act also requires social impact assessment (SIA), mandatory rehabilitation and resettlement (R&R) plans, and fair compensation — set at four times the market value for rural land and two times for urban land.

Statutory Text

‘public purpose’ means… (ii) provision of land for a project involving a public–private partnership where the ownership of the land continues to vest with the Government; or (iii) provision of land for private companies for public purpose…

— RFCTLARR Act, 2013, s. 2(1)(b)

Statutory Text

No land shall be acquired… for the use of a private company without the consent of at least eighty per cent of the affected families.

— RFCTLARR Act, 2013, s. 3(1)

Sources