Explained: Haryana’s Direct Land Purchase policy for Gurugram Metro, how it affects landowners

The background section of the notification notes that Gurugram’s Comprehensive Mobility Plan (CMP) envisages nearly 200 km of mass transport network by 2041. While most of the planned metro corridor passes through government land, “in some places the viaduct passes through private land”, and at other locations properties need to be “demolished/ acquired”.

The Gurugram Metro Rail Corridor is aimed at providing a comprehensive mass-transit backbone within the city, and fill major gaps in public transport. It is being developed by GMRL, which is a joint venture of the Government of India and the Government of Haryana.

Haryana has introduced similar voluntary land purchase/land procurement policies in the past (e.g., for the Gurugram Metro). These earlier frameworks were focused on acquiring land by mutual consent and voluntary offer, rather than forcing acquisition strictly through the RFCTLARR Act, 2013 (which is compulsory acquisition).

To initiate compulsory acquisition under the RFCTLARR Act, the acquiring authority must be satisfied that the land is required for a legitimate public purpose. The Act defines and emphasises that land acquisition under this law is only valid if it serves a public purpose such as infrastructure, industrialisation, planned development, utilities, etc., and that the social costs are outweighed by public benefits.

However, the government has acknowledged that acquisition under the 2013 RFCTLARR Act involves “a number of sequential compulsory processes, involvement of a number of bodies as well as statutory waiting time”, which makes the process time-consuming.

The stated objective is to ensure “timely commissioning of metro project” by creating a faster mechanism to deal with “very critical cases of private land requirement affecting the commissioning of the project.” Officials said that the policy attempts to “strike a balance between infrastructure urgency and landowner rights, using financial incentives and negotiated consent to overcome procedural delays — without discarding the safeguards of the RFCTLARR Act”.

Officials added that the policy is only meant for “exceptional and critical land parcels, not large-scale acquisition.”

However,  it could spark debate among landowners and rights activists, particularly over the implicit pressure created by the threat of compulsory acquisition.

What are the main features of the Direct Land Purchase policy?

The policy lays down a step-by-step administrative process for negotiated land purchases. These include:

• Land acquisition through “mutual negotiations” rather than compulsory acquisition.
• A high-level Land Purchase Committee (LPC), constituted under the chairmanship of the Deputy Commissioner, Gurugram.
• Compensation calculated strictly as per “provisions of Sections 26 to 30 & Schedule I of RFCTLARR Act, 2013”.
• An additional incentive of 25% paid over the calculated compensation.
• The policy is “all encompassing and inclusive of all compensation and R&R benefits” for titleholders.
• In case negotiations fail, land can still be acquired under the RFCTLARR Act.

How is land identified under the policy?

The policy mandates that only the minimum required land should be identified. First, the Chief Project Manager (CPM) of GMRL needs to identify “the minimum area of critical land parcel to be acquired for the metro project.”

The CPM must then obtain in-principle approval of the Managing Director of GMRL. After approval, a formal requisition is sent to the Deputy Commissioner in Form A, along with maps and land details.

This is followed by a joint inspection, where officials from revenue, engineering, irrigation, the Public Works Department (PWD), and GMRL “will conduct joint inspection of the requisite land”, and the land is “measured and mapped.” Ownership is verified by checking “original documents and ownership of the land from Revenue records.”

How are landowners informed, and their objections handled?

Once land parcels are identified, the policy requires public disclosure. The Land Acquisition Officer must issue a “general notice… in newspapers for wide publicity”, inviting landowners’ attention regarding the proposed purchase.

A list of identified land parcels is published, giving “30 days’ notice period for inviting objections regarding interest and ownership of the land.” This step mirrors the transparency requirement under the RFCTLARR Act, even though the acquisition is based on consent.

How is compensation calculated under the Direct Land Purchase policy?

Compensation is calculated using the RFCTLARR Act framework, with an added incentive. For land value, the policy follows Section 26, which defines market value as the highest of stamp duty value, average sale price of similar land, and consented compensation amount.

The market value is then multiplied by a factor—“1.00 for land in urban areas” and up to “2.00 based on the distance of the project from Urban Area.” Under Section 29, the value of buildings, immovable assets, trees, and crops is calculated by competent engineers and subject experts. Under Section 30, a “solatium of 100%” is added, along with 12% per annum interest from notification to award.

What is the 25% incentive?

The defining feature of the policy is the incentive for voluntary participation — clause xii, which states that the Direct Purchase Price to be given to the affected landowner shall be 25% higher than the compensation calculated amount.

“The R&R benefit will be deemed included in it. This means landowners receive a higher lump-sum amount, but cannot claim separate rehabilitation and resettlement benefits later. The final Direct Purchase Price is calculated using a formula that incorporates land value, asset value, solatium, interest, and the 25% incentive,” officials said.

What happens during negotiations with landowners?

After the notice period, the Land Acquisition Officer “will inform the respective land owners who are interested for Negotiation.”

The Land Purchase Committee will conduct negotiations, and the proceedings of the Negotiations Meetings will be jointly signed by both sides. If an agreement is reached, it is recorded in Form B, where landowners give an undertaking that they “will not claim for payment of higher compensation in any court of law or any other forum.” “This clause ensures finality and avoids future litigation”, officials said.

Once an agreement is signed, GMRL transfers the negotiated amount to the Deputy Commissioner, the Deputy Commissioner shall make an award according to the terms of such Agreement, and payment is made directly to landowners through electronic transfer.

What if landowners refuse to sell?

The policy states that participation is “voluntary”. Clause xx provides that “in the event of any owner refusing to sell the land… the respective land may be acquired through land acquisition process as per RFCTLARR Act 2013.”

How is this policy different from the RFCTLARR Act, 2013?

The key difference lies in method, not compensation. While RFCTLARR relies on compulsory acquisition with statutory timelines, the Direct Purchase policy relies on “negotiations and mutual consent.”

However, compensation under the new policy is anchored entirely in RFCTLARR provisions, with an added incentive for cooperation. In effect, the policy offers landowners higher compensation in exchange for speed and certainty, while preserving the legal fallback of the 2013 Act.