A Parliamentary panel on Thursday said the government should not acquire land for private businesses and stressed on a clearer definition of public purpose in this regard. Parliamentary Standing Committee on Rural Development, headed by BJP leader Sumitra Mahajan, in its report on the Bill said public purpose in Land Acquisition, Rehabilitation and Resettlement Bill should be limited to linear infrastructure and irrigation, including multipurpose dams and social sector infrastructure such as schools, hospitals and drinking water or sanitation projects constructed at state expense.

All cases of land acquisition must entail obligations for adequate compensation, rehabilitation and resettlement to all land losers and other affected persons.
The report was tabled in Parliament has suggested that land acquisition for any purpose should be brought under the purview of this legislation.

On the issue of fixing compensation for land acquisition, the Committee suggested that the government constitute a multi-member land pricing commission to finalise the cost of acquisition of land.

It also recommended that land should be returned after five years from date of possession if it is not used for the purpose for which it was acquired.