English
RSS
The Government has proposed a comprehensive overhaul of the 2008 Law on Compulsory Purchase and Requisition of Property, aimed at creating a more responsive legal framework for urgent and emergency situations.
The draft law would narrow the scope of compulsory purchase, broaden the range of property subject to requisition, strengthen compensation and accountability mechanisms, and further decentralise decision-making powers.
Narrower compulsory purchase, broader requisition powers
The proposed revision comes amid a changing security landscape, with non-traditional challenges such as climate change, epidemics, terrorism and cybercrime becoming increasingly prominent alongside traditional security threats. These developments have necessitated more flexible rules governing the compulsory purchase and requisition of property.
Against this backdrop, the draft is intended to strengthen proactive prevention and enable the State to mobilise resources promptly in urgent and emergency circumstances.
Comprising 30 articles, the draft retains two articles unchanged, amends and supplements 24, adds three new articles and removes 13 from the current law.
Notably, the draft narrows the range of property subject to compulsory purchase. The measure would apply only to assets subject to ownership transfer to the State, including medicines, vaccines, medical supplies, food, tools and equipment, petrol and oil, gas, chemicals, raw materials, fuels and other consumable goods. National reserve goods and public assets would be excluded.
By contrast, the draft significantly expands the categories of assets that may be requisitioned. Newly covered assets would include livestock; sea areas allocated to organisations and individuals, except those for the purpose of land reclamation; telecommunications and information infrastructure; power facilities; digital infrastructure; digital property; and other infrastructure facilities.
The draft, however, makes clear that requisition may be used only in exceptional circumstances. It would be permitted only when strictly necessary for national defence, security or national interests, during a state of emergency, or for disaster and epidemic preparedness, and only when statutory conditions are met.
Specifically, property could be requisitioned only when two conditions are satisfied. First, suitable national reserve goods are unavailable or insufficient to meet urgent needs. Second, efforts to encourage organisations, enterprises, households and individuals to voluntarily make their property available for use have failed to meet demand.
Stronger compensation safeguards
The draft also strengthens compensation rules for requisitioned property.
Those whose property is requisitioned would be entitled to compensation if their property is lost or damaged, or if the requisition directly results in a loss of income. Compensation must be paid within 30 days after the property is returned. In the event of late payment, owners would be entitled to an additional amount calculated at the late-payment rate prescribed under the law on tax administration.
The requisition period would begin when the requisition decision takes effect and could last for no more than 30 days after the circumstances giving rise to the requisition have ended. If the purpose of the requisition has not been achieved by then, the period could be extended once, for no more than 15 days.
Once the requisition period ends, the property must be returned on a condition that meets the same standards and provides the same functionality as when it was requisitioned.
The draft also revises the pricing principle for compulsory purchases, bringing prices closer to the market value of the property. In addition, in case property owners disagree with the price determined by competent authorities, they may lodge a complaint or initiate legal proceedings. If the requisitioned property is lost or damaged beyond repair, owners would be compensated either in cash or with equivalent property.
- (VLLF)
