In India, the extent of debate in the policy space regarding land acquisition for industrial usage is immense in the last few years. With an aim to achieve higher growth targets, increasingly efforts towards industrialization leads to higher amount of displacement and restatement of agricultural landowners. This has led to ever increasing unrest in the society leading to huge inefficiency both in terms of locked up values and loss of human lives and livelihoods. In this paper we propose a mechanism that addresses the issue of compensation during land acquisition. We propose the optimum amount of land that can be acquired as well as the mechanism allowing – (a) land as a private value and (b) landowners must be allowed to coordinate before the final offer is accepted or rejected. Our mechanism also helps in solving the hold up problem.