Land being a social asset and available only in invariable supply this paper examines the problem of land acquisition in the context of sustainability and equity of socio-economic outcomes. As an alternative to iniquitous land acquisitions which stir spatial equilibrium, create unequal losses and gains and alter the relations of production, the proposed ‘participation in windfalls’ and other inclusive entitlements aim at enhancing equity and minimizing the impact of negative redistributive outcome and socio-economic exclusion of the project affected persons. In the context of ongoing spree in land acquisitions by the state such a participatory scheme shall deserve the attention of the academicians and policy makers.