Development programs, large and small, frequently cause population resettlement, voluntary or involuntary. Instances of development-induced involuntarypopulation displacement, both economic and physical, and post-displacement resettlement and reconstruction have been brought to limelight quite often. Each year, millions of persons are forcibly displaced by development projects, whether dams, roads, reservoirs or oil, gas and mining projects. While such projects can bring enormous benefits to society, they also impose costs, which are often borne by its poorest and most marginalized members. The present paper examines the aspect of displacement of the poor due to development from the standpoint of the fact that the compensation paid by the government sector or private sector is not in itself enough to restore and improve livelihoods disrupted by displacement and that it impoverishes those forcibly relocated. Further in this paper the researcher has also tried to analyse whether all displacements are bad. And in the conclusion of the paper the researcher has submitted for changing the existing policies, laws and practices by adding investment financing and ex-post benefit sharing to full compensation.