Concept:
National Law Universities (NLUs) are premier legal institutions in India established by specific state legislations. The National Law Institute University (NLIU) is one of the oldest and most prestigious institutions in this category, formed under the NLIU Act of 1997.
Step 1: Identification of the Institution.
The National Law Institute University (NLIU) was the second NLU established in India (after NLSIU Bangalore). It was founded by the Madhya Pradesh State Legislature to provide high-quality legal education and research facilities.
$\text{Established Year} = 1997$
$\text{Act} = \text{Rashtriya Vidhi Sansthan Vishwavidyalaya Adhiniyam}$
Step 2: Determining the Location.
The university is located in the capital city of Madhya Pradesh, Bhopal. It is situated on a beautiful hilly terrain in the Kerwa Dam Road area. The location is significant as Bhopal is also the seat of the executive and legislative branches of the state government.
Step 3: Academic Standing.
NLIU Bhopal consistently ranks among the top law schools in India. It is a member of the Association of Indian Universities and is recognized by the Bar Council of India. Being in the state capital allows students easy access to the High Court of Madhya Pradesh (Bhopal Bench) and other administrative bodies.
Final Answer: Option A