If the proposed law on acquisition of land is passed, it will be a setback to industrial, infrastructure and urbanization projects, business leaders said at the World Economic Forum's India Economic Forum on Monday.
Representatives of industry criticised many provisions of the law, including its mandate on purchase price to be several times the current market rate, the provision that buyers are responsible for rehabilitation and resettlement of those displaced, including giving them a share of equity or jobs for 26 years.
“We believe it is not fair. If there is forcible land acquisition, it should be difficult and expensive,” said Priya Hiranandani-Vandrevala, Founder and Chairman, Hirco Group, said, adding that it was unfair that the same provisions on pricing and rehabilitation should apply when land is sold voluntarily.
The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, applies if more than 50 acres of urban land or 100 acres of rural land is being acquired. Ajit Gulabchand, Chairman and Managing Director, Hindustan Construction Company, planned its proposal that the consent of 80 per cent of those likely to be affected should be achieved before the purchase takes place, explaining that land ownership is so fragmented and titles so unclear that this provision can extend the process of land purchase indefinitely.
Ratnakar Yashwant Gaikwad, Chief Secretary, Government of Maharashtra, asserted that most projects were built on marginal, unirrigated and infertile lands, and the only way to create jobs to absorb the excess rural workforce was to expand the manufacturing sector.
Prashant Bangur, Executive President, Shree Cement, said the Bill needed to inject an element of certainty and finality in land buyers' responsibilities, arguing that it is counterproductive to guarantee a job to the displaced for 26 years, as they would have no motivation to be productive.
Mr. Gulabchand demanded that the land acquisition bill should be transferred from the jurisdiction of the Ministry of Rural Development to the Ministry of Law. He also argued that the onus of rehabilitation should not be on the buyer but on the government. “If the bill in its present form is passed, there will be no development in the country for the next 100 years,” he said.
Keywords: World Economic Forum, land acquisition law
it is social responsibility of corporate sector to take care of the people of the land from where you are earning money.because of existing laws the distance between rich and poor is increasing. it will be a great start if this legislation comes in to force .not the equal share but some help is necessary ,because the money ,ideas and work is of corporate figure's.focus should be on to active participation of the locals not the passive.
Mr. Gulabchand's argument that 80% of the land is too difficult to acquire as there is no clarity over title deeds is highly exaggerated as in the current high priced realty market even a small farmer knows the importance of land title deeds. But I agree 26 years of lively hood is counterproductive. Rather some other land should be given by the government to those farmers, same will help inflation and food supply. And a farmer will do what he knows best. Yes training school for skilled labor should be opened and those befitting should be given employment. Win- win for both side.
Suggestion: Kindly scrap the urban land ceiing act , and rent control acts in all the states which are still having these archaic laws. Second, kindly have digitise all the land records across the country, or at atleast have the process initiated. Third Land is required by industry , lets not run away from that fact. Lets make maximum use of barren lands and lands which have very little connectivity for industrial and commercial purposes.Incentivize rural living and disentivize urban living, this will ensure that housing is more concentrated in rural and semi urban areas, rather than urban places. Huge chunks of land are in wrong hands of corrupt politicians, bureaucrats and businessman illegally and lso NRIS. Reason being that all our registrar offices are corrupt to the core. We need to abolish manual registration offices and computerise the whole system of registration of property and land.
There is a conflict of interests either economic or political between the the industrialists and people in general and political personnel in particular. It can not be possible for any legislation to satisfy all the sections of the society. But a balance to be struck between the vested interests and acute requirements. Any development is not at the cost of basic needs and at the same time development can not be ignored. The present Bill has certain beneficial provisions for the needy. Hence it should not be delayed on the assumptions of profiteers.
Industrialists are surely not wanting the existing 1894 Act to be replaced, as till date they have in collusion with various governments made huge huge money in real estate / businesses by misuse of Land acquisition Act 1894. Even the SC has commented on this collusion quite often. Industrialists will try their best to delay this new legislation as their unlimited greed to earn super profits from land acquisitions is going be checked somewhat. No growth is going to get adversely affected in our country due to change in the archaic Land acquisition act, 1894, as Indian market will continue to be one of the most attractive markets in the long term, hence, investment has to flow into the country, it is just a propaganda to wrongly influence the thinking of the decision makers. Government and all political parties should understand that if now this legislation is again delayed there may be serious repercussions for Indian polity .
Please Email the Editor