The passage of the land acquisition Bill has the real estate sector worried on its impact on land transactions.
Sanjay Dutt, executive managing director – South Asia, Cushman & Wakefield, said, “The Bill is expected to majorly affect the development of large infrastructure projects, industrial projects and integrated township.” He said compensation for land acquisition would at least double in urban areas and go up by four times in rural areas. “Thus, the cost of land acquisition will go up for all projects, and the clause on mandatory consent of 80 per cent of landowners for private projects and 70 per cent of owners for public-private partnership projects will delay the land acquisition process and the projects in turn,” he added.
Anuj Nangpal, managing director – Investor Services, DTZ India, described the Bill as “a significant development with potential to redefine the industry.” He said that while higher compensation was welcome, there could also be issues relating to the use of market value in determining the compensation.
