What is in Land acquisition Bill for Farmers & common man?

September 7, 2011   ·   0 Comments

After lot of hue & cry, parliament  passes the land acquisition bill & finally, 117-year old law on acquisition of land is all set to be changed. What does this bring in for Farmers? How it impact Common man? Let us have a look.

The draconian law which has today become a major bone of contention, jeopardizing development and most of the times, livelihood of the farmers, is in the final stages of getting a new face. And if this becomes a law, www.stockssavvy.comfarmers might actually get the right due for their land and developers who have been making over 100% profit margins in realty projects, will now have to contend with lower margins. For people like you and me, well, the dream house threatens to remain just a dream as every cost rise for developer, will continue to get passed on to we the people.

A quick synopsis of the draft Land Acquisition Bill:

  • No land acquisition by Government for private companies for private purposes.
  • Consent of 80% of the project affected to be obtained through a prior informed process. This provision will not apply to land sought by the state for public purposes like highways, railways, hospitals and education institutions.
  • Multi-crop irrigated land can be acquired only as a last resort.
  • Compensation is four times the prevailing market value in rural areas and double in urban areas.
  • Compensation must be paid to those giving up land within three months of acquisition.
  • Resettlement and rehabilitation (R&R) benefits must be provided within 18 months.
  • Compensation to displaced individuals at Rs.5 lakh.
  • Subsistence allowance of Rs 3,000 per family to be paid per month for a year. Annuity of Rs.2,000 per family per month for 20 years.
  • 20% of developed land to be given to owners. 20% profit on each transfer of land within 10 years to be shared with owners.
  • Bill seeks to prohibit any land acquisition under emergency clause except for defence and strategic purposes.
  • Private players will also be asked to bear the burden of rehabilitation for projects requiring more than 50 acres in urban areas and 100 in rural areas. Both the seller and the dependents of the land will be covered under this clause.

Naturally, the builders lobby is pretty miffed with the compensation. They have all collectively termed it as detrimental to growth. They feel that the Govt is going to the other extreme to take care of the farmers at their cost. Well, when all the realtors feel the same, surely it means that the Govt is doing something right! Did you ever hear any of these developers complain when they acquired land at a pittance and sold it at over 100% gains to the buyers in Noida? What they are probably complaining about is the lower profit margin they might now earn. And that is good as long as money goes to the farmers.

The new bill allows land to be acquired by the Govt under the emergency clause or to build ports, infrastructure, railways and highways. How does this protect us from the likes of Mayawati? If one may recollect, when the Yamuna Expressway was announced, Mayawati had invoked the Emergency provisions in the archaic Land Acquisition act. Land was taken on pretext of industrial development around Bhatta-Parsaul near the Yamuna Expressway was bought from farmers at around Rs.550/sq meter and then sold to the builders at Rs.5,000/sq meter. The Mayawati administration acquired over 2,000 acres from farmers invoking the public interest clause of which 75% of the land was sold to the builders on a platter. Yes, in a way we have to thankful to Mayawati for the new Land Bill which otherwise might have never happened.

Being pro-poor is never good for the market but its good for the nation. And that is more important than the market. Builders are like sharks – they will always get their meat. And yes, we the middle class will continue to get stressed from both sides, no law protects us. Either we shift to the lower rung or to the higher rung, that’s probably the only way out!

Source: Premiuminvestments

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Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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