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LATEST NEWS UPDATES | Government sweetens land acquisition deal-Subodh Ghildiyal

Government sweetens land acquisition deal-Subodh Ghildiyal

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published Published on Jul 13, 2012   modified Modified on Jul 13, 2012
-The Times of India

Persons displaced by land acquisition would be paid an extra 12% of the cost of land every year, in what is seen as the government's bid to sweeten the deal after insisting on state's role in buying land for private parties. 

The proposed changes to the Land Acquisition Bill add 12% of market value of the land acquired to the package of compensation and solatium to the evacuee. This money would be paid annually from the date that government announces acquisition of land to the time it takes possession or awards liabilities to the evacuee. 

The amendment is part of the government's response to a parliamentary panel's recommendations on the legislation. As reported by TOI, the Jairam Ramesh-headed rural development ministry has rejected the demand that government should not acquire land for private industry or Public Private Partnership projects. 

It has also refused to bring a plethora of sector-specific acquisition bills, like those of roadways and railways, under the ambit of LA bill, though it has agreed to put the SEZ Act under its jurisdiction. The redrafted bill is likely to come up in the monsoon session of Parliament next month. The move to hike compensation is aimed at winning support from MPs. 

According to the bill, landowners will get twice the land price in rural areas and just the sale price in urban areas. 

The land cost will be based on market value, to be determined by sale deeds registered in the region. In addition, landowners will get "solatium" of 100% of compensation amount and also the value of assets on the land acquired. 

The 12% of market value of land annually between the notification and the award of compensation will be over and above this package. 

Sources said the enhancement of compensation is directly linked to making a persuasive argument for letting the bill through. While sections in government have argued that high compensation would discourage industries, the RD ministry has argued that amendment to the 1894 bill was about neutralizing the anger against land acquisition. A strong section of society wants the bill to discourage acquisition. 

The ministry decided against putting an overwhelming number of sector-specific acquisition laws, like in railways and roadways, under the LA bill. While the parliamentary panel argued that exempting 16 central Acts would put 95% of acquisition cases beyond the new rules of acquisition and compensation, RD ministry said the laws were sector specific. 

While keeping a liberal regime for acquisition, the new bill has sought to tighten the "urgency clause" by limiting it to defence, internal security and national calamities. The "urgency clause" empowers the government to take possession of any land under the acquisition law.

The Times of India, 13 July, 2012, http://timesofindia.indiatimes.com/india/Government-sweetens-land-acquisition-deal/articleshow/14858338.cms


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