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LATEST NEWS UPDATES | Govt may stop acquisition of land beyond project requirement by Subodh Ghildiyal

Govt may stop acquisition of land beyond project requirement by Subodh Ghildiyal

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published Published on May 31, 2011   modified Modified on May 31, 2011
The Centre could bring in a mechanism to stop entities from acquiring land beyond the project requirement, a practice which is at the heart of corruption and anger among landowners as seen in western UP.

An amendment to the Land Acquisition Act could cap the maximum land to be acquired for different categories of projects or could install a process to check the feasibility of the demand for land. Acquisitions where surplus land is later transferred to private players for illegitimate considerations or is left unused is seen as driving resentment.

The proposed changes to the acquisition law may let states decide how much land they want to buy for private players. In the earlier draft, which was stalled by Trinamool Congress in 2009, the rural development ministry had proposed that Centre or state could buy 30% land for private entities if they bought 70% on their own.

The issue may prove sensitive since the Sonia Gandhi-chaired National Advisory Council is inclined to give governments complete power for land acquisition, even for private entities.

Mulling changes to get past the reservations of Trinamool chief Mamata Banerjee and to address the rising expectations of landowners, the government may change the time for determining market value of land from the initial announcement of land acquisition (section 4) to the stage when the purpose of intended acquisition is declared (section 6). The market value of land decides the rehabilitation package.

Officials said land rates rise only after the nature of project to come up on acquired area is announced. The change on when to compute the market rate would lead to better compensation package.

To overcome the reluctance of owners to give their land, the Centre plans to provide for lifetime financial returns to sweeten the deal. All the displaced families would be given annuities. The bill may provide for returning a part of developed residential or commercial land to the original owners – a policy inspired by the Haryana package.

A family could opt for any amount of rehabilitation package in shares and debentures with a cap of maximum 50%, a change from the earlier proposal for a minimum 20% shares.

As part of earlier proposals which are being retained, the landowners would get 80% of the profit made by the sale of the acquired land. Also, the landowners would get a solatium of 60% of market value as part of the compensation package.

The Times of India, 31 May, 2011, http://timesofindia.indiatimes.com/india/Govt-may-stop-acquisition-of-land-beyond-project-requirement/articleshow/8654867.cms


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