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LATEST NEWS UPDATES | Par disapproves provisions on land transfer

Par disapproves provisions on land transfer

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published Published on Nov 10, 2011   modified Modified on Nov 10, 2011

-The Economic Times

 

The government's bid to fast-track passage of the land acquisition bill seems to have run into trouble. A significant section of the standing committee of Parliament do not approve provisions on valuation and transfer of land.

Chairperson of the standing committee vetting the bill, Sumitra Mahajan , has said that the bill cannot be cleared in haste and more consultations would be needed.

The bill is unlikely to become law before Uttar Pradesh elections are held. Rural development minister Jairam Ramesh, who authored the latest version of the bill, was hoping for its passage in the winter session . It would have given Congress a campaign theme in UP, where land acquisition is a major issue.

The bill attempts to bring more transparency in acquisition of land and its valuation. But many feel the present suggestion of valuing all rural land at four times the market price, and urban land at twice, will make the process more difficult.

The industry is also opposed to giving the legislation retrospective effect, as it could lead to litigation. A section of the government appeared equally unimpressed with the bill. Although the perception that the legislation has the backing of the Congress leadership will ensure that reservations remain within politically permissible limits, other political parties may not ignore concerns raised by the industry.

According to the industry, the requirement of paying 20% capital gains to the original owner for 10 years was unworkable. Mahajan was non-committal on whether the committee report on the bill would be ready by the winter session beginning in less than a fortnight.

"We are trying our best to complete the report. I can't say how long it will take. We are hearing everyone on the issue," she said. The committee, which has met thrice, has scheduled its next meeting for November 16. Farmers' organisations are expected to give their views before the panel on that day.

Activist Medha Patkar and advocate Rajiv Dhawan, who appeared before the panel, said the bill was a dilution of the earlier draft, which proposed a higher compensation in rural areas. Many political parties are opposed to the dilution of this provision in the bill.

Ramesh had recently sought BJP's help in passing the bill in the coming session. In his meeting with leader of opposition Sushma Swaraj, he is understood to have requested her to ask Mahajan, a BJP MP, to speed up the standing committee process.


The Economic Times, 10 November, 2011, http://economictimes.indiatimes.com/articleshow/10674300.cms


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