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LATEST NEWS UPDATES | Rajasthan amends Tenancy Act

Rajasthan amends Tenancy Act

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published Published on Mar 26, 2011   modified Modified on Mar 26, 2011
To facilitate larger lease holdings of land for agro-based units

The amendment allows the lease period for 15 years instead of five years

Accounts of the panchayati raj institutions placed under the purview of CAG

Rajasthan has amended its tenancy laws to facilitate larger lease holdings of agricultural land for longer periods by entrepreneurs who are interested in setting up agro-based products. The move takes into account the big potential the State has in agro-processing, especially in oilseeds and spices.

The State Government, in an amendment carried out in the Rajasthan Tenancy Act, 1955, in the just concluded Budget session of the Rajasthan Assembly, added the provision in Section 45 for leasing out kathedari or khudkasht (self-cultivated) land on 15-year lease to anyone for the purpose of “agricultural operations” in connection with agro-processing and agri-business enterprises. This is applicable in the case of kathedar tenants as well as those who can sub-let their holdings.

The amendment allows the lease period for 15 years, instead of the existing one-time lease of five years under the Section 45 of the Rajasthan tenancy Act 1955. “The availability of agricultural land is among the foremost requirement for setting up agro-processing and agri-business enterprises,” stated a Bill moved by Revenue Minister Hemaram Choudhary and passed without any discussion due to the prevailing noise in the House. At the end of the first 15 years the lease or sub-lease can be extended for another 15 years.

However, experts on Rajasthan's land revenue laws are sceptical of the changes as well as the intention of the Government.

“This is going to damage the farmers, and benefit only the entrepreneurs. The small and marginal farmers this way would be deprived of their land holdings very soon,” notes Dushyant Ojha, State Secretary of the Communist Party of India, who is well versed on the State's land reforms. “The number of cultivators will go down and this will add up to rural penury. Besides, what is the guarantee that the people who are taking the land on lease would set up the processing units?” he asks.

In yet another amendment during the current session, the State Government brought the accounts of the panchayati raj institutions under the purview of the Comptroller and Auditor General (CAG) of India.

The Rajasthan Panchayati Raj (Amendment) Act, 2011, now provides for detailed audit of accounts of panchayati raj institutions by the CAG, instead of the office of the Director of the Local Fund Audit.

Under Section 75 of the Rajasthan Panchayati Raj Act, 1994, the CAG had only the role of “test auditing” the accounts of the PRIs.

As in the case of audits of the State Government departments, the audit reports of the PRIs also would be now laid before the State Legislature.

The Hindu, 26 March, 2011, http://www.hindu.com/2011/03/26/stories/2011032660930300.htm


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