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LATEST NEWS UPDATES | RLD chief proposes ban on land acquisition for profit ventures

RLD chief proposes ban on land acquisition for profit ventures

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published Published on Aug 26, 2010   modified Modified on Aug 26, 2010

Rashtriya Lok Dal (RLD) president Ajit Singh's draft for amendment in the Land Acquisition Act, 1894 proposes a complete ban on acquisition of land for profit-making and commercial purposes. The acquisition rights for industry should be allowed only if necessary for national security. Besides redefining `public purpose' for which land is acquired, the draft wants the government to be advocate of farmers' right and not a real estate agent. The companies wanting land for their ventures should be allowed to deal directly with the farmers.

In the existing Act, the definition of the public purpose is vague, hence its misuse by governments have become a common feature in India. The draft which Singh has introduced in Parliament as an individual Bill, limits definition of public purpose to projects which are for the use of public works funded by the state. It also takes into account projects useful to general public proposed by private enterprises. In such cases, the draft proposes to authorise the state to acquire 15% of the total land for the project. It proposes making `Social Impact Assessment Mandatory' before acquiring the land which involves en masse physical displacement of 100 or more families in plain area and 25 or more families in hilly/tribal/desert area to check adverse impact and for providing appropriate rehabilitation and resettlement to the displaced families.

The draft also provides for issue of individual notices to all land holders at the very first stage of acquisition proceedings. This will help the land holder to have the knowledge of the intent of the state in advance and enable him to put his genuine objections before the competent authority. The draft also proposes determining market value of the land to be acquired to ensure `just' and `adequate' compensation to the land holder at the prevalent market price, keeping in mind the intended land use and hence, its potential market value. The minimum market value, as per the provision, will be determined on the basis of the highest sale price for similar land in the area, in the sale transaction, within one year period preceding to the notification for acquisition. The payment of compensation should be done in a time-bound manner.

The existing Act provides scope to the state to use extraordinary powers for land acquisition under urgency clause, which is often misused. The draft for amendment in the Act restricts the scope of urgency clause by limiting its use to exceptional circumstances and by providing additional compensation to the tune of 100 per cent of market value. The draft also provides for establishing `Land Acquisition Compensation Despite Settlement Authority', an independent authority for speedy resolution and settlement of compensation disputes. A provision has been proposed to ensure that the acquired land is used only for the purpose it has been acquired and not diverted to any other use. The draft also provides that if the land remains unutilised for five years from the date of taking possession, the same will be returned to the owner.


The Times of India, 26 August, 2010, http://timesofindia.indiatimes.com/city/lucknow/RLD-chief-proposes-ban-on-land-acquisition-for-profit-ventures-/articleshow/6442157.cms


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