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LATEST NEWS UPDATES | West Bengal may simplify land ownership laws by Romita Datta

West Bengal may simplify land ownership laws by Romita Datta

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published Published on Mar 16, 2012   modified Modified on Mar 16, 2012

West Bengal is likely to simplify restrictive laws on land ownership, making it easier for industrial estates to sell surplus land.

The state’s land ceiling laws cap private ownership of land at 24 acres, and there were restrictions on transfer of land held under exemption from the threshold.

The new policy, which is expected to be ratified by the state cabinet on Friday, would allow companies to transfer even leasehold land given to them by the state government.

Companies would only have to pay the state government a small fee to transfer land, according to officials of the commerce and industries department, who declined to be identified.

Jute mills are likely to benefit from this move. Most such mills have large tracts of land, which could now be used commercially.

Earlier, companies had to seek the state government’s clearance to sell large tracts of land, even if they were owned and unencumbered. This, at times, took years.

For instance, Hindustan Motors Ltd—the maker of the Ambassador and Mitsubishi cars in India—had to wait for years to secure the state government’s approval to transfer surplus land owned by it in the suburbs of Kolkata to develop an information technology hub.

The state’s commerce and industries minister Partha Chatterjee refused to comment on the proposed relaxation ahead of Friday’s state cabinet meeting.

The state didn’t allow such transfer of industrial land because it didn’t want companies to make a killing from their real estate assets, said Abdur Rezzak Mollah, former minister for land and land reforms.

“It is necessary to change the laws to facilitate development of industrial infrastructure, such as an industrial park, by private agencies,” said one of the state government officials cited earlier. “Developing such infrastructure is impossible unless the developer had the right to transfer the land to end users.”

Alongside, the state government is also set to expand the causes for which exemption was granted for holding land in excess of 24 acres.

Those that will be included are housing complexes, shipbuilding yards, food processing and industrial parks, according to government officials. Currently, the state grants exemption for setting up factories, plantations, townships and poultry farms.

Live Mint, 16 March, 2012, http://www.livemint.com/2012/03/15214617/West-Bengal-may-simplify-land.html?atype=tp


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