According to Land Acquisition Act 1894, government has the power to acquire any land for its own use. It may be for the purpose of infrastructure growth or declared to be used by private companies for public purpose. One thing is always common in every case-public purpose. But in reaction, the act harmed and made many landless without proper compensation.
Thus the concept of Land Acquisition, Rehabilitation and Resettlement Bill evolved in 2011 that backs landowners’ right for the land. It emphasizes on provision of fair compensation to be provided to the landowner in case of acquisition of private land for public use and rehabilitation in case of loss of livelihood.
The Land Acquisition Bill just got passed in the Union Cabinet on 14th December and awaiting parliament’s affirmation. Major clause of the bill focuses on the mandatory consent of 80 percent of land owners for private projects and 70 percent in public private partnership projects. Also with the consent, the bill proposes higher compensation and rehabilitation package to land owners. The Bill is likely to be introduced in Parliament during the final week of the winter session.
The bill is a boon for the landowners but on the other hand, reactions are not pretty welcoming. The real estate sector, the CREDAI and the developers especially are alarming for increment in the property prices.
The builders claim that they are already acquiring land for private projects with almost 100 percent consent of the owners and question the need of the bill. They pointed that if the landowner has not received compensation for any reason at all, he can bargain for a higher price and thereby hold up the process and also contribute to further land inflation. Thus the Cost of land will go up and developers will pass on the additional burden to the end-users.
Also the proposed Bill further postulates that if the land is being acquired for urbanization purposes, the Government needs to put 20 percent of the land for the person who is separating with the land. It also says that any unutilized land has to be returned to the land owner.
The LARR Bill is a product of optimism for landowners and majorly farmers but the hike in the real estate prices are greatly expected in reaction. What needs to make this bill win is cooperation and non-conflicting agendas between all three parties’ viz. landowners, developers and consumers.