In recent times the real estate industry is going through a lot of changes. Most of the changes that are being put into place by the government are legal. Some legal moves like the Real Estate Bill are supposed to benefit the property buyers. The latest bill, namely the Land Acquisition, Rehabilitation and Resettlement Bill, 2012 (LARR Bill) which had been cleared in the Parliament is supposed to benefit the land owners. However this land bill has given rise to such a storm of debate.The new bill will replace the Land Acquisition Act of 1894 and will take a fresh look at the resettlement and rehabilitation of the people that are affected by the acquisition of their land. 2013 is a good time to revise something that had been framed in 1894 because a lot of things have changed in the meantime. But according to some experts, the provisions that had been set by the LARR Bill will put the country back to 1984 rather than taking it to new heights.The main objective of the bill is look into the problems of people whose lands are acquired for real estate, industrial or infrastructural projects. The intention is to ensure that the land owners are adequately compensated.The clauses of the Bill are roughly these:
- The provisions of the Bill are applicable in urban areas to the acquisition of 50 acres of land and in the rural areas for 100 acres of land. The rate of compensation for urban areas will be twice the current market price while it will be four times the market price in rural area.
- For private projects acquiring 80% consent from land owners and 70% consent of land owners for public private projects (PPP) will be mandatory.
The Bill is expected to create a serious obstacle in the way of industrial projects, large infrastructure development and integrated townships which require much greater amount of land. The cost of land acquisition will be pushed far higher and therefore all projects will become 2 to 4 times more expensive. Moreover the land titles in our country are in a real mess. Acquiring 70-80% consent in such a situation will be a challenge. All projects will thus get further delayed and will add up to the time and cost factor.Impact on Industrial and Infrastructural Projects:The industrial and infrastructural projects are the ones that had faced the greatest opposition, conflict and confusion when it came to land acquisition in the past. The Bill will look after these land owners who lose everything and do not even receive a fair compensation when their land is taken over for developing industrial or infrastructural projects. Therefore these projects will take the hardest hit dealt by the Bill.The private sector had been for long uninterested in infrastructural projects as these go through a plethora of problems. Now with the implementation of the Bill the funding of these projects is to become even more impossible. With the growing urban population the obvious need of the hour is better and bigger cities with self-sustaining urban centers. In such a situation it is questionable how much the Bill will help in the advancement of urban development. The need to arrange for 80% consent and the rehabilitation and resettlement of land owners will shoot up the budget even higher which in turn means that possibly utilities like water and electricity will cost even more to compensate the revenues.Impact on Real Estate Industry:Most real estate projects that are developed on land parcels smaller than 50 acres will be exempt from the clause of the Bill. The big private real estate developers will be hit harder. Even when they have bought land with 100% consent at market prices they will have to pay greater compensation and this will in turn push up real estate prices.In a bid not to affect the ordinary buyer through a price hike there are possibilities of a rise in joint development of projects. This will mean the sharing of the risks as well as the profits.The opinion among market analysts is that open market transactions should be made exempt from the protection of the Bill otherwise it may end up causing decline in real estate investments.займ на карту без отказов круглосуточновзять кредит онлайн