The recent Land Acquisition Bill, though addresses many concerns, is not without loopholes, say industry experts. However, property litigation issues are expected to come down to a great extent.
The bill has incorporated changes to the inclusion of irrigation projects into the Social Impact Assessment and existing compensation policies. The unfair compensation paid to land owners has been one of the prime reasons for real estate related disputes in India.
The bill also states that it is impossible to dispossess people from an area without paying all dues and allocating another area. And, according to the new bill, seeking permission of Gram Shaba or rural authorizes is the first step in acquiring a land in such areas. If the acquisition is for private or PPP ventures, consent of 70 and 80 percent of land owners becomes imperative.
The bill also puts forward the option of 40percent profit sharing with the owner in case of a sale price more than the compensation amount.
However, on the whole, you would get to see two contradicting changes through the bill. It is certain that there will be a reduction in real estate crimes across the nation. However, the bill would also lead to high costs leading to a burden for real estate developers. The high-costs in real estate, one among the prime areas in India’s growing economy would have a direct impact on the nation.
In view of the enhanced attempts of urbanization, the high-costs going to come out of the bill, could hinder such attempts. There could be delays in project completion in case of lack of sufficient funds. Such discrepancies might prevent public firms from collaborating with the Government for new ventures.
The land acquisition clauses mentioned in the bill are applicable to 50 acres of urban land or 100 acres of rural land. Therefore, commercial and residential buildings out of this limit would not be abiding by the bill.
Also, if planning to implement all the clauses mentioned, certain amendments in the existing system might become necessary.
The bill has incorporated changes to the inclusion of irrigation projects into the Social Impact Assessment and existing compensation policies. The unfair compensation paid to land owners has been one of the prime reasons for real estate related disputes in India.
The bill also states that it is impossible to dispossess people from an area without paying all dues and allocating another area. And, according to the new bill, seeking permission of Gram Shaba or rural authorizes is the first step in acquiring a land in such areas. If the acquisition is for private or PPP ventures, consent of 70 and 80 percent of land owners becomes imperative.
The bill also puts forward the option of 40percent profit sharing with the owner in case of a sale price more than the compensation amount.
However, on the whole, you would get to see two contradicting changes through the bill. It is certain that there will be a reduction in real estate crimes across the nation. However, the bill would also lead to high costs leading to a burden for real estate developers. The high-costs in real estate, one among the prime areas in India’s growing economy would have a direct impact on the nation.
In view of the enhanced attempts of urbanization, the high-costs going to come out of the bill, could hinder such attempts. There could be delays in project completion in case of lack of sufficient funds. Such discrepancies might prevent public firms from collaborating with the Government for new ventures.
The land acquisition clauses mentioned in the bill are applicable to 50 acres of urban land or 100 acres of rural land. Therefore, commercial and residential buildings out of this limit would not be abiding by the bill.
Also, if planning to implement all the clauses mentioned, certain amendments in the existing system might become necessary.
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