Land Acquisition Bill passed in Lok Sabha: Impact

on Real Estate
The controversial Land Acquisition Bill
was passed in Lok Sabha on March 10th,
2015,
with
as
many
as
nine
amendments made to the law enacted
by the UPA government in 2013. Many
of the amendments suggested were of
utmost significance while others were
controversial. The passage of the Bill
witnessed unruly scenes with the walkout of many opposition parties like the
Congress, Samajwadi Party, Trinamool Congress and Biju Janatha Dal.
However, the government would face a stiff task to get the Bill passed in
Rajya Sabha where it lacks a majority.
Some of the important amendments that were brought about in the Bill are
the following:
Land acquisition can be carried out only for the industrial corridors
proposed by the government. The ordinance brought about earlier had left a
window of ambiguity so as to suggest the inclusion of projects by private
players as well.
The land acquired for the industrial corridor cannot exceed 1 km on either
side of designated rail line or road.
Compulsory employment for one member of the affected farm labourers
family in the project coming up on the land that has been acquired from him.
Courts can take cognizance of offense by a government employee; the
ordinance had sought government sanction for prosecution of accused. This
makes it easier for a government employee below the rank of Joint Secretary
to be prosecuted.
Complaints related to compensation can be redressed locally.
Social infrastructure projects will exempted from the consent clause and
social impact assessment; the 2013 law had proposed that land could be
acquired for government projects and by private companies only after
getting 80 per cent consent of farmers affected (this is 70 per cent in case of
public-private partnerships).

 Drop in earlier proposal that required the government to acquire land for
private educational institutions and hospitals.
Removal of bottlenecks for industry acquisition of multi-cropped property.
Impact on Real Estate
The impact of the amendments in the Land Acquisition Bill is expected to
streamline the process of land acquisition so that land thus acquired can be
put to good use like in the development of industrial corridors along major
highways and expressways. Besides, by curtailing the land that can be
acquired for industrial corridors to within 1 km of designated railway lines or
roads, the government also intends to protect the interests of farmers with
land beyond this limit, besides providing employment to those farmers who
are forced to part with their land. However, this amendment is likely to have
an adverse impact on the Smart cities proposed to be developed along the
DMIC (Delhi-Mumbai Industrial Corridor). The removal of the content clause
will ease land acquisition restrictions thereby facilitating the smooth
progress of infrastructure projects. The same is applicable with regards to
acquiring of multi-cropped property. Hence the amendments proposed by
the government are expected to benefit the real estate sector immensely.

Source: CommonFloor.com
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