Developers Demand Land Purchase Act amendment
The new government coming to power led by Narendra Modi will have to make a decision whether there should be certain amendments made towards the Land Acquisition Act of 2013. The decision is vital because land purchasing can become much more difficult as the prices will be increased four times. This is because infrastructure and real estate sectors have grumbled about being hit by the new law.
There have been several departments of the government who have claimed that the new law is a major source of constraint towards the development of infrastructure projects.
According to Rohit Raj Modi, as the players of the private sectors are purchasing the land from the land owners with mutual consent, any more benefit beyond that would make the acquisition of land very costly for the acquirers.
Therefore the provision for rehabilitation and resettlement should be abolished. There has been a lot of lobbying conducted by the industry body so that land acquisition by private players becomes completely excluded.
There have been other provisions as well such as the annuity of a considerable amount of money per month and the provision of employment for one member at least per family. This will stop the private sector from making any further investment. One of the senior developers have also mentioned that he doesn’t mind paying an extra 20% as long as there will not be any such provision that would prolong their liabilities.
Source: Prabhakar Sinha, TNN
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