Friday 27 September 2013

Rural Development & Real Estate Industry !!

Recently, the minister of Rural Development announced that within the next three years land records throughout the country would be modernized. So far the states of Tripura, Haryana, Karnataka and Gujarat have completed the modernization process. The Rural Development Ministry is responsible for the implementing the project which entails the computerizing and modernizing the land records.
This would permit individuals to view the land records, ownership along with other details online, hence acting as a prerequisite for the accelerating of the entire land buying process undertaken by private entities.
As per the minister of Rural Development the draft rules along with the guidelines of the new Land Acquisition Bill comprising the Right to Fair Compensation, Rehabilitation, Resettlement and Transparency within Land Acquisition Bill, would be available by the 30th of September. Subsequently, the initial guidelines would be uploaded within a public domain for almost a month.

Ministry Aims:
The ministry also believes that the process of registrations would be made transparent if the amendments to the Registration Act 1908 are passed. Additionally it would also help in determining the exact circle rates of land, which is presently ambiguous. These amendments would be complementary to the recent Land Bill.

Indutry’s reaction:
Concerns amid the industry has been increasing due to the land bill which envisages increased compensation for land losers and also includes provisions for resettlement and rehabilitation along with higher consent requirements. At present, members of the industry feel that the requirements for consent should be relaxed by being applicable only to people owning 80 per cent of the land and not to 80 per cent of land owners.
Therefore, some industry members continue to be rattled by the above retrospective clause within the Bill. However, the retrospective clause will be applicable only to projects which are at least five years old and within which the award has been announced but possession has not taken place, or in case the majority of land owners have not accepted the compensation. In cases such as these compensation would need to be paid as per the new laws.

State level amendments:
The ministry reiterated that while the respective state governments possess the authority to create their own laws pertaining to acquisition of land, the Bill would be used as the baseline. While the state governments can add to the provisions, like raising the consent clause to as much as 100 per cent from 80 per cent, they do not have the authority to dilute them.

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