The real estate sector has welcomed the amendment ordinance in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013, saying it will boost affordable housing in 2015.
As per the amended Act, the authority does not need to get consent from farmers while acquiring their land for construction of affordable housing, industrial corridors, defence, infrastructure and social/rural infrastructure.
Pankaj Kapoor, managing director at Liases Foras, the real estate research firm told dna that the move has removed the roadblock for affordable housing. "A huge chunk of land will be available... Due to shortage of land and high prices, property rates have been escalating. If land is available at reasonable rate, property prices too will ease," he added.
He also said in India there are anyway a lot of hurdles in the way of development. "At times, we have to be authoritative for the national cause. But it should not be autocratic. Instead of giving more power to one authority, the government should have imposed tax on the vacant land. That will compel the landowner to either sell it or pay the hefty tax. Land prices have shot up because of speculation on them," Kapoor said.
Others, among them Shriram Properties MD M Murali and chairman & MD of CBRE South Asia Pvt Ltd Anshuman Magazine, too welcomed the amendment.
"I am hopeful of the new norms easing the inordinate delays seen so far in land acquisition process for large-scale infrastructure and affordable housing projects. The infra industry, in particular, is expected to gain much from these changes, as will housing for the poor. It could perhaps bring in more segments of organised real estate within the ambit of such faster processing norms, which would be beneficial for construction activity across the country," said Magazine.
However, there are several who are upset over government's move too. President of Shetakari Kruti Samiti Nansaheb Patil termed the Act authoritarian, saying it will lead to dictatorship. "The amendment favours corporate and real estate interests. The exemptions will lead to forcible land acquisition and diversion of land acquired. The move is anti-farmer, landowners will be deprived of rightful compensation. No one can force farmers to sell their inherited land to anyone, including the government. It is an encroachment over the person's right to life and livelihood," he added.
Patil also said by diluting the Act the government had sent out a message that "it is a government of the corporates by the corporates and for the corporates. "And whatever fund was given by these said corporate houses to BJP preceding the Lok Sabha elections, the party is returning it by relaxing and bending rules in their favour at the cost of farmers," Patil alleged.
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