By Ruma Dubey

One news, bigger than the brawl of Shahrukh Khan, which unfortunately most channels failed to debate at prime time, was the revamped Land Acquisition, Rehabilitation and Resettlement Bill. And the Parliamentary Committee which has recommended the changes put India Inc on the back foot, fuming smoke and spewing fire.

Finally, the 117-year old law on acquisition of land might change. The draconian law which has today become a major bone of contention, jeopardizing development and most of the times, livelihood of the farmers, is in the final stages of getting a new face. And if this becomes a law, farmers might actually get the right due for their land and developers who have been making over 100% profit margins in realty projects, will now have to contend with lower margins. For people like you and me, well, the dream house threatens to remain just a dream as every cost rise for developer, will continue to get passed on to we the people.

A quick look at the highlights:

·         Acquisition only for linear infrastructure and irrigation, including multipurpose dams, and social sector infrastructure such as schools, hospitals and drinking water/sanitation projects constructed at state expense

·         No land for profit enterprise

·         Private firms must purchase land directly

·         All acquisition to be handled in close consultation with the local Gram Sabha and Panchayat.

·         Land is a state subject hence states to decide on the market value to be offered to farmers and villagers whose land is acquired.

·         Multi-member land-pricing authority should decide the cost of the land and the compensation instead of paying out a fixed amount.

·         The Panel has denied exemption even for the acquisition of land for infrastructure, mining and power projects, defence and special economic zones (SEZs).

·         Compensation will be four times the market value in rural areas and twice the market value in urban areas. Market value to be determined based on half the total number of sale deeds recorded in the preceding three years in which the highest sale price has been mentioned

·         Financial entitlements on Rehabilitation and resettlement to be linked to the consumer price index and also to be brought on a par with state government rates where ever the latter is offering higher relief.

·         Land if unused, to be returned to the owners in 5 years

·         16 central laws on acquisition for SEZs, railways, highways and defence establishments be brought under the bill.

What this means is that Govt will no longer have any say when any industry is to be set up, private, public or private-public, if it is for profit venture.  Profit enterprise will have to buy land by themselves form the land owners, from free market at market rates. This means Posco, Vedanta and the rest can stop expecting land acquisition by the Govt, they need to purchase the land themselves.

It is a human centric policy so naturally cannot be capitalist and hence anti-industry. In no developed economy is there acquisition of land. While companies are allowed to buy the land, India Inc is worried that when big acquisitions are required, to set up bigger enterprises, without the help of Govt,  they will not be able to get farm lands. They are miffed that the Govt is showing such disdain for the word, “profit”. Well, profit is not a dirty word, the only thing which the Govt is saying is that those who want land for profit, should do so on their own effort; why should thousands of people be thrown out of their homes for someone to make money?

Naturally, the builders lobby is angry, and they have all collectively termed it as detrimental to growth. They feel that the Govt is going to the other extreme to take care of the farmers at their cost. Well, when all the realtors feel the same, surely it means that the Govt is doing something right! Did you ever hear any of these developers complain when they acquired land at a pittance and sold it at over 100% gains to the buyers in Noida? What they are probably complaining about is the lower profit margin they might now earn. And that is good as long as money goes to the farmers.

Being pro-poor is never good for the market but it is good for the nation. And that is more important than the market. Builders are like sharks – they will always get their meat. And yes, we the middle class will continue to get stressed from both sides, no law protects us. Either we shift to the lower rung or to the higher rung, that’s probably the only way out!