by Mr. Mayank Saksena,
Jones Lang LaSalle India
The newly revised
Land Acquisition Bill is beneficial to land owners. The scope of minimum
required approval has been increased to 80% of the affected families. This
consent is mandatory only for private enterprises.
ISecondly, the
central Government's role in land acquisition has been curtailed as far as
private enterprises are concerned. These enterprises can now enter into their
own negotiations and arrive at the price to be set for acquisition.
Thirdly, different
techniques for arriving at the compensation to be paid have been provided. With
the intention of providing land owners with compensation which is closer to the
existing market rates, the Land Acquisition Bill now stipulates that local
circle rates will now need to be doubled and further multiplied by a factor of
two when it comes to land parcels in rural areas. This means that that the
acquisition price for land in rural areas will effectively be four times that
of the local circle rates. In urban areas, the circle rates will need to be
doubled in order to arrive at the acquisition price.
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| Mr. Mayank Saksena |
The new Bill also
requires a Social Impact Assessment (SIA) study to be carried out.
This study will have
to outline how the acquiring parties intend to use the land, and how the
original inhabitants or owners will be rehabilitated. The Act now also puts
very definite timelines on project completion and entire land utilization.
For developers /
promoters, the cost of land is going to increase significantly, impacting their
project costs and therefore margins.
Land valuations are
already high and by further increasing them, land acquisition becomes even more
difficult. Anyone without an existing land bank will now be looking at vastly
increased entry costs.
About the author..
Mr. Mayank Saksena,
Managing Director - Land Services, Jones Lang LaSalle India:
Mayank Saksena
Managing Director - Land Services
+91 124 460 5000
mayank.saksena@ap.jll.com
For Media Contact
Arun Chitnis
Head – Corporate
Communications & Media Relations
Jones Lang LaSalle
India
Level 6, Amar Avinash
Corporate Plaza
Bund Garden Road,
Pune 411001.
Tel: (020) 30930441
Fax: (020) 40196101
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Website:
www.joneslanglasalle.co.in
Blog:
www.joneslanglasalleblog.com/realestatecompass
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