DLF project in trouble over low compensation for land takeover

September 13, 2008	(Be the first to rate this story!)  Loading ...
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Farmers affected by DLF’s township project in Dankuni, Bengal are resisting the government’s move to take over land at less than one-fourth of the cost that the company is offering. Trinamool Congress has already started mobilizing local farmers against the government. The state government is charging DLF Rs 56 lakh per acre for the Rs 33,000 crore projects. But to the farmers, it has decided to pay a paltry sum of Rs 7 lakh per acre for fallow land, Rs 12 lakh per acre for multi-crop land and Rs 14 lakh per acre for homesteads.

DLF had entered into an agreement with KMDA to build the new township, which, when completed, would become the country’s largest public-private-partnership project. The real estate developer has also assured one job to every displaced family. It bagged the project in February 2007. But till now, the government has given its consent for the acquisition of only 20 acres. Experts feel that like other projects in Bengal, DLF’s township plans are getting delayed because of the state government’s policy of acquiring land instead of allowing companies to enter the fray. If the government allows developers to directly approach farmers, land can be taken over smoothly, a senior builder said.

A source said that DLF could pay around Rs 40 lakh per acre directly to the farmers. The company would develop drainage and other infrastructure with rest of the amount. By any standards, Rs 40 lakh per acre and a job per displaced family was an attractive compensation, the source added. As the project is huge, the development cost wouldn’t be very high. This would allow developer to pass on a substantial amount to farmers. Urban development minister Asok Bhattacharya justified this. “Kolkata Metropolitan Development Authority (KMDA) is preparing the infrastructure, including drainage and water supply. We also want to develop the area,” he said. Bhattacharya argued that most land in the area does not belong to farmers, but to “syndicates”, who are groups of real estate developers or touts. He admitted the farmers weren’t happy with the rates.

News Published Under:   Real Estate Developers |

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