Farmers at the losing end in land sale deals

February 5, 2007	(Be the first to rate this story!)  Loading ...
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Farmers are losing out on good deals in selling their properties to real estate developers thanks to the archaic laws on land use change in India.

Reliance Industries, for instance, bought land from local farmers at Rs. 20 lakh per acre for its SEZ in Haryana, when the prevailing market price is around Rs. 28 to 30 lakh per acre. Landlords in Dadri and Ghaziabad are even worse off, selling land at Rs. 10 -12 lakh per acre, when current rates hover around Rs. 25 lakh per acre.

The local district administration has the authority to approve a change in land use (CLU), and farmers are harassed to furnish almost 12 documents to support their ownership of the land. Most of these documents, like the khata-khautoni, have become out of date, and not in the possession of landowners. In fact, there are cases where approval for CLU has not been granted even when farmers have submitted all the documents.

However, landowners in those areas where the Government has tied up with private real estate developers or companies to set up Special Economic Zones (SEZs) have been spared. They are not required to submit too many documents, and in some cases, even an affidavit has been considered for an official sale.

Nevertheless, farmers are still not getting their due, and real estate developers are getting away with paying less, thanks to the low circle rates fixed by the state governments vis-a vis market rates.

The Communist Party of India (M) recently called upon the government to review the Land Acquisition Act of 1894 to protect land losers, tenants and agricultural workers displaced by any industrial activity, especially in the case of SEZs. The Left parties have urged a complete rehabilitation policy from the government for affected farmers.

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News Published Under:   Real Estate India, Special Economic Zones, Real Estate Developers |

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