The state assembly recently passed the Bill to amend the state's 37-year old Act to allow direct purchase of farm land by private investors on a “mutually agreed†rate of payment to the land owner. This Bill, which was interestingly passed without a discussion in the assembly, relieves the government of the old responsibility to acquire land under the central law and hand it over to the industrial house or developer. The old practice posed the problem of compensation, which the farmers in Rajasthan and other neighbouring states have been resisting as “poor†compensation. The farmers too have been demanding the market forces to operate in the sale and purchase of land, and that it be left to the seller and buyer without state intervention. The Supreme Court also had in a recent ruling held that the government should acquire land on “adequate†compensation. The UPA Government and the National Advisory Council have for some time been debating the need to amend the central land acquisition Act; but no decision yet.
The amending Bill also removed a provision in Section 17 of the state law, which put a ceiling on land acquisition. It means there would be no limit or ceiling on such private transactions, and will depend on the will of the farmer and the buyer's capacity to purchase land in a given area. Now, such land can also be purchased not only for industrial development but also for housing and other activities, by private colonisers and developers.
The liberalization of policy has its risks and disadvantages, too. One major minus point is that many more farmers would be tempted to sell away their agricultural land at attractive prices. Money will have its lures, and the farmer might have the dream to quickly become a “crorepatiâ€. This would lead to substantial shrinking of land available for producing foodgrains, pulses and oilseeds, as also cotton in the state. Rajasthan already has the perpetual problem of foodgrain shortages, coupled with the perennial drought situation in many districts of the desert state. Also, the state is short in cultivable land, and vast areas are barren. The private buyer would only purchase “good†land. The potentially large-scale transfer of farm land to industry would aggravate the problem of food scarcities for the large population of the poor, particularly those living below poverty line. The state government may not be unaware of the accentuating situation, but has decided to ignore it in its zest to promote industrial development.
The other problem would be the free hand to land mafia to usurp vast areas of agricultural land in the state. There will be no role for the state government to ensure a balance in this mad race, and the land once purchased by the buyer would be used for purposes beyond any state regulation. This might generate speculation and large-scale deals where the land might be held for a future day to get higher returns on re-sale for the builder. The only saving clause in the amended law is that the land so acquired would have to be used within three years of its purchase. The state may also think of generating revenue by enhancing the registration for such land deals. (IPA)
INVESTORS TO BUY LAND DIRECTLY FROM FARMERS
RAJASTHAN SETS TREND FOR OTHER STATES
Ahtesham Qureshy - 2010-09-23 12:42
JAIPUR: The Rajasthan government has paved the way for the industrialists and other investors to purchase agricultural land directly from the “khatidars†- the landowners in villages. This major step has been facilitated by amending the state law on land ceiling. The state government has thus found a way out without waiting for the central government and Parliament to amend the archaic 1894 Act on land acquisition. This might become a model for other states like West Bengal who have been experiencing major problems and agitation by farmers in acquiring land for industrial growth.