Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Wednesday 28 July 2021

Simplifying Land Acquisition

 


 

 

Context :

Panel asks Road Ministry to simplify land acquisition, contract award norms / BL / 29 July 2021

 

Extract :

Ø  A mechanism for UPFRONT PAYMENT to the land-owner can be worked out to guarantee a payment in the form of ANNUITY FOR THE LONG-TERM, financed through land value captured by the State Government

 

Ø  The Committee believes that such a system will reduce land acquisition litigation which cause time and cost overrun, the report said

 

 

My Take :

 

More than 6 YEARS ago, I sent following e-mail to Shri Nitin Gadkariji :

Ø  Land Acquisition Solution …………………………………..( 05 May 2015 )

 

Extract :

 

Dear Nitinji,

 

 

Farmers are opposing this bill for the following reasons :

 

      >    Low / Inadequate compensation

 

      >    Once land is sold , not being able to benefit from the appreciation of land

             value , when the project comes up

            

       

      >   Private parties bought their land at low price and then sold it ( mostly to

           private builders ) for a whooping profit

           

     

 

I think there is a simple solution to the concerns expressed by the farmers . Please consider the following :

 

       >     Each project will be tied to a specific SPV , created for that purpose only

 

      >    In the first instance, affected farmers will create a" Cooperative Society " 

 

      >   Co-operative Society will issue shares to each land-donor farmer , in

           proportion to the QUANTITY /  VALUE of the land donated by him

            

      >   In turn , Co-operative Society will receive shares in the SPV , equal to the

           value of the land + a cash compensation equal to 4 times the value of the

           land

 

      >  Farmer's shares of Cooperative Society cannot be sold in open market

          before 5 years but can be gifted  to wife / Children

         

 

      >  Shares of Cooperative Society in the SPV itself cannot be sold for next 10

          years

 

      >  The " Cash-Value Compensation " received by the Co-operative Society ( ie

          4 times the land value  ),  will be deployed as follows :

           

             *  To be immediately paid in cash to the farmers............ 2 times

 

             *  To be deposited in the Jan-Dhan Account of each farmer as FIXED

                 DEPOSIT ( with 10 @ interest ).............2 times

 

               

Dear Gadkariji ,

 

 

My proposal will ensure :

 

            >     Immediate attractive compensation to farmers

 

           >     Recurring income from FD in Jan Dhan account ( for a sustained

                  livelihood )

 

           >     Continued sense of " Ownership " in the SPV / Project , which will

                  facilitate QUICK implementation  without resistance

 

           >     Willing farmers themselves canvassing / convincing " Reluctant "

                  farmers

 

           >     No fear of private parties benefiting by appreciation of land value

 

           >    A sense of " Enlarged Participation " thru Co-operative Society

                 representing them on the Board of Directors of SPV

                 

 

           >    Board Representation enabling farmers to ensure that honest

                 decisions are being taken

 

 

           PLEASE , GIVE  THIS  SUGGESTION   A  CONSIDERATION 

 

With regards,

Hemen Parekh  /  hcp@RecruitGuru.com  /  29 July 2021

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