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