Context :
Rajasthan
set to be first State in India to bring in an innovative way to acquire land ..
BL … 06 Oct 2024
Extract :
Rajasthan is all set to become first State in India to
bring in land aggregation through a legal mechanism. This aims to assist
industries and help the farmers.
“We will introduce a Bill in the State Assembly and based on that
a policy will be in place,” Rajasthan Chief Minister BhajanLal Sharma said when businessline asked
about the availability of land for industries in the State.
“The focus of the State
government is to not merely to sign MoUs for investment intentions, but to realise them into the projects on the ground,” Sharma said.
Policy for ‘Aggregation
of Private Land’ under a proposed law is one such incentive. The State
government is looking to introduce it before the summit. According to
officials, under this, government will aggregate private
land from the interested person(s) and develop it.
Once the land is developed, the original landowner will get a minimum of 25 per cent of the
developed land as compensation.
This developed land can be used by the original owner for his
own use, or he/she can let out/lease/sell it to third parties to fetch the
maximum returns.
Proposed legislation
Officials explained that the proposed legislation is not only
aimed at making land acquisition easier but more than that, it aims to make farmers partners
in the development process, wherein they
get a portion of the developed land at the same place and by virtue of that, they continue
their livelihood activities on the same land.
More so, “the value of their portion of the developed land as
well as their remaining land (which they have not surrendered with the
government) will increase manifolds, thereby increasing their income and
earnings multiple times,” an official said.
The proposed legislation envisages that
private land for industrial parks/areas, expansion thereof, trunk
infrastructure, and other public infrastructure will be developed on either fully private land to be
aggregated under this legal framework or partly private land or partly
government and partly private land.
It provides to set up ‘The Land Aggregation and Development
Authority’ as the competent authority for the aggregation of private land and
development thereof. This authority will aggregate the private land based on the scheme/projects either conceive suo-moto or request
received from any appropriate authority/requiring body.
The
aggregated land will be developed in affixed time frame. A total of 5 years has been prescribed to utilise the land by
the concerned authority otherwise land will be vested with Land Aggregation
Authority.
An Appellate Authority shall also be constituted to address
landowner grievances efficiently and outside of court. If no one is ready
to come up with the proposal of land aggregation, then he or she may retain
his/her land.
Some 9 years ago , on this
subject, I sent following email to Shri Nitin Gadkariji :
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
==================================================
When I
asked ChatGPT to compare the proposed Rajasthan Law with my 9 year old suggestion
, here is how it commented :
Here's a tabulated comparison of the
proposed Rajasthan Land Acquisition Law and your 2015 suggestion:
|
Feature
|
Rajasthan Land Acquisition Law
|
Your 2015 Suggestion
|
Comments
|
|
Compensation to Farmers
|
Minimum of 25% of
developed land to the original landowner.
|
Cash compensation equal
to 4 times the land value, plus fixed deposits.
|
Both approaches focus on
providing fair compensation, but your suggestion includes a mix of cash and fixed deposits for
immediate and recurring income.
|
|
Participation of Farmers
|
Farmers become partners
in the development process, retaining developed land.
|
Farmers form a
Cooperative Society and receive shares in the SPV (Special Purpose Vehicle).
|
The proposed law
provides farmers with direct developed land, while
your approach uses a cooperative model for collective ownership and benefits.
|
|
Ownership and Long-term Benefits
|
Farmers retain ownership
of the developed portion and can lease/sell.
|
Farmers own shares in
the Cooperative Society and SPV, ensuring long-term benefits.
|
Both models allow
farmers to benefit from future value appreciation, but
your approach uses an SPV structure to formalize ownership and
decision-making.
|
|
Development Authority
|
Establishes a 'Land
Aggregation and Development Authority' to oversee the process.
|
No central authority
proposed; management through Cooperative Society and SPV.
|
Rajasthan's approach
centralizes control through a government authority, while yours decentralizes it to farmers
themselves through cooperatives.
|
|
Timeframe for Land Utilization
|
Land must be utilized
within 5 years; otherwise, it reverts to the Land Aggregation Authority.
|
No specific timeframe
mentioned; long-term ownership through Cooperative and SPV structure.
|
The law sets clear
deadlines for development, ensuring accountability, while your approach is
flexible but may need mechanisms for timely development.
|
|
Dispute Resolution
|
An Appellate Authority
will address grievances outside of court.
|
No specific dispute
resolution mechanism mentioned.
|
The Rajasthan law
includes a formal grievance mechanism, ensuring swift resolution, while your
suggestion would require such a system for efficiency.
|
|
Type of Land for Aggregation
|
Aggregation for
industrial parks, public infrastructure, and trunk infrastructure.
|
Focused on specific
projects tied to SPVs, which could include industrial or public use.
|
Both aim at industrial
development, but the Rajasthan law explicitly broadens the scope for
different types of infrastructure projects.
|
|
Flexibility for Farmers
|
Farmers retain the
option to hold their land if they do not agree to aggregation.
|
Farmers are encouraged
to join but have control through Cooperative Society representation.
|
Both provide
flexibility; however, your approach emphasizes
farmer-led initiatives, while the Rajasthan law offers a legal opt-out
mechanism.
|
|
Encouragement of Underdeveloped Areas
|
Targets development in
underdeveloped areas like Banswara and along major corridors.
|
No specific focus on
geographic areas; depends on the project location.
|
Rajasthan’s policy
explicitly targets development in underserved regions, while your suggestion remains adaptable to any project
location.
|
Comment:
The proposed Rajasthan Land
Acquisition Law aligns
closely with your 2015 suggestion in terms of :
Ø
prioritizing farmer compensation,
Ø
long-term benefits,
and the
Ø
aggregation of land for
development.
However, the law centralizes control
through a government authority and a
defined legal framework, while your proposal empowers farmers
directly
through cooperatives and SPVs.
Both
approaches have merit, and Rajasthan’s law could incorporate
elements of your cooperative model to
further enhance farmer
participation and ownership.
With regards,
Hemen Parekh
www.My-Teacher.in / 07
Oct 2024
