MUMBAI: Apprehending that the home and project prices will skyrocket with the implementation of the Land Acquisition Bill, developers’ apex body CREDAI national Chairman Lalit Kumar Jain said it could at best be a “feel good “rather than a development booster.
Jain, who is also the CMD of Kumar Urban development Limited (KUL) said the Bill provisions like high compensation of twice-to-four times the market price, 70%-80% consent for private/PPP projects will all lead to political and land mafia intervention as has been experienced in Mumbai Slum rehabilitation scheme for 70% consent.
The price developers will have to pay for such elements will also unduly result in jacking up of the costs of PPP or infrastructure projects. The other provisions like rehabilitation of project affected, social impact assessments, ecological impact assessment, EIA green nods for projects will also create complications and delays instead of smoothening the execution of infrastructure projects, he said.
The entire process will take the country 20 years back instead of pushing it on the road to progress, he said and questioned the wisdom in rehabilitation packages for privately acquired lands with negotiated prices.
The new policy will also create a huge uncertainty and delay in land acquisition as it is subjected to 70/80% consent and consent of the Gram Sabha. There will invariably be an involvement of mediators like it happens in Slum Rehabilitation scheme to obtain 70% consents. And what is still worse is that the middlemen will walk away with cream, leaving farmers are high and dry.
The new policy will lead to uncertainties of the land acquisition process which will make execution of projects extremely difficult, he said.
Jain suggested that the government could work out a formula where in the land owners could be partners in development with a negotiated share in form of %plots in the developed projects. Very few projects will see light of the day due to delays and paucity of funds.
The government in a welfare state that India could work out a formula for negotiating the price and to ensure justice to land owners by making them partners in growth and development, he added.
The Confederation of Real Estate Developers’ Associations of India (CREDAI) is the apex body for private real estate developers in India. CREDAI represents over 8,800 developers through 20 states and 114 city chapters across the country. Its numerous initiatives and activities help developers come together and work towards better practices, improved customer service and a stronger realty industry.
Acting as the voice of India’s Real Estate industry, CREDAI has been the guiding force for the growing Real Estate sector in India bringing more transparency to rid the sector of its most potent virus, Corruption and Red-Tapism