Land Acquisition Bill Receives Widespread Consensus, Raises Concerns for Affordable Housing
NEW DELHI: Last week, all parties finally expressed their consensus on the Land Acquisition Bill. The bill underwent numerous amendments to reach this point and garner universal agreement.
The major turning point came when the government agreed to provide 50% compensation to landowners, a key demand of the BJP. This amendment was crucial for the bill's passage through parliament. Alongside the compensation clause, several other changes were incorporated into the Land Acquisition Bill.
The bill is now scheduled to be presented in the parliament during the second part of the budget session. With consensus from all parties, its passage is anticipated to be smooth.
The Land Acquisition Bill introduces compensation for farmers. The compensation rates are four times higher in rural areas and twice as much in urban areas, marking a significant shift in land acquisition policies.
Despite the consensus, the developers have expressed dissatisfaction with the bill. Some have already voiced their concerns and discontent.
Indiabulls director Ajit Mittal has stated that the implementation of the bill may face challenges. Mittal argues that the bill, despite receiving consensus, will encounter hurdles. He further predicts that property prices will rise as the land acquisition bill will inevitably increase land prices. Mittal believes the bill will not only make land more expensive but also complicate the land acquisition process.
Industry experts share similar fears, predicting that the new bill will render affordable housing an unattainable goal for builders. As developers will have to pay higher amounts to landowners, they will be unable to provide housing at reasonable rates. In essence, the land acquisition bill is expected to adversely affect the affordable housing sector.