Maharashtra Revenue Dept puts up dissent note against Centre’s Land Acquisition Bill

The Maharashtra State Revenue Department has put in a dissent note against the new Land Acquisition Bill, which has been cleared by the Union Cabinet.

It has computed that the land prices in the State could increase six times if the Bill is allowed to be passed in its present form.

The Union Government wants the Bill to be passed in the current session of parliament so that it can replace the draconian Land Acquisition Act of 1894.

A senior Maharashtra Government official told Business Line that if the land prices increase by six times, all planned and future industrial, irrigation and infrastructure projects would become unviable.

“Although the dissent note is from the Revenue Department, other departments such as Industries and Water Resources have also expressed their displeasure about the Bill,” the official said.

Discretionary powers

The Bill aims to reduce Government's discretionary powers in acquiring land by narrowing the definition of public purpose.

The Bill makes approval of at least 80 per cent landowners mandatory if acquisition is for a private project.

The official said the rule of getting 80 per cent consent from the landowners could prove to be a major hindrance for private projects. It would be a tall order to win over 80 per cent of landowners for a project, the official said.

Another official from the Industries Department said companies are unclear as to what the passage of the Bill would actually mean for their business.

Jurisdiction

The question worrying them is that, does the Centre have the jurisdiction to pass this Bill considering that “land” is a State subject, the official said.

The provisions of the Bill are such that, land would become a cumbersome asset on the company's balance sheet.

Even if a company gets acquired, the relief and rehabilitation liabilities will still have to be carried over by the new company for a decade, the official said.

>rahulw@thehindu.co.in

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