Industry reacts to amendments to Land Acquisition Act

The recent amendments to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, is expected to ease the way for creating new hubs, townships and cities. The amendments are also expected to check the usual delay in development of any infrastructure project and will take the country a step closer to achieving the ‘Housing for All by 2022’.

All this is essential for the growth of the real estate industry, bringing better economic opportunities and improving the quality of life of the people living in these areas. Exempting industrial corridors from the consent clause can boost the commercial as well as other realty segments along such corridors.

The move generated positive response from the real estate players. Rohit Raj Modi, president, CREDAI NCR said, “We welcome this move which is expected to boost the much needed infrastructure development and housing construction in the country. This shows serious commitment from the government towards bolstering economic reforms. The Act is likely to benefit the affordable housing segment the most and would help achieve the government’s ambitious plan of ‘Housing for All’.”

Arvinder Singh, managing director, Agrante Realty Ltd says, “This decision is intended to boost the growth in the economy and accelerate as per Modi’s plan to urbanise the nation along with ‘Housing for All’. Now, there will be a lot more clarity for investors as nobody wants to take a regulatory risk.”

Pradeep Aggarwal, chairman, Signature Global, on the other hand said that this will help in checking the delay in development of infrastructure projects. He said, “This new order will finally replace the law that had hindered manufacturing and constrained the economic growth of the country and will allow companies to buy land effortlessly. This might also recover the hundreds of billions of dollars stuck in stalled projects.”

Dilip Singh Gaur, general manager, Maharashtra Chamber of Housing Industry (MCHI) says, “Earlier, issues related to land acquisition done for city’s expansion were generally not addressed but now this will change. Post the amendments, the act now meets the safeguard policy standards of international finance institutions such as the World Bank which can encourage private investors who generally stayed away from investing in the Public Private Partnership model.”

Ramesh Menon, director, Certes Realty Ltd says, “It is a welcome move. Such amendments always help in correcting some irregularities with bills. This can also mean that the government will be careful that it does not acquire more land than what is required.” However, he also advised that private real estate experts must also be consulted and the process should have a timeline. Government can take help of the National Buildings Construction Corporation Ltd (NBCC) or Engineers India Ltd (EIL) to implement the process. Along with this, the government should also work towards a single window clearance.”

The ordinance is expected to be cleared by the next parliamentary session in February 2015.

Source: Times of India
Dated: 30th December 2014

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