arvind nandan - larr
TRANSCRIPT
KEY DIFFERENCES:
LAND ACQUISITION ACT 1894
21 November 2013
LAND ACQUISITION ACT 1894
VS.
RIGHT TO FAIR COMPENSATION & 21 November 2013
TRANSPARENCY IN R&R RULES
BLACKARROW CONFERENCES
C&WI PRESENTATION
EVOLUTION OF LAND ACQUISITION LAWSTHE HISTORY…
1824
BENGAL REGULATION
ACT
1857
Extended to Undivided British
I di
1894
LAND ACQUISITION
ACT
1962/67/84
Major Amendments to
LAAACTTo free up salt
pan etc
India ACT LAA
2007
R ttl t &
2009
LAA
2011
N ti l
2011
LARR Bill i L k Resettlement & Rehabilitation
Bill
LAA (Amendment)
Bill 2007 passed in Lok Sabha but
lapsed due to
National Advisory Council
(NAC) recommendation integrating land
LARR Bill in LokSabha for
replacing LAA 1894
pdissolution of Lok Sabha for
elections
g gacquisition and
R&R
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C&WI PRESENTATION
EVOLUTION OF LAND ACQUISITION LAWSBUT WHY….
NO SAY OR PARTICIPATION
MONEY IS NEVER
ENOUGH
SHORTCHANGED: MULTI-FOLD INSECURITY
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
WHAT IT PROPOSES
Combines Rehabilitation & Resettlement (R&R) with Land AcquisitionCombines Rehabilitation & Resettlement (R&R) with Land Acquisition• Proposes monetary as well as material compensation
Public purpose – once stated, can’t be changed• Consent of 70-80% of the project affected families if govt. acquires land for private companies
for “public purposes”• Govt. will not acquire land for private companies for “private purposes”
Land Acquisition Price• 2 times MV for Urban Land• 4 times MV for Rural Land
Multi crop or irrigated land – can’t be acquired
Allows for exceptional ‘Urgency’ acquisition by govt. by surpassing provisions
Land returned to the original owner – if not used in 5 years
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C&WI PRESENTATION
KEY DIFFERENCES VIS-À-VIS LAA 1894
Premise
Procedure
Urgency Clause
Rehabilitation & ResettlementRehabilitation & Resettlement
Compensation
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RESEARCH AND BUSINESS ANALYTICSKEY DIFFERENCES
The PremiseThe Premise
LAA NEW RULES
• COVERS ONLY LAND ACQUISITION
ACQUISITION BY THE GOVERNMENT
• COVERS LAND ACQUISTION + R&R
• TRANSFER MODEs• ACQUISITION BY THE GOVERNMENT FOR PUBLIC PURPOSE & SEPARATELY FOR COMPANIES
• PUBLIC PURPOSE:
• TRANSFER MODEs• COMPULSORY (PUBLIC PURPOSE),• PART-COMPULSORY (NEEDS 80%
CONSENT FOR PROD. OF PUBLIC GOODS/PPP/PVT. CORP FOR PRODUCTION OF PUBLIC GOODS)• PUBLIC PURPOSE:
• VILLAGE SITES, TOWN OR RURALPLANNING,
• ‘PLANNED DEVELOPMENT• RESIDENCE OF POOR / LANDLESS
PRODUCTION OF PUBLIC GOODS)• PRIVATE SALE (100/50 ACRES IN
RURAL/URBAN AREAS) – ONLY R&R
• PUBLIC PURPOSE• RESIDENCE OF POOR / LANDLESS
DISPLACED BY NATURAL CALAMITIES/ GOVT. SCHEME
• SCHEME OF DEVELOPMENT’ LOCATING APUBLIC OFFICE/ CORPORATION OWNED
• STRATEGIC PURPOSES; • INFRASTRUCTURE (RAILWAYS, HIGHWAYS, PORTS,
POWER STATIONS, IRRIGATION PROJECTS)• PROJECT AFFECTED PEOPLE; • DEVELOPMENT;
BY THE STATE;
• RESIDENTIAL USE BY COMMUNITIES AFFECTED BYNATURAL CALAMITIES/GOVT. SCHEMES
7CUSHMAN & WAKEFIELD
C&WI PRESENTATIONKEY DIFFERENCES
The Procedure of Land AcquisitionThe Procedure of Land Acquisition
LAA
• Preliminary notification by Distt
NEW RULES
• 3 Steps preceding the process of LAA• Preliminary notification by Distt. Collector
• Invitation of objections
p p g p
• Appropriate govt. to conduct Social Impact Assessment (SIA) in consultation with Gram Sabha or equivalent urban body. SIA report valid for 1 year.
• Adjudication of objections
• Issue of Final notification
valid for 1 year.
• Evaluation of SIA report by ‘Expert Group’: Members to ‘individually’ express opinion on whether to go-ahead or not
Issue of Final notification
• Acquisition by Distt. Collector• Examination of land acquisition proposal by a
7-member Committee appointed by Appropriate Govt.: Ascertain legitimacy and bonafide ‘public purpose’. Also verifies consent of affected familiesconsent of affected families
• Prelim Notification contains the statement of nature of public purpose & summary of SIA report
• Appropriate govt. issues declaration regarding public purpose
• Collector issues notification for R&R
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C&WI PRESENTATIONKEY DIFFERENCES
Urgency ClauseUrgency Clause
LAA NEW RULESLAA
• Govt can acquire land for ‘urgency’
NEW RULES
• Urgency can be ONLY for acquiring ‘minimum area’ for
• After 15 days from Preliminary Notice (even if Collector has not issued an award)
minimum area for• Defence of India• National Security• Natural Calamities
• NO DETAIL OF WHAT URGENCY CIRCUMSTANCES MAY BE
• Collector must allow 48 hours’ notice to
• The govt. may exclude SIA and R&R provisions
• Additionally, provides for another 75% affected persons & pay 80% of the estimated compensation
y, pof the market value of the property to be paid to a person so displaced
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C&WI PRESENTATIONKEY DIFFERENCES
R&RR&R
LAA
• Does not cover R&R
NEW RULES
• R&R IN 3 SCENARIOS:Does not cover R&R R&R IN 3 SCENARIOS:• ACQUIRED BY GOVT.
• ACQUIRED BY PRIVATE CORPORATION BY ITSELF• 100 acres in a rural area• 50 acres in an urban area• 50 acres in an urban area
• PRIVATE CORPORATION APPROACHES GOVT FORASSISTANCE IN ACQUIRING A CERTAIN PORTION
• R&R’s DISTINCT FEATURES• R&R s DISTINCT FEATURES• Settlement for Non-owners
• Recognizes Community Property Rights (CPR)
In urban areas families that have resided for• In urban areas, families that have resided for more than 3 years, or whose livelihood is affected
• PROCESS• Administrator surveys & prepares R&R draft:
Vetted by Gram Sabha or MunicipalityVetted by Gram Sabha or Municipality
• Draft sent to Collector
• Collector shares with R&R Committee and R&R Commissioner
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Commissioner
C&WI PRESENTATIONKEY DIFFERENCES
CompensationCompensation
LAA NEW RULES
• LAND ACQUISITION• Market value
• Quantifiable losses
• LAND ACQUISITION• Market Value is the basis, but
• 4 times the MV in rural areas• Quantifiable losses
• 30% of MV as solatium
• 4 times the MV in rural areas• 2 times of MV in urban areas• Plus, the value of assets fixed to
land• R&R COMPENSATION
• None • MV decided by ‘higher of registered sale deeds OR value in surrounding areas’g
• R&R COMPENSATION: • For all displaced people including
non-owners whose livelihoodnon-owners whose livelihood depends on land
• Includes subsistence allowance, annuity for 20 years, constructed house etc
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house, etc.
C&WI PRESENTATIONCOMPENSATION PACKAGE FOR R&R
Subsistence allowance: Rs. 3,000 / month / family for 12 months
Annuity: Rs. 2,000 / month / family for 20 years, with index for inflation
A t t d hA constructed house • 150 sq. mt. in rural areas• 50 sq. mt. in urban areas
Mandatory employment for one person or Rs. 5 lakhs settlement
Transportation: Rs. 50,000 per family
Exclusively for land owners parting with land• 20% of the appreciated value for every transfer of land within 10 years
20% f th d l d l d if i d f b i ti• 20% of the developed land – if acquired for urbanization• Offer of shares up to 25% of the compensation amount• 1 acre of land / family – if acquired for irrigation projects
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C&WI PRESENTATION
COMMERCIAL IMPACT ON PRICING, VALUATIONS AND INVESTMENT
Rural Land
Urban Land
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
RURAL MATH-DYNAMIC-ONOMICS
SAMPLE WORKING FOR RURAL LAND 100 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing)
Rs. Per sft
MV Of Land 40,46,823 93 93
Compensation for Land as per LARR (4 times) 1,61,87,200 372 121
Value of Fixed Assets 6,53,396 15 15 Compensation per family occupying the land (additional for 1 year) 72,000 2 -
Annuity for 20 yrs 10,32,851 24 -
Transportation @ 50,000 per family 1,00,000 2 -
Settlement @ 5 lakhs 10,00,000 23 -
Construction Cost of House (150 sq.mt plinth area) 27,44,820 63 -
Total LA & R&R 2,17,90,267 500 136
New Construction cost 4,35,59,755 1,000 1,000
Administrative costs 1,08,89,939 250 250
Total cost of development 7 62 39 961 1 750 1 386Total cost of development 7,62,39,961 1,750 1,386
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
RURAL MATH-DYNAMIC-ONOMICS
LAND PROCUREMENT: > 5 TIMES OF MV
SAMPLE WORKING FOR RURAL LAND 100 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing)
Rs. Per sft
LAND PROCUREMENT: > 5 TIMES OF MVMV Of Land 40,46,823 93 93
Compensation for Land as per LARR (4 times) 1,61,87,200 372 121
Value of Fixed Assets 6,53,396 15 15 Compensation per family occupying the land (additional for 1 year) 72,000 2 -
Annuity for 20 yrs 10,32,851 24 -
Transportation @ 50,000 per family 1,00,000 2 -
Settlement @ 5 lakhs 10,00,000 23 -
Construction Cost of House (150 sq.mt plinth area) 27,44,820 63 -
Total LA & R&R 2,17,90,267 500 136
New Construction cost 4,35,59,755 1,000 1,000
Administrative costs 1,08,89,939 250 250
Total cost of development 7 62 39 961 1 750 1 386Total cost of development 7,62,39,961 1,750 1,386
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
RURAL MATH-DYNAMIC-ONOMICS
LAND PROCUREMENT: > 5 TIMES OF MV
SAMPLE WORKING FOR RURAL LAND 100 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing)
Rs. Per sft
LAND PROCUREMENT: > 5 TIMES OF MV
ACQUISITION: > 3.5 TIMES COSTLIER
MV Of Land 40,46,823 93 93
Compensation for Land as per LARR (4 times) 1,61,87,200 372 121
Value of Fixed Assets 6,53,396 15 15 Compensation per family occupying the land (additional for 1 year) 72,000 2 -
Annuity for 20 yrs 10,32,851 24 -
Transportation @ 50,000 per family 1,00,000 2 -
Settlement @ 5 lakhs 10,00,000 23 -
Construction Cost of House (150 sq.mt plinth area) 27,44,820 63 -
Total LA & R&R 2,17,90,267 500 136
New Construction cost 4,35,59,755 1,000 1,000
Administrative costs 1,08,89,939 250 250
Total cost of development 7 62 39 961 1 750 1 386Total cost of development 7,62,39,961 1,750 1,386
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
RURAL MATH-DYNAMIC-ONOMICSD il’ Ad L d C l
LAND PROCUREMENT: > 5 TIMES OF MV
Devil’s Advocate: Land Cartels
SAMPLE WORKING FOR RURAL LAND 100 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing)
Rs. Per sft
LAND PROCUREMENT: > 5 TIMES OF MV
ACQUISITION: > 3.5 TIMES THANCURRENT LAA VALUE
LAND TO COMPRISE >23% OF PRICE
MV Of Land 40,46,823 93 93
Compensation for Land as per LARR (4 times) 1,61,87,200 372 121
Value of Fixed Assets 6,53,396 15 15 Compensation per family occupying the land (additional for 1 year) 72,000 2 -
Annuity for 20 yrs 10,32,851 24 -
Transportation @ 50,000 per family 1,00,000 2 -
Settlement @ 5 lakhs 10,00,000 23 -
Construction Cost of House (150 sq.mt plinth area) 27,44,820 63 -
Total LA & R&R 2,17,90,267 500 136
New Construction cost 4,35,59,755 1,000 1,000
Administrative costs 1,08,89,939 250 250
Total cost of development 7 62 39 961 1 750 1 386Total cost of development 7,62,39,961 1,750 1,386
Final Price with 20% return 9,14,87,953 2,100 1,663
Rentalized Value (Rs./month) 9,14,880 21 17
• Land comprises 8% of price as per existing LAA
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
RURAL MATH-DYNAMIC-ONOMICS
SAMPLE WORKING FOR RURAL LAND 100 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing)
Rs. Per sft
LAND PROCUREMENT: > 5 TIMES OF MVMV Of Land 40,46,823 93 93
Compensation for Land as per LARR (4 times) 1,61,87,200 372 121
Value of Fixed Assets 6,53,396 15 15 Compensation per family occupying the land (additional for 1 year) 72,000 2 -
LAND PROCUREMENT: > 5 TIMES OF MV
ACQUISITION: > 3.5 TIMES THANCURRENT LAA VALUE
LAND TO COMPRISE 23% OF PRICEAnnuity for 20 yrs 10,32,851 24 -
Transportation @ 50,000 per family 1,00,000 2 -
Settlement @ 5 lakhs 10,00,000 23 -
Construction Cost of House (150 sq.mt plinth area) 27,44,820 63 -
PRICE SWING: 25% UPWARDS
Total LA & R&R 2,17,90,267 500 136
New Construction cost 4,35,59,755 1,000 1,000
Administrative costs 1,08,89,939 250 250
Total cost of development 7 62 39 961 1 750 1 386Total cost of development 7,62,39,961 1,750 1,386
Final Price with 20% return 9,14,87,953 2,100 1,663
Rentalized Value (Rs./month) 9,14,880 21 17
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
RURAL MATH-DYNAMIC-ONOMICS
SAMPLE WORKING FOR RURAL LAND 100 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing)
Rs. Per sft
LAND PROCUREMENT: > 5 TIMES OF MVMV Of Land 40,46,823 93 93
Compensation for Land as per LARR (4 times) 1,61,87,200 372 121
Value of Fixed Assets 6,53,396 15 15 Compensation per family occupying the land (additional for 1 year) 72,000 2 -
LAND PROCUREMENT: > 5 TIMES OF MV
ACQUISITION: > 3.5 TIMES THANCURRENT LAA VALUE
LAND TO COMPRISE 23% OF PRICEAnnuity for 20 yrs 10,32,851 24 -
Transportation @ 50,000 per family 1,00,000 2 -
Settlement @ 5 lakhs 10,00,000 23 -
Construction Cost of House (150 sq.mt plinth area) 27,44,820 63 -
PRICE SWING: 25% UPWARDS
YIELD COMPRESSION: 12% -- sub 10%
Total LA & R&R 2,17,90,267 500 136
New Construction cost 4,35,59,755 1,000 1,000
Administrative costs 1,08,89,939 250 250
Total cost of development 7 62 39 961 1 750 1 386Total cost of development 7,62,39,961 1,750 1,386
Final Price with 20% return 9,14,87,953 2,100 1,663
Rentalized Value (Rs./month) 9,14,880 21 17
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
URBAN MATH-DYNAMIC-ONOMICS
SAMPLE WORKING FOR URBAN LAND 50 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing) Rs. Per
sft
MV Of Land 8,09,36,000 1,858 1,858
Compensation for Land as per LARR (2 times) 16,18,72,000 3,716 2,415
Value of Fixed Assets 1,79,68,399 412 412 Compensation per family occupying the land (additional for 1 year) 6,55,582 15 -year) 6,55,582 15
Annuity for 20 yrs 94,04,414 216 -
Transportation @ 50,000 per family 9,10,530 21 -
Settlement @ 5 lakhs 91,05,300 209 -
Construction Cost of House (50 sq.mt plinth area) 1,37,21,323 315 -
Total LA & R&R 21,36,37,547 4,904 2,828
New Construction cost 8,71,19,510 2,000 2,000
Administrative costs 2,17,79,878 500 500
Total cost of development 32,25,36,935 7,404 5,328
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
URBAN MATH-DYNAMIC-ONOMICS
LAND PROCUREMENT: > 2 5 X OF MV
SAMPLE WORKING FOR URBAN LAND 50 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing) Rs. Per
sftLAND PROCUREMENT: > 2.5 X OF MV
MV Of Land 8,09,36,000 1,858 1,858
Compensation for Land as per LARR (2 times) 16,18,72,000 3,716 2,415
Value of Fixed Assets 1,79,68,399 412 412 Compensation per family occupying the land (additional for 1 year) 6,55,582 15 -year) 6,55,582 15
Annuity for 20 yrs 94,04,414 216 -
Transportation @ 50,000 per family 9,10,530 21 -
Settlement @ 5 lakhs 91,05,300 209 -
Construction Cost of House (50 sq.mt plinth area) 1,37,21,323 315 -
Total LA & R&R 21,36,37,547 4,904 2,828
New Construction cost 8,71,19,510 2,000 2,000
Administrative costs 2,17,79,878 500 500
Total cost of development 32,25,36,935 7,404 5,328
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
URBAN MATH-DYNAMIC-ONOMICS
SAMPLE WORKING FOR URBAN LAND 50 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing) Rs. Per
sftLAND PROCUREMENT: > 2 5 X OF MV
MV Of Land 8,09,36,000 1,858 1,858
Compensation for Land as per LARR (2 times) 16,18,72,000 3,716 2,415
Value of Fixed Assets 1,79,68,399 412 412 Compensation per family occupying the land (additional for 1 year) 6,55,582 15 -
LAND PROCUREMENT: > 2.5 X OF MV
ACQUISITION: ~ 1.7 X OF LAA VALUE
year) 6,55,582 15
Annuity for 20 yrs 94,04,414 216 -
Transportation @ 50,000 per family 9,10,530 21 -
Settlement @ 5 lakhs 91,05,300 209 -
Construction Cost of House (50 sq.mt plinth area) 1,37,21,323 315 -
Total LA & R&R 21,36,37,547 4,904 2,828
New Construction cost 8,71,19,510 2,000 2,000
Administrative costs 2,17,79,878 500 500
Total cost of development 32,25,36,935 7,404 5,328
CUSHMAN & WAKEFIELD
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
URBAN MATH-DYNAMIC-ONOMICSD il’ Ad L d C l
SAMPLE WORKING FOR URBAN LAND 50 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing) Rs. Per
sftLAND PROCUREMENT: > 2 5 X OF MV
Devil’s Advocate: Land Cartels
MV Of Land 8,09,36,000 1,858 1,858
Compensation for Land as per LARR (2 times) 16,18,72,000 3,716 2,415
Value of Fixed Assets 1,79,68,399 412 412 Compensation per family occupying the land (additional for 1 year) 6,55,582 15 -
LAND PROCUREMENT: > 2.5 X OF MV
ACQUISITION: ~ 1.7 X OF LAA VALUE
LAND TO COMPRISE 55% OF PRICEyear) 6,55,582 15
Annuity for 20 yrs 94,04,414 216 -
Transportation @ 50,000 per family 9,10,530 21 -
Settlement @ 5 lakhs 91,05,300 209 -
Construction Cost of House (50 sq.mt plinth area) 1,37,21,323 315 -
Total LA & R&R 21,36,37,547 4,904 55% 44% 2,828
New Construction cost 8,71,19,510 2,000 2,000
Administrative costs 2,17,79,878 500 500
Total cost of development 32,25,36,935 7,404 5,328
Final Price with 20% return 38,70,44,322 8,885 6,394
Rentalized Value (Rs/sqft/month) 38,70,443 89 64
• Land comprises 44% of price as per existing LAA
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
URBAN MATH-DYNAMIC-ONOMICS
LAND PROCUREMENT: > 2 5 X OF MV
SAMPLE WORKING FOR URBAN LAND 50 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing) Rs. Per
sftLAND PROCUREMENT: > 2.5 X OF MV
ACQUISITION: ~ 1.7 X OF LAA VALUE
LAND TO COMPRISE 55% OF PRICE
MV Of Land 8,09,36,000 1,858 1,858
Compensation for Land as per LARR (2 times) 16,18,72,000 3,716 2,415
Value of Fixed Assets 1,79,68,399 412 412 Compensation per family occupying the land (additional for 1 year) 6,55,582 15 -
PRICE SWING: 37% UPWARD
year) 6,55,582 15
Annuity for 20 yrs 94,04,414 216 -
Transportation @ 50,000 per family 9,10,530 21 -
Settlement @ 5 lakhs 91,05,300 209 -
Construction Cost of House (50 sq.mt plinth area) 1,37,21,323 315 -
Total LA & R&R 21,36,37,547 4,904 2,828
New Construction cost 8,71,19,510 2,000 2,000
Administrative costs 2,17,79,878 500 500
Total cost of development 32,25,36,935 7,404 5,328
Final Price with 20% return 38,70,44,322 8,885 6,394
Rentalized Value (Rs/sqft/month) 38,70,443 89 64
CUSHMAN & WAKEFIELD
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
URBAN MATH-DYNAMIC-ONOMICS
LAND PROCUREMENT: > 2 5 X OF MV
SAMPLE WORKING FOR URBAN LAND 50 ACRES Rs per acre Rs. per sft
As per LAA 1894 (Existing) Rs. Per
sftLAND PROCUREMENT: > 2.5 X OF MV
ACQUISITION: ~ 1.7 X OF LAA VALUE
LAND TO COMPRISE 55% OF PRICE
MV Of Land 8,09,36,000 1,858 1,858
Compensation for Land as per LARR (2 times) 16,18,72,000 3,716 2,415
Value of Fixed Assets 1,79,68,399 412 412 Compensation per family occupying the land (additional for 1 year) 6,55,582 15 -
PRICE SWING: 37% UPWARD
YIELD COMPRESSION: 12% -- sub 9%
year) 6,55,582 15
Annuity for 20 yrs 94,04,414 216 -
Transportation @ 50,000 per family 9,10,530 21 -
Settlement @ 5 lakhs 91,05,300 209 -
Construction Cost of House (50 sq.mt plinth area) 1,37,21,323 315 -
Total LA & R&R 21,36,37,547 4,904 2,828
New Construction cost 8,71,19,510 2,000 2,000
Administrative costs 2,17,79,878 500 500
Total cost of development 32,25,36,935 7,404 5,328
Final Price with 20% return 38,70,44,322 8,885 6,394
Rentalized Value (Rs/sqft/month) 38,70,443 89 64
CUSHMAN & WAKEFIELD
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C&WI PRESENTATIONSOCIO-CULTURAL AND EXECUTION WORRIES
FOR THE OWNER/ DISPLACED
S i l C t E i it i l
IN IMPLEMENTATION
A i t t i t i iti• Social Cost: Earning capacity, social structures, cultural identity, political power: PARETO vs KALDOR-HICKS?
• Does R&R cover all risks:
• Acquirers may try to circumvent acquisition for projects requiring more than 100 acres
• Sale deeds / registered land values may not reflect the MV• Does R&R cover all risks:
homelessness, food insecurity, increased mortality, insecurity, loss of CPR, etc.
• Cost of asset replacement is a source of trouble
M t ti i l t l• Does ‘public purpose’ sufficiently include/excludes the displaced ‘public’
• Equality: STs comprise about 40% of
• Monetary compensation is almost always perceived as insufficient leading to subsequent problems
• Demand – Supply imbalance in certainthose displaced, while they comprise only 7.5% of the population
• Limited participation by the public in decision making: SIA though landmark
Demand Supply imbalance in certain segments
• Acquisition, Rehabilitation and Resettlement – accounts for 25-55% of the total project costs a difficult proposition fordecision making: SIA, though landmark
step, is controlled by the govt.
• Ownership transfer in residential properties would be challenging
total project costs –a difficult proposition for the market
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properties would be challenging
C&WI PRESENTATION
WHY DO IT AT ALL THEN…!!
I d t d E d tIndustry and Economy need space to grow; The Displaced need more convincing alternatives;
The Mess is getting too big for LAA 1894 to handle it now
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C&WI PRESENTATION
RENTAL, SUPPLY & ABSORPTION TRENDS
TO SUM UP…
The legislation represents a change in the legislative approach from LAA
For the first time introduces SIA, recognises non-owners
A mode of acquisition requiring consent of the displacedode o acqu s t o equ g co se t o t e d sp aced
Non monetary benefits and statutory entitlements for resettlement
Compared to LAA it defines the grounds for urgency clauseCompared to LAA, it defines the grounds for urgency clause
SIA process still allows for arbitrary decision-making & lack of meaningful participation
S i l t i i i ti i till t l t l l l dd dSocial cost minimization is still not completely or clearly addressed
R&R still depends on market value
Pricing dynamics will change, possibly irreversibly
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C&WI PRESENTATION
IS IT A STEP FORWARD OR BACK?
THE JURY IS STILL OUT
BUT,
A START HAS BEEN MADE
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THANK YOU
Acknowledgements & References:
1. Cushman & Wakefield Research2. The Land Acquisition Bill, 2011: One step forward and two steps back
by Nihal Joseph & Shrinidhi Rao3. The Land Acquisition, Resettlement and Rehabilitation (LARR) Bill
2011: Providing Solutions or Raising Questions? By Amitendu Palit
Queries & Feedback [email protected]