FICCI flays move to apply Land Acquisition Act retrospectively

Any law implemented on retrospective basis reduces investors’ confidence in the system and “I don’t think that at this juncture we can afford to do that,” said FICCI president R V Kanoria,seeking implementation “only on prospective basis”.

FICCI’s appeal came on a day when the GoM on Land Acquisition Bill remained divided over the issue of retrospective acquisitions and the consent required from land owners with Pawar saying two-three more meetings are required to finalise the Bill.

According to the industry body,acquisition process varies from state to state and it would not be possible to apply this law on uniform basis across India on retrospective basis.

It noted that in many cases,land has not been taken over because compensation has not been paid and possession is held up due to legal challenges by land owner.

Similarly,in many states possession precedes compensation as per the State Act but government is yet to conclude the compensation process or complete its obligations.

All such cases could not be held invalid and governed by new Act,FICCI contended.

Noting that it has always advocated that in case of willing buyer and willing seller transaction (i.e. private purchase and not acquisition),no R&R provision should apply,FICCI said adding moves contrary to this will escalate the cost of the land many times.

It said the R&R provisions of the Bill will increase the cost of land at least by three to four times.

“The 100 per cent solatium as provided in the compensation is more than three times the current norm of 30 per cent. We would request you to consider lowering this amount to 50 per cent so as to make project cost viable”,FICCI said in its representation.

For the benefit of land owners and farmers,it suggested land use changes could be notified beforehand so that landowners could get a better price for their land as they would be better aware of the development that will be carried out on their land.