A transparent land record system is needed for conversion and purchase
Earlier this month,the UPA cabinet approved for introduction in Parliament several amendments to the Registration Act,1908,which governs the registration and documentation of property transactions. Most citizens encounter its provisions when they buy or sell land or housing. The rural development ministry suggests that the proposed amendments will make ownership of land more transparent,land transactions safer,and ease the process of land acquisition for industrial projects by reducing the land-title related litigation that has choked the courts.
Why has the state neglected this problem for so long? The primary reason is that land has been an unimportant source of revenue for independent India. This was not true throughout history. For as long as records have been kept,land was the primary source of revenue. Taxes were as high as 75 per cent during the Mughal and early colonial periods and the source of much misery for the peasantry. Maintaining land records was one of the main tasks of the state. But by the early 20th century,land had become much less important as a source of revenue. Mid-century,the independent Indian state eliminated taxes on agricultural production. It focused instead on land reform and land acquisition (for new development projects). Independent India had little incentive to maintain land records because land did not provide revenue any longer.
This issue is back on the agenda now because of two main reasons. First,land markets in several parts of the country have exploded. Land prices in these regional markets all of urban India and large rural areas like Punjab and Haryana are the highest in the world. Generating revenue from this market is now a serious concern again. Second,the old process of land acquisition has broken down. The state has been forced to develop a new land acquisition bill (circulating for two years now). Private sector players are demanding ever larger quantities of land for purchase or acquisition. The entire process of land conversion from agricultural to other use is held up if land titles are unclear or disputed.
It is not surprising then that the proposed amendments to the Registration Act focus on exactly these two aspects: to systematise revenue generation by closing loopholes and to formalise land ownership by creating a transparent,accessible and digitised cadastre or land record system. There are troubling aspects to the first goal. A larger state presence and oversight will open up new avenues for corruption. But that is an axiomatic argument and could be trotted out to criticise any new law. Let us instead focus on the second goal.
There is a real possibility that a process that tries to formalise land title claims may unleash disputes and litigation on a massive scale. Many conflicting claims of land ownership remain simmering. Rivals often work out informal arrangements,avoiding full-scale legal disputes. But if the situation changes if the claims have to be settled one way or another because they have to be inscribed for good on maps and cadastres that represent finality,a permanent settlement so to speak,then every simmering and adjusted dispute has to come out in the open. Because anyone who does not stake a claim then will for ever lose her claim.
We do not know how many simmering disputes there are,nor do we know how many disputes will be newly created. But there is good news in that some states like Punjab and Andhra Pradesh have made significant headway in computerising their land records and making them accessible. What is not clear is whether this has settled the title disputes.
This is a very difficult problem,which is precisely why the state has shied away from tackling it so far. One could argue that it had to be tackled someday,that it could not be allowed to fester,that India cannot take a seat alongside capitalist nations if it does not have a firm grip on the most basic element of private property land. One could argue that now is as good a time as any to take on this problem. These are reasonable arguments,but let us not fool ourselves into thinking that it is going to be easy.
Chakravorty is the author of The Price of Land: Acquisition,Conflict,Consequence
express@exressindia.com
