Land Acquisition Bill finally received the consensus of all parties after the demand of BJP to grand 50% compensation to the land owners or farmers. Its impact on the affordable housing is expected to be severe.
NEW DELHI: Last week, all parties expressed their consensus on Land Acquisition Bill. However the land bill had to undergo many amendments to receive the consensus of all parties.
Land Acquisition Bill Likely To Hit Affordable Housing
Once the government agreed to grand 50% compensation to the land owners, which was one of the key demands of BJP, and then only the bill could get through the parliament. Besides the compensation to the farmers, many other changes are brought to the Land Acquisition Bill.
The bill is expected to be presented in the parliament in the second part of the budget session. As all the parties have expressed their consensus, the bill is likely to get through the parliament now.
Land Acquisition Bill proposes compensation to the farmers. While the compensation rate in the rural areas is four times larger, in urban areas it will be two times.
Industry fears that affordable housing may be hit by land acquisition bill.
Though the bill has received the consensus of all parties, the developers are not happy with the bill. Some of them already have shown their discontent over the bill.
Indiabulls director Ajit Mittal has said that the implementation of the bill may be difficult. He adds that the bill may have to face hurdles for its implementation, despite the fact that it has received consensus.
According to Mr. Mittal, the property prices will be going higher as, with the land acquisition bill, the land prices are sure to go up. He believes that the bill will not only make the lands costlier but also the land acquisition process more controversial.
Industry experts too fear that the new bill will make affordable housing impossible task for the builders. As the builders are to pay off higher amounts to the land owners, they will not be able to provide homes at reasonable rates. In short the land acquisition bill will affect the affordable housing sector badly.