Ignore land ordinance at your own peril, Jaitley tells states

Aditi Tandon

Tribune News Service

New Delhi, January 4

With the Opposition Congress and Left upping the ante on land ordinance, the government today defended its move daring the Opposition-ruled states to ignore the ordinance provisions and lose out in the era of competitive federalism.

In a blog, “Amendments to the Land Acquisition Law – The Real Picture”, Finance Minister Arun Jaitley today accused the Congress-led UPA, which drafted the new land acquisition law in 2013, of ignoring the development needs of a 21st century India and exempting 13 Acts of Parliament (which provide for land acquisitions) from rehabilitation provisions otherwise mandated by the Right to Fair Compensation and Transparency in Land Acquisition, Resettlement and Rehabilitation (Amendment) Act, 2013.

Jaitley said it was to extend these rehabilitation benefits to owners of land acquired under exempted laws that the Ordinance became essential.

He said the new law provided enhanced compensation even under the 13 Acts exempted earlier besides balancing the developmental needs of society, particularly the poor, with the defence requirements of India.

The government dared the Congress to ignore the Ordinance saying it had the backing of state governments of most political parties. “Those opposed can mandate their party’s state governments not to use the ordinance provisions. History will judge how these states will lose out in the era of competitive federalism,” Jaitley warned the Congress arguing that development and justice to the land owner must coexist and one can’t happen at the cost of another.

Through Jaitley’s blog, the government also addressed the Congress’ two principal objections to the ordinance— removal of the provision saying unused land must be returned five years after acquisition and expansion of exempted project category where acquisition won’t mandate prior consent of land owners.  “Creation of smart cities, industrial corridors, nuclear installations et al has long gestation periods. They can’t be completed in five years. If the earlier provision was retained, we would be a nation of incomplete projects ,” he said.

On the consent of land owners (which the 2013 law mandated for most acquisitions), the government said complicated processes would hamper development by making acquisition almost impossible. “The 2013 Act provided for consent of the land owner in varying percentages in many cases, a detailed social impact study and special provisions with regard to food security. The state needs land for any form of development and larger public interest must prevail over private interest, though the land owner must be more than compensated,” Jaitley said.

Recalling the Congress-led 2013 Act that said no part of acquired land could be used for a private educational institution or a hospital, Jaitley said: “How will new smart cities and townships come up? Will they only have a civil hospital and a government school?”