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Gordian knot of land acquisition

The single largest roadblock for infrastructure development is related to acquisition of land from the relevant authorities.

Where contestations over compensation continue even after land is legally acquired

The single largest roadblock for infrastructure development is related to acquisition of land from the relevant authorities. According to a FICCI-Ernst & Young report, based on an analysis of a sample of BOT road projects, around 70% are facing inordinate delays in implementation. The primary reason is the resistance from the local communities.

There is generally a huge difference between the registered value offered and the actual market value offered, resulting in disputes. Valuation of the land is done on the basis of the current status of the land and does not capture the appreciation after construction of a project. The original landowners therefore feel cheated and naturally demand higher compensation.

Mukul Jain, Director (operations), Rail Vikas Nigam Limited (RVNL), spoke of a case involving taking over the Haridaspur-Paradip broad gauge rail link in Orissa. The land had been acquired some time back and the compensation legally paid to the landowners. Yet, when RVNL approached to take over the land, the local populace refused to hand over the land. The reason was that the local politicians jumped into the fray and demanded higher compensation. The deadlock lasted three years after the government relented on the matter of giving higher compensation to the ?former landowners?, much to the detriment of the project in terms of cost and time overruns.

In the Angul-Duburi-Sukinda Road Special Railway Project, another SPV project of RVNL, Jain said this project too would meet the same fate as the Haridaspur-Paradip rail link. The land has already been acquired, but protests have started to simmer again. In the two cases above, even though the compensations were legally paid, the question remained: was the compensation sufficient? Was the compensation to the satisfaction of the landowners? Were their basic requirements met? In a separate rehabilitation package, the landowners had demanded that the people of the same sect or tribe be rehabilitated together in the same area. Such requirements need to be addressed while working out the monetary compensation package.

A few years ago, a transport company had acquired about four acres of land in Haryana for its project. After the acquisition was completed, a farmer in the adjacent land claimed that the acquisition would obstruct the water canal to his fields and threatened legal action. When the land records were checked with the district office, the company discovered, much to its horror, that there was indeed a canal running through its land. The canal had stopped functioning three decades ago. But the fact that the canal existed in the official records weakened the case for a legal confrontation. The issue was resolved when the company bought the adjacent piece of land at three times the cost!

In hindsight, perhaps this could be ascribed to improper due diligence. A law professor has said, ?When you are buying land, extreme care should be exercised to ensure that the land is free from any encumbrance.? Buy in haste, repent at leisure, he has added facetiously.

But today, even after due diligence, the legal acquisition of land still remains a problem. Many hopes are pinned on the Land Acquisition and Rehabilitation & Resettlement Bill. Could this be the panacea or the catalyst to speed up the vast number of projects mired in land acquisition controversies? Would this Bill lead to faster resolution of conflicts and decrease the number of litigations? Would it help achieve the objectives of the Twelfth Plan?

In 320 BC, when Gordius, the legendary king of Phrygia, dedicated his chariot to Zeus, the pole of the chariot was fastened to the yoke by a leather cord tied in an inextricable knot. The Oracle then prophesied that whoever untied the knot would rule all of Asia. When Alexander passed through the city, he did not attempt to untie the knot, but slashed it open with his sword! Fast moving to the present day, the apparently insurmountable problem of land acquisition requires a direct and a bold approach to cut the Gordian knot of land acquisition. Much is at stake. The industry waits with bated breath.

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First published on: 02-10-2012 at 03:45 IST
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