Developers demand land purchase act amendment

Date : May 24, 2014

NEW DELHI: With the infrastructure and real estate sectors complaining of being hit by the new land acquisition law, the Narendra Modi government will be needed to take a call on whether to amend the contentious Land Acquisition (Rehabilitation and Resettlement) Act 2013, which is expected to make land purchase tougher and raise the cost four times.

Apart from companies, even several government departments have identified the new law as a major hurdle for setting up infrastructure projects.

Developers and builders said that it would be impossible to develop townships that are spread over 50 acre or more. Any acquisition made by private sector players to implement a project should be kept out of the purview of the act, said Rohit Raj Modi, developers' body Credai's chief of National Capital Region (NCR). He said as the private sector players acquire land from land owners in the open market with mutual consent, any benefits to the sellers beyond that would make the deal costly for the acquirers. This, Modi said, will make the deals unviable and ensure further slowdown in the sector till the prices of the residential or industrial units rise significantly due to dwindling supply.

Source And Courtsey By :- http://timesofindia.indiatimes.com/business/india-business/Developers-demand-land-purchase-act-amendment/articleshow/35446058.cms