Acquiring Land in India May Get Much Tougher

Adi Godrej, the head of the Confederation of Indian Industry, stated that the industry would face “fend for itself,” if the panel’s recommendations are accepted. He further stated in a statement that “This will make land acquisition more complex and difficult, leading to slower growth in industry and therefore, the economy.”

Mohandas Pai, former chief financial officer at Infosys said in a recent televised debate that “Industry can’t use agricultural land unless government allows them to change land use, which involves corruption.”

On this context, Real estate group CREDAI stated that if the government is determined to wash their hands from private land acquisitions, then it should make easier for companies who can simplify the procedure by doing it on their own. Lalit Jain President of CREDAI stated in an interview that “You pay a fair price and that should be it.”

The panel’s move strictly may minimize the land availability option for potential buyers for industrial purpose. However, it is still not clear whether the panel’s recommendation will make its place on the final draft of the Land Acquisition Bill, as some of the government ministers openly spoken against it in public.

On this note, Minister Anand Sharma of Indian Commerce and Industry said this move would harm investor’s sentiment. He further stated that “You cannot take a view which is regressive, which prevents the growth of manufacturing,” reports The Wall Street Journal.