Problems relating to Trade and Investment on India
21. Restrictions on land ownership |
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Issue |
Issue details |
Requests |
Reference |
| (1) Unestablished Scheme for Landownership Management | - The history of the landownership transfer has not been maintained so that plural sales and purchase agreements exist for a single property. - Building registration in the strict sense does not exist so that ownership alone passes from one party to another without identifying the building. - Due to the non-existence of Cadaster, a public register showing the details of ownership and value of land, GOI tends to yield to the contention of the landowner. A shrine owner, adjoining the MFS factory land property, asserts its ownership, assaulting MFS's employees with a grub hoe in hand. A Japanese affiliated firm next door has abandoned its ownership for the Shrine plot. |
- It is requested that GOI structures the administrative system for ownership of land and buildings. - It is requested that GOI overhauls the Cadaster. |
- Administration as Maintained at the Registration Office |
| (Action) - On 27 September 2013, "The Land Acquisition Act, 1894" was amended and replaced by "The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013", which has clarified the acquisition procedures the compensation provisions. While the New Act has dispensed with requirement for the land lease right holder's agreement in regard to the genuine governmental project, 70% or 80% of the lease holder's agreement, whichever the case may be, is required for development by PPP (Public Private Partnership) or by private sectors, respectively. It could likely prolong the time required for land acquisition. - Because more than 90% of the land area in India is for agricultural purposes, its conversion procedures must be completed for industrial use or project deployment. However, because of the remaining in force of old laws on acquisition, etc., frequently litigation arises. While Land Acquisition Act has been enacted, due to the absence of the implementing regulations at the state level, etc., the Act has not yet been enforced. - It is difficult to ascertain the land titles, the documents of which are written in accordance with the local rules. Therefore, it is necessary to seek the checkup by local State experts. Moreover, due to the ramifications with laches, in practical terms, the research in practical terms extend to 30-years or so, retroactively. |
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| (2) Substantial Hike in Land Acquisition Cost | - In 2013, amended land acquisition act passed the parliament, setting forth the land acquisition process, establishing the dispute settlement organisation, instituting compensation accompanying the land acquisition, etc. However, de facto acquisition cost has gone up sharply by putting into the statutory form the governmental support for the livelihood of the concerned party, etc. After the act's implementation, the land acquisition has become extremely difficult. | - It is requested that GOC takes step to amend the amended land acquisition act (Modi administration is aware of the problem, and further amendment is under deliberation.) | - Land Acquisition Act,1894 - The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 |
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