Landgrab as the new face pf the globalization

 Landgrab as the new face of the globalisation

DIMENSIONS of corruption have changed over recent past. Unchecked globalisation and economic development has created a situation where large amount of unaccounted money in the system is chasing limited available assets. This black money is generated through corruption, deficit financing and several welfare scheme freebies.

Major portion of this money is finding its way into real estate sector. Corrupt politicians in connivance with builders and developers' lobby is taking unsuspecting middle-class investors for a ride.

Agriculture land is being acquired from farmers at throwaway prices by the government and is being handed over to builders, develop mega real estate projects and, with the efforts of their brand managers and marketing personnel are selling these dream projects to middle-class investors. Local authorities like the Noida Authority and the Yamuna Expressway, etc, are all part of this package and are now operating as real estate development companies. They are filling the coffers of some of the corrupt politicians.

Once the farmer, whose lands has been acquired, comes to know of these manipulations at a later stage and finds out that his interests has not been protected by the faulty and outdated Land Acquisition Act, they are bound to agitate. This is what is happening in villages like Bhatta Parsaul, etc, near Greater Noida.

Similar is the situation in case of land acquired for mining and industrial development, etc. The economic development of the country also suffers many a times. Land acquisition for industrial purposes has become one of the very contentious issue now. Land acquisition, in principle, is governed by the Land Acquisition Act (LAA) 1894. The Act, despite getting modified in 1967 and 1984 do not address the Rehabilitation and Resettlement of the displaced people. In view of this, the Government of India announced the National Policy on Resettlement and Rehabilitation for Project-Affected Families has to (NPRR) in 2003, which came into force in February 2004. Later, in order to make the NPRR more effective and to make LAA consistent with NRPP, two Bills, viz, Land Acquisition (Amendment) Bill, 2007 and the Rehabilitation and Resettlement Bill, 2007, were prepared but have been kept waiting for the approval of the Parliament.

We immediately need to take correcting action. First and foremost is the passing of the Land Acquisition Act taking into consideration, proper compensation to the farmers not only in monetary terms but securing his future livelihood? Secondly, giving stake in the future profitability of the project and thirdly providing some form of employment for the family.

To secure the interest of the investors and control the real estate development lobby, there has to be a Regulatory Authority, which will examine all schemes, check all disclosures regarding promises and risk factors and also see whether these are backed by proper legal documents. It also has to ensure that developer's lobby delivers on their promises and in case there is any dereliction, then investor's interest are properly protected and they are duly compensated.

The third very important aspect from the point of view of the economy is that, this nexus of real estate developers, corrupt politicians and their Public Private Partnership (PPP) projects should be checked for creation of black money through corrupt means. Otherwise, over a period of time, real estate bubble will be created and will lead to unprecedented problems in our economy. This asset bubble is also the result of deficit financing of the government. In its recent release Reuters has reported that, emerging economies such as Brazil and India would face fiscal and current account deficits and a crisis similar to global meltdown is inevitable.

Recent chain of events and reports are pointing towards this menace whether it is farmers agitation in UP or Naxal unrest in various other parts of the country. We need to immediately act on these issues and check this corrupt practice.