Don't pauperise farmers for profit

 Don't pauperise farmers for profit

By Gopal Krishna Agarwal,

Agricultural land is being acquired from farmers at throwaway prices by the Government and is being handed over to builders, who are developing mega projects and selling them to middle-class investors. In the process, the farmer is the ultimate loser

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

The major portion of this money is finding its way into the real estate sector. Corrupt politicians, Ministers and bureaucrats, in connivance with builders and developers, are exploiting gullible middle-class investors who dream of owning a house.

Agricultural land is being acquired from farmers at throwaway prices by the Government and is being handed over to builders, who are developing mega projects and with the efforts of their brand managers, dream-sellers and marketing personnel are selling them to middle-class investors. Local authorities are part of this racket and are now operating as real estate development companies. They are helping fill the coffers of some corrupt politicians.

When farmers whose land has been acquired come to know of these manipulations at a later stage and find out that their interests have not been protected by the faulty and outdated Land Acquisition Act, they are bound to agitate.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 near Greater Noida. And if any corrective action takes place under pressure from courts or due to the agitation of the local people, leading to cancellation of these projects, then the middle-class investor's money goes down the drain

Similar is the situation in the case of land acquired for mining and industrial development. The economic develop- ment of the country also suffers. Land acquisition for industrial purposes has become one of the most contentious issues now. Land acquisition, in principle, is governed by the Land Acquisition Act of 1894. The Act, despite getting amended in 1967 and 1984, does not address the twin issues of rehabilitation and resettlement of the displaced people In view of this, the Government of India announced the National Policy on Resettlement and Rehabilitation on Project-Affected Families in 2003, which came into force in February 2004. Later, in order to make the policy more effective Inverder the Act consistent with it. two Billsendmete Bill. 2007. and the Land Acquisition Rehabilitation and Resettlement Bill. 2007- were drafted but have been kept pending without being put up to Parliament.

 The Government must immediately take corrective measures. Foremost is the need to pass an amended Land Acquisition Act, taking into consideration proper compensation for farmers not only in monetary terms but also securing their livelihood. This can be done by paying compensation in installments over a longer duration, giving farmers a stake in the future profitability of the development project, and providing some form of employment for the families of those losing land.

To secure the interests of investors and control the real estate development lobby, there has to be a regulatory authority which will scrutinise all schemes, check disclosures regarding promises and risk factors, and make sure these are backed by proper legal documents. It also has to ensure that developers deliver on their promises and in the event of any default, investor interests are properly protected and they are duly compensated.

 An important aspect from the point of view of the national economy is the need to break the nexus between real estate developers, corrupt politicians and their Public Private Partnership protects which generates black monry through corrupt means. Otherwise, over a period of time, a real estate bubble will be created and will lead to unprecedented problems in our economy.

This asset bubble is also the result of the deficit financing to which the Government resorts every year. Experts have said that emerging economies such as Brazil and India face fiscal and current account deficits and a crisis similar to the one triggered by the global financial meltdown is inevitable.

The recent chain of events, whether it is the farmers agitation in Uttar Pradesh or the Maoist insurgency in various other parts of the country, reflect this point. We must immediately act on these issues and check this particular corrupt practice.