India’s path to becoming an infrastructural giant was riddled with an ongoing tussle between authorities and the landowners. The enactment of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR, 2013) (Called Land Acquisition Act from now on) in 2013 brought some relief. However, disputes related to irregular, insufficient compensation and alleged forced acquisition, compelled the States to find an alternative, and the Land Pooling Act emerged as a favourite choice. As land acquisition and requisitioning of land comes under the concurrent list, many States have notified their respective Land Pooling Acts.
Land pooling vs land acquisition
In India, the acquisition of land for infrastructural development and resultant challenges have remained an issue from the time of the green revolution. Land acquisition as a process requires efficient negotiations and a robust rehabilitation policy. Despite periodic amendments in the Land Acquisition Act, problems such as the absence of rehabilitation strategy, social impact assessment, inadequate compensation, and non-development despite acquisition or forced eviction have remained persistent problems with the exercise.
However, despite entanglements in legal disputes, land acquisition exercises have played a tremendous role in infrastructure development across the country. The availability of large land swathes at once and complete Government ownership are a few of them. Despite this, the problems of the grassroot inhabitants compelled the policymakers to search for viable alternatives to land acquisition and there emerged the concept of land pooling.
Land pooling is an activity where a group of landowners hand over their land parcels to the government collectively for infrastructure development. Once the development is complete, the land is handed over to the original owners, after deducting some portion as the cost for the same. The primary benefit of land pooling policy is that the ownership remains with the original titleholder. It reduces the chances of legal disputes and compensation disbursements.
However, the land pooling policy requires a certain percentage of landowners to give consent for the procedure. Discontent among a certain section of landowners is a common challenge in this activity.
Here is a quick comparison between both practices.
Pros and Cons of Land Pooling Scheme
| Land Pooling | |
|---|---|
| Advantages | Disadvantages |
| A self-financing technique and cheaper than land acquisition | Slow development |
| Original owners retain title | Capital value appreciation might take time |
| Lesser chances of land disputes | Chances of improper land use in the absence of strict zoning controls |
| Equitable sharing of costs and benefits | Difficult to apply in congested urban areas |
Pros and Cons of Land Acquisition
| Land Acquisition | |
|---|---|
| Advantages | Disadvantages |
| Government owns the land | Present owners might not be convinced to relocate |
| Fast-tracked development | Poor rehabilitation and inadequate compensation are prime concerns |
| Provisions of rehabilitation ensure compensation | Acquisition of irrigated land is a threat to national food security in the longer run |
| Often considered a permanent solution for infrastructure development |
Talking about land pooling policy, the major benefit is that since the policy promotes collaboration, there are increased avenues for Public-Private Partnership (PPP). Moreover, the requirement of the prolonged and legally challenging process of land acquisition is done away with.
The States are in a far better position of land consolidation than in earlier times. Coherent land resources help in addressing the challenges of rapid urbanisation.
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Delhi - A model State in terms of land pooling
The motive of sustainable urbanisation is at the core of land pooling policies. Delhi is a successful model of land pooling efforts by the administration. The land pooling policy of Delhi is designed to address the challenges of urbanisation and the ever-increasing demand for sustainable infrastructure. Owing to the extensive outreach programmes and awareness campaigns by the Delhi Development Authority (DDA), a total of 6,000 hectares (approx. as on 6/2019) (source PIB) of land was registered on the DDA online portal. The reasons behind the interest of the landowners were the proposed sector-based approach for development, construction of 85,000 dwellings on the pooled land, along with the development of trunk infrastructures such as water, electricity and other social amenities.
Increased adoption by States
Following the footsteps of Delhi, Maharashtra, Gujarat, Andhra Pradesh, and Tamil Nadu, the western State of Rajasthan also recently notified the Land Pooling Act. Under this Act, landowners whose land has been acquired will receive 45 percent of the developed land as compensation. Earlier, this threshold was capped at 25 percent. In accordance with the amended provisions, the concerned civic body will give a proportionate and developed piece of land to the owner. It will be equipped with necessary infrastructures such as roads, parks, and attached open spaces.
Under the scheme, the Government will invite expression of interest from farmers and owners of a particular size of land. As per the provisions of the Act, the pooled land will be used for infrastructure development, without actually acquiring the land. The authorities will act as a facilitator for the development of the land and will develop the land swathes as per the layout rules and the bye-laws.
In fact, Rajasthan is following the successful ‘land pooling’ model of Mumbai and Delhi.
Expressing his insights on the land pooling policy, Havinder Sikka, Managing Director, Sikka Group, says, “Land pooling schemes were devised to remove the hassles faced by the tedious land acquisition process. Land pooling is a simpler and more efficient alternative. The primary benefit to the landowners is that they get a developed land piece, with access to infrastructure services, in lieu of an undeveloped land parcel of minimal value. The aggregation of scattered land parcels also unlocks a larger landmass for upcoming residential and commercial projects.”
Conclusively, the land pooling schemes are a win-win for both the landowner and the exchequer. The Government gets a vast land bank for development, and the landowner receives a developed land with better surroundings. Although the ‘acquisition and requisitioning of the land’ is in the concurrent list of the constitution, the Central Government must frame policies for the progressive removal of the Land Acquisition Act and increased adoption of land pooling schemes.
