LAND ACQUISITIONS; stop shedding crocodile tears.

The Law empowers state to Acquire lands for various Public purposes after giving Compensation at the Market Value prevailing on the date of Acquisition. Hardly the land lord gets Market prices. He gets far far less than the real Market Price. The reasons are many. Firstly, our Over enthusiastic Land Acquisition Officers (LAO’s) fixes a very low price presuming that they are doing a great favour to the Government by doing so. Secondly while fixing the Market Value they verify the Sale of lands that has taken place in the Vicinity of the Land that is Acquired at the Sub Registrar’s Office. Here again the Records of this Office is a fiction. Either land is registered for a lesser value to avoid stamp duty, many tines purposely done by bribing the Sub-Registrar in some places and in some other places there might not have a sale taken place. They face difficulty in arriving at the Market Price. Whatever may be the reasons, our farmer gets a raw deal. He can go on Appeal, but it takes lot of time and money and labour. Some times by the time the case is finally decided it will be some decades. If there are some inter-se disputes among the claimants, God only must help. The law provides for interest from the date of compensation, till the date of payment at SIMPLE RATE OF INTEREST AND NOT COMPOUND RATE OF INTEREST, WHY?
GIVE COMPOUND RATE OF INTEREST
It is most important that Land Owner is given Compound rate of Interest on the Compensation amount.
2. The farmer is certainly entitled to Compound rate of interest. It compensation had been deposited in a Nationalised Bank, or at any other place at best rate of interest, it would have certainly earned Compound Interest. Why deprive farmer of this benefit. What is the reason? Is there any point reason rhyme?. The farmer pays compound rate of the moneys borrowed by him, and he gets simple rate of interest when it comes to getting compensation. Some how this great anomaly has not got the attention of our Politicians. I feel our politicians are interested only in Acquisitions, such as in Kheni’s case or some other Acquisitions around Bangalore where the farmer gets hefty Compensation. I know in Devanahalli Area, when lands were acquired a farmer got in the first instance Rs. 5,00,000/- per Acre for his 10 Acres of dry and barren land. He got fifty lacs which would fetch an annual interest of Rs.5 lacs per annum if properly invested. In the same dry lands he would not have got more than six quintals of Ragi per acre with much difficulty or/and un-certainty. The value of the produce would not have reached Rs. One thousand per acre after all expenses. Now with the amount he got as compensation, he buys two cars paying 6 lacs, builds a beautiful Bungalow spending 14 lacs and still left with Rs.30 lacs, which if he is wise can invest in buying lands to make up the lands he has lost, at some other place where he may be able get lands at much cheaper rate.. I think it is about this type of land losers our Politicians are making a hue and cry. They are not bothered about the real farmer who is uprooted from the habitat, he was accustomed to living and made to go from pillar to post for the pittance of Compensation that he is offered. It takes a long time from the day of his losing the land to the date of his seeing compensation amount. In the interregnum he is left high and dry. He has to live on borrowed money. On the Very day of Final Notification, the Government must deposit the Compensation amount in Fixed Deposit at best rate of interest or in the alternative pay the same rate of interest at the time of disbursing compensation. I have to reiterate, that the Bank pays interest compounded monthly or quarterly and the Government also pay likewise. The difference between simple and Compound rate is huge. In my own case it took 28 long years to get the compensation, which was about three and half lacs at Simple interest. If it had been at Compound rate (at 10%), I would have got about 28 lacs, a difference of 24 lacs! Some how Courts are averse to granting Compound rate, . which is in no way reasonable or fair. Our Law makers have some how not given a thought to it.. It is time by legislation this anomaly is set right and it goes a long way ameliorating loss the farmer suffers.. Even an Ordinance would be worth it.
3. There are opinions that entrepreneurs must themselves buy land required by them from farmers direct by giving market price. It can never work. Has it tried any where with success? Our Industries will suffer and we will be putting the clock back. GOVERNMENTS ALONE SHOULD ACQUIRE WITHOUT BIAS, AND WITHOUT ANY ILL WILL THE BEST LAND NEEDED FOR THE PURPOSE AND COMPENSATE THE FARMER PROPERLY AND A LITTLE GENEROUSLY.

4. Our Annadhatha is in a very pitiable condition to-day. On the one hand the cost of inputs is steadily going up. There is scarcity of Chemical manures. Agricultural Labour has become costly and scarce and not available at the time it is most needed. Literacy has added to this problem. A person who has completed even his Primary Education, feels it below dignity to work as a farm labourer. ( I am not advocating literacy is bad or the labourer should ever remain labourer. For an Agricultural labourer Education is the only hope which can lift him from extreme poverty.). Due to vagaries of nature the farmer is not sure of the crop. Rains at the in-opportune moment or no rains when needed most may spoil the prospectus of a good crop. The market is very erratic Middle men exploit the situation and the farmer is denied of fair return even when the rates are high. No doubt the Government is doing its best but the needs are enormous and beyond the capacity of Government. For Banks Agricultural credit is a big burden especially financing small loans and co-operative credit is almost a failure or leaves much to be desired.. Inefficiency at the Co-operative level, Misapplication or Misuse of loans taken by the farmers adds to vows. A new direction is needed and unless Agriculture improves, any development will be lop sided and does not augur well for the nation. India can never be called as a developed Nation unless our Agriculture improves.
CSP RAO..