An agenda for reforming land related laws and policies in India
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Barun Mitra
Apr 10, 2014, 2:57:33 AM4/10/14
to property-rights-forum
Recognising Right to Property: An agenda for reforming land related
laws and policies
The 16th General Elections to the the Lower House of Indian
Parliament, is being held thro' April-May 2014. Around 815 million
voters are eligible to cast their ballot to elect 543 members of
parliament. A new government will take office by the end of May.
Reforming land management will be a key factor shaping the political
and economic trajectory of the country. In that context, we suggest
the following agenda items, which may be considered by the in coming
government, and the country at large, in the coming months and years.
India's land management regime has for decades been mired in obsolete
laws and misguided policies that distort markets, enable corruption,
and deny fundamental property rights. Current land policies are a mix
of outdated laws and even more obsolete ways of thinking, many of
which are rooted in colonial India.
The paradox is best illustrated by the fact that many landowners,
including farmers, would like to move out of agriculture, but cannot
find remunerative price for their land assets, while industrialists
and investors who would like to buy land cannot find access to land at
a resonable price. Tens of billions of dollars of investment, in
public and private projects have been stalled due to land related
conflicts. This land alienation is also contributing to a section of
society sympathising with leftwing indurgecy in some parts of India.
Land is the only asset that most Indians, even the poorest, possess to
at least some degree, but technicalities often prevent them from
claiming legal ownership over what they possess. A functioning land
market founded on strong property rights would expand the
opportunities for economic advancement for those who possess land,
empowering them as citizens in a democratic India. Such a market would
also allow those with wealth to access and invest in property and
engage with land owners in mutually-beneficial transactions, rather
than trying to use their waning political influence to access land.
Would welcome your comments and thoughts on the following list of key
issues. Please do feel free to suggest additions or modifications. The
following list is by no means exhaustive, but largely indicative of
the areas of prime concern.
- Clearly articulate the need to create a functioning land market
which will significantly reduce the need to invoke eminent domain.
- Partner with private, community and public-sector stakeholders to
build a modern land recordkeeping infrastructure based on GIS and
other imaging technologies.
- Abolish land ceiling laws, particularly in agriculture to facilitate
consolidation such fragmented land into viable farm units.
- Eliminate capital gains tax. In a poor country, taxing capital is
self-defeating.
- Drastically reduce or eliminate fees and taxes that impede land
transactions and increase the potential for corruption, replacing them
with a nominal fee to cover only the administrative costs of keeping
up-to-date land records.
- Transfer authority over land-related regulation such as zoning, land
use and environmental concerns, to local governments and councils.
- The scope of eminent domain needs to be severely restricted to truly
public purposes, and with the consent of those affected, not to
facilitate private investment and business projects.
- Recognise the land owners rights over forest and other environmental
resources, including minerals, whether above or below the ground.
- A new mines and mineral law, which recognises the rights of land
owners and communities, and allow them to directly negotiate access
and royalty with investors, is much awaited.
- A land titling law to grant conclusive title guarantee to land
owners is imperative. Property transfers must legally validate
transfer of titles rather than merely enabling registration of the
deed.
- Restoration of Right to Property as a fundamental right in the Constitution.
Thanks,
Barun
Barun Mitra
Liberty Institute, New Delhi
www.InDefenceofLiberty.org
Right to Property
www.RighttoProperty.org
laws and policies
The 16th General Elections to the the Lower House of Indian
Parliament, is being held thro' April-May 2014. Around 815 million
voters are eligible to cast their ballot to elect 543 members of
parliament. A new government will take office by the end of May.
Reforming land management will be a key factor shaping the political
and economic trajectory of the country. In that context, we suggest
the following agenda items, which may be considered by the in coming
government, and the country at large, in the coming months and years.
India's land management regime has for decades been mired in obsolete
laws and misguided policies that distort markets, enable corruption,
and deny fundamental property rights. Current land policies are a mix
of outdated laws and even more obsolete ways of thinking, many of
which are rooted in colonial India.
The paradox is best illustrated by the fact that many landowners,
including farmers, would like to move out of agriculture, but cannot
find remunerative price for their land assets, while industrialists
and investors who would like to buy land cannot find access to land at
a resonable price. Tens of billions of dollars of investment, in
public and private projects have been stalled due to land related
conflicts. This land alienation is also contributing to a section of
society sympathising with leftwing indurgecy in some parts of India.
Land is the only asset that most Indians, even the poorest, possess to
at least some degree, but technicalities often prevent them from
claiming legal ownership over what they possess. A functioning land
market founded on strong property rights would expand the
opportunities for economic advancement for those who possess land,
empowering them as citizens in a democratic India. Such a market would
also allow those with wealth to access and invest in property and
engage with land owners in mutually-beneficial transactions, rather
than trying to use their waning political influence to access land.
Would welcome your comments and thoughts on the following list of key
issues. Please do feel free to suggest additions or modifications. The
following list is by no means exhaustive, but largely indicative of
the areas of prime concern.
- Clearly articulate the need to create a functioning land market
which will significantly reduce the need to invoke eminent domain.
- Partner with private, community and public-sector stakeholders to
build a modern land recordkeeping infrastructure based on GIS and
other imaging technologies.
- Abolish land ceiling laws, particularly in agriculture to facilitate
consolidation such fragmented land into viable farm units.
- Eliminate capital gains tax. In a poor country, taxing capital is
self-defeating.
- Drastically reduce or eliminate fees and taxes that impede land
transactions and increase the potential for corruption, replacing them
with a nominal fee to cover only the administrative costs of keeping
up-to-date land records.
- Transfer authority over land-related regulation such as zoning, land
use and environmental concerns, to local governments and councils.
- The scope of eminent domain needs to be severely restricted to truly
public purposes, and with the consent of those affected, not to
facilitate private investment and business projects.
- Recognise the land owners rights over forest and other environmental
resources, including minerals, whether above or below the ground.
- A new mines and mineral law, which recognises the rights of land
owners and communities, and allow them to directly negotiate access
and royalty with investors, is much awaited.
- A land titling law to grant conclusive title guarantee to land
owners is imperative. Property transfers must legally validate
transfer of titles rather than merely enabling registration of the
deed.
- Restoration of Right to Property as a fundamental right in the Constitution.
Thanks,
Barun
Barun Mitra
Liberty Institute, New Delhi
www.InDefenceofLiberty.org
Right to Property
www.RighttoProperty.org
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