Earth Group’s proposed Township at Ludhiana not to get affected with The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013

Ludhiana, January 11, 2014: Since the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 has come into force from January 1, 2014 and the Land Acquisition Act 1894 stands repealed and cannot be invoked in any other acquisition proceedings from this day forth, there are apprehensions in the Real Estate Sector that there is a strong possibility of cost escalation. It is feared that the recent development may lead cost escalation between 15 per cent and 45 per cent. However, the recent development is not going to put any effect on the proposed high-end Township of Earth Group at Ludhiana.
It was in September last year that the Land Acquisition Bill or The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 had received the President’s assent.  The Bill was brought because it was felt that the archaic Act of 1894 suffered a lot of shortcomings, including silence on the issue of resettlement and rehabilitation of those displaced by land acquisition. With the recent development, the government will not acquire any land for private investors for their private projects from January, 2014 onwards. As such there is a strong feeling in the Real Estate segment that the land prices will get increase because the expectations of land owners will get higher.
Expressing his views over the recent development, Vikas Gupta, Joint Managing Director, Earth Group, says that the implementation of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 will hamper prospects for realty developers and builders. Property prices are bound to shoot up even as farmers will benefit, he adds.
However Sources in the Real Estate Sector believe that the recent development will hardly put any impact on the existing real estate projects. However, the new projects will be affected by cost escalation. Real Estate players say that the provisions of the Bill will be applicable in cases of land acquisition of 50 acre in urban areas or 100 acre in rural areas. The compensation for acquisition may double in urban areas. It will go up by four times in rural areas.
Replying to a question, Gupta says that Earth Group has already acquired around 75 acre of land on the Pakhowal road for bringing high-end Township in Ludhiana. As such, there is hardly any possibility of cost escalation of land for investors and high-end users as far Earth Group’s proposed township project at Ludhiana is concerned, he adds. The much awaited project of Earth Group is all set to be launched during this year at Ludhiana. // ludhiana real estate market, ludhiana real estate news, ludhiana real estate projects, ludhiana real estate prices, ludhiana real estate classifieds, real estate agents ludhiana, ludhiana property, plot ludhiana, Ludhiana property news,