GHMC to provide higher compensation for land owners

The Greater Hyderabad Municipal Corporation (GHMC) as well as other government agencies will have to spent more in terms of providing compensation for acquiring private properties. This will come into effect from January 1, 2014 as per the new Land Acquisition Bill. This is with regards to land acquisition of private property for the construction of the Hyderabad metro rail project as well as the Musi river beautification project.

New Bill to increase the fianancial burden of GHMC:

The new Bill will provide considerable cheer to land owners, while civic owners and other government departments will have to cough up more money to be paid as compensation. Every year, the GHMC is spending approximately Rs.300 crore on acquiring private property. The new Bill is expected to increase its financial burden to Rs.500 crore.

Property owners to benefit considerably:

The major beneficiaries of this largesse will be property owners. Besides getting a higher compensation, there will be an increase in solatium from the existing 30 % to 100%. In this changed scenario, property owners getting a compensation of Rs.1 lakh, would get a further Rs.1 lakh towards solatium. Besides, they would also benefit due to compensation being exempted from income tax. According to the earlier practice, 10.3% of the compensation amount was deducted as income tax. In case the owner did not have a PAN card or did not submit it while disbursing the amount, 20.6% was deducted as income tax. This move would immensely benefit property owners while it would inflict financial burden on the GHMC.

Estimates regarding land acquisition for different projects:

According to estimates, more than 1,500 property owners in the Old City are likely to part with their property to facilitate the metro rail project. Besides, land from 50 property owners would be acquired for the construction of the Tolichowki flyover, while more than 100 would have to part with their land for road widening between Raidurg junction and the University of Hyderabad. All these land owners are set to get a higher compensaion. Meanwhile, the HMDA is planning to acquire more properties for the construction of the Peripheral Ring Road (PRR) project. Land owners who would have to part with their land for this project can expect to be paid a higher compensation than those who had to forgo their land for the construction of the Outer Ring Road (ORR) project.

Different projects requiring land acquisition:

According to GHMC sources, 116 properties in Hyderabad district as well as 174 properties in Rangareddy district need to be acquired towards various infrastructure projects. All these property owners are expected to get a higher compensation. It is estimated that on an average, the GHMC would acquire more than 1,000 properties every year for various infrastructure projects. They include projects involved inroad expansion, flyover construction, remodelling nallas etc. Besides, other government agencies like the Hyderabad Metro Rail (HMR) and the Hyderabad Metropolitan Development Authority (HMDA) would acquire properties for the construction of the metro rail project as well as for constructing radial roads.

Social and environmental impact study required before land acquisition:

Most properties were acquired by taking the consent of property owners so as to avoid delays and legal hassles. However, about 20-30% of the properties were taken over by invoking the Land Acquisition Act, in cases where the property owners refused to part with their land. Any government agency planning to acquire land from private owners has to undertake a social impact study. This will determine the necessity of such an acquisition and the impact it will have. Besides, it is also imperative to undertake an environmental impact study by a competant authority.

Clarity on Bill details and other issues awaited:

However, according to GHMC officials, there was a lack of clarity as to whether a social impact study was required even for road widening projects. Besides, clarity was also required as to whether an increase in solatium was applicable in cases where the owner’s consent was obtained, as the owners would already have received compensation at prevailing market rates. There is also a lack of clarity as to whether the new rules should be applicable to draft notifications as well. Explaining the situation, the GHMC land acquisition officer stated that the details regarding the Bill as well as a clarity on other issues would be known only after the Revenue department issues an order regarding the implementation of the new Bill.