Why Delhi Govt Wants To Change Land Reforms Act

Obsolete legislation have been a key drag on urban growth, especially in the major cities of India. So, when the revenue department of the Arvind Kejriwal-led Delhi government recently proposed to amend the Delhi Land Reforms Act, 1954, by removing certain sections, urban planners in the city saw a new flicker of hope.  

These archaic laws were framed when agriculture was the backbone of the city's economy. Various provisions of the Act were primarily enacted to guard such land and keep a tab on urban growth. A few decades later, the city is witnessing extraordinary growth in its population, year after year.

The Delhi government recently invited suggestions from public on its proposed amendments to the Delhi Land Reforms Act, 1954. The suggestions are to be made by June 24, 2016.

PropGuide takes a look at the key changes proposed to be made to the Act:

Current status: Sections 81 and 82 of the Act state that the use of land for any purpose other than agriculture and connected activities, such as horticulture, animal husbandry, pisciculture, poultry farms, will be penalised.

Proposal: The government plans to permit conversion of agricultural land for non-agricultural purposes. 

Current status: Though Section 86A of the Act provides for ejectment of encroacher from unauthorised colonies, it limits the period for ejectment to three years. So, if a piece of land has been illegally held for more than three years, no ejectment can be made.

Proposal: According to the Delhi government, the time limit only facilitates land grabbers. It plans to either scrap the period or increase it to 30 years. Also, as large-scale unauthorised colonies have mushroomed in the capital, the government plans to impose a jail term of up to three years and a fine of up to Rs 10 lakh, or both, for carrying out such constructions. 

Current status: Section 33 places restrictions on the transfer of land by owners where the owner is left with less than eight acres.

Proposal: The government proposes to do away with this section. 

Current status: Sections 55 to 61 of the Act severely restrict land partition.

Proposal: These provisions, according to the government, “retard colonisation on the one hand, but also create hassles for land owners by not allowing a clear individual title/share”. These portions are proposed to be removed from the Act. 

Current status: The Act does not talk about allotment of agricultural land to private persons.

Proposal: To facilitate allotment of agricultural land to private persons, provisions under Sections 73 to 75 of the Act are proposed to be deleted. 

Current status: Section 85 of the Act provides for conferring the rights of Bhumidhar to the occupant of agricultural land.

Proposal: This provision, according to the Delhi government, encourages dishonesty, as an illegal occupant gets legal basis to grab a piece of land. The government has proposed to remove this section as well.

 How will this help Delhi?

The single biggest reason for depression in the Delhi real estate market has been its exorbitantly priced property. While the middle class has stayed away from buying properties in Delhi, unauthorised colonies and slums have flourished. When the government is able to develop more urban spaces, property prices in Delhi might see a correction, its population would be better housed, and the real estate sector in the city might see a boom again.