Karnataka plans to amend Land Reforms Act

Proposed amendment would enable state to take back unutilised land from allottees

In an effort to take back the unutilised land from the industrial houses, real estate developers, educational institutions, places of worship, the state government is proposing an amendment to Section 109 of the Karnataka Land Reforms Act, 1961.

Minister for Revenue V Srinivas Prasad today tabled the Karnataka Land Reforms and Certain Other Law (Amendment) Bill, 2014, in the Legislative Assembly.

According to the proposed amendment, the government will take back land from industrialists, educational institutions and real estate developers if they have not utilised the land for the purpose for which it was allotted to them within a period of 10 years. If anyone fails to surrender such land to the government’s land bank, the exemption stands cancelled and the same be forfeited to the government without paying any compensation.

“It is considered necessary to amend Section 109 of the Karnataka Land Reforms Act, 1961 (Karnataka Act 10 of 1962) and Section 95 of the Karnataka Land Revenue Act, 1964 (Karnataka Act 12 of 1964) to provide that once permission under section 109 is taken, the permission under section 95 of the Act is deemed to have been taken as the procedure under the two enactments is similar,” the Bill said.

The Bill said that company or organisation have to utilise the land within a period of 10 years from the date of obtaining permission under Section 109 of the Land Reforms Act, for the purpose of expansion of project; to tide over the financial crisis; for changing of land use. They should submit application, which should be considered by the High Power Committee headed by the Chief Secretary subject to such conditions as deemed fit on case-to-case basis.

The amendment to the Act would make it easy for promoters of industries, floriculture, horticulture and agro industries or owners of educational institutions, housing projects, places of worship. They would no longer have to run from pillar to post in the government offices for conversion of the agricultural land they have purchased.

The permission for diversion of agricultural land for industrial development and other purposes would be granted when permission for purchase of agricultural lands is accorded under section 109 of the Karnataka Land Reforms Act, 1961, subject to the payment of fees prescribed, the Bill said.

As the state government is preparing to host the Global Investors Meet in 2015, the amendment would enable it to build its land bank. The previous BJP government had notified close to 100,000 acres land for industrial purpose and it could acquire about 40 per cent of the land to develop a land bank.