Centre may soon bring liberal model law for land leasing

As the fate of new Land Acquisition law hangs in the balance, the government is working on a liberal model law on leasing of land for improving farm output as well as industrial activities.
An expert group set up by government think-tank NITI Aayog on land leasing today outlined seven steps, including legalisation of land leasing, removal of adverse possession clause in the land laws of various states, and enabling tenants to avail short-term credit and other services based on a simple lease agreement.
The panel, headed by T Haque, today held the first national consultation meeting with stakeholders and states representatives.

"Remove the clause of adverse possession of land in the land laws of various states, as it creates fear in the minds of land owners to lease out land for a long period," the draft note for discussion on agricultural land leasing in the country released by the panel said.
The expert group also batted for giving flexibility to the land owner and tenant to decide upon the term of lease and the rent besides proposing automatic resumption of land on the expiry of agreed lease period and provided for lease termination within the lease agreement period by simply giving an advance notice of one crop season or on crop year.

After the consultation process, the expert group will firm up its recommendations for drafting model agriculture land leasing act which will be adopted by states. The expert committee will submit its report by March 7, 2016.

Aayog's vice chairman Arvind Panagariya had urged states to liberalise their land use policy to facilitate industrialisation in his blog in July last year.
"In the context of the difficulties in land acquisition under the 2013 land acquisition law, states wishing to facilitate industrialisation can further benefit from liberal land leasing if they simultaneously liberalise the use of agricultural land for non-agricultural purposes," Panagariya had said.

In the present scenario, it is not legal in many states to lease land while in others the laws are slightly conservative.
Telangana, Bihar, Karnataka, Madhya Pradesh and Uttar Pradesh ban land leasing with exceptions granted to landowners among widows, minors, disabled and defence personnel.
Kerala banned tenancy for long and have recently permitted only self-help groups to lease land.
States like Punjab, Haryana, Gujarat, Maharashtra and Assam do not ban leasing but the tenant acquires a right to purchase the leased land from the owner after a specified period of tenancy.
Only Andhra Pradesh, Tamil Nadu, Rajasthan and West Bengal have liberal tenancy laws at present.