FICCI flays retrospect Land Acqusition Act move

Industry body FICCI today opposed moves on application of the proposed Land Acquisition Act on retrospective basis,  cautioning it would trigger a number of litigations and create an uncertain business environment.

"We would like to submit that if this law is implemented on retrospective basis, it would lead to a number of litigations and create a lot of uncertainty in the business environment," FICCI said in a representation to Agriculture Minister Sharad Pawar heading a GoM on Land Acquisition Bill.

Any law implemented on retrospective basis reduces investors' confidence in the system and "I don't think that at this juncture we can afford to do that," said FICCI president R V Kanoria, seeking implementation "only on prospective basis".

FICCI's appeal came on a day when the GoM on Land Acquisition Bill remained divided over the issue of retrospective acquisitions and the consent required from land owners with Pawar saying two-three more meetings are required to finalise the Bill. According to the industry body, acquisition process varies from state to state and it would not be possible to apply this law on uniform basis across India on retrospective basis.

It noted that in many cases, land has not been taken over because compensation has not been paid and possession is held up due to legal challenges by land owner.

Similarly, in many states possession precedes compensation as per the State Act but government is yet to conclude the compensation process or complete its obligations.

All such cases could not be held invalid and governed by new Act, FICCI contended.