ABSTRACT
Land is a topic of significant importance in India, It is one of the most valued assets in many families, every state has its share of land bordered by a state border, and many people depend on it in terms of extracting rent, business or sale from it. It is in this vein that Land laws or Real estate laws become immensely important, be it for land acquisition, fair compensation, transactional ventures or other contract agreements while also ensuring overall transparency and systematic functioning of these deals.
Land laws in India are not free of misuse and corruption, and concomitantly, not free of Land scams, the most recent being the Amaravati Land scam, the objective of this paper is to give an overview of Land laws in India and the recent malfeasance which has taken place in Amaravati.
KEYWORDS
Land laws, Amaravati, Supreme court, Scam, Government
INTRODUCTION
According to schedule seven of the Constitution of India, Land is a topic covered under the state list or List II of the constitution of India, which means that the state has the authority in or over their Land, while.’ transfer of property other than agricultural land; registration of deeds and documents ‘ are covered under list 3 or the concurrent list, meaning that both the central and state governments are empowered to legislate over these matters. It is for this reason that Real estate laws in India are governed by many acts and regulations, comprising both central and state-specific laws.[1]
Land laws in India are controlled by a diverse set of acts and codes, such as – Real Estate ( Regulation and Development) Act 2016, ( RERA), the Transfer of property act 1882, The Indian contract act 1872, and more.
Amaravati was crowned the new capital of Andhra Pradesh on 22nd October 2015, It was hailed to be a city like no other, a Singapore like modelled city, where the people would enjoy a monorail and a metro network, gushed by trees, parks and rivers, which would cover half of the city, promising its residents a place free of the chaos and pollution other metropolis cities grapple with. The government of the Telugu Desam Party took over 33,00 acres of land in the city to execute the proposed plan.[2]
Fast forward to 2023, and the city of Amaravati has seen little progress in its plan of turning into a mega city, the region remains largely deserted, with little on-road progress and half-finished settlements, The plan which was expected to be completed in 5 years has been marred by delays and what the government instead faces now is a spree of judicial pronouncements and various Unlawful activities that have taken place, steered mostly by foul Land buying.
RESEARCH METHODOLOGY
The nature of this paper is mainly descriptive while also making comments about the Amaravati Land scam, the content in this article has been mainly extracted from various secondary sources, such as blogs, journals, papers, reports etc.
REVIEW OF LITERATURE
“ The Evolution in Recognition of Land Rights in India: A Study of Legislations Pertaining to Acquisition of Land by Hitabhilash Mohanty and Susampad Hota “
In this article, the author discusses the need for a new land acquisition bill and why the right to property needs to be classified as a constitutional right and not just a fundamental right.[3]
HISTORY OF LAND ACQUISITION LAWS IN INDIA
Land acquisition began in India through an act framed by the British in 1824, named the Bengal Resolution 1 of 1824, the law was applicable “to the whole of Bengal province subject to the presidency of Fort William.” The law allowed the government to “obtain, at a fair valuation, land or other immovable property required for roads, canals or other public purposes.”[4]
It was in 1850, when the British expanded the legislation to Calcutta, through another legislation – Act 1 of 1850 with the aim of securing plots in Calcutta for Public purposes. Soon after, the British came to the realisation that it needed a legislation that would apply to the whole of British India, to facilitate Land acquisition, as it was building railways throughout the country, and needed to acquire land for it. Thus, it came up with the Act VI of 1857 which was enacted in the whole of British India This act was amended in 1861 ( Act II ) and 1863 (ACT XX11) and was finally replaced by the Land Acquisition Act of 1870. The 1870 act was revoked and the Land Acquisition Act of 1894 was passed, mainly for the purpose of lubricating the accession of private Lands by the government for public use. After India attained Independence in 1947, it validated the Land acquisition act of 1894 by the “Indian Independence (Adaptation of Central Acts and Ordinances) Order” in 1948.[5]
India followed the British-era Act till 1998, after which the Ministry of rural development commenced the amendment of the act. The Congress-run government tried to change the act in 2007 by introducing a bill in the parliament. The 2007 bill was cleared in the Lok Sabha as the Land Acquisition (Amendment) Act, 2009, However, it did not get the required vote in the Rajya Sabha to validate the bill. The 2007 bill was renamed in 2011 as the “Land Acquisition Rehabilitation and Resettlement Bill 2011”, or LARR Act. The Bill made it mandatory for 80% of the aggrieved families to agree to the land accession in cases of private projects, and 70 % in instances of public-private partnership (PPP) projects.
DIFFERENT ACTS AND REGULATIONS GOVERNING LAND LAWS IN INDIA
Land laws in India are controlled by a diverse set of acts and regulations, some of the important ones are given below
1. The Real Estate (Regulation and Development Act) 2016 (RERA) – This act was endorsed with the aim of protecting the interests of the consumers and establishing the Real Estate regulatory authority for swift redressal of disputes and advancement of the real estate sector, It ensures the ‘sale of plot, apartment or building, as the case may be, or sale of real estate project”, in a fruitful and effective manner’. The act also established the appellate tribunal to hear and assist the orders and decisions of the Real Estate Regulatory Authority and the adjudicating officer concerned. It can be enforced in all states of India except in Jammu and Kashmir.[6]
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – This act was endorsed with the objective of providing a humane and transparent process for Land Acquisition by the government for public purposes, in the least destructive way for the Landowners, keeping their interests in mind, It also provides for adequate compensation to the parties and their families when their land has been taken for use, by providing adequate relief and provisions to for their rehabilitation and resettlement.[7]
Land Revenue Codes – Various states all over India have encapsulated their own Land revenue codes. These codes set the bifurcation of Immovable property in the state, the powers and duties of revenue administrators, and the penalty for overstepping these provisions.[8] One might think of a uniform Land revenue code, which would be applicable throughout the country, but it is not a practical solution because of the characteristics of land in India, every region has a different kind of topography to it, changing every 20-30 km, and with the unflagging diversity in India, reaching a consensus is nearly an impossible task.
Foreign Exchange Management Act 1999 (FEMA) and Foreign Direct Investment Policy (FDI Policy) – These acts regulate the purchase and sale of immovable property by persons resident outside India, the act states that an individual resident outside India may transfer, invest or own any immovable property or security if that property belonged to him when he was resident in India or was inherited from a person who resided in India[9]
THE AMARAVATI LAND SCAM
The scam was under the limelight in 2019 when the newly formed government of the YSR Congress party led by Chief Minister Jagan Mohan Reddy took over the helm of affairs, the chief minister announced that there would be 3 capitals – Amaravati, Vishakhapatnam and Kurnool, Amaravati would serve as the legislative capital, Visakhapatnam would take the over the administrative system while Kurnool would serve as the Judicial capital.
It was when the transacting companies obtained the land for construction in Amaravati, that they discovered all was not well with the transactions that had taken place, they found some irregularities and got to know that the Land transfers were approved illegally and were against the rules. When the new government was faced with this challenge, they alleged these fraudulent activities to have taken place under the garb of the previous government, i.e the Telegu Desam Party and formed a Cabinet Sub Committee headed by Finance Minister Bugganna Rajendranath to look into the matter.[10] The committee suspected that the members of the TDP ( Telegu Desam Party ) had indulged in Insider trading in Amaravati, Its first report on December 27, 2019, brought out “several procedural, legal and financial irregularities and fraudulent transactions concerning various projects were highlighted, in the Capital Region Development Authority region”[11] It also took the help of the CID ( Crime Investigation Department ) in Investigating the case.
The CID ( Criminal Investigation Department ) found out that the Amaravati Land scam’s origins date back to the formation of the city itself. Registrations worth a staggering 200 crores were made in the names of those who could barely meet the necessities of life. People with a paucity of funds, having a meagre income appeared to have bought the land, residing in Guntur. Illicit documents were forged under their names to carry out these transactions, which also involved many politicians. These politicians had purchased chunks of lands in ‘benami’ names, without disclosing it to the landowner, all this took place before the announcement of Amaravati as the capital.[12]
JUDICIAL PRONOUNCEMENTS
The government of Andhra Pradesh formed a Special Investigation Team on 21st February 2020 after having formed the cabinet sub-committee which came out with several financial irregularities to “inquire, investigate and conclude” the scandal, both the notifications were stayed by the High Court of Andhra Pradesh, Propelling the government to reach out to the Supreme Court for relief.[13]
State of Andhra Pradesh vs Chekka Guru Murali Mohan
The state of Andhra Pradesh had filed six special leave petitions against the respondent buyers of the property, who were the petitioners before the court, the primary allegation in the FIR was that the purchasers of the land were aware of the fact that Amaravati was going to be established as the new capital of Andhra Pradesh, and taking advantage of this opportunity, without disclosing the above-mentioned fact, purchased the land from the sellers at a price which was much lesser than what it would have been later after the capital was established.[14]
As far as the cabinet sub-committee’s order was concerned, The supreme Court upheld the High Court’s order and dismissed the Andhra Pradesh government’s Special leave petition questioning the High Court’s decision of quashing criminal cases against alleged Insider trading committed by ministers of the Telegu Desam Party, The explanation given was that
Private sale transactions could not be criminalised and Insider trading, which is primarily an offence in the stock market, could not be covered under the Indian Penal Code or any of its provisions, the High Court also stated that the right to obtain property was a constitutional and a legal right and that it could not be said that the buyers induced the sellers to sell them the land by concealing some facts, as “as it had not been the buyers who approached the sellers to sell the property but, it were the sellers who offered to sell their lands to the buyers to meet their legal necessities “[15]
The State Of Andhra Pradesh vs Varla Ramaiah
In this case, the state of Andhra Pradesh had challenged the blanket stay issued by the high court on the special investigation team (SIT) construed by the government to look into the alleged irregularities. The supreme court in this verdict lay aside the High Court’s order which stayed the probe, asking the High Court to reconsider its decision. A bench of Justices MR Shah and CT Ravikumar noted that the High Court should have restricted itself from issuing an interim stay when the matter was in a highly premature state. The apex court also noted that the high court had not considered various precedents set by the Supreme Court while granting the stay.
The supreme court further clarified that it had not expressed its views on the merits of the case and that the High Court needed to re-examine the writ petition on merits without being predisposed by the Supreme Court’s order[16]
THE 3-CAPITAL PLAN
On 17th December 2019, C.M Y.S Jagan Mohan Reddy declared in the state assembly that the government will come up with a 3-capital plan, with the objective of de-centralised governance, where Amaravti would serve as the legislative capital, Visakhapatnam would deal with the day to day activities and serve as the administrative capital, while Kurnool would act as the Judicial capital.
The bills were faced with mixed reactions as Amaravati farmers and several others challenge these bills in the High Court of the state.
Soon after, a 3-judge bench presided by chief justice Prashant Kumar Mishra scrapped Andhra’s 3 capital plan rendering it ineffective, ‘on the grounds of legislative incompetence, abuse of power and arbitrariness.’The High Court ruled that Amaravati would serve as the only capital and asked the state government to turn over the finished plots to the land owners within three months while warning it to not create any third-party interest on the Land accumulated for the proposed capital. The High Court stated that “a change in government cannot be a valid ground for a change the policy’ and when rupees 15.000 crores of the taxpayer’s money were already spent on the project, it was the duty of the government to complete the project, in the collective interest of the public.[17]
OTHER LAND SCAMS IN INDIA
Karnataka Wakf Board Land Scam
The Karnataka Wakf Board is a Muslim public-spirited trust that manages and looks after the property that has been donated for use to the poor. The scam refers to the alleged misappropriation of 50 per cent of the Lnad under its control, which was estimated at 4 Lakh crore.[18]
In March 2012, the Karnataka State Minorities Commission, headed by its chairman- Anwar Manipaddy, claimed in a report to the former chief minister of Karnataka, D.V. Sadananda Gowda, making a claim that 27,000 acres of Land under the control of the Karnataka Wakf board ‘ had either been misappropriated or allocated illegally’. The report stated that the Karnataka Wakf Board had allowed almost 50% of its Land to be misused by politicians and members of its board for a value that was a snippet of its market price.[19]
Rangmahal Cooperative Group housing scheme ( CGHS )Scam
Another Landmark Land scam case, where plots and land worth a staggering 4000 crore rupees were misappropriated. The scam began when the land was allotted fraudulently to the Rangmahal Cooperative Grup housing society in Pitampura, Delhi, according to the Central Bureau of Investigation, false documents were presented to the Delhi Development Authority ( DDA).[20] Later, a trial Court declared 11 people guilty in the case, which included 7 public servants. They were held guilty of ‘cheating, forgery and criminal conspiracy’ under the Indian Penal Code and under the Prevention of Corruption Act.
Adarsh Housing Society Scam
The Adarsh Housing Society scam is one of the biggest real estate scams in Mumbai, It started in 2002 when a demand was put forward to the chief minister of the state for the allocation of Land to construct the 31-story building , for “the welfare of serving and retired personnel of the Defence Services,” Several Years later, people were shocked to find out that many bureaucrats, politicians and military officers had indulged in foul land buying, buying the flats allocated in this society at a much cheaper price, below the market rates. In 2011, The government of Maharashtra set up a two-member committee to delve into the matter, led by retired High Court judge Justice J A Patil, the committee came out with its ultimate report in 2013. The report brought out 25 illicit allotments, and the participation of various bureaucrats, including former chief ministers.[21]
SUGGESTIONS AND CONCLUSION
The Amaravati Land scam is a classic example of what ought to have been a development project for public welfare, outgrew into malfeasance, The need of the hour is transparency and strict scrutiny of Land allotments, transactions and other contractual agreements. India has many central and state-specific Land laws in place but is lacking in execution of the same. The government needs to set up efficient organisations to double and triple-check its projects, further, it can include private companies in Land acquisition and development projects, to keep political influence and bureaucrats away from its initiatives.
Anirudha Rath
HPNLU, Shimla
[1] The seventh schedule of the Indian Constitution <https://www.mea.gov.in/Images/pdf1/S7.pdf>, last accessed on 7th May 2023
[2] Agence France Presse, Andhra’s New Capital, Inspired By Singapore, Is Mostly Dust And Farms, NDTV, (11th May 2023), <https://www.ndtv.com/andhra-pradesh-news/a-city-like-no-other-hopes-on-hold-for-model-indian-capital-1859856 >
[3]Hitabhilash Mohanty and Susampad Hota, The Evolution in Recognition of Land Rights in India: A Study of Legislations Pertaining to Acquisition of Land, (2021),
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3726360
[4] Venkat Ananth, The evolution of the Land Acquisition Act, Livemint, (10th may 2023) (https://www.livemint.com/Politics/T2tN2OWzJIy9SuFgsGsmHN/The-evolution-of-the-Land-Acquisition-Act-from-1824-to-2015.html
[5] ibid
[6] THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016, https://www.icsi.edu/media/portals/86/bare%20acts/THE%20REAL%20ESTATE%20(REGULATION%20AND%20DEVELOPMENT)%20ACT,%202016.pdf
[7] Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 https://bhoomirashi.gov.in/showfileF.asp?link_id=2&lang=1
[8] Sujatha Rangachari, What are the fundamental laws that govern real estate in India?, 99 acres ( 11th May 2023)
https://www.99acres.com/articles/what-are-the-fundamental-laws-that-govern-real-estate-in-india.html
[9]THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999 https://www.indiacode.nic.in/bitstream/123456789/1988/1/A1999_42.pdf
[10]Krishnadas Rajagopal, Amaravati land scam | Supreme Court sets aside HC’s stay on State Government’s SIT probe, The Hindu, ( 11th may 2023)
[11] ibid
[12]Bhumika Dandona, All you need to know about Amaravati land scam, ipleaders, ( 12th may 2023)
https://blog.ipleaders.in/need-know-amaravati-land-scam/
[13] Krishnadas Rajagopal, Amaravati land scam | Supreme Court sets aside HC’s stay on State Government’s SIT probe, The Hindu, ( 11th may 2023)
[14] The state of andhra pradesh vs chekka guru murali mohan, 2636/2021
<https://indiankanoon.org/doc/53776545/ >
[15] ibid
[16] Rintu Mariam biju, Supreme Court Sets Aside Andhra Pradesh High Court Order Which Stayed Probe Into Amravati Land Scam; Asks HC To Reconsider, Livelaw ( 12th may 2023 )
[17] Srinivasa Rao Apparasu, HC scraps Andhra’s three-capital plan, Hindustan times (11th may 2023 )
https://www.hindustantimes.com/india-news/hc-scraps-andhra-s-three-capital-plan-101646333288357.html
[18] HTCorrespondent, Rs 2 lakh cr-scam hits Karnataka Wakf Board, Hindustan times ( 12th may 2023 )
[19] Wikipedia, <https://en.wikipedia.org/wiki/Karnataka_Wakf_Board_Land_Scam>, ( Last visited on 13th may 2023 )
[20]Simar Nagi, Top 5 real estate scams of India, Clicbrics, ( 12 may 2023 ) https://www.clicbrics.com/blog/real-estate-scams
[21] Wikipedia, <https://en.wikipedia.org/wiki/Adarsh_Housing_Society_scam>, ( Last visited on 13th may 2023)
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