With coffers running dry after a prolonged real estate slump, the urban development and housing (UDH) department has directed civic bodies not to pay cash compensation against land acquisition made in public interest.
The department has proposed to give only 25 per cent of developed land in the project after the land acquisition after the state government’s approval. A senior official said, “Providing cash compensation is a burden on the civic agencies. This hampers the development projects across the state.”
Many believe the move might lead to more protests in the state as owners whose lands are acquired might not settle for compensation without cash.
Nagendra Singh, who is protesting for fair compensation after farmers’ land was acquired for Ninder Housing scheme said, “The state government cannot decide options for land owners. Both the choices should be given. Many owners require cash for constructing houses and other arrangements.”
The officials are also apprehensive that this may hamper projects in the city as affected owners might approach the court after the civic body acquires their land.
An official source at JDA said, “Land for Bais Godam elevated road has been acquired from house owners along the road. Few are demanding cash compensation. In such cases, it is necessary to provide compensation as people might approach the court.”
In the past, lack of funds for land acquiring is obstructing the construction many projects including Ring Road. An official said on Agra Road, the JDA has to acquire 3,200 square-metre land from a petrol pump to construct clover leaves structures. However, the settlement cannot be done as funds are exhausted.
Sources said pressure on the JDA to repay installments of approximately Rs 1,600 crore is mounting. The JDA has taken loans totalling Rs 2,250 crore from NCRPB for the city’s major projects. The JDA sought funds from the Centre for ROBs and the elevated road. “The JDA is desperate to earn revenue as it has to pay approximately Rs 30 crore installments against the loan taken from National Capital Regional Planning Board for Dravyawati River and Railway over-bridge,” said a senior official source