Real estate developers today said the Land Acquisition Bill passed by the Cabinet would make land costlier by up to 80 per cent, adversely affecting the housing development in the country.
Expressing disappointment over the Bill, which will now be introduced in Parliament on Wednesday, apex realtors body CREDAI NCR President Pankaj Bajaj said: "Farmers' interest have been protected, but the housing requirement of middle class have been completely ignored."
Bajaj pointed out that the land cost would go up by 60-80 per cent because of higher compensation offered to farmers in the the Land Acquisition, Relief and Rehabilitation Bill, 2011.
The aggregation of land would also become difficult, he said.
The Bill is believed to have a proposal for compensation four times higher than market rate to the owners. It also proposes government help for acquisition of 20 per cent of the land for a private project, in case the firm acquires 80 per cent of the land needed for a project.
The Bill proposals include a subsistence allowance of 3,000 per family per month for a year and an annuity of 2,000 per family per month for 20 years. The Bill also includes employment provisions.