State clears buildings on surplus farm land

The state government is planning to amend the Land Reforms (ceiling on agriculture) Act 1973 to sell land declared as agricultural surplus. An ordinance is being readied by officials in a hurry to incorporate the sales clause in the Act. Sources told this correspondent that the decision to promulgate the ordinance was taken at a high level meeting held by the Chief Minister, Dr Y.S. Rajasekhar Reddy, a few days ago.

As per section 14 of the Act, land taken over from rich landlords will be distributed to the poor on a lease basis. The ownership rights shall always rest with the government. Sources added that the sales clause was being added to benefit developers, who took up projects in Hyderabad. Outskirts in agricultural surplus land which the government had either auctioned or gave away under the joint venture mode.

"If the Act remains unchanged, it will prohibit developers from selling the property after completing the projects," said sources. On some land given away by the AP Housing Board, developers have spent about Rs 350 crore as development fee or revenue share to the government when the project is under the joint venture mode. The projects include commercial complexes, residential gated communities and Special Economic Zones. The catch is that any amendment to this Act, which is included in the ninth schedule of the Constitution of India, requires Presidential assent.