THE KARNATAKA LAND REFORMS ACT, 1961

Land Reforms Act passed in 1961 by the Government of Karnataka is a uniform law governing the land reforms in the state.

The act was a result of efforts to achieve the following goals

• Eliminate intermediaries between State and cultivators

• Redistribution of surplus lands

• Fixed ceilings to ensure equal distribution of land

• Consolidate agriculture into a profitable activity.

WHAT DID THE ACT SAY?

The act laid guidelines for company or organization utilising agricultural lands for industrial use.

• Land acquired by companies or organisation if not utilized within 10 years, was deemed to be handed over to the State at zero cost.

• Section 109 safeguarded the conversion or sale of agricultural land acquired by companies for purposes other than deemed originally.

WHAT IS SECTION 109, WHAT IS SAYS?

Section 109 is a provision in the Act, preventing industries from selling agricultural land bought by them for industrial use in case of non-utilization or failure to operate due to lack of funds.

Requests for the conversion of such lands are handled by High-Level Clearance Committee (SHLCC) or the State Single Window Clearance Committee under the Karnataka Industrial (Facilitation) Act, 2002.

KARNATAKA LAND REFORMS (AMENDMENT) BILL, 2020

The amendment will allow all companies in ownership of agricultural lands converted for industrial use to be sold upon completion of 7 years of operation to an enterprise operating in the same domain. This will help investors to bail out in times of financial crisis and prevent the industry from bankruptcy.

• Another amendment in Section 109 of the act will facilitate easy conversion of land use from agricultural to industrial.

• Existing time frame of 60 days for both acquisition and conversion will be cut down to 30 days.

• If clearances fail to be approved within ‘30 days’ by SHLCC (State High Level Clearance Committee) both acquisition and conversion to avoid any further delays will be considered “deemed”.

WHY THIS AMENDMENT IS NECESSARY?

In the period 2013-19, Karnataka government gave the go-ahead to 142 proposals worth ₹49,379.13 crores under Section 109, of Karnataka Land Reforms Act. Over 90 projects remain at non-starter stage and 23 have been shut completely. These 90 projects put a value of ₹39000 crores on the table and carry the potential to create 80000 jobs in Karnataka.

Shortage of funds, alarming dues in GST collection, low employment rate are all contributing to a hindered economic growth. In a bid to attract investors, these Amendments are important.

“We have promised them (investors) to remove all their hurdles. As per their demand, we will rectify all administrative problems within a month or two and legal problems in the next couple of months by amending the existing laws”, said Chief Minister B.S. Yediyurappa.

Sources :

1. Referred From: Karnataka Govt To Amend Certain Rules Of Land Reforms Act: Bs Yediyurappa, Published on Jan 25,2020.

2. Referred From :Karnataka Act 010 Of 1962 : Karnataka Land Reforms Act, 1961.