There was a time when the real estate people would take lands in the name of starting industries and sell them. But bad times have started for such tycoons. Land acquisition act of Karnataka Industrial Areas Development Board (KIADB) is trying to stop the trend of the real estate people who are trying to take the land and sell them back to the government to get a lot of profits. Industrialists would apply for the land and get a land allotted from the government for a cheap price.
Land Acquisition Act Changed Policy On Lands Allotted For Industries
Normally for the industry a large plot of land will be allotted. This land was outside the city area in the past. But now as Bangalore is expanding at a fast pace, there is a great demand for land. The developers are not leaving any small opportunity to grab the land. The lands which are not used by the industrialists are taken by the tycoons and sold it in bits at high rates. Such lands and tycoons are at stake as the rules are tightening. As such the land rates are skyrocketing in the city of Bangalore. A lot of the profits are gotten by the tycoons by leasing or selling the land. They earned a lot of commission from both the parties when there was a deal.
There are some industries which are given land for lease. Such industries have to undergo some changes in the rules from the government side. KIADB land acquisition act rules are being changed by the government of Karnataka. Law and Parliamentary affairs minister TB Jayachandra said that the law will soon take a turn about the land. The land allotted to the industrialists will be taken back if they do not set up the industry in a time margin. This rule will stop the industrialists to take land from the government just for selling.
This issue of the industrialists taking land and selling them off to the tycoons is a prolonged issue to be solved by the government. Though there were proofs the government would not take many actions. The cabinet at last took the bold decision to take the land back from the industrialists if they are not setting up the industry within three years after allotment of the land. Karnataka governments will act soon and bring the amendment in the KIADB act in this regard said Mr. Jayachandra.
The cabinet changed its industrial policy and issued a new policy. This policy states that the industries have been allowed to take the lease for 99 years. From 2014, the industries were given the lease for 99 years. For small scale industries, this would be too much as the income is less and all small scale industries will not last for 99 years. The small scale industry association had asked the government to exempt them from such long period lease. The government announced that the industries set up before 2014 shall have the lease period of 10 years. Law and parliamentary affairs minister Mr. TB Jayachandra announced about this lease policy in his statement.