Karnataka government amends land reforms act
Amid a walkout by the opposition, the ruling BJP passed an amendment to the Karnataka Land Reforms Act by allowing private industries on the verge of collapse to sell land to another buyer or company. Opposition parties claimed the amendment was anti-farmer, saying the land purchased from ryots will now be used for making profits with nefarious intentions. Introducing the bill, revenue minister R Ashoka and law minister J C Madhuswamy said the amendment was being introduced to allow industries, under Section 109 of the Act, to sell the land only after a period of seven years. It can be sold only for the purpose for which permission was initially obtained. “We have seen industrialists who have made huge investments but have committed suicide and some who have fled the country after being unable to repay loans. They have even left their employees high and dry,” said Ashoka, while justifying the amendment. Interestingly, the bill comes around the same time when the family of Cafe Coffee Day (CCD) founder VG Siddhartha has decided to sell 10,000 acres of plantations and other assets to repay lenders. Under the original Act, industrialists are allowed to sell 40 units or 216 acres of land if the company is under distress.
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