Friday, 20 July 2018

KOCHI METRO: COMPENSATION FOR LAND ACQUIRED; HARDSHIPS CAUSED TO TENANTS AND TRADERS; SUGGESTION TO IMPOSE LUXURY-TAX ON AMENITIES



COMPENSATION FOR LAND ACQUIRED: The Government of Kerala acquired land for widening roads as part of construction of Phase I of Kochi Metro from Aluva to Petta. The maximum compensation given was 52 lakh rupees/cent in Banerji Road and M.G. Road at Ernakulam and 29 lakh rupees/cent in Petta area at Poonithura. The land owners are satisfied with the compensation given to them.

Did the owners of adjacent lands surrender any portion of their land free of cost for the initial formation of these National Highways and State Highways? Are they paying any luxury-tax on their property? The main reason for the escalation of price of land in the Kochi city limits is only due to the huge investments made by the government for infrastructure development of National Highways and State Highways, Bridges and Railways. At the time of formation of these roads, these adjacent land-owners received compensation and now when additional lands required for the Kochi Metro was acquired they were given another compensation (lottery) from the government exchequer.

UNEXPECTED HARDSHIPS CAUSED TO TENANTTS OCCUPYING BUILDINGS AQUIRED FOR KOCHI METRO: Some of the land-owners got double lottery when the poor tenants occupying their dilapidated buildings and paying reasonable rent too were forcibly evicted from their premises. They are also getting a further advantage of the new infrastructural investments – Kochi Metro - for their remaining properties.

Many of the tenants occupying such building and premises were forcibly evicted and they were divested of their livelihood. Many of them have taken business loans from banks and other financial institutions; they are forcibly thrown into debt traps and dragged into litigations in court. Did the government compensate those hapless tenants at least on humanitarian grounds? It is also pertinent to note that many of these tenants have taken various cash credits and term loans for their business from banks and other financial institutions and they have been pushed into debt traps and dragged into litigations in court, for no fault of theirs. Why the governments fail to issue an ordinance, a moratorium on their loans?

IMPACT OF DEVELOPMENTAL SCHEMES ON TRADERS: Certain policies or developmental schemes of the government might land the debtors/loanees of banks and other financial institutions into great hardship, financial trouble and jeopardy. For instance, the central and the state governments ventured into the Kochi Metro Project and prohibited parking of vehicles on M.G. Road at Ernakulam and a few other areas on the route. The parking prohibition badly affected the business transactions and many of the business concerns lost their customers too. Some of the affluent businessmen shifted their business to NH-66/544 (old NH-47) and other new shopping malls located at Edappally and Vyttila. The poor sections in the business community are reeling under this inconvenience caused to them. The central and state governments should see that the banks should rephrase their loan installments reasonably for a longer period to enable them to repay their loans and/or the government should declare a moratorium on the loans otherwise the debtors and their families would face hard times.

IMPOSE LUXUARY-TAX: It is pertinent to note that the main beneficiaries on either side of National Highways or State Highways or other commercially important roads are not paying any luxury-tax for enjoying the benefits of such NH- Highways and State Highways and Kochi-Metro. Therefore, the government is fully justified in imposing reasonable luxury-tax, proportionate to their advantage, on land owners in the city limits. Imposition of luxury-tax would encourage people to work hard. Those who cannot afford to pay luxury-tax will be forced to transfer their properties. Properties in the city limits should change hands, creating opportunities for new entrepreneurs which would bring prosperity for the nation.

Excerpts from
NEED OF THE HOUR
By
Joseph J. Thayamkeril,
Lawyer, Cochin
josephjthayamkeril.blogspot.com
josephjthayamkeril.google.com

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