Response to the 'Land Question' through urban planning policies and strategies

FINAL ESSAY MONJIMA SEN DEP 5102 | MUP Year 2 | 07.12.2018 Body content count: 2560 words

Contents Table of Figures ......................................................................................................................... 2 Abbreviations ............................................................................................................................ 2 Question of Choice ................................................................................................................... 3 1. Introduction ........................................................................................................................... 3 2. Tale of Two Cities .................................................................................................................. 3 2.1 Ahmedabad ...................................................................................................................... 3 2.2 Delhi .................................................................................................................................6 3. Proposed Principles ............................................................................................................... 7 3.1 Priniciple 1 ........................................................................................................................ 7 3.2 Principle 2 ........................................................................................................................8 4. Conclusion........................................................................................................................... 10 References ............................................................................................................................... 10

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Table of Figures Figure 1: Ariel view of a TP Scheme boundary in Hansol area Ahmedabad, Source: hcp.co.in ....................................................................................................................................4 Figure 2: Post survey, documentation of original plots. Source: hcp.co.in ............................ 5 Figure 3: Final plots after regularizing and taking back 45% from each plot. Source: hcp.co.in .................................................................................................................................... 5 Figure 4: Property registration card - each state's looks different. Source: punjabkesari.in .8 Figure 5: India's pace of urbanization. Source: sociocosmo.com ............................................9 Figure 6: Mumbai has only 1.1 sq. m. of open space per capita - less than Bueno Aires.

Source: Times of India, Baharash Architecture .......................................................................9

Abbreviations GTPUDA – Gujarat Town Planning and Urban Development Act GLS – Government Land Sales RAH – Residential Affordable Housing DLP – Delhi Land Pooling RERA – Real Estate Regulatory Authority EIA – Environmental Impact Assessment

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Question of Choice A. The "Land Question" is fundamental to thinking about how to respond to various spatial and socio-economic problems. Discuss how two existing (not imagined) cities have responded to the "Land Question" through its urban planning policies and strategies. Then, propose two or three principles which you think urban planners should follow in responding to the "Land Question" today.

1. Introduction ‘Land’ has been one of the most valuable commodities for humans since time immemorial – more so for land scarce countries like Singapore than, say, developing nations like Malaysia or India, where it remains largely abundant, if not unlimited. But then again, any essential resource in limitation is a point of discussion and a source of greed and power - be it land or petroleum etc. The debate is also fundamental because land is one of the four factors of production in economics along with labor, capital and entrepreneurship.

Talking from an Indian perspective, even before the British Raj (colonization), there were zamindars (land owners) who owned multiple acres of (often) ancestral land, on which poor land-less farmers worked in exchange for meagre wages, post tax deduction. This was how the system worked in the past and it is no surprise why, even today, land banking is very attractive in India, as holds true in several other developing countries. As real estate prices soar, land remains one of the most sought after ‘asset’ – be it for big industrialists who bank or develop it, or individuals who invest in land properties, and when the time is right, sell it of for a lump sum profit.

It is important to understand that in countries such as India, this kind of ‘investment’ is possible due to land availability, sure shot increase in real estate prices and lax land regulations. This is not necessarily seen as a bad thing so far, only because presently, India is not land locked. However, in terms of equity, land banking is poisonous as it leads to accumulation of wealth and creates income divide within a society along with social hazards such as no space for greenery, recreation, affordable housing and public amenities among other essentials. This is where urban planners and policy makers of India have stepped in to respond to the ‘land question’ in the following ways:

2. Tale of Two Cities 2.1 AHMEDABAD Mechanism: TP (Town Planning) Scheme

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Ahmedabad is the largest city in the western most state of India, Gujarat. It is about 500 square kilometer in size with a population of over 6 million, a number very similar to Singapore. In 2010, Ahmedabad celebrated 600 years of existence, highlighting the fact that for a very long time, the city grew organically, with a ‘walled’ core, which has now been recognized by UNESCO as a World Heritage Site. This also means that, as the city spreads horizontally, increasing number of towns and villages in the vicinity are being “eaten” up by Ahmedabad.

Here is where the TP Scheme becomes relevant to effectively manage increasing urban sprawl. The TP Scheme is not unique to Ahmedabad but is practiced across all the cities in the state of Gujarat and Maharashtra as it was introduced through the ‘Bombay Town Planning Act’ in 1915 (Authority, 2018) – before India’s independence. Later, when the act was modified in 1954, post-independence, it was incorporated with detailed drawings of master plans for cities and focused only on urban land beyond city limits i.e. beyond the municipal or local government boundaries. The Gujarat version of the Act is called GTPUDA (1976).

To explain the procedure in brief, TP Scheme implementation occurs in a joint effort between the urban development authority (different from the municipal corporation) of any city in question and the freehold land owners. At a time, about 1 to 1.5 square kilometers of land (a collection of several individual parcels) are planned for, by drawing TP Scheme, whereby all the land is pooled in by the government and redistributed to the owners post 45% deduction from each parcel.

This might sound unfair at first but what the government is trying to do is regularize irregular shapes of plots, taking back some land for laying roads, providing public infrastructure, affordable housing and social amenities like gardens, schools, hospitals; and land banking, whereby land is sold by the government (similar to GLS in Singapore) to

Figure 1: Ariel view of a TP Scheme boundary in Hansol area Ahmedabad, Source: hcp.co.in

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generate revenue. Land owners agree to this because even though everyone loses 45% land in proportion to the quantum of area they own, in return they receive water, sewer, electricity connections and roads (collectively called ‘betterments’) which ultimately increase the price of their remaining area of land. If a person’s plot is under a TP scheme, it becomes more valuable than it earlier was, and its asking price shoots up manifold.

Figure 2: Post survey, documentation of original plots. Source: hcp.co.in

Figure 3: Final plots after regularizing and taking back 45% from each plot. Source: hcp.co.in This instrument has enabled the government to implement various public infrastructure projects like the ring roads of Ahmedabad as well as the RAH Zone on the outskirts of city limits to house the lower income sections of the society. On a concluding note, this scheme has worked well so far and in the last few years has been acknowledged and emulated by cities of other states of India as well.

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2.2 DELHI Mechanism: Land Acquisition Until recently (Delhi Land Pooling Policy got approved on 7th September 20181) land in Delhi, the capital city of India, was acquired by the government for controlling urban development under the Land Acquisition Act 1894, later amended in 1984 and again in 2013 (Government, 2014). While the DLP policy under Delhi Development Authority works in a very similar manner to the land pooling and redistribution system, discussed under Ahmedabad chapter, land acquisition worked differently.

Land acquisition method seems rigid but has been practiced in multiple cities all over the world. In India, land acquisition is done by union or state government unlike the previous mechanism which is implemented by local development authority (context: India has three tier government). Usually, land is acquired for public private partnership projects (large scale industrial, infrastructural or urban projects like industrial corridors, dams, etc.), and Delhi being the capital city-state, experiences implementation of several such projects.

Since, originally, the Act was of British era, it faced a lot of criticism and objection from land owners, largely farmers from the city fringes, who saw their plots being taken away by the government without fair compensation in return – sometimes as bad as extremely delayed or no compensation. Since then, a new replacement act has been passed called ‘The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013’.

Under the Act, the government notifies the land owners about their plots being acquired and the corresponding compensation they should expect. Earlier, under the previous Act, the compensation given was of ‘jantri’ or government value which is much lower than the actual real estate value at that point of time. But after facing criticism and cases being filed against, this value was revised to market value of the land. If any land owner, after this announcement has any further grievances, they can file a complaint within 30 days from the notification and a case by case plea will be entertained at the discretion of the government.

The implementing government should make sure resettlement provisions for the affected are made, the due compensation is paid, additional allowances such as subsistence allowance for the first year, transportation compensation for a limited time, resettlement allowance etc. are all paid within stipulated time.

To conclude, briefly, this is how the Land Acquisition instrument works in India, and even though there are still a lot of loopholes in this system (which is why the other mechanism is gaining popularity), it has enabled the government to implement large scale projects (expressways, reservoirs etc.) that have boosted India’s economy in the recent past.

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https://www.livemint.com/Money/lIrSMtpuTb5JHxE4a65HFN/The-benefits-of-Delhi-landpooling-policy-and-how-it-works.html

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3. Proposed Principles After magnifying some of the existing land mechanisms of India, it is quite evident that the problem of ‘land’ is far from solved. For the world’s second highest populated country, with the seventh largest geographical area, no amount of policies and principles can be enough to take care of every domain under the umbrella of ‘Land’ – social justice, environmental concerns, economic equity etc. However, as an urban planner, working scale wise (lower to higher) is a good idea to start implementing some principles.

Principles can be implemented city wise, and based on success, can be replicated to other cities of the state and even the country at large. However, it is important to understand that since India is diverse, an idea that worked, for example, in Ahmedabad might not work in Bangalore simply because of context. The population of Ahmedabad is largely ‘self-owned business’ oriented i.e. they understand profits of giving away a part of their land to the government in exchange for other benefits. However, in Bangalore, the population is ‘service’ oriented and they appreciate the idea of being asset rich and hence accumulate land within the family.

Nevertheless, the following principles would be suggested by me to answer a few of the multiple ‘Land Questions’ that arise today:

3.1 PRINICIPLE 1 The first principle considers some questions of legality and fairness. For a very long time now, India’s real estate sector, especially the ‘land’ sub sector rather than the ‘built’ sub sector (due to the introduction of RERA 20162 which controls builders’ activities and keeps it transparent and fair) is marred by dubious deals, under-the-table payments, prying middlemen etc. Indians buy land not only for investments but also for other reasons – some fair, some unfair.

Land is bought at an individual level, largely, for building houses where one can live or for investments to fund higher education, startup ideas, marriages etc. However, a parallel economy of unaccounted ‘black’ money leads to land and other assets purchase so that money is locked somewhere in ‘kind’ form and not cash. Since property tax is payable at ‘jantri’ rate, land is shown at an undervalue and hence tax payable declines. This is not universally practiced by all Indians, but a collective of tax evaders who dodge it by practicing ‘cash only’ business transactions, accept bribes, are rich industrialists and politicians with ‘contacts’, those who do not declare their true net worth etc.

The suggested principle to this problem would be (i) systematic digitized book keeping of property ownership and follow-up change of hands, and (ii) tax payables at market value – 2

https://www.entrepreneur.com/article/294817

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doing away with ‘jantri’ value altogether. Now, urban land property cards have come about in the last few years (2016-17), whereby every built and land property is registered by the land and revenue department. However, this practice is new and quite tardy in India and often leads to land disputes when change of ownership is not documented leading to both parties fighting for the same property, or fraudulent double selling of a single property. Lax book keeping also allows land owners to file false areas (often undervalued) which makes them liable to lower taxes.

Figure 4: Property registration card - each state's looks different. Source: punjabkesari.in

Instead, the system should begin with on site inspection, measurement of property by government officials, or through the help of satellite imagery; true number filing and feeding into computers to ensure information is stored securely, and no tampering is possible. The book keeping should also be made as standardized as possible across the nation so that land details are uniform and traceable. Each subsequent transaction of a single piece of land identified by a unique ID or plot number, for example, should be fed in corresponding to the registered land as and when it occurs.

This principle will not only be fair to the loyal and honest tax payers, but also to the subsequent owners of the land who, even after purchasing the land, face trials due to poor documentation when the previous owners are fraudulent and corrupt. The principle will also ensure under-the-table transactions decline and ultimately stop and will enable the government to raise revenue as per current rates (when the tax collected is at market value).

3.2 PRINCIPLE 2 The second principle involves some questions of environmental impacts. A problem plaguing ‘land’ right now in India is how agriculture land in India is swiftly being converted

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into ‘non-agriculture (NA)’ land so that urban development can be accelerated, and money can be made in the process – by land owners, developers and the government.

Where on the one hand, India is still dependent on agriculture and manufacturing industries, on the other hand it is experiencing urban population boom. Herein lies a vicious problem whereby we need space for accommodating urban sprawl and at the same time need fertile land to produce crops and feed the nation, export surplus produces, and sustain the economy.

Figure 5: India's pace of urbanization. Source: sociocosmo.com Conversion of agriculture land to NA is possible through the submission of land use conversion application to land and revenue department. Usually NA conversion is easier and fits in the logical chain when it is converted to residential use or the use mentioned in the master plan of the city. Conversion to industrial use is subject to heavy scrutiny and environmental impact studies (EIAs). Details like fertility of land, crops grown so far, money yielded, ownership details along with the owner’s identity documents and an affordable fee amount is to be submitted for legal conversion.

The conversion process is quite simple and often, due to corruption, becomes a smooth sailing process without any accountability to environmental hazards. It allows land owners to increase the value of their land by sacrificing fertile farms as NA certificate ensures the market value of the land is higher and the plot is in demand. Ultimately, in this process, open fields and per capita greenery in India is on the decline.

Figure 6: Mumbai has only 1.1 sq. m. of open space per capita - less than Bueno Aires. Source: Times of India, Baharash Architecture

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In such a scenario, the second principle should be to tighten the process of NA conversion and certificate provision. Just like agro-to-industrial conversion is subject to strict EIAs and industrialists will think before approaching the government for NA certificate, agr0-toresidential conversion should also be subject to some form of assessment. Population projection, corresponding land required and existing availability of land bank within city limits should be considered before pushing the municipal boundary.

With increasing NA land parcels, the city sizes of India are growing putting pressure on infrastructure and urban governance. If this is not kept in check, the quality of food, air, greenery and life itself in the urban domain will become (is becoming) a serious issue for city dwellers.

4. Conclusion To conclude the essay, it is evident that a lot of land related problems exist in India today, which is resulting in perils for farmers, middle income groups, environmentalists, urban dwellers etc. But these problems are not just ‘Indian’ and exist in various other developing and under developed nations of the world. Somewhere, as an urban planner, one realizes that the issue is not so much the limitation of the resource as it is the prudent use of the resource. Land is a limited and soon to be scarce entity and this makes it enticing. This is where urban planners come in to control speculation, to ensure equity is maintained and to formulate and implement economy and evidence backed policies and principles that will strengthen land based urban governance and hence best handle the question of ‘Land’.

References Authority, A. U. (2018). Retrieved from http://www.auda.org.in/TPScheme.aspx Government, D. (2014). Retrieved from http://delhi.gov.in/wps/wcm/connect/doit_land_building/Land/Home/Land+Acq uisition

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