Model Land Leasing Bill

Why in news?

The central government is persuading the state government to enact the model land leasing law proposed by NITI Aayog.

What is the objective?

• The bill aims to protect the interest of farmers by enabling farmers and farming groups to lease their land for cultivation through a legal document, without dilution of ownership.
• Since Land is a state subject, the model law should be enacted by all states.

What is the need of this bill?

• Land is not only the state subject but also an emotive issue in our country. Thus the legislation on land should satisfy all the stakeholders.
• The need for new law arises after the government failed to amend the land acquisition law, 2015. The amendment was criticized for facilitating the corporate to acquire any land.

What are the provisions?

• The bill legalizes land leasing and terms of lease to be determined mutually by landowner and tenant farmer.
• It allows automatic resumption of land on expiry of agreed lease period, without requiring any minimum area criteria.
• The bill entitles and facilitates tenants access to short–term credit and crop insurance, based on a simple lease agreement
• At present, in a natural calamity, the entire compensation amount is deposited in the name of the landowner and farmers do not get anything. But the model law ensures the tenants get access to institutional credit, insurance and compensation, without impacting the legal ownership right of the holder.
• The Bill would allow leasing in and leasing out of land for agriculture without any restrictions.
• It is also likely to propose setting up of tribunals for disputes, if local settlement mechanisms like Panchayats fail.
• The model law remove clause of adverse possession of land in the land laws of various states.
• The bill also has provisions for termination of leasing based on certain conditions.
• NITI Aayog had consulted the states on the basis of land leasing laws enacted by respective states to make the draft legislation adoptable to all states. Thus it fosters co-operative federalism.

Category: Mains | GS – III | Land Reforms