An amazing land legislation which says land can be procured only by paying 4 times the market value has been passed. This will mean the land owners will benefit, correct?
No. Only Economics will work.
Let us take a different example – if suppose a legislation was passed that women should be paid 1.25 times the salary for a man, you think women will benefit? No.
Lesser jobs will go to women. People will make job offers only to men. Or women will be recruited at a particular salary and will be forced to pay back in cash. Or men will be paid ‘extra late sitting allowance for sitting beyond 8pm’ and women will not be paid that allowance. If a stupid bureaucrat with a compliant politician (or the reverse!) pass a law, it does not work. I have no clue how many lawyers are looking for loopholes, but surely something will be found.
Let me give you an example from an old provision in the Income Tax Act, 1961.
There was a provision which said if you sold a property below the market price, the government would acquire it at that stated price. Simple, it should have brought down the black money, correct?
Well I know how a brilliant lawyer used it. Mumbai has many properties where the landlord could not vacate the clients – dramatically reducing the resale value. Let us say as a landlord with a 50,000 sq ft of rental property thought his property was worth Rs. 5 crores -but the tenants were paying only say Rs. 4 psf rent, he was getting only Rs. 200,000 as rent. The Mumbai rent control had (not sure if it is still true) that you could buy it from your landlord at 100 times the rent. So he could have sold it to his tenants at Rs. 2 crores.
This act came as a blessing! They would make an agreement between A and B that the property was being sold for Rs. 4.8 crores…..the Commissioner would pay (I think) a 15% premium…and acquire it…then find that they could do NOTHING with the property!! So suddenly the government was saddled with expensive property – which could not be sold. L O L.
Also there is a provision which says ‘If a Scheduled Caste employee is removed and he complains to the police, it is a NONBAILABLE COGNISABLE OFFENCE! So what to do?
I know one big employer who does not employ a candidate if he is a SC….so sometimes the good intention of the legislation is lost in the ingenuity of the bureaucrat. Markets help making a mockery of the law. So this Act will also become a joke soon.
By the way did you think this act is meant to help the small guy? NO. This is just to spite Maya’s work at UP…meri Sonia mahan!!
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