New CPI not sufficient for monetary policy decisions, says Subbarao

Subbarao said the new CPI has only 19 data points which is not sufficient for a statistically robust analysis as the central bank need to develop a series of producer price indices that will help gauge how price momentum builds up in the economy

Reserve Bank of India (RBI) governor D Subbarao has said the new series of consumer price index (CPI) is not enough for a robust statistical analysis of prices.


"The new CPI has only 19 data points, which is not sufficient for a statistically robust analysis," Subbarao, who demits office on 5th September, said while speaking at the Statistics Day conference at the RBI headquarters.


He also said the new CPI has an excess focus on food prices, which has a 50% weight. House rents, which account for 10%, are also a cause for concern given doubts over the efficacy of the prices, he added.


Replying on a question if there is a case for shifting focus to the CPI, the RBI governor said even in case of such an eventuality, the central bank will not abandon the wholesale price index (WPI) as a tool to monitor producer prices.


"My own view is we will not, because analytically we need to develop a series of producer price indices that will help us gauge how price momentum builds up in the economy," he said.


RBI has traditionally focused more on WPI because of the deeper analytical insights it offers.


"We've traditionally used WPI because we thought the legacy CPI is not representative enough for the entire population. WPI is more extensively researched by way of its empirical relationship with other variable like output, monetary aggregates and interest rates and presents richer analytical insight," he said, conceding that other central banks use CPI for policy formulation.


The new more inclusive CPI was introduced in 2011 and ever since that Subbarao has been repeatedly asked if the RBI will rely more on the new index. His uniform response has been that the central bank uses all the available data points, including the CPI and WPI, in its policy formulation.


The wedge between the WPI and CPI number has consistently been high. For July, WPI came in at 5.71% while the CPI was still hovering around the double-digit mark.


"We have had a problem in calibrating our policy whenever there has been a divergence between CPI and WPI and more importantly, in communicating our policy...It poses a major challenge in assessing inflation dynamics in the short term," Subbarao said talking of RBI's predicament.


"In our country, we have a problem of excess of inflation measures," the RBI chief said, adding there is the WPI, three legacy CPI indices and the new CPI indices.


He acknowledged that the analysts have criticised the WPI for being flawed and also for not considering the services sector, which contributes two-thirds of the economy.


Maintaining that other central bankers are "reticent" talking about it, Subbarao said there is no single equilibrium exchange rate which is the most acceptable one to predict the real value of a currency.


He stressed the need to deepen the statistical research capabilities to understand how developments in the external economy spillover in our economy.


Fraudulent selling of life insurance– What are IRDA and insurers doing?

Life insurance is being sold fraudulently with a corporate approach to defraud gullible people. Intermediaries have neither been penalised nor have they lost their license. There is a need for stern action from IRDA and insurers to curb the menace. Will the regulator act?

Mis-selling of life insurance is ubiquitous. It can be about giving wrong information about product features or exaggerated returns. The new trend is fraudulent selling of policies with offers that may just lure the greedy and the gullible by offers of “interest-free” loan, mobile tower rent, helping to get company bonus, surrender of a policy without loss, etc. If you happen to lower your guard, you may a royal run around after getting stuck with a policy of trivial value. We have written several stories detailing this fraud

Reliance Life refunds Rs60,000 in a suspicious transaction: Another Moneylife success

Bharti AXA Life: Senior citizen sold policy with lure of rent from Airtel tower?

Moneylife spoke with senior officials from an insurance company to piece together this disturbing trend. The fingers point to a few brokers and corporate agents. They work with multiple distance marketing agencies who in-turn log the sales. The arrangement is convenient as the brokers and corporate agents can feign ignorance of the fraudulent selling due to business agreements with multiple agencies. Even if their own employee is involved, they can terminate the employment after passing the blame solely to them. It is unfortunate that insurance brokers who are supposed to represent clients by offering the best products for their needs are taking consumers to cleaners and that too without even meeting them in many cases. The insurance company we spoke distanced itself from few brokers to avoid suspicious policies being sold.

Is Reliance Life’s corporate agent AB Capital involved in fraudulent “interest-free loan” offers? Will Reliance or the regulators initiate action?

It is also perplexing that an estimated that "95% of the fraudulent" cold calls originate from NCR. According to one official, “It could be due to ease of infrastructure to setup calling centre or it may be to do with culture of the place.” Most of the phone numbers reported by Moneylife readers to us have New Delhi area code (011). Moneylife has spoken with these shady characters few times on the phone (011-65981239/011-65695595). The fraudsters, who were based in New Delhi gave their address as 13th floor, Lalit Towers, Connaught Place. They were peddling Reliance Life Money Multiplier policy with the carrot of “interest-free loan”.

Is Reliance offering 10-year interest-free loan for buying insurance?

Moneylife has taken up the issue with IRDA Chairman during 16th CII Insurance Summit on 14th August. IRDA is aware of the peril and have initiated steps, but a strict action involving penalties and license revocation is necessary to show a will to crack down. While IRDA has penalised a few life and non-life insurance companies with hefty fines in recent times, it has levied penalty only on two corporate agents and that too for violation with respect to non-life insurance company. Life insurance intermediaries are involved in dubious activities with impunity. It has been a scot-free run for them till now.

According to insurance company official, “IRDA has setup working committee of life insurers through life insurance council. There has been data collected on agencies involved in dubious calls, phone numbers from which calls are made and so on to help create database of fraud.” Media reports suggest that IRDA has already registered a case with the cyber police.

Reliance Life, ICICI Prudential Life Insurance, HDFC Life Insurance, Birla Sun Life Insurance, SBI Life Insurance and Aegon Religare Life Insurance have formally filed a complaint with the economic offences wing (EOW) of the government in this regard. The insurance company we spoke has hired retired police officials to help them investigate cases of fraud selling.

According to a press release issued by Reliance Life Insurance on 20th August, the insurer has got seven such callers arrested and 12 others have been detained. It has filed around 200 cases with the police so far.

Reliance Life’s drive against fraud callers – Will it take action against its corporate agent AB Capital?

Moneylife Foundation Insurance Helpline has been in the forefront to help victims of fraud selling to get back their investment. We have helped 15 victims recover Rs14.70 lakh from Reliance Life Insurance with amounts ranging from Rs10,000 to Rs2 lakh. All of them were fraudulently sold policy by Reliance Life corporate agent AB Capital with lure of “interest-free” loan. The customers even get a fake loan reference number to make it look authentic. The waiting period for the fake loan is ‘forever’. The ploy is to ensure that the “free-look” period of the policy is over during the interim period of waiting for the “interest-free” loan.

Ironically, while Reliance Life feels it is a victim of such fraud, the same is the stance taken by AB Capital who wrote to Moneylife stating that “Based on our internal vigilance, we plan to lodge FIRs against the perpetrators and terminate their employment.”

Reliance Life’s corporate agent AB Capital offers to help victims of fraudulent “interest-free loan”

Should we give a clean chit to all the insurance companies? A policy is sold by an entity authorised to sell insurance. A trail of insurance policy will help to nab the culprits. If only insurance companies and IRDA follow the footprints of the policy for which grievance of fraudulent selling has been raised.



Rajendra Khairwa

3 months ago

sunil and rati tripathi dono kidhar bhag gaye pata hi nahi chal raha hai pls koi to rply karo


Rajendra Khairwa

In Reply to Rajendra Khairwa 3 months ago

apna policy ka amount lekar bhag gaye

Pankaj Nohwar

9 months ago

To INSURANCE OMBUDSMAN CHANDIGARH-160017 SUBJECT-MISSALE OF HDFC STANDARD LIFE INSURANCEPOLICIES NO.17380328&17436306 RESPECTED SIR I,PANKAJ KUMAR is a combatant member of Indian Air force since SEP2007.I deceived by some HDFC standard life insurance broker agents and HDFC members. In January2015, I required some amount of loan for my Sisters marriage. At that time Mr. VIKASH GUPTA(9899507379) and MR.VIKASH SHUKLA(9654612349) i.e. False name spoken to me on my phone. While their real name is D.GANGYAL Code-00556401 and employee code is 3531. And their address is S.B.INSURANCE BROKERS AGENTS PVT.LTD. A-258 DEFENCE COLONY NEW DELHI CODE-00556401 LICENSE NO.230, PH.0114858100.As given in my policy documents . After contacting me for my requirement ,They compel me to purchase minimum two HDFC standard life insurance policies of an amount 150000 Rs. By compelling me they missalled me two HDFC policy without explaining me about free-look period of policy .before purchasing policy they promised me that they will manage a loan of 600000 Rs. Within 45days To me against these two policies and change my policies into one time policy and return back to me after completion of my loan. Many verification call done by these fraudsters and their friends like Miss KAJAL(8744860918) Mr.SANTOSH TRIPATHI(8585907226) and Mr.ATUL SRIVASTAV(8585905362). After receiving the amount 60000rs. For policy no.17380328 by my SBI check NO.565726 dtd.17/01/2015 and 90000rs for policy NO.17436306 by my SBI check NO.565730 dtd. 23/01/2015 then they start ignoring me. Now neither they are receiving my call nor they provide me a loan till now. When I complained against these frauds in HDFC organization .They denial my complain by saying that policy can be cancelled only in free-look period. It’s a combined effort made by HDFC members and SB broker agents .Knowingly they send my both policies documents on my home address while I had also provided my present address so that I could not took advantage of this free-look period of policies. When I came on leave to my home and receive these policies documents free-look period had passed away. Being a only earning member of my family I am already in debt and unable to run these policies .so I request to you sir please cancel my both policy i.e.17380328 $ 17436306 missaled to me by HDFC standard life insurance and SB insurance broker agents. And a strict and disciplinary action against .SB INSURANCE brokers Pvt. Ltd. Licence NO.230. and HDFC fraud agents. Sir I am awaiting for your kind consideration and favourable action in my missale case of HDFC policy. And suggest me for next step in this. This is for your further and necessary action . Date-19 Sep 15 PANKAJ KUMAR MAIL ID –[email protected] MOB NO -9419728594/9376974733


Vishal Chauhan

In Reply to Pankaj Nohwar 2 weeks ago

Hi Pankaj, did you receive any help from anyone because even I got cheated by these SB brokers recently. I need help. HDFC is just not helping they are giving judgement on the basis of the verification call. these brokers have cheated me with Rs.150000.

Rajev Naik

2 years ago

Dear Sir,

I have been facing this fake bonus assurance problem since 2013 when Mr. K K Roy (Mo. No. 09716827436) from Noida called me for Rs. 5.5 L bonus against my ICICI Pudential policy. I had taken 3 policies as detailed below for SO CALLED DOCUMENTATION REQUIREMENTS BY HIM.


RELIANCE 51190271 30763.08 18-9-13

RELIANCE 51309821 43032.85 14-11-13

FUTURE GENERAL 01201365 30000.00 19-3-14

Later on I was called by Aditya Sharma (Noida) from nos. 9716827435 & 9211631714 saying that K K Roy had to resign as he did not release customers money & I shall release the same for you. When he also asked for new policy for documentation, I REFUSED.

Now, today I was called by Khushbu Chauhan (Hyderabad) from no. 8527856935 who said she is calling from IGMS & she can help me get MY FUNDS BACK FROM INSURANCE COMPANIES BY CANCELLING POLICIES WHICH I CAN NOT DO ON MY OWN. (TOTAL AMOUNT Rs. 198922 ALTHOUGH i HAD PAID ONLY ABOUT 1 LAKH IN ALL)

Later on she transferred call to some Aishwarya from Bharati Exa for DOCUMENTATION CONFIRMATION. I was again asked to by new policy woth about 31000 Rs. (out of which 30000 will be refunded to me later on) BUT I GOT SCARED.

I told that my check book is finished & it takes time to get the same from Mumbai so I can not do this today. Tomorrow she will call me again.

This was first time I heard about IGMS & I asked her whether I can complaint on web page but she told me that IT WILL TAKE LONG TIME.


2 years ago

Sub: Complaint About communication to sell policy by offering Loan.

Dear Sir,
I have received a call on 10 th of July from Delhi, Saying that we are from Reliance Life Insurance Company Delhi. Now reliance Capital is introducing themselves in Loan sector hence offering a loan against policy at interest rate of 4.75 % within 40 to 45 days.
He is continuously calling me but I ignore him for a couple of days but at last he committed me on what’s up that he will provide me a loan of 5 lac if I purchased a policy of 40000 Rs from reliance life insurance corporation for 20 years.
I have to pay 40000 Rs each year up to 15 years and after maturity it will be 13 lac. The reliance will deduct the loan with interest up to 7.5 lac & pay rest amount in each year 2016, 17,18,19,20.
The calling person is Mr.Vikram Malhotra, I am continuously resisting but then he gave my call to his Sr. Mr.Rajesh Bhatia & he assured me the same by giving details on what’s up.
So I decided to take policy & give him a check of 40000 Rs along with address proof of SBI Passbook photo copy and signed reliance insurance form on 25 th of July 2014, the courier by meet me at location pune and collected documents from me.
The same documents received to him on 28 th & he send me received details on what sup. After that he told me policy is in process & you will receive up to 7 th of Aug 2014.
I have received Policy on 8 th Aug 2014 & I have communicated to him on what’s up. After 4 days His sr. Mr. S N Ready called me & said details about policy and Loan agreement and procedure. He said your loan will be sanctioned in next 40 days. I am in continuous in touch with these people on what up and on phone but after completion of 40 days that’s 15 sep 2014, they are giving cause that Reference no. not added hence its getting delayed so I give them reference no of my 2 friend & they called them for details.
After that they are giving reasons of its in process & delaying due to some internal issues up to 10 th of Oct 2014.
After that I have confirmed on net by reliance customer care & found that these are the fraud people sold me policy.
Now these peoples are not taking phone nor replying to any SMS from couple of Days.

Pls help me.
Following details for your reference.
1) Application ID Policy :- 7922576 Reliance life Insurance corporation ltd.
2) Policy No. :-51752691 dated 31.07.2014 for 20 years from Reliance life Insurance corporation ltd.
3) Loan File no:-RLI3752R & sanction No. RCF 935 L
Contact Person Details.
1. Mr.Rajesh Bhatia : - 09873841625 Relationship manager.
2. Mr.Vikram Malhotra :-08447771085 Sales agent of reliance.
3. Ishika Sharma & Ambika: - 09582107169 customer care relation officer.
4. Manisha : - 01130564662 Sr customer care officer.
5. Muskan Sharma : - 09999137143 & 01143549233 Reliance life insurance customer officer.
6. Mr S.N Ready :-01133216450 loan sanctioning authority.

Ramesh Khade


2 years ago

Telephonic and Online selling of insurance policies should be stopped


2 years ago

Upfront perks/ commissions related to insurance policies should be stopped.

If insurance companies switch to giving these at the end of policy maturity if after say 3 to 4 years of policy then it will help both insurance companies and a well as customers.



In Reply to Anurag 9 months ago

I appeal to Indian Govt. to allow cancellation of insurance policy with refund money anytime if Insurance Company or any of it's agents or third parties have misselled the insurance policy.

I hope Supreme Court does something about this.


2 years ago

Financial Frauds in Insurance
Many people who had shared their address to be following are claiming to release bonus for the insurance policies.
They have claimed that no one can catch them. They resort to threatening and abusive language when confronted. It's high time Indian Government crack down on these people. Whom should I trust and where should i go for justice

Address details as shared by these people.

Rajesh Mehta
Mobile – 09268820184
Jeevan Tara Building
2nD Floor, Gate No.3 ,
Cannaught Place Road,
Nearby Dhanpat Marg,
Pin – 110002

Vardhman Aditya,
1/15, LIC Building,
300, 12 Khamba Road,
Telephone – 91-120-6510973
- See more at:


2 years ago

This is related to the Fraud call I received yesterday ( 30.7.14) from Delhi region saying that the person ( Aryan Khanna-9136699616) is calling from GBIC dept of IRDA and I have got some bonus from my Birla sun life policy, which is going to be transfer to agent account in next 24 hrs, and if I want to get this amount I have to full fill some formalities immediately. At that point of I thought of that this person must be a fraud as IRDA never calls to any customer regarding policy and the policy which I own does not have the bonus clause as such. Still I continue with the talk saying that I am interested . Then he said that ok I am forwarding your file to the concern department . After some time I got a call from One lady ( Nikita-9212428708) saying that she is calling from Axis Bank Noida, and she is having a cheque of Amount xxxxxxx) which is going to be transfer in the agent account by 2:30 pm and If I want to get this amount in my name I need to full fill all the formalities by 2:30 pm after giving a call to Aryan.
Then I received the call from Aryan saying that I have to give a cheque of amount of 35000 in the name of Reliance life insurance company which will be utilize for RGP ( Reliance growth plan) for one year and the amount will be refund back after one year with 42000 INR. And the bonus amount of Birla sun life will be credited to my account after 90 days of completing these formalities. After that I got a call from another person ( HK Mehta-8459430167, 8459531543) from so called “Reliance insurance delhi” office that as I want to have the bonus amount, I have to submit the documents for which he is sending one person to collect it from my office address. After that I got their (Aryan and Mehta) call after every half an hour for submitting the document and I said that as I am busy with my work so I will be able to hand over the document in the evening or tomorrow. But they were so desperate that they started saying that if I will not submit the documents now I will loose that Bonus amount.
I said ok give me your email ID I will forward all documents after scanning to you and then he was not able to answer that why he want all documents in hard copy. When I confronted him for the fraud he was trying to do with me, he ( Mehta) accepted that they were trying to do a fraud by doing the investment in reliance life insurance of my money and basically they are from some Broker agency and for each policy they will get some commission.
After that he started saying that kindly do not launch any complaint sort of thing against them as their intention was just to get business out of my money.
I am sharing this so that more and more people get aware of such fake calls, who claims that they are from IRDA and cheat the innocent people. Also request IRDA and other insurance agency to take action against such brokers who are playing with their brand name in the market and ultimately creating a negative impression in the mind of common citizen.



In Reply to MUKUL 2 years ago

Same incidence happened with me. I got call from 8010876729


3 years ago

The unloyal attitude of company towards the customer is vbecasue they know that customer is helpless. The company knows all these fraud people. The company pays them insentive for doing the fraud. We have only the consolation.


3 years ago

My father, a retired central govt. employee had an LIC policy which has been closed more than 7 years ago and all debts cleared. Few months back, he received a call from a person claiming to be IRDA employee, and told him that he can encash a premium of 1 Lakh rupees from that redundant policy. He managed to convince my father to cough-up Rs. 25000 to open a policy with Birla Sun Life. Though the policy was verified to be authentic, the 1 Lakh was definitely falsified to lure him into this investment. Now, since last few month, he has been constantly receiving such calls with higher claims. Kindly advise me how to report such fraudulent calls? Can IRDA help us in such cases?


3 years ago

Since October,2013, the officials from Reliance life Insurance were contacting me to sanction loan against the policy. Khalid Ansari, phone No 09210923092 was contacting regularly and convincing me that there is no fraud and he assured me by promising through religious emotions. Mr. Chopra, Mr. Bajpai, Ms. Akanksha Saxena and Mr. Ravi Mittal contacted me through system generated numbers 911400440035,911409304136, 911409304137 and assured that there is no hiding charges etc. They informed that all the discussions are recorded and a copy of CD will be provided to me too. All of them convinced me that there is no fraud. They also told me not to disclose this to anybody as they will charge commission and consequent upon I will lose.
I was told that my loan has been approved. They gave me
Customer I.D. No. C-152A
Registration No. ZMK599C
Login No. LQ9311MJ
File No. HAB/120L/RC

One official from Reliance Life Insurance, Bhopal, contacted me over phone and informed that he received mail from Reliance HQ for giving me the policy. Consequent upon I have taken three policies from Reliance life (agent shri Khalid Ansari).
51310872 86920020
51310919 86920020
51295069 86886721

The Mr. Khalid Ansasri official from Reliance was daily discussing and updating the progress. Mr. Ravi Mittal from RBI contacted me through system generated above telephone on 16.12.2013. He informed me that my loan amount Rs. 20,00,000 has been sanctioned and before release I have to show 3% amount of the loan before release. He told me that some agent from AXA Life shall come and take the policy from him and inform o Mr. Khalid Ansari of Reliance and then they shall release the loan amount. As advised I took a policy from Bharti AXA life Ajeevan Sampatti Policy No 501-1586913 dated 24.12.2013.

Now these persons are not contacting me. Mr. Khalid Ansari has switched off his phone. There is a fraud played with me. They have given false information and harassment.

I shall not be able to continue the policies in case I shall not get the loan. I request you to kindly surrender the policies and pay back my money immediately. I am sending original policy.

This has created a mistrust of all the insurance companies, How reliance official are Falsely recommending and selling other companys brand for earning commission and making client foolish. Kindly look into the matter.


3 years ago

These ploy are taught by the managers and top boss of the insurance companies. They need target to be fulfilled and get hefty salary/bonus & promotion. They care little for the peoples.


3 years ago

Insurance products have been sold and are being sold luring the gullible people. I have observed that people who take insurance are bothered about how much kick back they will get. "Kitna Doge" is the first question. This has come since the inception of the largest and the earliest insurance company in India after independence. Many individual sellers of insurance product - both life and general - face this problem. Many big firms boast of being clean. But things go on unabated. General insurance companies lure their customers by giving heavy discount on the OD tariff. For example, when a vehicle is purchased the company selling the vehicle give free insurance. The insurance premium will be half of the promised amount. When asked, they bluntly say, " Have you not got your policy don't bother about what we do". What an individual IRDA agent cannot do, a person in the RTO will get it done within minutes, "somehow". I have not heard voices against these unscrupulous people, instead, the struggling agents are blamed for everything. This is unfair. Pesky calls by telle-callers starting with the series "140" are rampant. Now many agents have stopped working. I feel individuals should not get into advisory profession. This field is for the rich who can "somehow" get things done. IRDA has proposed to train million new agents. My humble request to IRDA is that they must try to build clean and upright team and clean up the mess. Mis-selling happens when a product has defects. Companies bleed because of cut throat competition. I pray God let wisdom prevail.

Gopalakrishnan T V

3 years ago

They are silently watching the loot.


3 years ago

it is easy to wake up a person who is really sleeping.but it is impossible to wake up someone who is pretending sleep.the regulators will always be receiving their pound of flesh to shut their eyes.

Land acquisition in India to become a costly affair, says Nomura

Food Security Bill and Land Acquisition Bill are the two main election planks for the UPA government. However, if companies defer their capex plans due to the steep rise in land costs, then transactions may fall and the supposed gains to farmers may be minimal, Nomura says

The Lok Sabha debated and passed an updated version of the 19th-century legislation governing land acquisition. The ‘Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation & Resettlement Bill, 2012’ seeks to give a fair deal to farmers losing their land, especially multi-crop land, to industrial needs.


In a research note, Nomura Financial Advisory and Securities (India) Pvt Ltd, said post the Bill, land acquisition in India would become a costly affair. "The challenge with the land bill is to balance the benefit to farmers with the cost to industry. The bill fits well with the government’s 'inclusive growth' agenda, also furthered by the Food Security Bill. In fact, the Food Security Bill and the Land Acquisition Bill are the two main election planks for the United Progressive Alliance (UPA) government. However, if companies defer their capex plans due to the steep rise in land costs, then transactions may fall and the supposed gains to farmers may be minimal. From a macro perspective, the Land Bill is a negative for the private sector, as it increases land costs significantly and extends the acquisition process," the report said.


Here are the key features of the bill


1.  Pre-conditions for land acquisition:


Mandatory social impact assessment (SIA) to identify families that would be affected.


In the case of land acquisition for use by private companies or public private partnerships (PPP), consent of 80% and 70%, respectively, is required from the people that would be displaced.


Payment of compensation and a provision for rehabilitation and resettlement (R&R).


2.  Compensation policy: Up to four times the market value in rural areas and twice in urban areas. If the acquired land is sold to a third party for a higher price, 40% of the appreciated land value (or profit) will be shared among the original owners.


3.  Rehabilitation & resettlement rules: Families affected by land acquisition (farm labourers, tenants, sharecroppers and workers) need to be given compensation of Rs5 lakh or a job; a subsistence allowance of Rs3,000 per month for a year; miscellaneous allowances of up to Rs1.25 lakh per family.


4.  Retrospective clause: The new rules will apply retrospectively to cases where no land acquisition award has been made and to those where land was acquired up to five years prior, but no compensation was paid or no possession took place.


5.  Definition of market value: The market value of the acquired land shall be based on the higher of (i) market value specified in the Indian Stamp Act for the registration of sale deeds; or (ii) the average of the top 50% of all the sale deeds of similar types of land situated in the vicinity; or (iii) an amount agreed upon as compensation for acquisition of land for private companies or PPPs.


6.  Lease option: Companies can lease the land instead of purchasing it, but the decision is that of the state rather than the landowner.


According to Nomura, the main benefit of Land Acquisition bill is that it ensures equity and fair dealing with farmers. Clear guidelines on the process of acquiring land and rules for compensation packages will ensure that the process of land acquisition is clear.


"However," Nomura said, "the bill has negative consequences for industry. First, market prices of land have already been rising. By providing a compensation package that is a multiple of the current market price, the bill can raise the cost of land acquisition significantly, increasing the overall cost of a project. In some cases, this could make the overall project unviable and hurt capex. Second, rising land costs will have an overall inflationary impact on the economy. Third, the bill will elongate the process of land acquisition."


The Bill, which replaces the British-era Land Acquisition Act of 1894 provides for land acquisition as well as rehabilitation and resettlement. It will now be taken up by the Rajya Sabha.



Vinayak Bhimarao Mudholkar

3 years ago

Ways to overcome this law : 1) Lease Dead 2) Verticle Growth of buildings 3) Wherever possible, work from home 4) Three shift working 5) Use of technology to improve space utilisation

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