We all know what is happening in Singur with Tata bailing out of Singur as the Trinamool Congress has been pressurizing the government to return over 400 acres of land back to the farmers that is claimed to have been taken forcefully by the government from the farmers and given to the Tatas to build their Rs 1 Lakh car "NANO". We seem to have not learnt from this imbroglio.
In another case from Andhra Pradesh, the Supreme Court has dismissed a complaint against the government for acquiring land for Andhra Pradesh Infrastructure Investment Corp. The court ruled that any project which generates employment and brings in foreign exchange is for "public purpose", clearing the road for more forceful land acquisitions.
What is a "public good" in economics terms? A public good is a commodity or a service that is non excludable and non rival in nature, i.e, every individual has a right to use that good and the use of one person does not mean another person cannot use it. Lighthouses and defence/ military services are public goods.
Unfortunately, the court in its ruling has specified "public purpose" but does not seem to use it in the economics sense. It assumes investments bringing forex is for "public purpose". This decision has serious ramifications. India follows a common law system where higher court judgements are used as precedents for lower courts. In all future cases, a lower court will ask -
1. Does the investment generate employment
2. Does it bring in foreign exchange?
If the two answers are yes, land acquisition is legal.
This opens the door to unjust acquisition of private property, especially of the poor without a political clout. We can see in Singur that private property needs to be protected and enterpreneurs should directly buy land from owners.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment