Karnataka promulgates land reform ordinance again

Karnataka has re-promulgated the controversial ordinance on land reforms, allowing non-agriculturists to buy farmlands.

The Karnataka Land Reforms (Second Amendment) Ordinance, 2020, was given assent to by Governor Vajubhai R Vala and gazetted on November 2.

The government had first promulgated the ordinance in July. A Bill seeking to replace it was passed in the Legislative Assembly, but failed to get approval in the Legislative Council during the monsoon session of the legislature in September. As a result, the government had to promulgate the ordinance anew.

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The ordinance allows non-agriculturists to buy agricultural land and removes the income limit for purchase of land. In response to protests from some farmers’ groups and the Opposition Congress, the government withdrew the proposed amendment to increase the ceiling on land holding from 10 units to 20 units for an individual without family or a family up to four people and from 20 units to 40 units for large families above five people. Each unit of land is 5.4 acres.

Similarly, the government would have to re-promulgate two other ordinances that did not get legislative approval: one on freeing up agricultural trading and another on labour reforms.

The Industrial Disputes and Certain Other Laws (Karnataka Amendment) Ordinance, would make only those establishments that employ 300 or more persons to seek the government's permission for closure, retrenchment or layoff. Similarly, worker thresholds will be increased from 10 to 20 in units which use power and from 20 to 40 in factories that do not use power. Also, the overtime work of any quarter will go up from 75 to 125 hours.

The Karnataka Agricultural Produce Marketing (Regulation and Development) (Amendment) Ordinance curtails the powers of local Agricultural Produce Marketing Committees (APMC) and private individuals can start agricultural trading - buying and selling - if they hold a permanent account number.

An ordinance will be valid for six months, after which it has to be enacted as a law. An ordinance will lapse after six weeks once both houses of the legislature are in session.