The legal experts now affirm that the Andhra Pradesh Capital Region Act (under CRDA) and other agreements with farmers and land owners in the land pooling scheme give complete rights to the state government to do whatever it wants with its share of land.
Earlier, the state government went uneasy with preset conditions set by Singapore companies, such as mortgaging land to raise loans. However, supplementary agreement and land pooling agreements give full rights to the AP state government to either mortgage or sell its share. The government also has the right to lease or sell this land to third parties.
According to the clause IV in the the supplementary agreement, CRDA is entitled to either sell, lease or license the areas allotted to it, without any further reference to the original land owner or farmer. The CRDA is also hereby entitled to avail any project loan by securing the areas allotted. It can do so by availing these loans from banks and financial institutions, depositing the original principal agreements and other documents by way of equitable mortgage and by depositing the title deeds and registering the same before the concerned sub-registrar. This can be done by exercising the power of attorney mentioned in clause 17 of the principal agreement.
Alternatively, the principal agreement says the location of plots shall be closer to the lands of farmers, which actually goes against the proposals of Singapore companies. “The locations of the ‘reconstituted plot’ will be retained close to its original locations unless a specific planning concern warrants its shift. In such cases CRDA reserves the right to locate the reconstituted plots and evolve a policy duly discussing the same with the owner of the original plot.” says the clause.