Echoes of Gujarat as Rajasthan looks to bring ‘disturbed areas’ law, Pg18

Key Highlights:

• The Rajasthan government plans to introduce a Bill to designate "disturbed areas" to address "demographic imbalance".
• The proposed Bill is being compared to the Gujarat Prohibition of Transfer of Immovable Property and Provision for Protection of Tenants from Eviction from Premises in Disturbed Areas Act, 1991.
• The Gujarat High Court has narrowed the scope of the Gujarat state's power to interfere in private property transactions under the Act.
• Amendments to the Gujarat Act in 2020, which introduced terms like "proper clustering," are currently stayed by the Gujarat HC.

Detailed Insights:

• The Gujarat Disturbed Areas Act, enacted in 1991, aimed to prevent "distress sales" of property due to fear and intimidation following communal riots.
• Under the Act, the state government can declare an area "disturbed," requiring prior approval from the district collector for property transfers.
• Legal experts argue that the Act allows the state to control the demographic composition of neighborhoods, potentially violating Article 19(1)(e) and Article 15 of the Constitution.
• The Gujarat High Court has clarified that the collector's power is limited to verifying free consent and fair market value in property sales.
• The court has ruled that collectors cannot block transactions based on "law and order" concerns if the sale is genuine, reinforcing individual rights.

Key Concepts Involved:

• Distress Sales: Forced property sales below market value due to fear or coercion.
• Demographic Imbalance: Disproportionate representation of different communities in an area.
• Article 19(1)(e): Guarantees every citizen the right to reside and settle in any part of India.
• Article 15: Prohibits discrimination on grounds of religion, race, caste, sex or place of birth.