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January 20, 2011

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New rules outlaw forced demolitions

CHINA has issued new rules promising fair prices to homeowners losing their property and an end to forced demolitions without legal approval.

An executive meeting of the State Council, China's Cabinet, yesterday gave in-principle approval to a draft regulation on land acquisition and compensation which is expected to better protect homeowners.

It published a revised draft of the new rules in December after a public outcry pointing out many loopholes in the original proposals.

The draft says compensation paid to homeowners should not be lower than the sum of the market price of the property, the cost of moving and temporary accommodation, and losses caused by suspension of business.

Governments should expand public participation in the approval of house acquisition plans, the draft says.

If a majority of people oppose the plan, they should call for a public hearing and modify the plans, it adds.

House developers are prohibited from being involved in relocations, according to the new draft, and agencies which are responsible for acquisition and compensation should not be profit-oriented.

Forced demolitions without proper legal approval are banned under the new regulations, and the government must obtain court approval in cases where demolition is disputed.

The State Council said the regulation aims to address the contradictions between the interests of the public and the need for industrialization and urbanization.

There have been many instances since China reformed the property market where homeowners and property developers have come into conflict over demolition plans and compensation payouts.

Chinese people facing removal from their homes have long complained that the amount of compensation offered is far below the real value of their homes.

Standoffs in Chinese property disputes can turn violent, pitting residents against developers and hired gangs. Protests over home and farmland confiscation are one of the nagging threats to social stability.

In a forced-demolition case last October, thugs entered a house of a 54-year-old man in the Guzhai Village of Taiyuan City in northern China, pulling him out and beating him to death.

In another case last year, residents set themselves on fire to protest against plans to demolish their house.

After further modification, the new draft will be submitted to the State Council for promulgation and implementation.




 

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