First auction, then the land
The Government of Kazakhstan has developed new rules for landowners
The Government of Kazakhstan is unhappy with the way the owners and tenants of land, including agricultural land, manage their property. Public lands, reserved for agricultural purposes, are not involved in market turnover, in addition, not all tenants use the land properly, for example, introducing modern technologies for cultivation because of low rent for the land. With these reproaches in address of land users began his speech the minister of national economy Erbolat Dosayev at the plenary session of the Mazhilis, during which he presented the package of amendments to the Land Code.
The draft law stipulates a number of innovations. Thus, it is proposed to change the rules for the transfer of agricultural land to private ownership. Now for this purpose will be conducted auctions initially by the English method (at least two auctions) in the case of impossibility to sell the land by this method, it will be sold by the Dutch method. In this case, the Government proposed to prevent the sale of land at a price lower than the 50% of the cadastral value.
In parallel, the rent of agricultural land was abolished for citizens and non-state legal entities of Kazakhstan to conduct peasant farming and commercial agriculture. It is also proposed to cancel the sale of agricultural land at a reduced price.
As for existing land users, the draft law stipulates that they retain the right to dispose of the land before the end of the lease term, but they also will be able to redeem the land plot, they will endowed with the right to buy the land plots in the property before the expiration of temporary land use at a discounted price 50% of its inventory (estimated) value by installments up to 10 years.
And if they do not take advantage of the privilege, the corresponding land use right is terminated and the land is returned to the state to be sold at auction.
In addition, in order to optimize the procedure of changing the purpose of land, allocated for agricultural production, it is proposed to abolish the need for the status of the land plot during the construction of agriculture facilities as well as in the case of transformation of its legal form by the owner. The draft law also stipulates the lifting of restrictions on the alienation and transfer of unredeemed land use rights on agricultural land within the term of the lease agreement, except in reference to a sublease.
The Government project can affect the interests of the owners of land shares, transferring their stakes in the authorized capital of business partnerships or cooperatives. For them it is proposed that a year before the end of the lease, owners can declare their redemption or abandoned the right of redemtion at the general meeting.
Deputies approved the draft law, though in two readings, but did not hesitate to put critical arrows against the developers of the draft law. Mazhilisman Vladsilav Kosarev responded to the statement of the Ministry of National Economy about dishonest tenants of land as follows: "People didn’t leave their land, but wheat growing companies, which for the sake of high profits use only good land plots, and abandon the bad ones".
The draft law is now directed to the Senate.
Zhanar Serdalina
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