GOKHLE EDUCATION SOCIETY

NB THAKUR,LAW COLLEGE
NASHIK
SUBJECT NAME: B.A. 0403
Law and Economics
(BA LLB-IIND, SEM.-IV)

Objectives:
Name of the Teacher To study the relationship between
Astt. Prof. Law and Economics
Ravindra Pandit Adhav To know the significance of
93256-56797 Economics in Law
To Understand the impact of
Economics on Law
 Economic factors of pricing
Here are some factors that
Factor pricing is breaking down a product or service’s price affect pricing in economics:
into components, or “factors,” and determining their cost. ➢ Factor markets
➢ Economy
★ This process is done for various reasons, such as ➢ Product costs
identifying the cost associated with each factor, ➢ Competition
understanding how different factors contribute to the ➢ Government regulation
overall cost structure, and comparing pricing strategies ➢ Demand for product
across competing products or services. ➢ Price of competing firms
★ Factor pricing typically involves categorizing the costs ➢ Purchasing power of
associated with a product or service into three distinct customers
➢ Objective
components: materials, labor, and overhead costs.
➢ Marketing method used
 Exploitation of Labour
Labour exploitation is the abuse of workers for profit.
It can be direct and obvious, or more subtle.

Labour exploitation can also refer to situations where

employees are working in poor conditions or have their
wages withheld.

Usually, when someone is employed, they can decide if

they are willing to work for the compensation that the
employer is offering. The worker makes this decision
based on the information that they have available to
them like the pay for the labor they will be doing, the
hours, and the working conditions.
 Land Reforms- Meaning
Land reform refers to efforts to reform the ownership and
regulation of land in India.

● Land reform gives land ownership to the people who

work that piece of land, thus improving their living
conditions. Land and Land reforms are beneficial to the
country and its people.
● Land reforms are not just a great gift to the poor and
needy; they also make society better and more stable.
● They give farmers a sense of ownership and dignity,
which is important in building a good relationship
between tenant farmers and landlords.
 Land Reforms in India The number of landless,
which was one-third of all
poor, has decreased from
Land reforms in India have helped improve the lives of
57% (1983) to 5% (1997).
millions of people. Land reforms have led to increased
Landless households (for
agricultural production and a decline in poverty.
temporary and permanent
Pre Independence: Under the British Raj, the farmers did not reasons) were estimated at
have the ownership of the lands they cultivated, the landlordship 16% in 1994.
of the land lied with the Zamindars, Jagirdars etc.
❏ Several important issues confronted the
government and stood as a challenge in front of
independent India.

❏ Land was concentrated in the hands of a few and

there was a proliferation of intermediaries who
had no vested interest in self-cultivation.
Leasing out land was a common practice.
 Post Independence Land Reforms
A committee, under the Chairmanship of J. C. Kumarappan was appointed to look into the
problem of land. The Kumarappa Committee's report recommended comprehensive agrarian
reform measures.

The Land Reforms of the independent India had four components:

★ The Abolition of the Intermediaries

★ Tenancy Reforms
★ Fixing Ceilings on Landholdings
★ Consolidation of Landholdings.
 Abolition of the Intermediaries
The first important legislation was the abolition of the zamindari system, which removed the layer of
intermediaries who stood between the cultivators and the state.

★ The reform was made to strengthen the actual landholders, the cultivators.

Advantages: Disadvantages: zamindari

★ The abolition of intermediaries abolition did not wipe out landlordism
made almost 2 crore tenants the or the tenancy, It only removed the
owners of the land they cultivated.
★ The legal abolition brought the top layer of landlords in the
cultivators in direct contact with the multi-layered agrarian structure.
government.
 Tenancy Reforms
Tenancy reforms introduced to regulate rent, provide security of tenure and confer ownership to tenants.

■ The reform attempted either to outlaw tenancy altogether or to regulate rents to give some
security to the tenants.

Issues:
★ In most of the states, these laws were never implemented very
effectively.
★ Few states in India have completely abolished tenancy while
others states have given clearly spelt out rights to recognized
tenants and sharecroppers.
★ Although the reforms reduced the areas under tenancy, they
led to only a small percentage of tenants acquiring ownership
rights.
 Ceilings on Landholdings
The ceilings on landholdings referred to legally stipulating the maximum size beyond which no
individual farmer or farm household could hold any land.

➢ The imposition of such a ceiling was to deter the concentration of land in the hands of a
few.
➢ By 1961-62, all the state governments had passed the land ceiling acts. But the ceiling
limits varied from state to state. To bring uniformity across states, a new land ceiling
policy was evolved in 1971.

Issues: In most of the states these acts proved to be toothless. There were many
loopholes and other strategies through which most landowners were able to escape
from having their surplus land taken over by the state.
 Consolidation of Landholdings

Consolidation referred to redistribution of fragmented lands

into one plot.

Under this act, If a farmer had a few plots of

land in the village, those lands were
consolidated into one bigger piece of land
which was done by either purchasing or
exchanging the land.
 The Real Estate (Regulation & Development Act, 2016)

The Real Estate (Regulation & Development) Act, 2016, referred to as the ‘Act’ applies to the whole of India
except Jammu and Kashmir. (Before, August 2020)

After Article 370 revocation, Jammu and

Kashmir & Ladakh became two separate
Union Territories (UT). As a result, J&K
UT became bound by the central RERA
(Regulation and Development Act) rules.

★ Provisions of the RERA Act apply to residential

apartments, buildings and plots whether
residential or commercial.
 Need for the Real Estate (Regulation and Development) Act, 2016

★ To control and regulate the real estate sectors by shutting out

malpractices;
★ To contribute a good percentage to India’s GDP;
★ To create accountability and responsibility for the authorities so
appointed
★ To tighten the security on the use of investments done by the home
buyers or investors
★ To have a supreme authorisation on the registration for the projects
required to be registered
★ To maintain quality in delivering the project to the buyers as per
their interest and give scope for complaints to the authorities in case
of any structural defects
Salient features of the Real Estate (Regulation and Development) Act, 2016

❏ To control and regulate the real estate sectors by shutting out malpractices.
❏ To carry out the sale of plots, buildings or apartments as the case may be, or
the sale of all the real estate projects transparently and efficiently.
❏ To protect the interests of the consumers and buyers and ensure the
prevention of malpractices against them.
❏ Establishes state-level regulatory authorities called RERA.
❏ To ensure that the buyer or promoter, as the case may be, pays an equal sum
in the event of any default.
❏ The Act provides the right to legal representation on behalf of the client by
a CA, CS or CMA or legal practitioners
❏ It imposes a stringent penalty on promoters, and real estate agents and also
prescribes imprisonment.
An overview of the Real Estate (Regulation and Development) Act, 2016

Real Estate Appellate

Mandatory Tribunal-sec. 43
Deposits Registration
-sec. 3
Punishme
nt- sec.
66
Penal Ceiling on
interest on
default-sec.
advance
61 payments State-level
- sec. 13 regulatory
authorities- Sec 20
 Agrarian Reforms
Agrarian reforms in India are measures that aim to secure the rights of farmers and peasants, and
to help them access loans. They also aim to improve productivity, efficiency, and market access.
★ Agrarian reform varied from state to state.

objectives of agrarian reform in India

● Setting proper land management,

● Abolition of Intermediaries
● Preventing fragmentation of lands,
● Tenancy reform.
Importance of Agrarian Reforms
Agrarian Reforms Act- The Maharashtra Agriculture produce
marketing (Development and Regulation)Act,1963
The Maharashtra Agricultural Produce Marketing (Development and Regulation) Act,
1963 regulates the marketing of agricultural and other produce in market areas and
markets.
● The act also establishes Market Funds for the Market Committee and provides for
other related matters
● The act also gives powers to Market Committees that are constituted in connection
with or acting for purposes connected with such markets
● An Act to regulate the marketing of agricultural and certain other produce in
market areas and markets to be established therefor in the State
 The act aims to:

● Eliminate the long chain of intermediaries

● limit the occurrence of Distress Sale by the farmers
● Reduce consumer prices
● Improve prices for crop producers
● Attract private investment to build market yards
● Create a post-harvest value chain that includes cold
stores, warehouses, and logistics
 The crop that is most
frequently marketed
by FPOs across
Maharashtra is tur dal
or pigeon pea. India is
ranked number one in
the world in the
cultivation and
production of tur,
with Maharashtra
responsible for
approximately 30% FPO-
of overall production. farmers
producer
organisation
Source: TCI-ICRISAT
District-Level Database
for Indian Agriculture and
Allied Sector
Increasing the yield and productivity of farms
● Asian Development Bank is preparing an innovative Maharashtra Agribusiness
Network (MAGNET) project.
● MAGNET will increase the incomes of small and marginal farmers in India’s
Maharashtra State in line with the state government’s Vision 2030 by providing
holistic agribusiness and value chain support in horticulture.
It will enhance
● (i) the capacities of agribusiness institutions and farmer producer organizations,
● (ii) access to finance of farmer producer organizations and value chain operators,
● (iii) horticulture value chain infrastructure. The infrastructure will use designs that
are responsive to gender and people with disabilities, and include climate adaptation
and mitigation financing.
 Here are some ways to increase the yield and productivity of farms:

★ Use high-quality seeds

★ Use modern irrigation
methods
★ Practice crop rotation
★ Monitor crop growth
★ Use fertilizers
★ Practice field scouting
★ Plant existing cropland
more frequently
 Economic Legislation
Economic legislation is a government tool that regulates the actions of consumers and
producers, protects private property, and protects the environment.

★ It also includes the drafting and revision of

economic laws and regulations.
★ Economic legislation can also refer to the
various measures taken by the government
to regulate the private sector to align its
activities with economic goals.
 Economic Legislation Examples

The government provides Income Redistribution

public Goods and Services includes gathering money
for the good of all people. from citizens through
Resolving
This means people do not taxes and using that
Market Failures
have to purchase them has been a revenue to run the
because the government significant role of government and provide
makes them available. the government public goods and services.
in the economy
in the 20th
For example, during the Great
century.
Depression, the government Government regulations of
increased federal funding for public
works projects, provided jobs for business practices and the
unemployed people, and reduced goods provided by the business
income tax rates.
 The Foreign Exchange Management Act
Foreign Exchange Management Act, 1999 (FEMA) came into force by an act of Parliament. It
was enacted on 29 December 1999.
● This new Act is in consonance with the frameworks of the World Trade Organisation
(WTO).
● FEMA replaced an act called Foreign Exchange Regulation Act (FERA).

What is the main change brought in FEMA compared to

FERA
★ It made all the criminal offences as civil offences.
★ FERA did not comply with the post-liberalization policies of the
Government, so it was replaced by FEMA.
 Main Features of Foreign Exchange Management Act, 1999

❖ It gives powers to the Central Government to regulate the flow

of payments to and from a person situated outside the country.
❖ All financial transactions concerning foreign securities or
exchange cannot be carried out without the approval of FEMA.
❖ Empowers RBI to place restrictions on transactions from capital
Account even if it is carried out via an authorized individual.
❖ In the general interest of the public, the Government of India
can restrict an authorized individual from carrying out foreign
exchange deals within the current account.
Structure to appeal when the
party is aggrieved
Objectives of the Banking Regulation Act, 1949

● To meet the demand of the depositors and provide them

security and guarantee.
● To provide provisions that can regulate the business of
banking.
● To regulate the opening of branches and changing of
locations of existing branches.
● To prescribe minimum requirements for the capital of
banks.
● To balance the development of banking institutions.
Features of the Banking Regulation Act, 1949

● Non-banking companies are forbidden to receive money deposits that are

payable on demand.
● Non-banking risks are reduced by prohibiting trading by banking
companies.
● Maintaining minimum capital standards.
● Regulation on the acquisition of shares of banking companies.
● Power of the Central Government to make schemes for the banks.
● Provisions regarding liquidation proceedings for banking companies.