Land banks are government agencies or private organisations that help manage and dispose of vacant properties, vacant land, or tax-delinquent properties so that these can be redeveloped for more productive use. Adoption of the idea of land banks has the following advantages:

• Ready availability of land: Land banks will help in reducing land-related litigations and streamlining the availability of associated permits, which would help reduce cost overruns and decrease corporate bankruptcy.
• Attract investment: Land banks can serve as a one-stop solution to the free and easy accessibility of all related industrial information, which will help in informed decision making by investors and boost investments.
• Addressing inordinate delay in disposing government land: This happens due to the absence of a single comprehensive land database, opposition from trade unions, illegal encroachment and lack of coordination between various ministries. A dedicated land bank will ensure time-bound disposal of unutilised land.
• Improves land utilisation: Land banks will allow for better utilization of unused government land, including that in notified SEZs, which has about 52 percent vacant land. Moreover, the government can use these lands for public projects like highway construction, afforestation, nature restoration etc. and promote economic development.
• Promotes economic activity: At a time when the COVID-19 pandemic has led to the halt of many economic activities, land banks can be used to attract investment and jump-start the economy.

However, pursuing the idea of land bank scheme may not always lead to expected results and could create various issues, such as

• Questions of ownership and rights: Common or joint ownership of land is a practice in India and any difference between owners over the control of land and its use could lead to land conflict.
• Legal loopholes: According to the Forest Conservation Act of 1980, the government is required to get forest clearances or approval from the Ministry of Environment to use forest land for a non-forest purpose. However, there is no provision to obtain forest clearance for a land bank under the Act.
• Potential future conflicts: There is a potential risk of future investments on land under the land bank scheme facing conflicts similar to those that prevented the previously planned projects. Moreover, the mismatch between the de jure records presented by the bank and the de facto utilisation on the ground leads to ambiguity.

In order to make land banks a robust strategy, associated concerns should be given adequate attention. Reforms including creation of a land record repository, digitization and integration of all records relating to land ownership titles, adequate checks and balances, defining a structured timeline for timely resolution of property disputes etc. need to be adopted.