Kerala   

Stringent measures needed to check real estate prices

Very dear: Land, even in city suburbs, is no longer within the reach of the common man.

‘Roti, kapda aur makaan’ (food, cloth and shelter) – primary needs of the common man has become a distant dream today. The ‘land mafia’ as termed by Chief Minister V.S. Achuthanandan interferes in the deal. The land price and profit margin, among others, are decided prior to the deal. The revenue and registration departments are well aware of the existence of the lobby. The culprits should be brought to book with the support of the public.

A.K. Jayarajan

Kozhikode

The price of real estate has gone up tremendously even in Kerala where the available land is limited for housing and other commercial activities owing to the flow of money, mostly from outside the State. The common man is unable to buy even a small piece of land amidst the affluent society. As such, regulatory measures have been unable to tackle the situation. Government intervention is the only effective way to check the illegal practices. Besides scrutiny by the Registration Department, scrupulous checks should be initiated to ensure that the transaction, especially when each document exceeds Rs.5 lakh, is legal. The source of the buyer’s income should be recorded in the agreement and the sale deed. They should be asked to obtain an undertaking from the buyer of the land regarding the details of properties registered. It should be checked with the limit stipulated of such properties to be acquired by a particular person/firm in the locality or elsewhere. The government should fix the land limit and housing properties to be possessed by an individual or a firm. The government should confiscate excess land obtained unscrupulously. The rules of the Registration Department, incorporating requisite safeguards, should be updated to protect the interests of the poor.

Kunhikannan

Koyilandy

The real estate business is the most profitable business in Kerala. The apartment builders of northern India and the Gulf are buying land in the outskirts of Kochi. The flow of black money into the State enables the real estate mafia to buy land. The land value is not fixed and varies according to the needs of a person.

The availability of money plays a crucial role in the illegal land transaction. In order to prevent the price hike, it is important to identify the source of money used to buy vast tracts of land in the heart of the city. The departments such as revenue and registration have many limitations in preventing the price rise. As the value increases, the revenue incurred in terms of stamp duty and registration fee increases. The government should chalk out steps to curb the hike in the documents.

K. Devi Prasad

Kozhikode

The ever increasing growth in population and scarcity of land for are two key problems faced by the State. To make matters worse, the activities of the real estate ‘mafia’ are on the rise. Those who have indulged in land deals fix the price without bargaining on the value stated by the owners. First, they enter into an agreement on behalf of a buyer whose identity is unknown to the seller. In most cases, the deals are finalised for those working abroad. The agents of the ‘mafia’ group buy whatever land is available in the urban and rural areas. The identity of the actual buyer is mentioned only at the time of registration. The government and the authorities should take a concerted effort to check such practices, including the ‘benami’ system. Besides taking stringent steps against the ‘mafia,’ the government should use its machinery to locate ‘poramboke’ land in each district. The land thus identified could be used by the government and also distributed among the landless people belonging to the below poverty line. The ‘land bank’ as suggested by the Revenue Minister would be quite beneficial in this regard. Encroachers on government land should be evacuated and the land recovered and protected.

V. Viswanathan Nambiar

Thrissur

The real estate ‘mafia’ with the connivance of some politicians have amassed land by offering attractive prices. The government should introduce a Bill enabling it to take over the land possessed by the ‘mafia’ at the rate mentioned in the sale deeds. The government can then distribute the land among the needy at the rate acquired by it. If the present situation is allowed to continue, the common man will be unable to buy even one cent of land even if they are ready to shell out their entire savings.

V.P. Ramesan

Thripunithura

Due to the increase in the price of land and buildings, houses, showrooms, flats and apartment villas, the common man is unable to realise his dream of owning a house. The rich become richer and poor become poorer due to the financial existing in Kerala. The land owners, whose ancestral properties were sold to builders of multi-storeyed complexes and apartments, are leaving the cities and towns and residing in rural areas.

However, those in the rural areas prefer moving into townships. Those belonging to the middle-income group take loans to buy land. The State and Central government staff also approach private banks to secure loans. The real estate agents buy acres of land and selling three to four cents to individuals. The make a hefty profit through the sales. The government should take steps to curb such malpractices and ensure that the common man is not affected by the sky-rocketing land prices.

P. Sankaranarayanan

Kochi

The land price in prime locations has soared in the past two years. The apartment and villa builders secure land at such locations. The deal is transacted in black money. The brokers also get a tidy cut from the deal. Eventually, the worst-hit are the poor and those from the middle-class. Unless the government initiates stringent measures such as restricting the area of land an individual can buy or own for each purpose, buying small plots to build a house would remain a distant dream.

C. George Varghese

Thrissur

Land brokers or real estate ‘mafia’ buy land at cheap rates and sell it at a high rate to buyers. The common man who aspires to build a house is unable to do so owing to the malpractices. The government should take necessary steps to arrest the price rise of lands and buildings.

S.N. Thiruvazhiode

Kochi

The scope of law to control malpractices is limited in a country like India where corruption is seen as a way of life. A law becomes strict only when it is backed stricter implementation. The public should safeguard society.

The local-self governing institutions should be strengthened and steps should be taken to ensure that any transfer of land is approved by the respective bodies. The governing bodies should fix a ground price for land and it should be revised every six months on the basis of land price in the area. This will the authorities keep a tab on the changing land price. Land ownership practices like ‘mitakshara,’ prevalent in many parts of India, is an interesting way of family control over land exchange. Under the system, from the moment of birth a child has right over family property. The land cannot be exchanged without the consent of all the family members.

Visakh R. Pillai

Alappuzha

Given the limited land available and rapid urbanisation, most people prefer to live in the urban area. Housing cannot be denied to those who seek it and can afford it. The government should to revive the housing board, which is mired in controversy, and make available affordable housing for all. If a statutory body like Kerala State Housing Board can be revived to develop areas/properties all over the State, then no one can speculate the land price or encroach upon the land.

Devraj Sambasivan

Alappuzha

The saleable land in Kerala is very limited. But the money available with the land ‘mafia’ is unlimited. The following are the main sources of the wealth — black money amassed by the people by evading tax, counterfeit currency being circulated in the State and hawala money.

The State government has recently issued an order stipulating mandatory production of the buyer’s photo and identification documents at the time of registration. The government should inquire the sources of money in the urban land deals during the past five years.

Transactions involving unexplainable wealth should be identified and those involved in the illegal land deals brought to book. Corruption is another factor in land dealings. So the operation should be done in a time-bound manner by officials with proven integrity.

P.G.N. Varma

Thiruvananthapuram

The sky-rocketing land prices have shattered the dreams of ordinary citizens about owning a house. This is a national phenomenon and is more acute in a land-scarce State like Kerala. The State is unable to cater to the burgeoning demand for land and houses. A lot of money from the NRIs and foreign investors is pouring into the sector. Some of the investments are speculative and drive up the prices. Large real estate companies acquire large tracts of land.

The larger issue is whether governmental intervention can bring down the real estate prices to affordable levels in a market-driven economy. Large tracts of land belonging to the government and the State-owned companies remain unused. By releasing these areas for public use, the government can increase the supply of land apart from earning revenue. The time has come to review the policy on uncultivated agricultural lands. There is no cultivation on such lands as farming has become expensive and risky. A bold measure permitting construction for residential units on fallow land has to be implemented. Traditional wetlands should be conserved to prevent ecological damage.

The government has to relax its building and municipal master plans to facilitate construction of apartment complexes. The rules regarding floor area space for individual houses as well as for flats should be relaxed so that land is used effectively.

V.N. Mukundarajan

Thiruvananthapuram

Real-estate business is extremely profitable. Nevertheless, it promotes land hoarding and restricts land delivery, generating artificial scarcity and rise in land value. The Land Ceiling Act had underscored the State’s power to restrict land ownership in public interest and to impose ceiling on vacant urban land. If it had been retained, correcting the defects, it could have prevented widespread land hoarding and speculation. Unfortunately, the Act was repealed with no positive alternative. The right to housing resolved by the United Nations, decades ago, deserves to be enshrined in our Constitution and implemented effectively. Supply of serviced land to the below poverty line households at affordable price should be the responsibility of the government and the local bodies.

K. Thomas Poulose

Thiruvananthapuram

A well-coordinated regulatory body should be established, under the aegis of the Union Ministry for Urban Development, to protect the interests of various parties operating in the multi-billion dollar real-estate sector. Emphasis should be on the needs of the common man. The functions of the regulatory body should be entrusted to officials who would ensure a ‘free and fair’ trade. The measures suggested include professional management of the sector in line with corporate management. Setting up of an appellate tribunal along with a regulatory body to address the grievances of the affected parties will prove to be an effective mechanism to protect the real-estate business.

Sidhartha S. Pillai

Thiruvananthapuram

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