Telangana's realty scam worth Rs. 15,000crore; Google, Microsoft also affected
Global and domestic companies in Hyderabad are now in panic mode regarding the valuation of their real estate holdings, as Telangana government commences legal proceedings to cross-examine private and government-auctioned land ownership legitimacy.
This apprehension was further fuelled by the latest and by far the largest land scam in Telangana involving acres of land worth more than Rs. 15,000 crore.
Here's all about it.
Telangana's latest realty scam spooks investors
The latest in the series of scams
According to reports, the scam was carried out in collusion with land registration officials in order to take over several acres of disputed land primarily in Hyderabad's Miyapur and few other areas.
Hyderabad's real estate market was slowly starting to revive itself after its allocation to Telangana in 2014. These scams have now given that a major setback.
Is the condition really that bad?
The owner of a local brokerage firm informed ET that Hyderabad had scores of dubious land titles in the city and it was considered the worst property market in terms of land records.
It's no wonder that industry majors have now become wary of investing in the state and are apprehensive about the future of their existing properties.
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Several big names have been pinched
Messy land titles in Hyderabad have vexed companies that could have become assets to the state and its economy; behemoths, such as Google, Microsoft, Tishman Speyer, Shapoorji Pallonji, DLF, Lanco, Puravankara, Sattva Salarpuria, have all been affected through this quagmire.
Under the prevailing circumstances, investors are not even assured that the land acquired from the government is going to be legitimate and sans trouble.
What does the government say about it?
TRS government's IT and industries minister KT Rama Rao informed ET that the state is ready to reach out to investors and address their present state of angst.
He said that land titles have been an issue in Hyderabad for long but now the government is carrying out several reforms that would remedy the current situation by putting the controversial land records in order.
The time for action is now
There is no doubt that these scams are going to affect the flow of investment in Telangana, as the investors, riddled with uncertainties about land legitimacy, would want to stay clear of dubious properties.
The government needs to be proactive in dealing with this menace and digitize all land records in order to prevent tampering if it wants to get back investors' attention.