STORY OF 2006:
SEZs in India – A Land Bank Scam ?
It is very unfortunate thatthe architect of Indian liberalization process Dr. Manmohan Singh holds thehighest authority in the Government when the real estate sharks are alldetermined to grab land with an “whatever it takes” attitude.
The SEZ policy whichappears to be flawed, has attracted criticism from within the partners andministers within the government.
Here is a list of opinionsfrom experts on the SEZs in India.
Dr Manoj Pant, of JNU saidthat “the bestpolicy is not to have any sez atall”.
Highest banking authorityof India, the RBI is concerned about possible Real Estate Bubble in India. RBI raised RED flag on SEZs in its current state and just two days ago the Governor ofRBI, Y V Reddylookedworried and also said that, “Like any other land, SEZ is Real Estate”and didn’t hesitate to sign a resolution directing all banks operating in India treat loans to SEZ projects as “Commercial Real Estate”loans with immediate effect and not as Infrastructure project loans.
Now from within thegovernment, Finance Minister, P Chidambram has expressed his because of taxpaying industries relocating to SEZs which can operate as tax free zones. Both,the Finance and Commerce ministry have argued in public and also in Group ofMinisters meeting defending their own cause. Chidambramhad backers from the left parties, but Leftists have more genuine reasons to protest – SEZ land acquisition is displacingAgriculturists and peasants without any migration plan for their dailylivelihood.
The saga begin with MukeshAmbani controlled, Reliance Industries Limited controversial SEZ in Haryana.Younger brother Anil Ambani is also facing stiff resistance from former PM ofIndia, V P Singh(Left) forReliance Energy Limited proposed SEZ in Dadri which was cleared by Mulayam SinghYadav government. It’s not just Reliance, but more evil real estate sharks arelobbying for Hotel SEZ ? What for ? DLFand Parsvanath Developers today received approvals for Real EstateSEZs. Jeez!!! This is getting crazy now.
Investigative journalist, Sucheta Dalal (Left) who exposed the great IndianSecurities Scam(Harshad Mehta Scam) has said, “The SEZ (Special EconomicZones) policy, which provides little clarity on the impact of generous taxholidays and myriad concessions on the economy, may also come to a grindinghalt, but nobody is complaining because every corporate group is rushing off tograb chunks of valuable real estate to set up SEZs, exactly like they chasedpower projects in the past.“
Day today review of SEZs inIndia is being doneby this blogger, if you are interested to follow.
I am not really very happyto write this post, but every article and report that I read today iscriticizing the SEZ policy in its current state. Investors kindly be careful aboutcompanies with Land Bank Saga before you commit your hard earned money in the IndianShare Bazaar.
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