Attracting an average annual investment of more than 1.5 lakh crores since the past 7 years in sectors across heavy engineering, power, ports, IT etc. the state of Gujarat has progressed at an unprecedented rate. In an effort to sustain its development and curb black money the government inducted the new ‘Jantri’ rates based on the prevailing market rates.
The move is more than a mere administrative decision as it portrays the absolute power Narendra Modi with total disregards to the demands of developers, Land banks & Realtors who often form major contributors to the state coffers. After much receiving contentions from various stakeholders across the state, after 15 days the government slashed the new rates by 50% based on decision taken by Narendra Modi. However, the ministers in charge of receiving contentions said that the state government wanted to bring in transparency in the calculation of stamp duty and stop flow of black money into the real estate market. Land prices had gone up even in the interior areas of the state because of infrastructure facility provided by the government, so it is only logical that the government reaps its share of benefits from the development.
The bold move could be considered only by a leader of Modi’s status considering the clout enjoyed by the builder lobbies in their respective states. In recent past a Chief Minister had to face the wrath of builder lobby for not passing their projects and as a result was sacked following a well cultivated realty scandal.
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