Is this the biggest land scam of India?
In this issue:
» India exports coal despite shortage for own use
» Why Buffett keeps adding this stock to his portfolio?
» Japanese culture to be blamed for nuclear crisis
» Online trading is gaining momentum in India
» ...and more!
--------------------- 5 Latest High-Potential Blue chip Recommendations for just Rs 499 ---------------------
We have launched a never before trial offer for our best performing stock recommendation service...
If you sign up now, we will give you immediate access to our 5 latest buy recommendations.
Plus you will also get our latest special report - 3 Money Doubling Stocks.
Click here to know more about this limited period special offer...
----------------------------------------------------------------
00:00 |
||
If the allegations stated in an article in Moneylife are true, the Hiranandani township in Powai, which is famous for its luxurious and lavish architecture, could be the biggest land scam of India. The report states that back in 1977, the Powai Area Development Scheme was approved to develop 344 acres of land. As per the law then, the acquired land could only be used for mass housing. The article points out that Mr Niranjan Hiranandani, the founder of Hirco and co-founder of the Hiranandani Group, acquired 341 acres of land at just Re 1 per hectare. In other words, free of cost.
But that was just one part of the story. The article further reported that out of the government-sanctioned land, the developer utilised only a part of it. On the remaining portion of land, he built luxurious flats and sold them at premium prices. Activist Santosh Daundkar, the complainant in this case, has alleged that "the developer cheated the state government by using government land for his own benefit." As per former IPS officer and lawyer YP Singh who argued the case before the court on behalf of the complainant, "several politicians and bureaucrats were bribed as this fraud and game of corruption went on openly in the last 20 years. It is suspected that hundreds of flats were doled out as bribes to many politicians and bureaucrats to facilitate the fraud. Time will indeed unravel the truth if the investigation goes on honestly, efficiently and on the desired lines." As reported in the article, he estimates the size of the scam to be more than Rs 450 bn based on current rates.
This is yet another shocking exposure of how deeply the corruption gene is ingrained in India. But that is not all. This also shows the meekness of laws pertaining to land rights and ownership, as well as the flaws in the executive machinery. In a previous article, we had discussed how the crucial Land Titling Bill has been in a state of limbo for a quarter century. Unfortunately, we may have to wait another decade before seeing some meaningful land reforms.
As far as corruption by corporates is concerned, we have maintained, time and again, that investors must pay utmost attention to the quality and integrity of a company's management before making their investment decisions. This is the reason why companies that are honest and shareholder-friendly tend to command a premium over their peers.
According to you, which is the most trustworthy corporate group in India? Cast your vote now!
01:30 |
Chart of the day | |
Data source: Business Standard |
02:05 |
||
Indeed. If there is one bank that has managed to side step the financial crisis in a big way, it has to be Wells Faro according to us. Secondly, even as its peers were jumping headlong into investment banking, it stayed true to its core philosophy and remained focused on banking. Little wonder, it has emerged as a favourite with Buffett. The Oracle's affinity towards Wells Fargo also teaches one very important lesson we believe. And it is to focus one's investments. If you have surplus funds, why put it in your second best and third best investments. The road to faster wealth generation is to adequately concentrate your investments in your best possible bets.
02:47 |
||
To all those critics it would come as a surprise that most of Tepco's problems were not related to the tsunami but to the Japanese culture. As described by a report of the investigation team it was the ingrained Japanese culture of never questioning authority. Their devotion to sticking with programme and their groupism and insularity led the disaster to take the form it did. This is why no one questioned the regulators colluding with utilities to reduce safety measures. Or question the government's inadequate emergency planning. Or Tepco's poor communication and decision making which led to the deaths of so many. Hopefully the horrible incident has led to a wakeup call for the authorities and they would never ever let history repeat itself.
03:20 |
||
04:00 |
||
04:30 |
||
04:50 |
Today's investing mantra |
Today's Premium Edition.
Recent Articles
- All Good Things Come to an End... April 8, 2020
- Why your favourite e-letter won't reach you every week day.
- A Safe Stock to Lockdown Now April 2, 2020
- The market crashc has made strong, established brands attractive. Here's a stock to make the most of this opportunity...
- Sorry Warren Buffett, I'm Following This Man Instead of You in 2020 March 30, 2020
- This man warned of an impending market correction while everyone else was celebrating the renewed optimism in early 2020...
- China Had Its Brawn. It's Time for India's Brain March 23, 2020
- The post coronavirus economic boom won't be led by China.
Equitymaster requests your view! Post a comment on "Is this the biggest land scam of India?". Click here!
1 Responses to "Is this the biggest land scam of India?"
JK Verma
Jul 6, 2012My comment is on "Coal Export" from India. When it comes to reforms we want less regulation and more Free market economy. Are indian entities restricted for coal import , No. Why rue the coal export from India then ?
Second comment is for choosing most trusted / free of corruption corporate Group. That is Godrej in my opinion , but the choice list does not have this name.