By: Sunil Dahiya, Managing Director, Vigneshwara Developers
The real estate fraternity today is scared and apprehensive with what happened at the Noida Extension. In the current scenario there is a lot of confusion and insecurity in investors, developers and most of all farmers. As per my understanding, the only safe position as of now is of the Government. But if you go deep into the problem there is nothing wrong, except for the policy structure.
In business strategy, we design certain structure out of which some of them lead to loss while others lead to profit. Likewise, certain old policy structure made by the Govt., like the Emergency Clause of the Land Acquisition Act, framed in 1984, has lead to huge losses to both the developers and the investors. The purpose of designing a policy in 1894 may have been different, but now the policy has to go for reframing as this policy cannot be accepted in the current scenario.
The question is how we look at this imbroglio-just another controversy in land acquisition or we look at it as a learning curve? The new policy which has been framed will go for debate; it has been tabled in the parliament but the big question is; how many parties will agree to it. We are nearing next round of elections in certain states and how much of political consensus will it manage to get is talk of the town.
This policy at the central level will have effect on the all the states. Obviously, the states are also stakeholders and they have to agree to such a policy as it is a political requirement now. So ultimately the policy will go for a reframing for sure. But what’s happening on the other side, to the loss? We have to find out whether this loss be turned over or is it going to get worse.
